1.3.2 Branding And Promotion

Question 1

What does promotion aim to do?

Answer 1

• tell customers about a new product
• remind customers about an existing product
• reach a widely dispersed target audience
• reassure customers with products
• show consumers competitors products aren’t as good
• improve or develop the reputation of the business

Question 2

What is above the line promotion?

Answer 2

Paid for communication in the independent media such as advertising on tv or in newspapers, can be targeted but can also be seen by anyone outside the target market

Question 3

What are the main aims of above the line production?

Answer 3

• to inform customers
• raise awareness
• build brand positioning

Question 4

Why does above the line promotion tend to have higher prices?

Answer 4

Promotional methods used are less precise

Question 5

What categories of above the line production are there?

Answer 5

• informative advertising - adverts designed to increase consumer awareness if a product
• persuasive advertising - advert sung designed to put pressure on the consumers to buy the product, appeals to people’s needs emotions and desires or respect for authority or fascination with a celebrity
• reassuring adverts - aimed at existing customers to be comforted and suggest they were right to buy the product and they should continue to do so

Question 6

What is below the line production?

Answer 6

Promotional activities where the business has direct control over the target or intended audience

Question 7

What factors affect the choice of promotion?

Answer 7

• cost
• market type
• product type
• legal factors
• stage in the product lifestyle
• competitor promotions

Question 8

What are the stages of the product lifestyle cycle?

Answer 8

Introduction -> growth -> maturity -> decline

Question 9

What is the introduction stage in the product life cycle?

Answer 9

Product us introduced into the market, may use free samples or persuasive advertising

Question 10

What is the growth stage if the product life cycle?

Answer 10

Customers are starting to become aware of the product and sales build, may use social media featuring an inflcuncer

Question 11

What is the maturity stage if the product life cycle?

Answer 11

The product us established and has a consistent level of sales, may use reassuring advertising

Question 12

What is the decline stage of the product life cycle?

Answer 12

Sales are in decline, either extend the life or phase it out, may email with discount coupons, billboards of new versions of the product

Question 13

What are the types of brand?

Answer 13

• manufacturer
• own label
• generic

Question 14

What is a manufacturer brand?

Answer 14

• created by manufacturers
• use advertising and promotion to build brand loyalty
• can charge higher prices
• consumers stay loyal
• repeat purchases

Question 15

What us own label branding?

Answer 15

• created by retailers
• good value for money for consumer
• high profits for retailer
• ties consumers to retailer
• gives retailer bargaining power with major manufacturers

Question 16

What is generic branding?

Answer 16

• has no company or product name
• contains name of the product category
• e.g. aluminium foil, carrots, ibuprofen
• generally sold at lower prices than branded goods

Question 17

What is the definition of branding?

Answer 17

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

Question 18

What are the benefits of string branding?

Answer 18

• added value
• ability to charge premium prices
• reduced price elasticity of demand

Question 19

What is added value a benefit to strong branding?

Answer 19

The difference between cost of input and selling price
- enhanced recognition
- trust and credibility in the product and services
- improved customer loyalty
- justification to charge higher prices

Question 20

Why is ability to charge premium prices a benefit of strong branding?

Answer 20

• customers may be willing to pay more for a product that is associated with a well established brand
• they perceive products such strong branding to be of higher quality and therefore worth the extra cost

Question 21

Why is reduced price elasticity if demand a benefit of strong branding?

Answer 21

• reduced price sensitivity
• consumers want to buy from companies they like, know and trust so are more likely to accept any price rises

Question 23

What ways are there to build a brand?

Answer 23

• exploit a unique selling point
• advertising
• sponsorship
• using social media

Question 24

What changes in branding and promotion are there that reflect social trends?

Answer 24

• viral marketing
• social media
• emotional branding

Question 25

What is viral marketing?

Answer 25

- buzzword which refers to brand awareness created through word of mouth - the original message is posted via twitter Facebook or YouTube etc - consumers then watch / experience / share the message with their friends - the business does not have to pay for the distribution of the advert or message

Question 26

What is social media used for in branding and promotion?

Answer 26

- revolutionised branding and promotion - direct and interactive platform for engaging with audience - enables targeted advertising and real time feedback - allowed personalised communications, helping to make deeper connections with consumers - enhances creditably and reach - can be used by businesses of all sizes - builds relationships, drives sales, and shapes brand image efficiently

Question 27

What is emotional branding?

Answer 27

- emotional branding seeks to create a bond between the consumer and the product by provoking an emotional response to the advertising - long lasting attachment to a product is a strong brand loyalty