Promotion and branding. 2/4Ps

Question 1

What is promotion?

Answer 1

Promotion is the way in which businesses aim to inform consumers about a product or persuade them to buy it.

Question 2

What are promotional objectives?

Answer 2

To increase sales and profits and increase brand awareness of a product. It should get customers attention to persuade them about a product.

Question 3

What are adverts?

Answer 3

Adverts are a type of promotion largely through the media which promote goods and services and a businesses public image.

Question 4

Where would you find adverts for businesses? What does it depend on?

Answer 4

Print, film, TV, Radio, billboards and the internet. The choice of media depends on the target audience and market, and how many see or hear the add. Ads that more people see or hear are more expensive and visa versa; a business must ensure the cost is worth it for advertising in terms of awareness of sales.

Question 5

How do businesses use digital communications? What are the benefits and drawbacks?

Answer 5

Online adverts can be targeted at customers who have shown an interest in a product by browsing for it.
- Ads on phones - these are efficient as the advertiser is often only charged when people click on the add so they care guaranteed value for money.
- Viral marketing - when businesses use social media to make ‘interesting’ ads for people to send around to their friends and family and spread awareness for free - it should usually be very funny.

• They are often cheaper than traditional ads. However many people ignore the ads online as they are exposed to so many.

Question 6

How do niche products advertise?

Answer 6

They use specialist media by advertising in niche areas where their niche consumers are likely to see them; a fishing rod seller would advertise in a fishing magazine, not a major outlet.

Question 7

What factor can inhibit some businesses from advertising?

Answer 7

Legal constraints - i.e.. cigarettes cannot be advertised.

Question 8

Not all promotion involves advertising - what do some businesses do? Who aims promotion at the sellers? What are the problems with said methods.

Answer 8

Businesses often offer sales promotions like free gifts, special offers or BOGOFS. They can raise awareness and increase sales. Manufacturers often aim sales promotions to retailers to encourage them to stock more of their products. However customers could notice the offers and only buy specific things when they know the offers will be available, decreasing profit margins.

Question 9

What is direct marketing?

Answer 9

This is the business promoting directly to the consumer without the third party (phone or mail or email). However they are often ignored.

Question 10

What is personal selling (direct selling.)

Answer 10

Personal communication between a salesperson and potential consumer; anyone personally trying to sell something to someone. However wages for this are often expensive especially with commission, and has a more limited reach - better for luxury goods.

Question 11

Event sponsorship

Answer 11

A business sponsoring large events to increase awareness. Expensive but increases awareness.

Question 12

Public relations.

Answer 12

When businesses communicate with the media to organise interviews, product launches, conferences and other events to raise awareness and create a good image by saying specific things to the public. However, the business is limited on it’s control over what the media says and misinterpretation can occur; creating a negative public image.

Question 13

What is branding?

Answer 13

Branding creates a clear and obvious logo, name or statement. This means that customers will easily recognise promotional material from a particular business or for a particular product.

Question 14

What is manufacturer or corporate branding?

Answer 14

How a business presents itself.
Within the corporate brand, there may be separate product brands aimed at different customers; Kellogg’s. - People trust this brand.

Question 15

Product branding.

Answer 15

This is the branding of specific products.
The individual product will have it’s own logo and slogan, but will often have the corporations brand incorporated to show the consumers that the product is trustworthy.
E.g. kellogg’s - Snap, Crackle and Pop.

• Branded products usually have expensive marketing so higher retail price. Many consumers are willing to pay more if they’re buying a trusted product, because it appeals to their sense of wellbeing and gives them a feelgood factor. Some may not pay higher prices though.

Question 16

Own branding.

Answer 16

Largely in house brands to a supermarket or retailer.

Smaller budgets would have been allocated to these brands/ products and do not have a specific logo or slogan so are cheaper to produce, and lower priced.
This is often good for the customer as it is cheaper to purchase, but their perceived as lower quality.

Question 17

What is rebranding?

Answer 17

A marketing strategy that can involve a change to the 4Ps of a brand. A business might want to reposition a product and aim it at a different audience or try to overcome competition from another business.
- It can be used to create a new identity when a brand name is no longer suitable (Weight watchers -WW). This is seen as more suited to helping people’s overall wellness than just weight focussed.

Question 18

Why is strong branding beneficial to a business?

Answer 18

One of the main reasons for a business to build a strong brand is to add value and make a product less price elastic as people will pay more for established brands.

Consumers see products to be higher quality than substitutes with strong branding. They will be willing to pay more and do so more often as they are loyal.

Strong branding can be a barrier to entry to new businesses trying to enter a market. Certain brands have become brandnomers, which is where the product becomes known by a brand name rather than the general name. For example Post It Notes is a brand but people refer to any sticky note as a ‘post it’ - strong branding.

Question 19

How can a business build a brand?

Answer 19

One way a business can do so is to base it around a USP. This will help customers to see a product as differentiated and increase demand.
- A USP may not always be obvious but it may be more about the image associated with the brand. If consumers perceive it to be a superior brand then that is the USP. For example a newer brand may be seen as worse quality than an established brand even if they are of similar quality.
- Advertising is used to promote the business; lots is spent on this in competitive markets.
-Large brands use sponsorship (Carabao cup, emirates FA cup, LaLiga Santander.)

Question 20

How are businesses using social media to communicate?

Answer 20

Businesses are using viral marketing on a number of platforms that people are able to share. This is usually very low cost (tiktok), but a business can lose control of negative PR which can damage a brand, very hard to undo.

Question 21

What is emotional branding? Why is it effective sometimes?

Answer 21

It helps to engage consumers by matching the branding of a product with the lifestyle, aspirations or values of consumers to trigger an emotional response, to increase their chances of buying.
Maltesers and Coke use the power of friendship and sharing with friends to attract consumers who share similar values.
- To succeed doing so, businesses must have a good understanding of the people they are marketing to - MR.