Branding and promotion 1.3.2 Flashcards
What is promotion?
An important element of the marketing mix as it plays a crucial role in generating customer awareness, interest and desire for a product/service
Type of promotion
- advertising
- direct marketing
- sales promotion
- personal selling
-sponsorship - PR
- digital communications
Advertising
Occurs through paid channels such as TV, radio, magazines and online ads
+ can reach large audiences and increase brand awareness
- can be expensive
- effectiveness difficult to measure
- many customers may ignore ads
Direct marketing
Communicating directly with customers through email, text message or post
+ can target specific audiences and personalise messages to individuals
+ measurable - track results and adjust strategy
- can be seen as intrusive
- costly
Sales promotion
Encourages the purchase of a product or service by offering temporary incentives or discounts
+ can quickly boost sales and engagement
+ can clear out stock
+ encourage impulse purchases
- expensive if heavy discounting required
- attract deal-seeking customers who won’t be loyal
Personal selling
When a salesperson interacts with potential customers one-to-one
+ build relationships and understand specific needs
+ personalised advice and guidance
- expensive due to hiring and training sales staff
- difficult to scale to large audiences
Sponsorship
An agreement in which a company provides financial support to an event, team or organisation in return for marketing exposure
+ help build awareness and credibility
+ can create emotional connections
- expensive
- may not directly drive sales
- may be subject to negative publicity
Public relations
The business seeks to build relationships with the public and manage its reputation - e.g. crisis management and community outreach
+ enhance reputation and credibility
+ increase customer loyalty and sales
- time-consuming and difficult to measure
Digital communications
Any form of marketing that is delivered electronically
+ can be highly targeted to specific customers
+ provide real-time engagement and feedback
-easily ignored
-significant investment in technology
- subject to data privacy regulations or security breaches
-not effective in reaching older customers
What is branding?
The process of creating a unique and identifiable name, design or other feature that differentiates a product/ service or company from competitors.
Manufacturer/corporate branding
Use of a company name or logo to promote all the products they offer
+ creates strong brand recognition and reputation - increase loyalty and trust
+ allows the company to leverage its existing reputation and customer base to introduce new products
+ helps to build EOS
-if reputation damaged all products negatively impacted
- if company faces competition in one market, it may affect sales of other products
Product branding
Use of a unique name, design or symbol to promote a specific product
+ creates a distinct identity for the product to differentiate from competitors
+ market different products to different segments
+ associate the product with a specific quality
- cost of promoting a new brand for each product can be expensive can be expensive
Own branding
Use of a retailer’s name to promote a specific product
+ allows retailers to offer products at a lower cost than brand products to increase sales
- lower perceived quality
Benefits of strong branding
- Added value - creates a perception of quality, reliability and trust
- Ability to charge premium prices - willing to pay more for higher quality and desirable product
- Reduced PED - customers are loyal so will continue purchasing despite price changes
Ways to build a brand
- USP - make the product stand out from competitors which can be emphasised in marketing
- Advertising - create compelling ads that resonate with their target audiences and create a strong emotional connection
- Sponsorship - helps brands gain exposure and build reputation by aligning themselves with positive values
- Social media - create a community around their brand
