1.3.2 Branding & Promotion

Promotion

🔗Informing customers about a product and persuading them to buy it

Types Of Promotion

Above The Line Promotion

📌 Paid for, mass media communication. Advertising (TV, radio, newspaper etc)

• Ability to reach a large volume of customers
• Costs can be high, opportunity cost if unsuccessful
• Not targeted at a specific customer base

Below The Line Promotion

📌 Non-paid for communication, without the use of media. Sales promotions e.g, value-for-money offers - buy one get one half-price

• A quick method of attracting more sales
• Encourages customers to try the product
• Sales may only be short-term
• Customers may begin to expect further discounts and hold off on purchasing until the next special offer

Personal Selling

• Better ability to persuade customers
• High costs
• Labour-intensive, repetitive

Other Methods

• Direct mail

• Sponsorship Merchandising

• Public relations (PR)

Branding

🔗 The process of creating a distinctive and lasting image in the minds of consumers

Types of Branding

• Individual brand 🔗 Giving each product that a company sells its own unique brand

name (marmite)

• Brand family/Umbrella 🔗 Using one brand name for multiple products (Hoover)

• Corporate brand 🔗 The name of the business is the brand (Facebook)

. Ways to build a brand

• Having a USP/ product differentiation Advertising

• Sponsorship

• Using social media

The benefits of strong branding.

• Can attract a large volume of sales, accelerate business growth, increase revenues, business becomes more profitable, increase market share
• Demand is more price inelastic, can charge premium prices + Strong brand, more customer loyalty, can add value to products

Changes in branding and promotion to reflect social trends

Viral marketing

🔗 A method of marketing where individuals are encouraged to share information about a company's products

Social Media

🔗 A digital platform that can be used to promote products to customers

Emotional Branding

🔗 Aims to create a bond between the consumer and the product by creating an emotional response to its advertising