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1.3.2 Branding and Promotion - Coggle Diagram
1.3.2 Branding and Promotion
Above the line promotion
Involves advertising in the media like on TV and in newspapers.
Persuasive advertising
Designed to put pressure on the consumers to buy their product. They want the customers to buy a particular brand.
Informative advertising
When adverts are designed to increase consumers awareness on the product and provide information.
Reassuring advertising
Aimed at existing consumers to be comforting that consumers were 'right'
Below the line promotion
Any form of promotion without the need to advertise a product.
E.g. BOGOF, loyalty cards, competitions, money off deals, free gifts, coupons.
Direct mailing / selling
Where businesses send stuff to households and or sales representative used to contact customers
Public relations
This is when firms communicates with the stakeholders and the main purpose is increase their sales buy improving the image of the business / brand.
Merchandising and packaging
May arrange a point of sale so its interesting and eye catching which encourages sales.
Choosing promotional methods
Cost
Competitors promotions
Product type
Market type
Stage in the product life cycle
Promotion
Promotion is designed to inform consumers about a product, or persuade them to buy it.
Promotional objectives include increasing sales and profits, and increasing awareness of the product.
Branding
Branding creates a clear and obvious logo, name or statement. This means that customers will instantly recognise promotional material from a business or for a particular product.
Benefits of Strong Branding
Adds value to a businesses product. strong branding makes the price elasticity of demand for the product less price elastic.
The consumer will perceive the product to be of higher quality and more desirable than any substitutes and so will pay a premium. Which may result in customer loyalty.
Can create a barrier so that its harder for newcomers to enter the market.
Ways to Build a Brand
A clear USP will help consumers with product differentiation which may convince them to buy one brand another.
Advertising - used to promote and maintain consumer awareness of a brand and to pursuade consumers that there brand is unique.
Sponsorship - corporate brands may sponsor large outdoor events to increase brand awareness.
Social Media
Viral marketing on social media platforms which can be used to spread awareness of a brand and advertise it. Huge audience and messages can be spread at a rapid rate.
Can be a very low cost technique compared to traditional advertising.
However, the business can experience a loss of control as negative images or messages about a brand can be spread and damage the brand reputation.
Emotional Branding
Matching the branding of a product to the lifestyle, vaules or aspirations of consumers to trigger an emotional response.
This requires market research as businesses need to understand the values and purchasing behaviour of consumers and how they change over time