Branding and Promotion: Learning Objective

Branding and promotion
Learning Objective
Discuss on branding and promotion
What is promotion?
• An important element in the marketing mix is
promotion. This involves businesses drawing
attention to their products, services or companies.
• Above-the-line promotion involves advertising in
the media. Businesses pay television companies or
newspapers, for example, to have their adverts
broadcast or printed. Advertising may be placed
into different categories.
 Informative advertising.
 Persuasive advertising.
 Reassuring advertising
Continuation...
Main media of advertising:
• Television
• Newspapers and magazines
• Cinema
• Radio
• Posters and billboards
• Internet
Continuation..
Below-the-line promotion refers to any
form of promotion that does not involve
advertising. It can take many forms.
1. Sales promotions: Incentives used to
encourage people to buy products are
called sales promotions.
Examples: Free gifts, Coupons, Loyalty
cards, Competitions, BOGOF offers and
Money-off deals.
Continuation...
2. Public relations: Some businesses
communicate with stakeholders using
public relations (PR). The main purpose of
PR is to increase sales by improving the
image of the business.
• Examples: Press releases, Press
conferences, Sponsorship and Donations.
Continuation...
3. Merchandising and packaging: Some
businesses may arrange the point of sale
so that it is interesting and eye-catching,
and likely to encourage sales. This is
called merchandising.
Examples: Product layout, Display
material and Stock.
Continuation...
4. Direct mailing: This is where businesses
mail out leaflets or letters to households.
Sometimes personal letters are used.
They may contain information about new
products or details of price.
5. Direct selling or personal selling: This
might involve a ‘sales rep’ calling at
households or businesses hoping to sell
products.
Continuation...
6. Exhibitions and trade fairs: Some
businesses attend trade fairs or exhibitions
to promote their products. Businesses set
up a stand and promote their products
face-to-face.
Choosing methods of promotion
What affects the choice of promotion?
• Cost
• Market type
• Product type
• Stage in the product life cycle
• Competitors’ promotions
• Legal factors.
Types of branding
• Branding involves giving a product a name, sign,
symbol or logo, design or any feature that allows
consumers to instantly recognise the product and
differentiate it from those of competitors. The types
include:
1.Manufacturer brands are brands created by the
producers of goods and services.
2. Own-label brands (also known as distributor or
private brands) are products which are
manufactured for wholesalers or retailers by other
businesses.
Continuation..
3. Generic brands. Some generic brands are
products that only contain the name of the
actual product category rather than the
company or product name. These products
are usually sold at lower prices than branded
products. They tend to account for a small
percentage of all sales.
Manufacturer brand name
Own-brand name
Generic brand
The benefits of strong branding
• Added value: A strong brand may add value
to a product in the eyes of customers. For
example, if a business can capture a
desirable image that is reflected in the brand,
it is likely to have a competitive edge.
• Ability to charge premium prices: Products
with strong brands can be priced higher than
those of competitors. This is because of the
customer loyalty that has been built up over
period of time.
Continuation...
• Reduced price elasticity of demand.
Firms would prefer their brands to have a
lower price elasticity of demand. This
means that a price increase will have less
impact on demand.
Ways to build a brand
• Exploiting a unique selling point: If a
product has a USP it is much easier to
differentiate the brand and make it ‘stand
out from the pack’.
• Advertising: A business might use
advertising to introduce a new brand. If the
brand becomes popular and established,
advertising is likely to continue in order to
remind consumers that ‘it is still out there
Continuation...
• Sponsorship: The majority of sponsorship
spending is in sport. Companies sponsor
both national and international sporting
events.
• Using social media: An increasing number
of businesses are switching marketing
resources into social media
Note: Building a brand is an ongoing process.
Changes in branding and promotion to
reflect social trends
• Viral marketing: Communication using
the internet has provided the opportunity
for viral marketing. This involves any
strategy that encourages people to pass
on messages to others about a product or
a business electronically.
• Social media. Using social media, such
as Wechat, QQ, Facebook and Twitter, to
help build a brand is important but many
businesses go further
Continuation...
• Emotional branding: Emotional branding
refers to the practice of using the emotions
of a consumer to build a brand. It is
designed to appeal to a customer’s
emotion, human need, or a perceived
aspiration.

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