Branding and Promotion Flashcards
What is a brand?
Brand is a product that is easily distinguished from other products so that it can be easily communicated and effectively marketed
- name of a distinctive product
Key benefits of effective branding:
- adds significant value (from customer POV)
- business is able to charge higher prices + demand is more price inelastic
- branding builds customer loyalty and aspiration
Types of brand
7
Product Service Umbrella (family) Corporate Own label Global brand
Product brand
Brands associated with specific products. Fast moving consumer brands are some of the best examples
E.g marmite, Persil, crest
Service brand
Brands that add perceived value to services, either delivered face to face or via online and apps
E.g vue, Uber, Netflix
Umbrella (“family”) brand
Brands that are assigned to more than one product. Makes different product lines easily identifiable by the consumer grouping them under one brand name
E.g dove, Cadbury
Corporate brand
Promoting the brand name of a corporate entity, as opposed to specific products or services (large companys)
E.g Unilever, nestle
Own label brands
Example of corporate branding. Where retail outlets assign their corporate branding to a range of goods as services
E.g Tesco finest, essential Waitrose
Global brand
Easily recognised and operating worldwide. These brands are based on familiarity, availability and stability
E.g MacDonalds, Apple, Coca Cola, ikea
Promotion
Using a variety of methods to communicate with customers and persuade them to buy your product
Key task- inform (communicate) and persuade
Main aim of promotion
Ensure that customers are aware of the existence and positioning of products
Persuade customers that the product is better than competing products and to remind customers about why they may want to buy
What is the promotional mix?
Describes the promotional methods that a business used to pursue its marketing objectives
Main elements of promotional mix
Advertising Sales promotion Personal selling Public relations/ publicity/ sponsorship Direct marketing
Advertising
- paid for communication
- many different adverting media (tv, mo bile devices, newspaper, magazines)
- consumers subjected to many advertising messages each day
Advertising benefits
- wide coverage
- control of message
- repetition means that the message can be communicated effectively
- effective for building brand awareness and loyalty
Advertising drawbacks
- often expensive
- most methods are impersonal
- one way communication
- lacks flexibility
- limited ability to close a sale
Personal selling
- promotion on a person to person basis
- uses two way communication
- usually involves meeting with potential customers to close a sale
- many methods: telephone, meetings, knocking on doors
Personal selling benefits
- high customer attention
- message is customised
- interactivity
- persuasive impact
- potential for development of relationship
- adaptable
Personal selling drawbacks
- high cost
- labour intensive
- expensive
- can only reach a limited number of customers
Sales promotion
- Tactical, point of sale material or other incentives designed to stimulate purchases
- e.g free samples, coupons
- short term incentives designed to increase sales
Sales promotion benefits
- effective at achieving a quick boost to sales
- encourages customers to trial a product or switch brands
Sales promotion drawbacks
- sales effect may only be short term
- customer may come to expect or anticipate further promotions
- may damage brand image
What are public relations?
Those that create goodwill toward an individual, business, cause of product
Main aims of public relations
- achieve favourable publicity about the business
- build the image and reputation of the business and its products, particularly amongst customers
- communicate effectively with customers and other stakeholders
Typical public relations activities
- promoting new products
- enhancing public awareness
- projecting a business image
- promote corporate social responsibility
- projecting business as a good employer
- obtain favourable product reviews/ recommendations
Direct marketing
Involves sending of promotional material directed through mail, email, social media or phone to individuals or businesses
Ultimate aim: to trigger a “response”
Key points to direct marketing
- allows a business to generate a specific response from targeted groups of customers
- allows a business to focus on several marketing objectives at the same time:
Increasing sales to existing customers
Building customer loyalty
Re establishing lapsed customer relationships
Generating new business
Factors that influence promotional mix
- budget
- target market
- nature of products
- trends
- laws
- product life cycle
