1.3.2 Branding & Promotion

Question 1

What types of promotion are there?

Answer 1

• Digital communications
• Sponsorship
• Public relations
• Advertising
• Direct marketing
• Sales promotions
• Personal selling

Question 2

What are the advantages and disadvantages of advertising?

Answer 2

Advantage:
* Can reach large audiences & increase brand awareness
* Also be used to create a specific brand image or message

Disadvantage:
* Can be expensive
* Effectiveness of advertising can be difficult to measure-many customers tune out/ignore ads

Question 3

What are the advantages & disadvantages of direct marketing?

Answer 3

Advantages:
* Businesses can target specific audiences & personalise their message to individual customers

Disadvantages:
* Can be intrusive as customers may percieve as spam

Question 4

What are the advantages & disadvantages of sales promotions?

(e.g. buy one get one free)

Answer 4

Advantages:
* Can quickly boost sales or customer engagement

Disadvantages:
* Can be expensive, especially if the promotion requires a heavy discounting

Question 5

What are the advantages & disadvantages of personal selling?

Answer 5

Advanatges:
* Allows businesses to build relationships with their customers & understand their specific needs

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

Question 6

What are the advantages & disadvantages of sponsorship?

Answer 6

Advantages:
* Can help to build brand awareness & credibility

Disadvantages:
* Can be expensive- especially for high profile events or properties

Question 7

What are the advantages & disadvantages of public relations?

Answer 7

Advantages:
* Can enhance a businesses reputation & credibility

Disadvantages:
* PR can be time consuming & is difficult to measure the direct impact of PR activites on the profits

Question 8

What are the advantages & disadvantages of digital communication?

Answer 8

Advantages:
* Can be highly targeted to specific customers segments

Disadvantages:
* Can be easily ignored/filtered out by customers
* May require significant investment in technology

Question 9

What is branding?

Answer 9

• The process of creating a unique & identifable name,design,symbol that differentiates a product/service or company from its competitors

Question 10

What is manufacture/corporate branding?

Answer 10

• Refers to the use of a company name or logo to promote all the products or services offered by the company

Question 11

What are the advantages & disadvantages of corporate branding?

Answer 11

Advantages:
- Creates a strong brand recognition reputation for the company which can increase customer loyalty & trust
- Allows the company to leverage it’s existing reputation & customer base to introduce new products more easily

Disadvantage:
- If a businesses reputation is damaged by a product it can have a negative impact on all the products offered under that brand
- If company faces intense competition it may affect the sales of all the products offered across other markets

Question 12

What is product branding?

Answer 12

• Refers to the use of a unique name,design ,symbol to promote a specific product

Question 13

What are the advantages & disadvantages of product branding?

Answer 13

Advantages:
* Creates distinct identity for the product which can help to differentiate it from competitiors & increase brand loyalty

Disadvantages:
* Cost of creating & promoting a new brand for each product
* Different products within the brand may have different levels of quality which can affect customer satisfaction

Question 14

What is an own brand product?

Answer 14

• Refers to the use of a retailers name to promote a specific product/service & is often used by supermarkets

Question 15

What are the advantages & disadvantages of an own brand product?

Answer 15

Advantages:
- Can help retailers to differentiate themselves from their competitors by offering unique products
- It allows retailers to offer products at a lower cost than branded products which can help to increase sales & profitability

Disadvantages:
- Own brand products may have a lower percieved quality than branded products which can affect customer loyalty & trust

Question 16

What are the benefits of strong branding?

Answer 16

Added value
Ability to charge premium prices
Reduced price elasticity of demand

Question 17

How can branding add value to a business?

Answer 17

Strong branding can add value to a product by creating a perception of quality,reliability & trust

Question 18

How can strong branding mean that a business has the ability to charge premium prices?

Answer 18

• Customers will be willing to pay more for product that’s associated with a well-established brand
• As percieve products w strong branding to be of higher quality & therefore worth the xtra cost

Question 19

How can strong branding reduce price elasticity of demand?

Answer 19

Can reduce PED for a product as customers are less sensitive to price changes

Customers who are loyal to a brand are more likely to continue purchasing the product even if price increases

Question 20

What ways are there to build a brand?

Answer 20

Can be built by using any one/combination of following:
* By developing a USP
* Through advertising
* Through sponsorship
* Through social media

Question 21

What are the three current social trends that businesses are aware of and adapting to?

Answer 21

• Viral marketing
• Social media
• Emotional branding

Question 22

What is viral marketing?

Answer 22

• A strategy where a business use online platforms to promote their products by creating content at specific times
  Which can easily be shared & commented on

Question 23

What is the point of social media for a business?

Answer 23

To help keep up with the latest ‘trends’

Question 24

What is emotional branding?

Answer 24

A strategy where companies build strong emotional connections with their customers by appealing to their values,beliefs & emotions