Studied by 1 personPromotion
two key tasks:
to inform(communicate)
persuade
types of promotion
personal selling
direct marketing
advertising
public relations
sponsorship
Personal selling advantages and disadvantages
(+)
High customer needs
message is customized
(-)
High cost
labour intensive
Direct marketing advantages and disadvantages
direct marketing (+)
can personalise the marketing message
focus on limited resources on a targeted promotion
(-)
response rate can vary enormously
negative image of junk mail and email spam
Advertising advantages and disadvantages
(+)
wide coverage
can be used to build brand loyalty
(-)
Often expensive
Impersonal
Public relations advantages and disadvantages
(+)
can reach a large audience
often cost-effective
(-)
lack control over the promotional message
Results do not guarantee Public relations
Sponsorships advantages and disadvantages
(+)
Can build brand awareness
The niche market can be targeted
(-)
can be difficult for the message to stand out if there are several sponsors
Potential for negative image
Types of sales promotion
Buy one get one free(BOGOF)
Price discount
money off coupon
samples/giveaways
special events
point of sale
Buy one get one free advantages and disadvantages
(+)
Can achieve a quick boost in sales
can encourage customers to try the product
(-)
sales boost may be only short term
customer may expect future BOGOF offers
Price discounts advantages and disadvantages
(+)
can increase short-term sales
can help a business move old inventory/stock
(-)
can negatively impact profit margins
competitors may simply reduce their prices
Money-off coupon advantages and disadvantages
(+)
Useful for introducing new product and brands
help attract more first time buyers
(-)
it can be costly to implement
May reduce the image of the product in the eyes of customers
Special events advantages and disadvantages
(+)
can help raise awareness
good for networking
(-)
expensive to run
potential for a low turnout
Point of sale
(+)
Can catch a customer's eye
Target impulse buyers
(-)
Needs regular updating
Labour intensive
Types of digital communication
Online advertising
Mobile communication
advergaming
social media
consumer generated content
viral strategies
Online advertising advantages and disadvantages
(+)
Lower cost than more traditional forms of advertising
Can reach a large audience
(-)
Customers can often be overloaded with online advertising
easy for consumers to get distracted
Advergaming advantages and disadvantages
(+)
Allows interaction with the brand
good games can go viral increasing their reach
(-)
high cost
still requires promotion the game
social media advantages and disadvantages
(+)
can engage with the specific target market
can be cheaper than more traditional forms of advertising
(-)
heavily reliant on adverts which can frustrate consumers
time-consuming due to the need to continually engage
consumer generated content advantages and disadvantages
(+)
the consumer often trusts consumer-generated content more than advertising
increase brand engagement
(-)
Businesses often have no control over the content
negative reviews and critical content can impact the reputation of the business
Viral strategies advantages and disadvantages
(+)
Low-cost method of promotional
Increase reach to a promotional message
(-)
Difficult to target specific customers and market
can lead to brand dilution
Branding
product that is easily distinguished from other product so that it can be communicated and efficiently marketed
Types of branding
Manufacture corporate branding
product branding
own brand product
Manufacture corporate branding advantages and disadvantages producer
(+)
can increase the chances of success for new products and services
increase customer loyalty across a range of different products/services
(-)
negative brand image can impact success of future product/service launches
can make it difficult to enter new markets with new products(diversify) if the branding is associated with one type of product/market
Product branding advantages and disadvantages producer
(+)
consumers often trust branded products more than they own branded products leading to higher sales
can act as a USP
(-)
developing and maintaining product brand costly
changing the perception of the brand once it is established is difficult
Own brand corporate advantages and disadvantages producer
(+)
can reinforce brand loyalty mainly used at home
can be cheaper than branded products leading to an increase in the profit margin for the business
(-)
Difficult to differentiate as own branded products are often replicas of branded products
customers often trust branded products more than their own brand products and perceive them as having higher quality
manufacture corporate advantages and disadvantages consumer
(+)
trust, consumers trust corporate brands more than one that is not familiar with.
can make purchasing decisions easier as customers can choose a product from the manufacturer they know
(-)
possible higher prices across the entire product range
some brands' products, technical ones, are not compatible with other brands meaning some consumers feel tied to a brand
Product branding advantages and disadvantages consumer
(+)
increase awareness. more accessible customers to recognise business products in different scenarios
using the branded product can reduce disappointment as customers are more familiar with the brand
(-)
higher prices when compared to own-brand products
often little difference in quality when compared to some own brand products
Own brand products advantages and disadvantages consumer
(+)
own brands are often cheaper to buy when compared to branded products
often easier to obtain than some branded products
(-)
the quality of the own brand is often lower than branded products
Lack of prestige and image of branded products
Rebranding
New image for an established brand is created e.g. changing the brand or the logo. Allows to reach new customers differentiate brand.
Ways to build a brand
USP( unique selling price
sponsorship
the use of social media
unique selling price(USP)
feature or benefit that separates a product from competitors.
advertising
build brand by helping to build relationships with customers. helps inform customers and persuade them
sponsorship
sponsors event
Changes in branding and promotion to reflect social trends
-viral marketing
- social media
-emotional branding
viral marketing
social media networking to promote a product
Social media
the rapid growth of social media has resulted in considerable changes to branding and promotion of many businesses
emotional branding
creating and forming a relationship between a brand and consumer by appealing to a customer emotional state
Note
Flashcard