Chapter 11
Promotion and branding
Promotion
An attempt to obtain and retain customers by drawing their attention to a firm or its
products
Aims that can be achieved by promotion
• Tell consumers about a new product.
• Remind customers about an existing product.
• Reach a target audience that is spread over a wide area.
• Reassure customers about products.
• Show consumers that rival products are not as good.
• Improve or develop the image of the business.
Above the line promotion
Above-the-line promotion involves advertising in the media.
Different categories of advertising
1.Informative advertising.
This means that the adverts are designed to increase consumer awareness of
products. They may give clear information about the features of a product,
Eg; The classified advertisements in newspapers
2. Persuasive advertising.
Some advertising is designed to put pressure on consumers to buy a product.
Eg; television and cinema adverts
Mrs.K.K.C.Sanjeewani BSc(Mgt)J’pura. PGDE, AMABE, MLRHRM
3. Reassuring advertising.
This advertising is aimed at existing customers. It is designed to be comforting
and suggest to consumers that they were 'right' to buy a particular product and
that they should continue to do so.
Eg; Businesses selling financial services
Advantages and disadvantages of main advertising media
Mrs.K.K.C.Sanjeewani BSc(Mgt)J’pura. PGDE, AMABE, MLRHRM
Below the line promotion
Any form of promotion that does not involve advertising is known as below the line
promotion.
Types of below the line promotion
1. Sales promotions:
Incentives used to encourage people to buy products are called sales promotions.
Eg; Free gifts, Coupons, Loyalty cards, Competitions, 'buy one, get one free'.
(BOGF)offers, Money-off deals
2. Public relations
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.
Approaches used by businesses to attract publicity.
1. Press releases
Some information about the business may be presented to the media. This might be used
to write an article or feature in a television programme.
2. Press conferences.
This is where representatives meet with the media and present information in
person.
3. Sponsorship.
Sponsorship is when businesses attract publicity by linking their brands with events, .
Eg; sporting events,
4,Donations.
Donations to charities and the local community might be used by businesses to improve
their image
The main advantage of PR to businesses is that it is often a cheap method of
promotion.
Mrs.K.K.C.Sanjeewani BSc(Mgt)J’pura. PGDE, AMABE, MLRHRM
4. 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.
Eg;
Product layout.
Eg; Products that stores want you to buy are placed at prominent locations, such
as at the end of shelves and at eye level.
Display material.
Posters, leaflets and other materials may be used to display certain products with the aim
of persuading customers to buy
Stock.
Businesses must keep shelves well stocked because empty shelves create a bad
impression.
5. Direct mailing:
This is where businesses mail out leaflets or letters to households
Eg; Direct selling or personal selling,
sales rep' calling at households or businesses hoping to sell products
Exhibitions and trade fairs:
Some businesses attend trade fairs or exhibitions to promote their products.
Advantages of this method of promotion
Products can be tested out on consumers before a full launch.
• Some exhibitions are overseas and can be used to break into foreign markets.
• Products can be physically demonstrated and questions answered.
• Exhibitions often attract the media.
• Customers can speak to business owners or senior personnel face to face.
Mrs.K.K.C.Sanjeewani BSc(Mgt)J’pura. PGDE, AMABE, MLRHRM
Factors that affect the choice of promotion
1. Cost
Should find other more cost effective, and often more appropriate, means.
2.Market type.
Local businesses often rely on adverts in local newspapers and listings in business phone
directories. In contrast, businesses aiming their products at mass markets are more
likely to use television and national newspapers, or specialist magazines.
4.Product type.
example, a car manufacturer is not likely to use sales promotions such as
coupons, BOGOF deals or loyalty cards,
5.Stage in the product life cycle
It is common for promotional methods to change as a product gets older
6. Competitors' promotions.
It is common for businesses to copy successful methods of promotion used by
rivals
7 Legal factors.
In many countries laws designed to protect consumers can affect the method and
style of promotion
Branding
Branding involves giving a product a name, sign, symbol or logo, design or any feature that
allows consumers to instantly recognize the product and differentiate it from those of
competitors.
Types of branding
1. Manufacturer brands.
Manufacturer brands are brands created by the producers of goods and services
Eg; Kellogg's Corn Flakes, Gillette@
2. Own-label brands. Own-label brands ( distributor or private brands)
Mrs.K.K.C.Sanjeewani BSc(Mgt)J’pura. PGDE, AMABE, MLRHRM
products which are manufactured for wholesalers or retailers by other
businesses. But the wholesalers and retailers sell the products under their own name
Eg; F&F clothes sold at Tesco
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.
Eg; aluminium foil, carrots or aspirin.
Benefits of strong branding
1. Added value:
A strong brand may add value to a product in the eyes of customers.
some adverts suggest that if you buy a particular brand you will belong to a group
of elegant and sophisticated consumers, similar to those featured in adverts.
2. Ability to charge premium prices:
Products with strong brands can be priced higher than those of competitors.
3. Reduced price elasticity of demand:
The strength of a brand may be reflected in the price elasticity of demand for a product
Ways to build a brand
1. Exploiting a unique selling point:
. If a product has a USP it is much easier to differentiate the brand and
make it'stands out from the pack'.
2. 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'
3. Sponsorship:
Some companies favour the use of sponsorship to help build their brands.
The ways in which the sponsorship helps
• raise brand awareness, create preference and develop brand loyalty
• create positive PR and raise corporate awareness
Mrs.K.K.C.Sanjeewani BSc(Mgt)J’pura. PGDE, AMABE, MLRHRM
• build brand positioning by linking the product to attractive images at events
• support other promotional campaigns
• create emotional commitment to the brand
• promote good relations with customers because sponsors often provide corporate
hospitality at events.
4. Using Social media
Social media can be used in more than one way. For example, a business can place its
adverts in strategic places on sites such as Facebook, Twitter, Instagram and Google
Social media also helps businesses to get to know their customers better and enables
them to communicate with them more effectively. Social media may help to increase
trust in a business or brand
Changes in branding and promotion to reflect social trends
1. 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
2.Social media
An increasing number are developing their own social networks, which are linked to
the main platforms.
Some analysts suggest that, while Facebook is a good platform to use to find
customers and raise brand awareness, most people who 'like' a brand page on
Facebook never visit it again.
In comparison, some companies create their own social networks.
Eg; Virgin Atlantic is a business that has developed its own social platform.
2. 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
ambition. The aim of emotional marketing is to develop a relationship between a consumer
and a brand
Eg; Apple has found a way to connect with its customers and create with them a
powerful bond.
Mrs.K.K.C.Sanjeewani BSc(Mgt)J’pura. PGDE, AMABE, MLRHRM
