Branding and Promotion
Types of promotion
Advertising-means of communication with the users of a product or service.
brochures, leaflets, choice of advertising media, radio, print, TV
Sales promotion- the process of persuading a potential customer to buy the product.
competitions, vouchers, deals, money off
Public relations- practice of managing and disseminating information from an individual
speeches, PR stunts and sponsorship
Personal selling- the salesman tries to convince the customer in buying a product.
telemarketing and sales people
Types of branding
manufacturers brands
Created by the manufacturers
Use advertising and promotion to build brand loyalty
Can charge higher prices
Consumers stay loyal
Repeat purchases
Own-label brands
Created by the retailers
Good value for money for the consumer
High profits for the retailer
Ties consumer to retailer
Gives retailer bargaining power with major manufacturers to supply brands at discounted rates
The benefits of strong branding
Added value- the difference between the selling price and the cost price of a good or service
Ability to charge premium prices-want to charge higher prices than their competitors for their products.
Reduced price elasticity of demand-how sensitive the quantity demanded is to its price.
Ways to build a brand
Unique selling points – how a business can gain competitive advantage by being the only business in the market to offer that product or service.
Advertising-The goal of advertising is to focus attention on what sets a business apart from others. Branding, through repeated, frequent advertising, is the most effective way to accomplish that goal. It also generates opportunity and the advertising persuades loyal customers
Sponsorship-Association of a product with a popular celebrity or sports person can increase sales and the profile of the product
Social media-businesses can take photos and hashtag in some popular events
Changes in branding and promotion
Viral marketing-refers to brand awareness created thorough word of mouth and using social media
Emotional branding-seeks to create a bond between the consumer and the product by provoking an emotional response to the advertising