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Promotion (Loyalty Cards (What is a Loyalty Card? Customers earn points…
Promotion
Loyalty Cards
What is a Loyalty Card? Customers earn points for buying certain goods or shopping at certain retailers – that can later be exchanged for money, goods or other offers.
Types of Loyalty Cards are: Costa, Nectar Cards, Subway Cards
The advantages to a company in offering a loyalty card are:
-They make the customer come back more times.
-Useful for market research and researching what types of the day they shop and what they shop.
Advertising
● Reach of the media – national or local; number of potential customers it could reach; how long before the message is seen
● Nature of the product – the media needs to reflect the image of the product; a recruitment ad would be placed in a trade magazine or newspaper but a lipstick ad would be shown on TV or women's magazines
● Position in product life cycle – launch stage will need different advertising from products undergoing extension strategies
● Cost of medium & size of advertising budget – e.g. local newspaper advertising is cheaper than radio, which in turn is cheaper than TV. But the business will also want to consider cost per head if reaching a larger audience
● Online or offline – there has been substantial growth in businesses that advertise online as they swap some (sometimes all) of their advertising budgets to reach Internet users. The rapid growth of Google, YouTube, Facebook and Twitter advertising revenues in th is an illustration of how powerful online advertising has become, particularly through social media channels
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Branding
A brand is a product with unique character, for instance in design or image. It is consistent and well recognised.
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● The brand owner can usually charge higher prices, especially if the brand is the market leader
● Retailers or service sellers want to stock top selling brands. With limited shelf space it is more likely the top brands will be on the shelf than less well-known brands.
Some retailers use "own-label" brands, where they use their name of the product rather than the manufacturers like Tesco's "Finest" range of meals and foodstuffs. These tend to be cheaper than the normal brands, but will give the retailer more profit than selling a normal brand.
Some brands are so strong that they have become global brands. This means that the product is sold in many countries and the contents are very similar. Examples of global brands include: Microsoft, Coca Cola, Disney, Mercedes and Hewlett Packard.