Branding and Promotion

Question 1

What is a brand?

Answer 1

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

Question 2

Key benefits of effective branding:

Answer 2

• adds significant value (from customer POV)
• business is able to charge higher prices + demand is more price inelastic
• branding builds customer loyalty and aspiration

Question 3

Types of brand

7

Answer 3

Product 
Service 
Umbrella (family)
Corporate
Own label 
Global brand

Question 4

Product brand

Answer 4

Brands associated with specific products. Fast moving consumer brands are some of the best examples
E.g marmite, Persil, crest

Question 5

Service brand

Answer 5

Brands that add perceived value to services, either delivered face to face or via online and apps
E.g vue, Uber, Netflix

Question 6

Umbrella (“family”) brand

Answer 6

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

Question 7

Corporate brand

Answer 7

Promoting the brand name of a corporate entity, as opposed to specific products or services (large companys)
E.g Unilever, nestle

Question 8

Own label brands

Answer 8

Example of corporate branding. Where retail outlets assign their corporate branding to a range of goods as services
E.g Tesco finest, essential Waitrose

Question 9

Global brand

Answer 9

Easily recognised and operating worldwide. These brands are based on familiarity, availability and stability
E.g MacDonalds, Apple, Coca Cola, ikea

Question 10

Promotion

Answer 10

Using a variety of methods to communicate with customers and persuade them to buy your product
Key task- inform (communicate) and persuade

Question 11

Main aim of promotion

Answer 11

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

Question 12

What is the promotional mix?

Answer 12

Describes the promotional methods that a business used to pursue its marketing objectives

Question 13

Main elements of promotional mix

Answer 13

Advertising 
Sales promotion 
Personal selling
Public relations/ publicity/ sponsorship 
Direct marketing

Question 14

Advertising

Answer 14

• paid for communication
• many different adverting media (tv, mo bile devices, newspaper, magazines)
• consumers subjected to many advertising messages each day

Question 15

Advertising benefits

Answer 15

• wide coverage
• control of message
• repetition means that the message can be communicated effectively
• effective for building brand awareness and loyalty

Question 16

Advertising drawbacks

Answer 16

• often expensive
• most methods are impersonal
• one way communication
• lacks flexibility
• limited ability to close a sale

Question 17

Personal selling

Answer 17

• 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

Question 18

Personal selling benefits

Answer 18

• high customer attention
• message is customised
• interactivity
• persuasive impact
• potential for development of relationship
• adaptable

Question 19

Personal selling drawbacks

Answer 19

• high cost
• labour intensive
• expensive
• can only reach a limited number of customers

Question 20

Sales promotion

Answer 20

• Tactical, point of sale material or other incentives designed to stimulate purchases
• e.g free samples, coupons
• short term incentives designed to increase sales

Question 21

Sales promotion benefits

Answer 21

• effective at achieving a quick boost to sales

- encourages customers to trial a product or switch brands

Question 22

Sales promotion drawbacks

Answer 22

• sales effect may only be short term
• customer may come to expect or anticipate further promotions
• may damage brand image

Question 23

What are public relations?

Answer 23

Those that create goodwill toward an individual, business, cause of product

Question 24

Main aims of public relations

Answer 24

• 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

Question 25

Typical public relations activities

Answer 25

• 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

Question 26

Direct marketing

Answer 26

Involves sending of promotional material directed through mail, email, social media or phone to individuals or businesses
Ultimate aim: to trigger a “response”

Question 27

Key points to direct marketing

Answer 27

• 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

Question 28

Factors that influence promotional mix

Answer 28

• budget
• target market
• nature of products
• trends
• laws
• product life cycle