promotion and branding

Question 1

promotion is designed to:

Answer 1

inform consumers about a product, or persuade them to buy it

Question 2

promotional objectives include:

Answer 2

increasing sales and profits, and increasing awareness of the product

Question 3

all promotion has to:

Answer 3

get the customer’s attention so they can be informed or persuaded about the product

Question 4

adverts are used to:

Answer 4

promote goods and services - and also to promote a firm’s public image. advertising uses various media including print, film, TV, radio, billboards (also called hoardings) and the internet

Question 5

the choice of media depends on:

Answer 5

who the target customers are and how many of them see or hear the ad. TV adverts at prime times are very expensive. Ads shown when fewer people are watching are cheaper, but don’t reach as many people. The cost must be worth it in terms of the extra sales or awareness created

Question 6

digital commuications, like online adverts and social media are used by many businesses. for example:

Answer 6

• online adverts
• advertising on mobile phones
• viral marketing

Question 7

online adverts:

Answer 7

can be targeted at customers who’ve shown an interest in a product by browsing for it

Question 8

advertising on mobile phones:

Answer 8

is becoming increasingly important, e.g. banners in apps - sometimes the advertiser is only charged when their advert is clicked on, so no money is wasted on unseen ads

Question 9

viral marketing:

Answer 9

is when businesses get users to pass on adverts to their friends through, for example, social networking platforms or email. the adverts have to be considered interesting enough for people to pass along, e.g. a hilarious video, or something that offers something for free

Question 10

digital communications are often:

Answer 10

cheaper than traditional forms of advertising

Question 11

however, many customers are exposed to:

Answer 11

a large number of digital ads so they may ignore digital advertising, e.g. by closing pop-ups as soon as they appear or by installing ad-blocker software

Question 12

the impact of an ad is:

Answer 12

very important. an advert that covers a two-page spread in a magazine has much more impact than a single page, or a small ad stuck in the classified section at the back

Question 13

specialist media are used to:

Answer 13

advertise specialist products to niche markets. for example, a manufacturer of fish hooks would do better to advertise in a monthly fishing magazine than in the Daily Telegraph newspaper

Question 14

businesses need to follow:

Answer 14

legal constraints on advertising some products. e.g. cigarette advertising is banned

Question 15

businesses often offer:

Answer 15

sales promotions. these are things like competitions, free gifts and special offers, e.g. “buy one get one free” (BOGOF)

Question 16

sales promotions can aim to:

Answer 16

raise awareness or increase sales

Question 17

manufacturers also aim sales promotions at:

Answer 17

retailers to encourage them to stock more of their products. however, customers could become aware of this technique and wait to purchase non-essential items until they enter a promotional offer. this may increase sales but it would also reduce the profits made on each sale

Question 18

direct marketing can include:

Answer 18

mailshots, which are promotional materials sent in the post to customers. the customer usually hasn’t asked to receive them

Question 19

businesses that keep information about their customers on a database can:

Answer 19

target their marketing to particular consumer groups through post. direct marketing that is untargeted (junk mail) can sometimes be a waste of money, because it often just gets thrown away

Question 20

personal selling or direct selling is:

Answer 20

personal communication between a salesperson and a customer. personal selling can involve sales assistants in shops as well as travelling salespeople and phone salespeople. however, the salary and travel costs of the salesperson can be expensive, and personal selling has a much more limited reach compared to other promotional methods, like a TV ad

Question 21

event sponsorship makes consumers aware of:

Answer 21

a firm and its products. but sponsoring large events could be expensive, which increases costs for the business

Question 22

public relations (pr) involves:

Answer 22

liaising with the media, setting up TV interviews and organising product launches, conferences and other special events. this is done to help raise awareness, and to try to create a good public image of a business. but it can be difficult for a business to control exactly what the media reports about it. for example, a comment in an interview could be misinterpreted and result in a negative story being spread. this would create a negative public image of the business

Question 23

branding creates a:

Answer 23

clear and obvious logo, name or statement. this means that customers will instantly recognise promotional material from a particular business or for a particular product

Question 24

corporate branding is:

Answer 24

how a business presents itself

Question 25

within the corporate brand there may be:

Answer 25

separate product brands aimed at different groups of consumers. for example, the corporate brand Kellogg’s has a recognisable red font used for its name, and several product brands within it. consumers trust that products with this logo will be of good quality

Question 26

product branding relates to:

Answer 26

specific individual products that a corporate brand makes

Question 27

the individual product will have its own:

Answer 27

logo and slogan but it will also often have the corporate brand included in its packaging to show that it’s associated with a business that consumers may trust. for example, Kellog’s produces many breakfast cereal products each with its own distinctive brand. Its Rise Krispies cereal is associated with the slogan “Snap, Crackle and Pop”. The product Frosties is associated with Tony the Tiger and his phrase “They’re Gr-r-reat!” Each is instantly recognisable by its unique product branding but also by the Kellogg’s logo in the top corner of the cereal box

Question 28

branded products usually have:

Answer 28

expensive marketing so they usually have a higher retail price. many consumers are willing to pay more if they’re buying a trusted product, because it appeals to their sense of wellbeing and gives them a feel-good factor. However, some consumers may not be happy paying higher prices

Question 29

own branding refers largely to:

Answer 29

brands that are in-house to a supermarket or retailer. it’s unlikely that large budgets have been spent on the branding of these products. usually they don’t have a distinctive slogan or attractive logo used to promote them, therefore these are cheaper to produce. however, the producer may not be able to charge a high price for an own brand product

Question 30

the advantage to the consumer of buying own brand products is that:

Answer 30

they usually get a product at a cheaper price than if they bought branded. but consumer’s often consider own branded products to be of a lower quality so they don’t get the same sense of wellbeing as they do from a branded product

Question 32

rebranding is a:

Answer 32

marketing strategy that can involve a change to the design, promotion, pricing or distribution of an existing brand. a business might want to reposition a product and aim it at a different target market or try to overcome competition from another business

Question 33

rebranding can also be used to:

Answer 33

create a new identity when a brand name is no longer suitable. for example, a business formerly known as Weight Watchers changed its name in 2018 to WW. the aim of this rebranding was to reflect that the business’s goal is to improve people’s overall wellness, rather than only focusing on weight loss

Question 34

one of the main reasons for a business to build a strong brand is to:

Answer 34

add value to its product

Question 35

strong branding makes the price elasticity of demand for a product:

Answer 35

less price elastic. the consumer perceives the product to be of a higher quality or more desirable than any substitutes and is prepared to pay premium price - they’ll be loyal to the brand and make repeated purchases. for example, Apple can charge a lot for the iPhone because the brand is so strong

Question 36

strong branding can create a:

Answer 36

barrier so that it’s harder for newcomers to enter the market

Question 37

there are certain brands which have become:

Answer 37

brandnomers, which is where the product becomes known by a brand name rather than its general name.for example, Post-It Notes is a brand but it’s now common to refer to any sticky note as a post-it. this is an example of successful and strong branding

Question 38

one way to create a brand is to:

Answer 38

base it around the product’s unique selling point (USP)

Question 39

a clear USP will help consumers with:

Answer 39

product differentiation, which may convince them to buy one brand over another. for example, the USP of Harris Tweed is that it’s handwoven in the Outer Hebrides of Scotland

Question 40

sometimes the USP might not be an:

Answer 40

obvious or unique feature, but it might be more about the image associated with the brand. if consumers perceive it to be a superior brand then this is its USP. for example, a restaurant that’s been in a town for many years may be perceived to be better than a new restaurant simply because it’s been there for such a long time - even if the food and the customer service is of a similar quality

Question 41

advertising is used to:

Answer 41

promote and maintain consumer awareness of a brand. businesses use it to persuade consumers that their brand is unique

Question 42

in competitive markets, lots of money is spent on:

Answer 42

advertising

Question 43

sponsorship is widely used in:

Answer 43

certain competitive markets

Question 44

corporate brands might:

Answer 44

sponsor large outdoor events such as musical festivals and sports events. for example, Emirates began sponsoring the FA Cup in 2015. sponsorship advertises the brand to anyone watching or attending these events

Question 45

many businesses have changed:

Answer 45

their methods of promotion and building a brand to include the use of social media, as social media has become more popular

Question 46

viral marketing involves:

Answer 46

platforms such as Youtube, Instagram, Facebook and Snapchat. these can be used by businesses to share news and updates that consumers can then share. this helps to spread awareness of a brand and advertise it. these messages can spread at a rapid rate and the audience is potentially huge

Question 47

this can be a very:

Answer 47

low cost technique if successful as there are no huge advertising budgets required, such as those needed for traditional advertising (e.g. TV adverts, billboards, etc.).

Question 48

however, the business can experience a:

Answer 48

loss of control as negative images or messages about a brand can be spread and damage the business’s reputation. this may take a long time and great expense to recover

Question 49

sometimes, in order to engage a consumer, the branding of a product is matched to the:

Answer 49

lifestyle, values or aspirations of consumers to trigger an emotional response, so that they buy the product. this is known as emotional branding

Question 50

an example of emotional branding is for:

Answer 50

Maltesers chocolate which has an emphasis on sharing, enjoying time with friends and not taking life too seriously. this attracts consumers who share ideals about life

Question 51

to be successful at emotional branding, businesses need to:

Answer 51

understand the values and purchasing behaviour of consumers and how they change over time. this means businesses may need to do market research