Branding and promotion 1.3.2

Question 1

Define branding.

Answer 1

The process of creating a distinctive and lasting identity in the minds of consumers.

Question 2

Define brand.

Answer 2

A characteristic, name or symbol that differentiates it from competitors.

Question 3

What are the benefits of strong branding?

Answer 3

• Increase added value: Strong branding can add value to a product by creating a perception of quality, reliability, and trust.
• Reduce price elasticity of demand: Customers may be willing to pay more for a product that is associated with a well-established brand as they perceive products with strong branding to be of higher quality and therefore worth the extra cost.
• Builds customer loyalty and aspiration: Strong branding can also reduce the price elasticity of demand for a product (customers are less sensitive to price changes). This is because customers who are loyal to a brand are more likely to continue purchasing the product even if the price increases.

Question 4

What are 5 types of branding?

Answer 4

• Individual brand
• Service brand
• Umbrella brand
• Corporate and own label brands
• Global brand

Question 5

What are individual brands?

Answer 5

Where each product is promoted as a standalone brand e.g. marmite.

Question 6

What are service brands?

Answer 6

Brands that add perceived value to services, either delivered face to face or via online and apps. e.g Uber, Vue, dropbox.

Question 7

What are umbrella brands (family brands)?

Answer 7

A range of products with the same brand name made by a particular company, AKA a family brand e.g. Cadburys.

Question 8

What is corporate branding?

Answer 8

Refers to the practice of promoting the brand name of a corporate entity, as opposed to specific products. e.g nestle, unilever.

Question 9

What are own brands?

Answer 9

Own brands are products which have the trademark or label of the store which sells them, especially a supermarket chain. They are normally cheaper than other popular brands.

Question 10

What are the 3 global brands?

Answer 10

• Ultimate brand: easily recognisable and operating worldwide.
• Brand extension: when a business uses a brand name on a new product that has some of brands characteristics.
• Brand stretching: where brands are used for a diverse range of products, not necessarily connected.

Question 11

Advantages and disadvantages of individual brands

Answer 11

+ Each product stands alone so failures do not affect the entire company or other products.
- Each product will require its own marketing strategy and budget, with no synergy possible between products. Successes will not be directly attributed to the company’s brand.

Question 12

Advantages and disadvantages of corporate brands/ own brands.

Answer 12

+ Creates strong brand recognition and reputation for the company, which can increase customer loyalty and trust.
+ Allows the company to leverage its existing reputation and customer base to introduce new products more easily.
+ Helps to build economies of scale by promoting multiple products under one brand, which can reduce marketing costs and increase profitability.
- If a company’s reputation is damaged by a product it can have a negative impact on all the products offered under that brand.
- If the company faces intense competition in one market 9e.g smartphones), it may affect the sales of all the products offered across other markets (e.g laptops and desktops).
- Yours might not be the only product being made.

Question 13

Advantages and disadvantages of umbrella brands.

Answer 13

+ Each product contributes to the shared value offered to the customer.
- Specific benefits of one product may become less obvious.

Question 14

Advantages and disadvantages of an own brand.

Answer 14

+ It can help retailers to differentiate themselves from their competitors by offering unique products.
+ It allows retailers to offer products at a lower cost than branded products which can help to increase sales and profitability.
+ It can help to build customer loyalty by offering exclusive products that are not available elsewhere.
- Own brand products may have a lower perceived quality than branded products which can affect customer loyalty and trust.

Question 15

Advantages and disadvantages of global brands.

Answer 15

+ Global brand reduces advertising costs.
+ Global brand creates a uniform worldwide image, i.e., a culture-free image.
- Global brands may be costly for the firm from developing countries.
- Builds customer loyalty and aspiration.
- Adds significant value.
- Able to charge higher prices and demand is more price inelastic.

Question 16

What are the consequences of bad branding?

Answer 16

• Reduced customer loyalty
• Reduced awareness
• Lower customer perception
• Reduced added value
• Reduced sales

Question 17

What is customer perception?

Answer 17

High levels of perceived credibility to a product means the customer will be more loyal to the brand.

Question 18

What are the types of promotion?

Answer 18

Above the line
Below the line

Question 19

What are the promotional strategies?

Answer 19

• Advertising
• Direct marketing
• Sales promotions
• Personal selling
• Sponsorship
• Public relations
• Digital communications

Question 20

What is advertising in promotional strategies?

Answer 20

Promotion occurs through paid channels such as television, radio, print media (magazines), and online advertising.

+ It can reach large audiences and increase brand awareness.
+ Can also be used to create a specific brand image or message e.g. the advertising campaign run by Compare the Market (Meerkat).

• Can be expensive.
• The effectiveness of advertising can be difficult to measure.
• Many customers tune out or ignore ads.

Question 21

What is direct marketing in promotional strategies?

Answer 21

• Involves communicating directly with customers through email, text message, social media or posts.

+ Businesses can target specific audiences and personalise their message to individual customers.
+ Direct marketing is also measurable, which enables businesses to track their results and adjust their strategy accordingly.

• Can be intrusive as customers may perceive it as spam.
• Can also be costly, especially if businesses do not have an established customer database or need to purchase leads.

Question 22

What is sales promotions in promotional strategies?

Answer 22

Marketing techniques encourage the purchase of a product or service by offering temporary incentives or discounts such as free samples, buy one get one free (bogof), discount coupons, loyalty cards, and rebates (customers have to mail in to receive money back).

+ Can quickly boost sales or customer engagement.
+ Can help to clear out stock or promote a new product.
+ Can encourage impulse purchases.
+Can be targeted to specific segments of customers.
- Can be expensive especially if the promotion requires a heavy discounting.
- Can attract deal-seeking customers who may not be loyal to the brand.
- May reduce the sales of full-priced products.

Question 23

What is personal selling in promotional strategies?

Answer 23

Occurs when a salesperson interacts with potential customers one-on-one, either in person or through digital communication channels.

+ Allows businesses to build relationships with their customers and understand their specific needs.
+ Enables businesses to provide personalised advice and guidance to customers.

• Can be expensive due to the cost of hiring and training sales staff.
• The impact of personal selling can be limited as it is difficult to scale to large audiences.

Question 24

What is Sponsorship in promotional strategies?

Answer 24

This is an agreement in which a company provides financial or other support to an event, team, or organisation in exchange for marketing exposure. Can take many forms, such as logo placement or naming rights.

+Can help to build brand awareness and credibility.
+ Can create emotional connections with target audiences.
+ Can support specific business objectives, such as entering new markets or reaching new customers.

• Can be expensive, especially for high-profile events or properties.
• May not directly drive sales.
• May be subject to negative publicity if the sponsored entity experiences a scandal or controversy.

Question 25

What is PR in promotional strategies?

Answer 25

The business seeks to build relationships with the public and manage their reputation
Public relations activities can include media relations, crisis management and community outreach.

+ Can enhance a business’s reputation and credibility.
+ This can lead to increased customer loyalty and sales.
+ Can be cost-effective when compared to advertising or personal selling.

• PR can be time-consuming and is difficult to measure the direct impact of PR activities on the profits of profits.

Question 26

What is digital communications in promotional strategies?

Answer 26

Refer to any form of marketing or communication that is delivered electronically, such as social media, search engine optimisation (SEO), or mobile apps such as Instagram and Twitter. Can be used for building brand awareness, generating leads, or driving sales.

+ Can be highly targeted to specific customer segments.
+ Can provide real-time engagement and feedback from customers.

• Can be easily ignored or filtered out by customers/
• May require significant investment in technology or data infrastructure
• May be subject to data privacy regulations or security breaches.
• May not be effective for reaching older or less digitally-savvy customer segments.

Question 27

What is above-the-line promotion?

Answer 27

• This is paid for communication in the independent media e.g. advertising on TV or in the newspapers. Though it can be targeted, it can also be seen by anyone outside the target audience.
• The main aims of above-the-line promotion are to inform customers, raise awareness and build brand positioning. Above-the-line tends to have a higher cost since the promotional methods used are less precise.

Question 28

What is below-the-line promotion?

Answer 28

This concerns promotional activities where the business has direct control over the target or intended audience. There are many methods of below-the-line, including sales promotions, direct marketing, personal selling and sponsorship.

Question 29

What are the strengths of strong branding?

Answer 29

• Added value:
• Ability to charge higher prices:
• Reduced price elasticity of demand:

Question 30

What are the ways to build a brand?

Answer 30

• USP/ differentiation
• Advertising
• Sponsorship
• The use of social media

Question 31

What is the role of a USP in branding?

Answer 31

USPs are the features that make a product/service stand out from its competitors
Brands can build their reputation by emphasising these unique qualities in their marketing efforts.

Question 32

What is the role of advertising in branding?

Answer 32

Brands can create compelling ads that resonate with their target audience, raise brand awareness, and communicate their value proposition.

With the right advertising strategy, brands create a strong emotional connection with their audience and inspire brand loyalty.

Question 33

What is the role of sponsorship in branding?

Answer 33

• Partnering with events, organisations, or individuals can help brands gain exposure and build their reputation by aligning themselves with positive associations or values.

Question 34

What is the role of the use of social media in branding?

Answer 34

With the right social media strategy, brands can build a loyal following and create a community around their brand.

Question 35

What are the changes in branding and promotion to social trends?

Answer 35

• Virtual marketing
• Social media
• Emotional branding

Question 36

What is virtual marketing?

Answer 36

The use of social media and other online platforms in order to try to produce an increase in brand awareness or other objectives.

Is a strategy where businesses use online platforms to promote their products by creating content at specific times, which can easily be shared and commented on.

Question 37

What is the role of social media in changes in branding and promotion?

Answer 37

As social media platforms evolve, businesses must also adapt their social media strategies to keep up with the latest trends E.g. Instagram has been a popular platform for businesses to promote their products through influencer partnerships. More recently many businesses have shifted their focus to promoting their brands through short-form video content on platforms like TikTok.

Question 38

What is emotional branding?

Answer 38

Emotional branding is a strategy where companies build strong emotional connections with their customers by appealing to their values, beliefs, and emotions. E.g. Brands like Patagonia and TOMS have built their entire brand identities around their commitments to environmental and social causes, which resonates with customers who prioritise these values.