Branding and Promotion

Question 1

Define PROMOTION

Answer 1

Promotion is the aspect of the marketing mix that informs and persuades customers to buy a product. The aim is increase sales but also to increase awareness of the product, to reposition a product, provide new information and to generate repeat business.

Question 2

Define THE PROMOTIONAL MIX

Answer 2

The promotional mix is a combination of the business’ promotional activities that are used in order to create awareness and generate sales

Question 3

What are the methods of promotion?

Answer 3

• Advertising
• Sales Promotion
• Public relations
• Sponsorship
• Personal selling
• Direct marketing

Question 4

Define ADVERTISING

Answer 4

Advertising is paid for communication through lots of different forms of media (TV, radio, newspapers/magazines, social media, billboards). Consumers are subjected to a lot of adverts and so it can be hard to make them stand out.

Question 5

Define SALES PROMOTION

Answer 5

Sales promotion is tactical, point of sale material or other incentives designed to boost sales in the short term. Mostly aimed at consumers but sometimes at retailers (e.g. BOGOF or 3 for £10)

Question 6

What are the advantages of advertising?

Answer 6

• Good for wide coverage
• Businesses can control the message portrayed
• Useful for building brand awareness and loyalty.

Question 7

What are the disadvantages of advertising?

Answer 7

• Often very expensive
• Difficult to make adverts stand out
• Impersonal to the customer
• One way communication

Question 8

What are the advantages of sales promotion?

Answer 8

• Effective at achieving a quick boost to sales

- Encourages customers to trial products or switch brands altogether.

Question 9

What are the disadvantages of sales promotion/

Answer 9

• Sales effect is likely to be short term
• Customers may begin to expect promotions
• May damage the brand image

Question 10

Define PUBLIC RELATIONS

Answer 10

Public relations is communicating with the media in order to get favourable coverage and build the reputation of the business. Also used to communicate with stakeholders.

Question 11

What are the advantages of public relations?

Answer 11

• Cost effective way of influencing mass media

- Third part endorsement may be trusted more by consumers.

Question 12

What are the disadvantages of public relations?

Answer 12

• Can be difficult to control the message portrayed

Question 13

Define SPONSORSHIP

Answer 13

Sponsorship is when a payment for an event, person or organisation is given for some exposure or free advertising in return.

Question 14

Define PERSONAL SELLING

Answer 14

Personal selling is promotion on a person to person basis, done by telephone, in meetings or retail outlets. Often for high priced, low volume and highly technical products such as a boat.

Question 15

What are the advantages of personal selling?

Answer 15

• Persuasive impact
• Message is customised
• Potential for development of relationship, leading to repeat purchases.

Question 16

What are the disadvantages of personal selling?

Answer 16

• High costs as it is labour intensive

- Can only reach a limited number of customers

Question 17

Define DIRECT MARKETING

Answer 17

Direct marketing is promotional material that is given directly to the consumer or business, through mail, email, social media or phone calls.

Question 18

What are the advantages of direct marketing?

Answer 18

• Focuses limited resources on targeted promotion
• Can personalise the marketing message
• Relatively easy to measure response and success.

Question 19

What are the disadvantages of direct marketing?

Answer 19

• Response rates vary enormously
• There are negative images of junk mail and spam
• Databases are expensive to maintain

Question 20

What are the factors influencing promotional decisions/strategy?

Answer 20

• Target market/market position
• Stage in the product’s life cycle.
• Nature of the product
• Competition
• Marketing objectives
• External influences

Question 21

Define a BRAND

Answer 21

A brand is a series of unique features that a product or business has that helps to distinguish it from competitors and makes it recognisable to consumers.

Question 22

Define BRANDING

Answer 22

Branding involves the creation of an identity for a product or business that distinguishes it from competitors (e.g. a logo) A brand is trademark and cannot be copied.

Question 23

What are the benefits of branding?

Answer 23

• Adds significant value (from consumers view)
• Means the business is able to charge higher prices
• The product is less price elastic.
• Generates customer loyalty which reduces promotional costs in the long run.
• Cheaper and less risky to launch new products, especially where brand extension is used
• Easier and cheaper to get products on the shelves in supermarkets as supermarkets know they will sell

Question 24

Define a BRANDNOMER

Answer 24

A brandnomer is a product that is known by a brand name, e.g. Hoover.

Question 25

Define a PRODUCT BRAND

Answer 25

A product brand is a brand associated with a product e.g. Marmite, Persil, Vaseline

Question 26

Define SERVICE BRANDS

Answer 26

A service brand is a brand associated with a service that adds perceived value. This is either delivered face to face or online/via apps.

Question 27

Define CORPORATE BRANDS

Answer 27

Corporate brands are brands that represent a whole corporate entity, rather than a single product e.g. Unilever or Nestle.

Question 28

Define OWN LABEL BRANDS

Answer 28

An own label brand is a brand assigned to goods or services sold by a retailer.

Question 29

Define UMBRELLA BRANDS

Answer 29

Umbrella brands are brands that are assigned to more than one product, which makes product lines easily recognisable as all the products are grouped under one name.

Question 30

Define BRAND EXTENSION

Answer 30

A brand extension is when a business uses their established name on a new product that has similar characteristics e.g. Mars ice cream/chocolate)

Question 31

Define BRAND STRETCHING

Answer 31

Brand stretching is where the brand name is used for a wide range of products that are not necessarily connected e.g. Virgin

Question 32

What are the advantages to brand stretching/extension?

Answer 32

- New products require less investment - Distribution is easier as it already exists - Less investment is needed to build and maintain consumer awareness - Reduction in the consumer's perceived risk

Question 33

Define REBRANDING

Answer 33

Rebranding is a marketing strategy in which a new name. term symbol or design is created for an established brand with the intention of creating a new differentiated identity in the eyes of consumers, competitors and investors.

Question 34

What are the methods used to build a brand?

Answer 34

- USPs/ differentiation - Advertising - Sponsorship - Use of social media - Public relations

Question 35

Define VIRAL MARKETING

Answer 35

Viral marketing is an online promotional technique that uses social media to encourage the spread of promotional activities and increase brand awareness.

Question 36

Define EMOTIONAL BRANDING

Answer 36

Emotional branding is building a brand that will directly tap in to the consumers feelings, personal psychological needs and aspirations.