1.3.2 Branding and promotion

• Promotion is process by which people are encouraged to buy a product and its purpose is to inform, persuade and remind and increase awareness

  advertising, PR, sales promotion, personal selling, direct marketing, digital communication
• above the line advertising


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

  reaches large audience but expensive
• below line advertising - niche markets


  develop attitudes, create awareness, communicate information

  leaflets, radio advert, magazines, billboard, posters, website banners, SOCIAL MEDIA
• Sponsorship

  positive association of product with celebrity/sport

  expensive

  difficult to see impact
• Branding

  Branding is the process of creating a distinct identity for a business in the minds of your target audience and the general population
• Social media, brands spread messages and do various social media campaigning in order to put their brand message across to consumers and create a relationship
• Advertising advantagesfor building brand

  focus attention on how the business sets apart from others

  advertising means generating opportunities

  advertising broadcasts the sales message to target audience

  communicates functional message of brand and any symbolism

  actively encourages repeat sales
• Sponsorship increases sales and profile of product
• Social media - building brand

  hashtags on twitter

  events that attract following

  providing value to brand

  interacting with customers

  accountability
• Social media positives - brand building


  targeting is specific, precise, reaching particular segment

  provides interactivity, build relationships
• Social media negatives building brand

  no long term follow, expensive to maintain and high competition
• Viral marketing- type of branding


  brand awareness created through word of mouth

  doesn't have to pay for distribution of advert as it is created and shared uncontrollably
• Benefits of strong branding

  added value - apple watches compared to normal watches

  ability to charge premium prices like rolex and omega

  reduced price elasticity of demand
• Advertising advantages

  • It can reach large audiences and increase brand awareness
  • Can also be used to create a specific brand image or message e.g. the advertising campaign run by Compare the Market (Meerkat)
• Advertising disadvantages

  • Can be expensive
  • The effectiveness of advertising can be difficult to measure
  • Many customers tune out or ignore ads
• Direct marketing advantages

  • Businesses can target specific audiences and personalise their message to individual customers
  • Direct marketing is also measurable, which enables businesses to track their results and adjust their strategy
• Direct marketing disadvantages

  • Can be intrusive as customers may perceive it as spam
  • Can also be costly, especially if businesses do not have an established customer database or need to purchase leads
• Sales promotion advantages

  • Can quickly boost sales or customer engagement
  • Can help to clear out stock or promote a new product
  • Can encourage impulse purchases
  • Can be targeted to specific segments of customers
• Sales promotion disadvantages

  • Can be expensive especially if the promotion requires a heavy discounting
  • Can attract deal-seeking customers who may not be loyal to the brand
  • May reduce the sales of full-priced products
• Personal selling advantages

  • Allows businesses to build relationships with their customers and understand their specific needs
  • Enables businesses to provide personalised advice and guidance to customers
• Personal selling disadvantages

  • Can be expensive due to the cost of hiring and training sales staff
  • The impact of personal selling can be limited as it is difficult to scale to large audiences
• Sponsorship advantages

  • Can help to build brand awareness and credibility
  • Can create emotional connections with target audiences
  • Can support specific business objectives, such as entering new markets or reaching new customers
• Sponsorship disadvantages

  • Can be expensive, especially for high-profile events or properties
  • May not directly drive sales
  • May be subject to negative publicity if the sponsored entity experiences a scandal or controversy e.g. In 2022 Kanye West was dropped by Adidas after his anti Semitic outbursts
• 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
• PR advantages

  • Can enhance a business's reputation and credibility
  • This can lead to increased customer loyalty and sales
  • Can be cost-effective when compared to advertising or personal selling
• PR disadvantages

  • PR can be time-consuming and is difficult to measure the direct impact of PR activities on the profits of a profits
• • Branding is the process of creating a unique and identifiable name, design, symbol, or other feature that differentiates a product/service or company from its competitors 
  • Branding is important to a business for a variety of reasons:
  • Branding establishes recognition and identity
  • Branding builds trust and credibility
  • Branding differentiates a business from its competitors
  • Branding creates an emotional connection with customers which helps to generate repeat purchases
  • Branding supports marketing and advertising efforts
• Manufacturer/Corporate branding

  • This refers to the use of a company name or logo to promote all the products or services offered by the company
  • This type of branding is used by companies like Nestlé, Nike, and Apple
• Product branding

  • This refers to the use of a unique name, design, or symbol to promote a specific product
  • E.g. KitKat, Coca-Cola, and McDonald's Big Mac 
• Own brand product

  • Own brand or private label branding refers to the use of a retailer's name to promote a specific product or service and is often used by supermarkets
  • E.g. ASDA chocolate, Tesco's Finest range, and Sainsbury's Basics range
• Corporate branding


  strong brand recognition and reputation

  build economies of scale by promoting multiple products

  reputation = bad , negative impact on products
• Own brand product

  differentiation

  offer products at lower prices, profitability

  own brand products lower percieved quality
• Strong branding advantages

  Added Value by creating a perception of quality, reliability, and trust

  Ability to charge premium Prices

  Customers may be willing to pay more for a product that is associated with a well-established brand as they perceive products with strong branding to be of higher quality and therefore worth the extra cost
• • Brands can be built using any one, or a combination of the following methods:
  • By developing unique selling points (USPs) - Apple design
  • Through advertising - Coca cola
  • Through sponsorship - Nike
  • Through the use of social media - Glossier, Ryanair
• Changes in Branding & Promotion to Reflect Social Trends

  • Businesses which respond quickly to changing social trends can better meet the needs of their customers
  • Being able to quickly adapt their branding and promotion strategies will ensure that they maximise communication opportunities with their customers, which will help to develop brand loyalty and increase profits
  • Three current social trends businesses are aware of and adapting to, include viral marketing, the use of social media, and emotional branding
• Viral marketing

  • Is a strategy where businesses use online platforms to promote their products by creating content at specific times, which can easily be shared and commented on
  • E.g. During the COVID-19 pandemic, Coca-Cola and McDonald's ran campaigns that emphasised community which aligned with the public's need for social support
• Social media

  • As social media platforms evolve, businesses must also adapt their social media strategies to keep up with the latest trends
  • E.g. Instagram has been a popular platform for businesses to promote their products through influencer partnerships
  • More recently many businesses have shifted their focus to promoting their brands through short-form video content on platforms like TikTok
• Emotional Branding

  the practice of building brands that appeal directly to a consumer's emotional state, needs and aspirations.