1.3.2 branding and promotion

• branding


  a brand is a characteristic, name or symbol that distinguishes one product from another supplier
• 3 types of branding


  1. manufacturer/corporate branding
  2. product branding
  3. own brand products
• manufacturer/corporate branding


  • corporate branding builds relationships between the main business and the customers
  • the business may own a range of other brands eg, nestle own kitkat and nescafe
  • images and slogans are used to establish the brand
• manufacturer/corporate branding - benefits


  customers trust the main brand so more likely to try new products when launched
• manufacturer/corporate branding - drawbacks


  takes a long time to build a solid brand image
• product branding


  a product's branding system will differentiate it from other similar products in the market
• product branding - benefits


  • branded products can command higher prices than non-branded
  • businesses therefore expect higher profits from branded cash cows
  • good branding differentiates the product and creates customer loyalty
• product branding - drawbacks


  product branding may take many years to build up
• own brand products


  own brand or own label products are made by a manufacturer on behalf of a supermarket
• own brand products - benefits

  • boosts customer loyalty to the supermarket
  • competes with manufacturer brands
  • fills gaps left by the competition
• own brand products - drawbacks


  may not meet customer needs of quality so expensive to manufacturer for no benefit
• rebranding


  rebranding is a market strategy in which a new:

  • name
  • symbol
  • term
  • design
  • or combination of the above

  is developed for an established brand with the intention of developing a new differentiated identity in the minds of consumers, investors or competitors
• the benefits of strong branding


  1. adds value
  2. ability to charge premium prices
  3. reduced PED
• the benefits of strong branding


  1. adds value

  • a strong brand can add value to a product for both the consumer and business - brand gains value that will help if it is sold by another company
• the benefits of strong branding


  2. ability to charge premium prices

  consumers associate these brandnomers with consistent quality and therefore will pay a higher price for them than non-branded items

  • brandnomer: when a brand name has gained so much popularity that it becomes a generic term for a product
• the benefits of strong branding


  3. reduced PED

  products from successful brands are more price inelastic (reduced PED) - eg, loyal coca cola customers will pay the premium even if prices rise. they are unlikely to settle for an inferior brand
• ways to build a reputation/strong brand

  1. USPs/differentiation
  2. advertising
  3. sponsorship
  4. social media
• ways to build a reputation/strong brand

  1. USPs/differentiation

  unique selling point - what makes one product or business different from another

  USPs can be used to promote and build the brand
• ways to build a reputation/strong brand


  2. advertising

  • paid for promotions to increase brand awareness and customer loyalty
  • customer purchase from brands they are familiar with
  • to build a brand a business will need to use a mixed media approach e, print (newspaper) and digital (youtube adverts)
• ways to build a reputation/strong brand 


  3. sponsorship

  association with a celebrity/sports personality or event to increase brand recognition, awareness and perception
• ways to build a reputation/strong brand 


  4. social media

  • engage with customers on social media channels
  • builds trust through engagement and interaction with customers
  • using social media:

  competitors' social media campaigns

  platforms that target audience use
• methods of promotion


  1. above the line advertising (ATL)
  2. below the line advertising
• above the line advertising (ATL)


  • advertising to a mass audience:

  tv adverts, online adverts, cinema adverts, daily newspaper adverts

  • advantage = reaches a large audience
  • disadvantage = very expensive to make an advert and air it
• below the line advertising


  • below the line is a more personal advertising to niche markets;

  it is used to:

  • create awareness
  • communicate information in order to gain a response from the target market
• advertising


  promotion occurs through paid channels such as television, radio, print media (magazines), and online advertising
• advertising


  advantages:

  • increases awareness
  • reach wider audience
  • control over your message
  • lead to brand loyalty

  disadvantages:

  • expensive
  • time consuming
  • may be ignored
  • difficult to measure its effectiveness
• direct marketing


  involves communicating directly with customers through email, text message, social media or post
• direct marketing


  advantages:

  • cheaper
  • target specific audience
  • measurable - enables to track results and adjust their strategy

  disadvantages:

  • seen as intrusive - consumers will view as spam
  • costly
  • need customer database
• sales promotion


  marketing techniques that encourage the purchase of a product or service by offering temporary incentives or discounts such as free samples, buy one get on free (bogof), discount coupons, loyalty cards, and rebates (customers have to mail in to receive money back)
• sales promotion


  advantages:

  • quickly boost sales or customer engagement
  • help clear stock or promote a new product
  • encourage impulse purchases
  • target specific segment of customers

  disadvantages:

  • people take advantage of only using free incentives
  • expensive if promotion requires heavy discounting
  • attract deal-seeking customers = no loyalty
  • reduce sales of full-priced products
• personal selling


  occurs when a salesperson interacts with potential customers one-on-one, either in person or through digital communication channels
• personal selling


  advantages:

  • allow to build relationship with customers
  • enables business to provide advice/guidance to customers

  disadvantages:

  • not reaching many people
  • expensive - cost of hiring and training sales staff
  • impact can be limited as difficult to scale to large audiences
• sponsorships


  this is an agreement in which a company provides financial or other support to an event, team, or organisation in exchange for marketing exposure
• sponsorships


  advantages:

  • wider reach/increase awareness
  • create emotional connection with target audience
  • support business objectives

  disadvantages:

  • expensive
  • not directly drive sales
  • be subject to negative publicity if entity has a scandal or controversy
• public relations (PR)


  the business seeks to build relationships with the public and manage their reputation

  public relations activities can include media relations, crisis management and community outreach
• public relations (PR)


  advantages:

  • wider reach to people
  • enhance business reputation and credibility
  • lead to increased customer loyalty and sales
  • cost effective to advertising and personal selling

  disadvantages:

  • time consuming
  • difficult to measure impact of PR activities on profits of a profits
• digital communications

  refer to any form of marketing or communication that is delivered electronically, such as social media, search engine optimisation (SEO), or mobile apps such as instagram and twitter

  can be used for building brand awareness, generating leads, or driving sales
• digital communications


  advantages:

  • highly targeted to specific customer segments
  • provide real time engagement and feedback from customers

  disadvatges:

  • easily ignored by customers
  • requires significant information in tech and data infrastructure
  • subject to data privacy regulations or security breaches
  • not effective for reaching older or less digitally savvy customer segments