1.3.2 Branding and Promotion

• Benefits of Corporate Branding

  Spreads marketing costs and generates worldwide awareness
• Disadvantages of Corporate Branding


  Takes a long time to establish, bad events damage the whole brand, too much advertising leads to indifference
• Benefits of Product Branding


  Charge higher price, higher revenue, creates customer loyalty
• Disadvantages of Product Branding


  Requires high investment, takes many years, limited flexibility in other areas
• Advantages of Own Brand


  Increase customer loyalty, compete with brands, fills gaps in the market
• Disadvantages of Own Brand Products


  Different manufacturers may mean quality is inconsistent
• Ways to Build a Brand


  Differentiation, advertising, sponsorship, social media
• Changes in Promotion due to Social Trends


  Viral marketing, social media and emotional branding
• Direct Marketing


  Highly targeted mail based on previous purchases and special offers sent directly to customers
• Above the Line (ATL) Marketing

  Advertising to a mass audience using TV adverts, billboards etc. this reaches many people, but is expensive
• Below the Line (BTL) Marketing


  Advertising to niche markets using leaflets, posters etc. it is cheap, increases customer engagement and can easily track conversions
• Public Relations

  PR is a low-cost, long-term strategy to earn customer approval by creating a favourable image of the firm
• Sponsorship


  A firm paying a public figure to market their brand or product. This can lead to positive association with the figure, but it is expensive and it is difficult to tell the impact on brand loyalty and sales.
• Buy One Get One Free


  +: Increases sales revenue, popular, encourages use of the product, encourages trying new brands

  -: Short-term and increases costs by producing more goods
• Price Discounts

  +: Clear out-of-date stock for profit

  -: Customers may think the firm is cheap and may be suspicious if too many discounts are offered
• Samples/ Giveaways


  +: Good for new products, works especially well with some products eg. food, encourages word-of-mouth promotion

  -: expensive and complicated to send without a customer database
• Money Off


  +: Better value for money and available from websites, loyalty cards, magazines etc. to encourage repeat purchases

  -: Reduced profits, customers may wait for coupons and may have purchased the item without a discount
• Special Events


  +: Encourages customers to attend, rewards loyalty, ideal for small firms

  -: expensive and hard to measure how effective this marketing is
• Point of Sale


  +: ideal for new products, ideal for events eg. Halloween, can add discounts

  -: poor location makes it ineffective, needs to be made in advance and only successful if it meets customer needs
• Online Adverts

  +: Analytics show the effectiveness, reach a large market

  -: customers ignore ads and they are costly
• Mobile Communications


  +: increased reach and customer interaction, can use a phone

  -: the small screen may lose the message, security issues and websites must be adapted to a mobile format which is expensive
• Advergaming


  +: Customers expect adverts, they focus on the brand message and multiplayer games reach a large audience

  -: Consumers may be too young to purchase and the brand and game may be unrelated so the message is lost
• Social Media


  +: Increased engagement, low cost, informed of new products, quick customer service

  -: Need to be updated regularly by staff which is a cost
• Consumer Generated Content


  +: Read reviews before purchasing and positive reviews boost reputation

  -: Need to manage online reputation and customers can publicly complain and influence others' decisions to buy the product
• Viral Strategies


  +: Consumers spread the message thus it's more authentic

  -: Too complex means the message is lost and difficult to get funding for as it is a new concept
• Social Trends


  Concerns about resource depletion, waste minimisation, recycling and ethical sourcing