Branding and Promotion Flashcards
Define PROMOTION
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.
Define THE PROMOTIONAL MIX
The promotional mix is a combination of the business’ promotional activities that are used in order to create awareness and generate sales
What are the methods of promotion?
- Advertising
- Sales Promotion
- Public relations
- Sponsorship
- Personal selling
- Direct marketing
Define ADVERTISING
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.
Define SALES PROMOTION
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)
What are the advantages of advertising?
- Good for wide coverage
- Businesses can control the message portrayed
- Useful for building brand awareness and loyalty.
What are the disadvantages of advertising?
- Often very expensive
- Difficult to make adverts stand out
- Impersonal to the customer
- One way communication
What are the advantages of sales promotion?
- Effective at achieving a quick boost to sales
- Encourages customers to trial products or switch brands altogether.
What are the disadvantages of sales promotion/
- Sales effect is likely to be short term
- Customers may begin to expect promotions
- May damage the brand image
Define PUBLIC RELATIONS
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.
What are the advantages of public relations?
- Cost effective way of influencing mass media
- Third part endorsement may be trusted more by consumers.
What are the disadvantages of public relations?
- Can be difficult to control the message portrayed
Define SPONSORSHIP
Sponsorship is when a payment for an event, person or organisation is given for some exposure or free advertising in return.
Define PERSONAL SELLING
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.
What are the advantages of personal selling?
- Persuasive impact
- Message is customised
- Potential for development of relationship, leading to repeat purchases.
What are the disadvantages of personal selling?
- High costs as it is labour intensive
- Can only reach a limited number of customers
Define DIRECT MARKETING
Direct marketing is promotional material that is given directly to the consumer or business, through mail, email, social media or phone calls.
What are the advantages of direct marketing?
- Focuses limited resources on targeted promotion
- Can personalise the marketing message
- Relatively easy to measure response and success.
What are the disadvantages of direct marketing?
- Response rates vary enormously
- There are negative images of junk mail and spam
- Databases are expensive to maintain
What are the factors influencing promotional decisions/strategy?
- Target market/market position
- Stage in the product’s life cycle.
- Nature of the product
- Competition
- Marketing objectives
- External influences
Define a BRAND
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.
Define BRANDING
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.
What are the benefits of branding?
- 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
Define a BRANDNOMER
A brandnomer is a product that is known by a brand name, e.g. Hoover.
Define a PRODUCT BRAND
A product brand is a brand associated with a product e.g. Marmite, Persil, Vaseline
Define SERVICE BRANDS
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.
Define CORPORATE BRANDS
Corporate brands are brands that represent a whole corporate entity, rather than a single product e.g. Unilever or Nestle.
Define OWN LABEL BRANDS
An own label brand is a brand assigned to goods or services sold by a retailer.
Define UMBRELLA BRANDS
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.
Define BRAND EXTENSION
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)
Define BRAND STRETCHING
Brand stretching is where the brand name is used for a wide range of products that are not necessarily connected e.g. Virgin
What are the advantages to brand stretching/extension?
- 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
Define REBRANDING
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.
What are the methods used to build a brand?
- USPs/ differentiation
- Advertising
- Sponsorship
- Use of social media
- Public relations
Define VIRAL MARKETING
Viral marketing is an online promotional technique that uses social media to encourage the spread of promotional activities and increase brand awareness.
Define EMOTIONAL BRANDING
Emotional branding is building a brand that will directly tap in to the consumers feelings, personal psychological needs and aspirations.
