Promotion and branding. 2/4Ps Flashcards
What is promotion?
Promotion is the way in which businesses aim to inform consumers about a product or persuade them to buy it.
What are promotional objectives?
To increase sales and profits and increase brand awareness of a product. It should get customers attention to persuade them about a product.
What are adverts?
Adverts are a type of promotion largely through the media which promote goods and services and a businesses public image.
Where would you find adverts for businesses? What does it depend on?
Print, film, TV, Radio, billboards and the internet. The choice of media depends on the target audience and market, and how many see or hear the add. Ads that more people see or hear are more expensive and visa versa; a business must ensure the cost is worth it for advertising in terms of awareness of sales.
How do businesses use digital communications? What are the benefits and drawbacks?
Online adverts can be targeted at customers who have shown an interest in a product by browsing for it.
- Ads on phones - these are efficient as the advertiser is often only charged when people click on the add so they care guaranteed value for money.
- Viral marketing - when businesses use social media to make ‘interesting’ ads for people to send around to their friends and family and spread awareness for free - it should usually be very funny.
- They are often cheaper than traditional ads. However many people ignore the ads online as they are exposed to so many.
How do niche products advertise?
They use specialist media by advertising in niche areas where their niche consumers are likely to see them; a fishing rod seller would advertise in a fishing magazine, not a major outlet.
What factor can inhibit some businesses from advertising?
Legal constraints - i.e.. cigarettes cannot be advertised.
Not all promotion involves advertising - what do some businesses do? Who aims promotion at the sellers? What are the problems with said methods.
Businesses often offer sales promotions like free gifts, special offers or BOGOFS. They can raise awareness and increase sales. Manufacturers often aim sales promotions to retailers to encourage them to stock more of their products. However customers could notice the offers and only buy specific things when they know the offers will be available, decreasing profit margins.
What is direct marketing?
This is the business promoting directly to the consumer without the third party (phone or mail or email). However they are often ignored.
What is personal selling (direct selling.)
Personal communication between a salesperson and potential consumer; anyone personally trying to sell something to someone. However wages for this are often expensive especially with commission, and has a more limited reach - better for luxury goods.
Event sponsorship
A business sponsoring large events to increase awareness. Expensive but increases awareness.
Public relations.
When businesses communicate with the media to organise interviews, product launches, conferences and other events to raise awareness and create a good image by saying specific things to the public. However, the business is limited on it’s control over what the media says and misinterpretation can occur; creating a negative public image.
What is branding?
Branding creates a clear and obvious logo, name or statement. This means that customers will easily recognise promotional material from a particular business or for a particular product.
What is manufacturer or corporate branding?
How a business presents itself.
Within the corporate brand, there may be separate product brands aimed at different customers; Kellogg’s. - People trust this brand.
Product branding.
This is the branding of specific products.
The individual product will have it’s own logo and slogan, but will often have the corporations brand incorporated to show the consumers that the product is trustworthy.
E.g. kellogg’s - Snap, Crackle and Pop.
- Branded products usually have expensive marketing so 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 feelgood factor. Some may not pay higher prices though.