1.3.2 Branding and Promotion

Promotion

Use of marketing tools to bring a product or service to the attention of potential buyers

Personal selling

Sales person acts on behalf of the organisation and is useful as a technical advisor

Useful way of managing business to customer relationships

Direct marketing

Highly focussed targeted mail based on what customers have bought before

Carefully tailored to items customer have blight before

Above the line advertising

Involves mass media methods for targeting larger and more general customers I.e TV or cinema

ATL adv and disadv

+tailored to reach a mass audience

+communication is repeated so message is clear

+great for building brand awareness

-very expensive

Below the line advertising

the same as direct marketing for reaching more targeted audiences

Aimed specifically at targeted individuals that have been identified as potential customers

BLT adv and disadv

+easy to measure if campaign has reached audience

+easy and inexpensive to use social media for awareness

+more targeted ro specific niche segments

-extensive training on working social media and IT

-deeper understanding of customer behaviour is required

Public relations

A strategic approach to managing a brands image and reputation

Aims to build a relationship between the business and the public to create a favourable corporate Image

Unpaid communication about an organisation which appears in mass media

PR adv and disadv

+long term strategy

+low expenditure

-gives business less control over what is said

Sponsorship

Positive associations of the product with a celebrity or a sport

Can be expensive and difficult to tell what impact this has on brand loyalty or sales

Sales promotion

BOGOFF

price discounts

Money off coupons

Samples

Special event

Point of sale

BOGOF

+very popular with shoppers

+good way to encourage shoppers to switch from their normal brand

+boosts sales

-loss of profit as increase in costs

-only useful short term

Price discounts

+great way to clear old or out of date stock

-customers may see business as cheap option

Money off coupons

+can help the customer feel they’re getting better value for money

-reduces profits from cost of running promotion

-customers may wait for coupons before they purchase

Sample

+ideal for new product launches

+encourages word of mouth promotion

-can be complicated to send in the post

-can be expensive as giving away some of product for free

Special event

+encourages customers to attend

+rewards loyal customers with a special event

-can be expensive

Points of sale

+ideal way to promote new products

+works well with seasonal products

-only successful if product meets needs of customers

-displays may be in poor locations

Digital communications

Online adverts

Mobile communication

Advergaming

Social media

Consumer generated content

Viral strategies

Online adverts

+reaches large markets of customers shopping online

-customers may ignore the ads

-ads may get lost amongst all content

Mobile communication

+can be used to extend the online reach so that customers can interact with the brand whilst on the move

-small screen means message may be lost or distorted

-websites need to be adapted to mobile friendly which can be expensive

Advergaming

+can be multi player so encourage huge audiences

+can concentrate on brand image through the game

-if brand and game don’t correlate the message can be lost

-many games are played by consumers far too young to make purchases

Social media

+increases customer engagement with the brand

+can show customer service with a quick response

-hiring staff may be expensive

Customer generated content

+opportunities for consumers to read reviews before they make the purchase

+positive responses can be very valuable marketing

-easy to see public complains

Viral strategies

+consumers can spread the message amongst themselves which reduces costs

-can be complex if original message is lost

Branding

A characteristic name or symbol that distinguishes one product from another supplier

Corporate Branding

Aims to build communications and relationships between the main business name and the customer

+spreads cost of marketing across ds

-takes long time to build a solid brand image

-any unfavourable incidents and whole brand suffers

Product branding

Aims to show customer the features and benefits of a product which will differentiate from similar products in the market

+branded products can command higher prices

+good branding differentiates product

-may require high investment

-product branding may take years to build up

Own brand products

Products made by a manufacturer in behalf of a supermarket

+boosts customer loyalty to supermarket

+competes with manufacturers brand

+Fills gaps in competition

-can be numerous companies under the supermarkets name

Rebranding

Will be developed for an established brand with the intention of developing a new differentiated identity in the minds of consumers investors

Benefits of strong branding

Added value

Ability to charge premium prices

Reduces price of elasticity

Ways to build a brand

USP

advertising

Sponsorship

Social media

Viral marketing

Method of marketing whereby consumers are encouraged to share info about a company’s goods or services via the internet

Emotional branding

Seeks to create a bond between the consumer and the product by provoking an emotional response to the advertising