1.3.2-Branding And Promotion Flashcards
(19 cards)
What is meant by promotion?
A way of making customers aware of the business and persuading them to buy their products
What is branding?
A way of easily distinguishing a product from other products
Advantages and disadvantages of manufacturer branding for the producer
Manufacturer
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Adv:Increased customer loyalty
Can increase chances of success for new products if customers trust the overall manufacturer
Dis:Negative brand image can impact success of future products
Could make it difficult to enter new markets with new products (diversify) if branding is associated with one type of product/market
What are the 3 types of branding?
Product branding
Own brand product
Manufacturer
Advantages and disadvantages of product branding for the producer
Adv:Customers often trust branded products more than own brand products leading to higher sales
Can act as USP
Dis:Developing/maintaining brand can be very expensive
Changing perception of brand once it’s established is difficult
Advantages and disadvantages of manufacturer branding for consumer
Adv:Trust. Customers often trust overall corporate brand more than unfamiliar brands
Can make purchasing decisions easier as customers can choose product from the manufacturer they know
Dis:Possible higher prices across entire product range
Some branded products (especially technical) aren’t compatible with other brands meaning customers feel tied to the brand
Advantages and disadvantages of own brand products for consumer
Adv:Often cheaper to buy
Often easier to obtain than some branded products
Dis:Quality often lower than branded
Lacks prestige and image that branded products have
Advantages and disadvantages of product branding to consumer
Adv:Increased awareness-easier for customers to recognise the business products in different scenarios eg.McDonalds abroad
Can reduce risk of disappointment as customers are familiar with brand
Dis:Higher prices compared to own-brand
Often little difference in quality when compared to some own-brand products
Advantages and disadvantages of own brand products to producer
Adv:Reinforce brand loyalty especially for products like cereal/other foods
Can be cheaper than branded leading to higher profit margins
Dis:Difficult to differentiate as they’re often replicas of branded products
Customers often trust branded products more and perceive them as higher quality
Benefits of strong branding
Add value to products-Customers willing to pay more as they perceive it to be diffrent from other products so business can charge premium prices
Reduce PED-Customers loyal to certain brands so business can increase price with little effect on sales volume
Ways to build a brand
USP/Differentiation
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USP is a feature or benefit which separates product from competitors this is important as without it the product may not attract customers making it difficult to build a strong brand
Differentiation means making the product/service different from competitors- branded products are viewed as different to others which may lead to brand loyalty
Advertisement
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Can help build a relationship with customers by informing them of the brand and persuading them that their products are better than others offered
Sponsorship
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Business will sponsor team/event to build brand awareness and make customers familiar with the products that they offer
Social media
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Allows business to engage with specific market segments and target audience, also allows online advertisement with the ability to target online campaigns at specific audiences
Rebranding
Creating a new image for an established brand by changing name/logo
Can allow the brand to reach new customers and differentiate from others
However may cause confusion or lead to loss of existing customers
Changes in branding and promotion to reflect social trends
Viral marketing
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Uses social media networks to promote a product, name refers to how consumers spread info about a product with others in their social networks like how a virus spreads from one person to another.Video content has been proven to help some businesses gain significant audiences for their products
Social media
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Social media growth has resulted in changes with many brands having their own social media channels helping them to target customers more accurately. It has allowed businesses a greater reach than traditional promotion forms especially with viral marketing and allows customers to discuss their experiences with a brand with others
What is meant by innovation?
Creating a new idea and turning it into a sellable product
What is meant by viral marketing?
Encouraging customers to share information through social media platforms
What is a USP?
A feature that makes a product stand out from the competition
What are social trends?
Changing patters in consumer behaviour reflected in changing demands
What is meant by sponsorship?
Supporting another business/person by giving them a product or money
What is competitive advantage?
Using differentiation to have an edge over the competition
