1.3.2.Branding And Promotion

Question 1

Promotion

Answer 1

-Generates customer awareness, interest, desire for product/service.
-Helps build brand awareness and loyalty

Types of promotion:
1.Advertising-Promotion through paid channels
+ve: reach large audience=more awareness, create specific brand image
-ve: expensive, ineffective, people ignore ads

2.Sponsorship-Providing financial support
+ve:brand awareness, emotional connections , support specific objectives
-ve: expensive, might not drive sakes, negative publicity

3.Public relations-Relationship with the public
+ve:enhance rep and credibility, increases customer loyalty
-ve: time consuming

4.Direct marketing: comm. with customers via mail
-+ve: target specific audiences and personalise. Can track results as it is measurable
-ve:intrusive as customers may perceive it as spam, costly especially is no established customer base

5.Digital communication-marketing or comm electronically
+ve: can be targeted to specific customer segments, can provide real time engagement and feedback
-ve: easily ignored by customers, investment in tech, subject to data privacy regulations, could be ineffective for reaching elderly

6.Sales promotion- marketing technique to encourage purchase by offering temp incentives etc
+ve: boost sales, engage customers, clear out stock, encourage impulse purchases
-ve:expensive especially if promotion requires heavy discounting, attract deal seeking customers

7.Personal selling- sales person interacts with potential customers 1-1
+ve:allows relationships to be built with customers, understand specific needs and wants, enables businesses to provide personalised advice
-ve:expensive due to cost of hiring and teaming sales staff, impact of personal selling can be limited as it’s difficult to scale to large audiences.

Question 2

Branding

Answer 2

-Creating unique name to differentiate and build connections

Types of branding:
1.Manufacturer/corporate branding- use of company logo to promote all products/service’s offered ie.nike, apple
+ve:strong brand recognition and rep, easier to introduce new products, builds econ of scale (increased scale of output results in lower cpu) by printing multiple products under one brand
-ve: damaged rep impacts every product, competition in one market may affect sales of all products

2.Own brand product- use of retailers name to promote ie. Tesco’s finest range, ASDA chocolate etc
+ve: differentiate, offer products at lower cost than branded products= increased sales+ profitability, builds loyalty
-ve: may have lower perceived quality

3.Product branding- Unique quality to promote ie. Kitkat, Coca Cola
+ve: distinct identity=better differentiation=loyalty, can market different products to different segments of market ie. Coca Cola and Coke Zero
-ve: expensive to create and promote new brand per product, introducing new products under different brands is difficult as business must build new brand per product, different quality for different products= affects customer satisfaction

Question 3

Benefits of branding

Answer 3

1. Added value- created perception of quality+trust
   2.Ability to charge premium prices-willing to pay
   3.Reduced PED- customers less sensitive to price changes due to brand loyalty

Question 4

Ways to build a brand

Answer 4

1.Developing USP
2.Advertising-create strong emotional connections
3.Sponsorship- partnering helps gain exposure and build reputation
4.Social media- build community

Question 5

Changes in branding+promotion to reflect social trends

Answer 5

-By quickly adapting branding+promotion strategies will ensure maximisation of communication opportunities
1.Viral marketing- online to promote
2.Social media- adapt strategies to keep up with latest trends
3.Emotional branding-build strong emotional connections by appealing to their values, beliefs, emotions=increases brand loyalty