Branding and promotion

Question 1

Define the term promotion.

Answer 1

The use of marketing tools to bring a product or service to the attention of potential buyers.

Question 2

List the different types of promotion.

Answer 2

Personal selling
Direct marketing
Above the line advertising
Below the line advertising
Public relations
Sponsorship

Question 3

Explain personal selling as a type of promotion.

Answer 3

The sales person acts on behalf of the organisation. Sales people are well trained in the approaches and techniques of personal selling. Personal selling is an effective way to manage business relationships however sales people are expensive and require salary, training and sometimes commission. This is useful where the profit margin is high or the product comes with a range of features which need to be explained or upsold.

Question 4

Explain direct marketing as a type of promotion.

Answer 4

Highly focussed targeted marketing based on what customers have bought before. This is done by email or post and may be in the form of special offers to re-engage customers who have stopped buying.

Question 5

Explain above the line advertising as a type of promotion.

Answer 5

Advertising that markets to a mass audience; TV ads, online ads, cinema ads, daily newspaper ads…

This reaches a large audience but is very expensive.

Question 6

Explain below the line advertising as a type of promotion.

Answer 6

More personal advertising to niche markets; leaflets, posters, apps

Used to create awareness and communicate information in order to gain a response from the target market

Question 7

Explain public relations as a type of promotion.

Answer 7

Aims to build a relationship between the business and the public, to create a favourable corporate image.

PR is unpaid communication about an organisation which appears in mass media. This is a long term strategy and is low expenditure. It gives the business less control over what is said but consumers find it more believable and authentic.

Question 8

Explain sponsorship as a type of promotion.

Answer 8

Positive association of the product with a celebrity or a sport. It can be very expensive and it is difficult to tell what impact this has on brand loyalty or sales.

Question 9

List the different types if sales promotions.

Answer 9

BOGOF
Price discounts
Money off coupons
Samples/Giveaways
Special events
Point of sale

Question 10

Explain BOGOF as a type of sales promotion.

Answer 10

Buy one get one free.
+ popular with shoppers
+ Encourages trial and use of product
+ Good way to encourage shoppers to switch brands
+ Boosts sales, sales revenue will increase

• Loss of profit means increase in costs
• only useful in the shortterm

Question 11

Explain price discounts as a type of sales promotion.

Answer 11

Price discounts means that the normal recommended retail price is reduced.

+Good way to clear old stock

• Customers may see business as a cheap option
• Too many discounts makes customers suspicious

Question 12

Explain money-off coupons as a type of sales promotion.

Answer 12

Used to capture new customers or encourage impulse spends in existing customers

+ Customer feels they are getting better value for money
+ Encourages repeat purchases
- Some customers may wait for coupons before making a purchase
- reduces profits
- customers may have purchased anyway

Question 13

Explain samples/giveaways as a type of sales promotion.

Answer 13

+ Ideal for new product launches
+ Works especially well with some products eg shampoo
+ Encourages word of mouth promotion

• Can be complicated to send samples in post
• Can be expensive

Question 14

Explain special events as a type of sales promotion.

Answer 14

Activities such as fairs or tasting evenings

\+ Encourage customers to attend
\+ Rewards loyal customers
\+ Ideal for small businesses
- Can be expensive
- Hard to measure how valuable events are

Question 15

Explain point of sale as a type of sales promotion.

Answer 15

Usually a cardboard display stand located close to the till to draw attention and trigger an impulse purchase.

+ Ideal way to promote new products
+ Works best with products that have a holiday tie in
- Only successful if product meets customer needs
- Needs to e designed in time for the event
- May be badly located in a store

Question 16

List the different types of digital communications.

Answer 16

Online ads
Mobile communications
Advergaming
Social media
Consumer generated content
Viral strategies

Question 17

Explain online adverts as a type of digital communications.

Answer 17

Banners, ads in emails, popups, paid listings on price comparison sights

\+ Can deliver accurate data and statistics abt ad effectiveness
\+ Can reach large markets of customers
- Customers may ignore ads
- Ads get lost amongst other content
- Can be expensive

Question 18

Explain mobile communications as a type of digital communications.

Answer 18

Includes on the go devices, may appear as texts or in apps

+ Allows customers to interact with brand while on the move
+ Quicker than using a laptop for consumer
- Small screen may distort the message
- Security issues
- It’s expensive to make websites mobile friendly

Question 19

Explain advergaming as a type of digital communications.

Answer 19

A video game which contains an ada or a corporate website that contains a game to attract customers

+ Customers will be concentrating on the game so will see the message
+ Reaches large audiences
+ Consumers accept the as that are in games
- Message is lost of game and brand don’t make sense together
- Games are often played by consumers too young to make a purchase decision

Question 20

Explain social media as a type of digital communications.

Answer 20

+ Free or low cost
+ Keeps customers informed
+ Increases customer engagement
+ Quick responses= good customer service

• needs to be regularly updated which is expensive

Question 21

Explain consumer generated content as a type of digital communications.

Answer 21

Any form of content created by customers eg blogs and discussion forms

+ Opportunities for customers to read reviews
+ Positive responding to complaints can be valuable
- Consumers publicly complain which can damage the reputation

Question 22

Explain viral strategies as a type of digital communications.

Answer 22

Any strategy that encourages customers to pass on a marketing message to others and take advantage of rapid multiplication

+ Consumers spread the message themselves which reduces costs and increases authenticity
+ potential for exponential growth
- original message lost if too complex
- Hard to get funding from traditional companies

Question 23

Define the term branding.

Answer 23

A characteristic name or symbol that distinguishes one product from another supplier.

Question 24

List the different types of branding.

Answer 24

Corporate branding
Product branding
Rebranding

Question 25

Explain corporate/manufacturer branding.

Answer 25

Aims to build communications and relationships between the main business name and the customers

The business may own a range of brands and use images and slogans to establish the brand.

Question 26

Evaluate corporate branding.

Answer 26

+ Spreads the cost of marketing across all individual brands
+ Awareness of the company can be worldwide

• Takes a long time to build a solid brand image
• Unfavourable incidents have a large impact
• Too much advertising exposure can cause indifference to the brand

Question 27

Explain product branding.

Answer 27

Aim to show the customer the features and benefits of a product which will differentiate it from similar products in the marketplace.

Question 28

Evalute product branding.

Answer 28

+ Branded products can command higher prices
+ Businesses can expect higher profits from branded cash cows
+ Good branding differentiates the product and creates customer loyalty

• May require high investment
• May take many years to build up
• Limited flexibility when trying to develop new lines beyond what they are known for

Question 29

Explain own brand products.

Answer 29

Own brand/label products are made by a manufacturer on behalf of a supermarket.

Question 30

Evaluate own brand products.

Answer 30

+. Boosts customer loyalty
+ Competes with manufacturers brands
+ Fills gaps left by competition

• Store brands can be made by numerous companies and some may be good but some may be bad

Question 31

Explain rebranding.

Answer 31

A marketing strategy in which a new name, symbol, term, design or a combination of the above will be developed with the intention of developing a new differentiated identity in the minds of consumers and investors

Question 32

List the different benefits of strong branding.

Answer 32

Added value
Ability to charge premium prices
Reduced PED

Question 33

Explain added value as a benefit of strong branding.

Answer 33

A strong brand can add value to a product for both the consumer and business. The benefit for a business will be that the brand gains value that will help if it is sold to another company.

Question 34

Explain charging premium prices as a benefit of strong branding.

Answer 34

When brands become household names they can charge a premium price eg ‘biro’. Consumers associate these with consistent quality and so will be willing to pay more.

Question 35

Explain reduced PED as a benefit of strong branding.

Answer 35

A well known brand will make a product more price inelastic as consumers are less likely to be willing to settle for an inferior brand.

Question 36

List the different ways to build a brand.

Answer 36

USP/Differentiation
Advertising
Sponsorship

Question 37

Explain USP as a way to build a brand.

Answer 37

Unique selling points, small details that make one product different from another, can be exploited to build the brand.

Question 38

Explain brand awareness as a way to build a brand.

Answer 38

Brand awareness is a sense of loyalty between customers and the advertiser. Customers will purchase from brands they are familiar with. The business will need to use a mixed media approach eg print and digital.

Question 39

Explain sponsorship as a way to build a brand.

Answer 39

Association with a celebrity or sports star can result in brand recognition, awareness and percetion.

Question 40

Explain changes in branding and promotion to reflect social trends.

Answer 40

Viral marketing is used more. Social media is used to build and promote products. Emotional branding is also used. This is branding that seeks to create a bond between the consumer and the product by provoking an emotional response to advertising- long lasting attachment to a product leads to strong brand loyalty.