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Unit 1 - Promotion and branding :star: - Coggle Diagram
Unit 1 - Promotion and branding
:star:
Promotion
= An attempt to obtain and retain customers by drawing their attention to a firm or its product
Above the line promotion
= placing adverts using the media
Cinema
:check: Specific age groups can be targeted
:check: Big impact with big screen
:red_cross: Limited audience ( only people who go to the cinema)
:red_cross: Message may only be seen once
Radio
:check: Minority audiences allow targeting
:check: Cheap method of promotion
:red_cross: not everyone listens to the radio
:red_cross: Not visual so not suitable to demonstrate the use of products
Newspaper and magazines
:check: Vouchers can be used
:check: Readers can look back
:red_cross: No movement or sound
:red_cross: Individual ads may be lost in 'sea of ads'
Posters and billboards
:check: seen repeatedly
:check: large posters can have a big impact
:red_cross: only limited information can be shown
:red_cross: may be ignored by people driving
Television
:check: Huge audiences can be reached
:check: The use of products can be deomonstrated
:red_cross: : Very expensive
:red_cross: Some viewers avoid TV ads
Internet
:check: There is no delay between seeing ads and shopping online so the product may be bought immediately
:check: Can be updates regularly
:red_cross: Possible technical problems
:red_cross: Some ads such as pop-up ads are irritating
Below the line promotion
= any promotion that does not involve using the media
Press conferences
Loyalty cards
Free gifts
Sponsorship
Types of Branding
Manufacturer brands
= brands created by the producers of foods and services
Own- label brand
= products which are manufactured for wholesales or retailers by there businesses
Generic brands
= products that only contain the name of the actual product category e.g carrots.
Benefits of strong branding
Added value
= customers can capture a desirable image that is reflected in the brand e.g. they are seen as elegant for wearing a specific type of perfume
Ability to charge premium prices
= customer loyalty has been built up over a period of time > less likely to switch to a 'cheaper brand'
Reduced PED
= a strong brand and a more inelastic demand curve, price increases are more viable.
Ways to build a brand
USP
= it will be easier to differentiate the brand from the competitive market
Advertising
= advertising spreads the word of the brand, more people are going to be familiar with the firm's market power.
Sponsorship
= build brand positioning by linking the product to attractive images at events
The use of social media
= helps businesses to get to know their customers better and communicate with them more effectively.
Changes in branding and promotion to reflect social trends
1)
Viral marketing
= it creates the potential for rapid growth in the exposure of a message
2)
Social media
3)
Emotional branding
= the aim of EB is to develop a relationship between a customer and a brand