Theme 1 - Branding And Promotion - 1.3.2 Flashcards
What is the definition of promotion ?
The use of marketing tools to bring a product/service to the attention of potential buyers
What are the main types of promotion ?
- personal selling
- direct marketing
- above-the-line marketing
- below-the-line marketing
- public relations (PR)
- Sponsorship
What is personal selling ?
- It is an effective way to manage business to customer relationships
- The sales person acts on behalf f the organisation and is useful to customers as a technical advisor
- Sales people are well trained in the approaches and techniques of personal selling
However sales people are very expensive in terms of salary , trialing and commission
Whats direct marketing ?
It is highly focussed targeted mail based on what customers have bought before - can be email or post
It could include special offers to re-engage customers who have stopped buying
What’s above the line advertising (ATL) ?
It involves mass media methods for targeting larger and more general customers: TV, radio, cinema, billboards, newspapers
Above the line advertising is advertising that is used to target larger more general customers through mass media methods such as TV radio newspapers cinema etc
What are the advantages and disadvantages of above the line advertising ?
Advantages:
- ATL is tailored to reach a mass audience
- Advert communication is repeated so the message is clear
- great for building brand awareness
Disadvantages:
- It is very expensive and it is difficult to measure clear results from campaigns
- costs about 10,000 GBP for a radio ad for a week
What is below the line advertising ?
It is the same as direct marketing but for reaching smaller but more targeted audiences - the main methods include - search engines, social media marketing
What are the advantages and the disadvantages of below the line advertising ?
Advantages:
- Easy to measure if the campaign has the reached the audience - through website visits etc
- easy and inexpensive to use social media to increase brand awareness
- BTL is more targeted to specific niche segments rather than a imaging at the whole mass market
Disadvantages:
- Extensive training on working social media and IT may be needed for marketing staff
- deeper understanding of customer behaviour for e.g. what do they read / what webs do they visit
- targeting diverse cultures with the same theme is difficult
What are public relations (PR) ?
- Public relations aim 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
- PR can include publicity stunts
Is PR a long term or short term strategy ?
PR is a long term strategy
PR gives the business less control over what is said but consumers find it more believable / authentic
What’s sponsorship ?
It is a positive association of the product with a celebrity or a sport
It can be very expensive
Difficult to tell what impact this has on brand loyalty or sales
What are the main types of sales promotions ?
BOGOFF
Price discounts
Money off coupons
Samples/giveaways
Special events
Point of sale
What is BOGOFF ? And what are the advantages and disadvantages ?
it stands for buy one get one free
It is used to encourage customers to go into the shop and buy the item
Advantages:
- Very popular with customers
- Encourages trial and use of the product
- Good way to encourage shoppers to switch for their normal brand
- boosts sales therefore sales revenue will increase
Disadvantages:
- Loss of profit because there is an increase in costs, this will not be balanced by the increase in sales
- Only useful in the short term
What are price discounts and what’s are the advantages and disadvantages ?
Price discounts mean that the normal RRP ( recommended retail price ) of the product or service has been reduced
Advantages:
- Great way to clear old or out of date stock
Disadvantages:
- Customers may regard the business as a cheap option
- too many discounts and the customers become suspicious
What are money off coupons and what’s are the adv and dis adv ?
Coupons can be used to capture new customers
Coupons can also be used with exiting customers to encourage impulse spend
Companies like BZZ agent give out free coupons in return for reviews
Advantages:
- Coupons can help the customer feel they are getting better value for money
- They encourage repeat purchase
Disadvantages:
- Reduced profits because ur running a promotion
- Customers may have been wanting to make a purchase anyway
What are samples/giveaways and what are the advantages and disadvantages of them ?
This is where the business may send out free samples in order to persuade the customers to try the product for the first time - they may also occur on magazines
Advantages:
- ideal for new product launches
- works well with some products like food etc
- encourages word of mouth promotion
Disadvantages:
- can be complicated to send in the post - needs a database of customers
- can be expensive as giving away some of the product for free
What are special events and what are the adv and dis adv ?
- Special events are activities that the business does to encourage consumers to try the product - events can be shows, fairs etc
Advantages:
- Encourages customers to attend
- Rewards loyal customers with a special event
- ideal for small businesses
Disadvantages:
- Can be expensive
- Hard to measure how valuable this marketing is
What is Point of sale and what are the ads and dis adv ?
Point of sale is usually a cardboard display stand located close to the till within a shop - this is to trigger customers to impulse buy by drawing their attention to the cardboard design
Advantages:
- Ideal way to promote new products
- Works best with products that have an event or holiday tie in - crème eggs for Easter
- Manufacturers can add extra punch to the promotion by giving a discount
Disadvantages:
- Only successful if the product meets the needs of the customer
- Needs to be designed and out to stores in time for the event/holiday
- Displays may be put in poor locations by shops e.g. next to a broken till or one that is rarely opened
What are the main digital communications used to promote products and services ?
- Online adverts
- Mobile communications
- “advergaming”
- Social Media
- Consumer generated content
- Viral strategies
What are online adverts and what are the adv and dis adv ?
Online ads include:
- Banner and commercial classified adverts
- pop-up adverts - YouTube for e.g.
- paid-for search listings
- paid-for listings on price comparison sites
Advantages:
- powerful ad management tools can deliver accurate data and statistics about the effectiveness of the adverts
- Potential to reach large markets of customers shopping online
Disadvantages:
- Customers may ignore the ads
- ads may get lost amongst all the other content and other ads
- Click through ads may be expensive
What are mobile communications and what are the advantages and disadvantages of it ?
- They are adverts that appear on things such as smartphones, tablets and other on-the-go devices
- They may appear as text messages and in apps
Advantages:
- Mobile marketing can be used to extend the online reach so that customers can interact with the brand whilst on the move
- Doing m-commerce transactions do not require the users to plug in a computer or wait for the laptop to load
Disadvantages:
- security issues of conducting transactions online
- Websites now need to be adapted to be more mobile friendly which can be an expensive process
What is “advergaming”
And what are the advantages and disadvantages of it ?
- An advergaming is a video game which contains an advert for a product, service or business
- For e.g. in a car racing game the cars may pass billboards which are genuine advert
Advantages:
- Many games are multiplayer so the ads reach huge audiences
- customers will be concentrating on the game so are more likely to concentrate on the brand message
Disadvantages:
- If the game and the brand don’t make sense together - e.g. call of duty with a car ad
- many games are played by consumers too young to make a purchase decision
What is social media and what are the adv and dis adv of it ?
Social media ads are free or low cost so they are very cost effective
All brands now need a web presence and can do this with social media marketing
Advantages:
- customers can be kept up to date with new products
- increases customer engagement with the brand
-can show customer service with a quick response
Disadvantages:
- blogs, twitter, facebook pages all need to be updated on a regular basis which means hiring committed staff - additional cost
What is consumer generated content and what are the adv and dis adv ?
This mean any form of content such as video, blogs, discussion form posts, digital images, audio files and any other content that has been made by consumers
Content has been made available to other consumers online
Advantages:
- Opportunities for consumers to read reviews before they make the purchase
- positive responses to complaints can be very valuable marketing and reputation enhancement for the business
Disadvantages:
- consumers have lots of ways of publicly complaining about the product or service
- Not just about brands anymore, now about online reputation, which could be expensive to manage
What are viral strategies and what are the adv and dis adv ?
Viral marketing describes any strategy that encourages customers to pass on a marketing message to others, creating the potential for exponential growth
Advantages:
- Consumers spread the message amongst themselves which reduces costs and also increase authenticity of the brand message as it is endorsed by a friend
Disadvantages:
- original message might get lost
- hard to get funding as its still a new idea
What is the definition of branding ?
A brand is a characteristic name or symbol that distinguishes one product from another supplier
What are the best designs for logos ?
The best designs for logos are simple, attractive and memorable
What is manufacturer/corporate branding ?
Corporate branding aims to build communications and relationships between the main business name and the customers
The business may itself own a range of brands like nestle with Buxton, Kit Kat etc
They may use slogans and images to establish the brand
What are the advantages and disadvantages of corporate / manufacturer branding ?
Advantages:
- Spreads the cost of marketing across all the individual brands
- awareness of the company can spread worldwide
Disadvantages:
- Takes a long time to build a solid brand image
- too much advertising exposure can cause indifference towards the brand
What is product branding ?
A product branding strategy will aim to show the customer the features and benefits of a product which will differentiate it form other homogeneous products
What are the adv and dis adv for product branding ?
Advantages:
- branded products can command higher prices than non-branded products
- so businesses can expect higher profits from branded cash cows
- good branding also differentiates the product and creates customer loyalty
Disadvantages:
- product branding may require a high investment
- product branding may take many years to build up
What are own brand products ? And what are the advantages and disadvantages ?
Own brand / label products are made by a manufacturer on behalf of a supermarket for example Sainsbury’s cookies
Advantages:
- boosts customer loyalty to the supermarket - because for e.g. the ASDA toilet paper is very good so customers would go to Asda instead of Tesco to get toilet paper and this instils brand loyalty
- competes with manufacturers brands
- fills gaps left by competition - usually because its far cheaper than the manufacturers brands
Disadvantages:
- store brands can be made by numerous companies but all under the supermarkets name so for e.g. ketchup can taste goof but the cornflakes might taste very bad
What is Rebranding ?
It is a marketing strategy in which a new:
Name, symbol, term,design will be developed for an established brand with the intention of developing new differentiated identity in the minds of consumers, investors etc …
Give an example for rebranding
In 2010 Old Spice , a men’s body care, wanted to change from their traditional older customer to a new younger customer image so that they can target more of the mass market instead of just for the older people - this can in turn lead to more revenue
What are the benefits of strong branding /
Added value - A strong brand can add value to the product for both the customer / business - for e.g. The kudos of having an iPhone as a consumer but also it benefits the business as the brand will gain value.
Ability to charge premium price - when brands become household names such as ‘ im going to hoover the house ‘ - people would rather buy a hoover than a non-branded vacuum cleaner as they know that hoovers have a consistent quality.
Reduced PED - a well known brand will make the product more price inelastic or reduced its PED so this means that if the business raises prices up then the demand will not fall as people would rather stick with the brand than an inferior brand
Whats PED ?
PED stands for price elasticity of demand
PED measures the responsiveness of demand to a change in price
PED can be either elastic or inelastic - if its elastic then the business is responsive to a change in price so if the business puts the price up then demand will fall - and vice versa - so if inelastic then if price goes up, demand doesn’t shift down, it stays the same as you don’t want to switch to another company because it’s inferior
What are USP’s ? And how can they help build a brand ?
USP stand for unique selling point - these are small details that makes one product or business different from another
And these USP’s can be exploited to build the brand - for e.g. Toms shoes donate a shoe to a child in need for every shoe you buy therefore it differentiates themselves from different companies and its the unique selling point of the toms brand and therefore some people pick toms over other companies
How can advertising help build a brand ?
Customers will purchase from brands they’re familiar with and customers also see 100s of adverts everyday so to build a brand, a business will need to use a mixed media approach therefore print and digital - print (e.g. newspapers) or digital e.g. yt ads
Also brand awareness is a sense of loyalty between the customer and advertiser so its very good to make ads as it helps customers be more aware of the brand and therefore it will give your business a higher chance of generating revenue
How can sponsorship help build a brand ?
This is because sponsorship ( association with a celebrity ) can result in increased brand recognition, awareness ( which is a sense of loyalty between the customer and advertiser ) and perception
As having a famous person might influence peoples feeling towards the brand and change peoples perception of the brand
How does social media help build a brand ?
You can build a brand by engaging with customers (followers) on social media channels
For example twitter (x) can help build trust with the customer though engagement and interaction with the customers
A business looking to build a brand by social media should look at what content their competitors are sharing and find out where their customers are online
Also social media can help to build and promote products and it can be used to show the features and benefits of products which helps to differentiate itself form the competition
What is viral marketing ?
Viral marketing is a method of marketing whereby consumers are encouraged to share information about a company’s goods or service via the internet
Whats emotional branding ? And what does it do to the brand ?
Emotional branding seeks to create a bond between the consumer and the product by provoking an emotional response to the advertising
Emotional branding leads to long lasting attachment to a product and therefore creates strong brand loyalty
