Chapter 10- Branding and Promotion Flashcards
What is Branding
- Branding is the process of differentiating a business from rivals through developing a name, design or logo that consumers instantly recognise and associate with a particular product.
- Brand name - Synonymous in the minds of consumers with a certain type of product
- Influences the way consumers perceive a business.
Above-the-line promotion
- placing adverts using the media
• Informative advertising- informing about the product, aimed at
people that have never seen the product
• Persuasive advertising- put pressure on consumers to buy it –
fear and pity
• Reassuring advertising- making people aware that it was the
right choice to buy their product, so they buy more in future
Below-the-line promotion
- Any promotion that does not involve advertising
• Free gift – businesses might give free gifts to customers when t
they buy the product
• BOGOF – buy one get one free
• Loyalty cards – some businesses reward customers according to
how much they spend. Points are collected and then exchanged
for cash, vouchers or free goods.
• Competitions – people may be allowed free entry into a
competition
How do businesses build brands
- Organically
- Unique selling point (Point of
differentiation) . - Advertising
- Sponsorships.
- Social media
Packaging and Merchandising
Some businesses may arrange the point of sale so that it is interesting and eye-catching, and likely to encourage sales – called merchandising
•Product layout- layout in store is often carefully planned to
encourage shoppers to follow particular routes and look at certain
products
•Display material – posters, leaflets and other materials may be used
to display certain products with the aim of persuading customers to
buy
•Stock – Businesses may keep shelves well stocked because empty
shelves create a bad impression
Types of branding
Generic - products which only contain the name of the product category and not a brand name
Manufacturer - brands created by the producers of goods or services - examples might include Kellogg’s cornflakes
Own label - products that are manufactured for wholesalers or retailers by other businesses. But the wholesalers and retailers sell the products under their own name. One example of a product is Tesco’s Baked Beans. These products allow a retailer to buy from the cheapest manufacturer, reducing its cost.
Marketing mix
Product, place, promotion, price
Choosing methods of promotion:
• Cost - - not all businesses can choose to advertise on television
• Market type- local businesses often rely on adverts in local
newspapers whereas businesses aiming at attracting mass
markets may be more likely to use television
• Product type – certain products are better suited to certain
methods of promotion – for example, a car manufacturer is not
likely to use sales promotions such as coupons
• Stage in product life cycle – it is common for promotional
methods to change as products get older – PR may be used at
the start but other methods may be used later
• Competitors promotion – it is common for businesses to copy
successful methods of promotion used by rivals once one
business comes up with a successful promotion, other soon
bring out their own versions
Benefits of strong branding
- Add value. Consumers may prefer one brand over another simply for its developed brand image, even if they use the same suppliers. This increased value may mean that business can demand a premium price for its goods and services.
- Reduces price elasticity of demand. Firms with a strong brand name may find they are able to increase prices without suffering from a significant fall in demand because consumers are loyal to their products.
- Reduces competition. Acts as a barrier to entry with new firms being discouraged from entering the market due to the fear of not being able to compete with existing brand names.
- Recruitment. Highly prestigious brand names may be able to attract and recruit workers with the highest skill levels.
Advertising
- Help cultivate a strong brand name through the message they communicate and the type of media the adverts appear in.
Luxury brands communicate its features of superior quality through the adverts. Advertising can also be placed in media viewed by consumers prepared to pay a higher price for a more luxury product. However, advertising can be costly, particularly above the line.
Sponsorship
Align the brand with the image of the event or the organisation. May reach a large number of people who have positive associations building a stronger brand image. However, it does mean that the brand faces the risk of being associated with any negative activities or event being sponsored.
Social Media
– Can be targeted at different market segments through different forms of social media and it may be a lower cost option to advertising.
It may also help create a closer link with consumers who can directly communicate with the brand through social media. However, businesses must maintain an active schedule of relevant social media output in order to remain relevant and effective.
Viral Marketing
involves any strategy that encourages people to pass on messages to other about a product or a business electronically – potential for exponential growth
Emotional branding
refers to the practice of using the emotions of a consumer to build a brand – it is designed to appeal to the customers emotion, human need, or a perceived aspiration.
The aim of emotional marketing is to develop a love affair between a consumer and a brand – creating an emotional attachment that football supporters have with their chosen club – an example of this in use is with Apple which has connected with young people creating a ‘cool’ product image.
Trade off
A trade-off is a situation in which the benefits of one
option are reduced in return for increased benefit of
another option
