Branding and Promotion

Promotion

Promotion

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