Unit 1 - Promotion and branding ⭐

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

Below the line promotion = any promotion that does not involve using the media

Radio

Newspaper and magazines

Posters and billboards

Television

Internet

✅ Huge audiences can be reached
✅ The use of products can be deomonstrated
❌ : Very expensive
❌ Some viewers avoid TV ads

✅ Vouchers can be used
✅ Readers can look back
❌ No movement or sound
❌ Individual ads may be lost in 'sea of ads'

  • Press conferences
  • Loyalty cards
  • Free gifts
  • Sponsorship

✅ There is no delay between seeing ads and shopping online so the product may be bought immediately
✅ Can be updates regularly
❌ Possible technical problems
❌ Some ads such as pop-up ads are irritating

✅ Specific age groups can be targeted
✅ Big impact with big screen
❌ Limited audience ( only people who go to the cinema)
❌ Message may only be seen once


✅ Minority audiences allow targeting
✅ Cheap method of promotion
❌ not everyone listens to the radio
❌ Not visual so not suitable to demonstrate the use of products

✅ seen repeatedly
✅ large posters can have a big impact
❌ only limited information can be shown
❌ may be ignored by people driving

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