Branding & Promotion (Edexcel A Level Business): Revision Note

Advertising

• Promotion through paid channels such as television, radio, print media (magazines) and online advertising

• Can reach large audiences and increase brand awareness

• Can also be used to create a specific brand image or message (e.g. the advertising campaign run by Compare the Market (Meerkat))

• Can be expensive

• The effectiveness of advertising can be difficult to measure

• Many customers tune out or ignore ads

Direct marketing

• Communicating directly with customers through emails, text messages, social media or posts

• Businesses can target specific audiences and personalise their message to individual customers

• Direct marketing is also measurable, which enables businesses to track their results and adjust their strategy accordingly

• Can be intrusive, as customers may perceive it as spam

• Can also be costly, especially if businesses do not have an established customer database or need to purchase leads

Sales promotions

• Techniques that encourage the purchase of a product by offering temporary incentives or discounts such as free samples, buy one get one free, discount coupons, loyalty cards and rebates (customers have to mail in to receive money back)

• Can quickly boost sales or customer engagement

• Can help to clear out stock or promote a new product

• Can encourage impulse purchases

• Can be targeted to specific segments of customers

• Can be expensive, especially if the promotion requires heavy discounting

• Can attract deal-seeking customers who may not be loyal to the brand

• May reduce the sales of full-priced products

Personal selling

• Occurs when a salesperson interacts with potential customers one on one, either in person or through digital communication channels

• Allows businesses to build relationships with their customers and understand their specific needs

• Enables businesses to provide personalised advice and guidance to customers

• Can be expensive due to the cost of hiring and training sales staff

• The impact of personal selling can be limited, as it is difficult to scale to large audiences

Sponsorship

• An agreement in which a company provides financial or other support to an event, team or organisation in exchange for marketing exposure

• Can take many forms, such as logo placement or naming rights (e.g. Arsenal's Emirates Stadium)

• Can help to build brand awareness and credibility

• Can create emotional connections with target audiences

• Can support specific business objectives, such as entering new markets or reaching new customers

• Can be expensive, especially for high-profile events or properties

• May not directly drive sales

• May be subject to negative publicity if the sponsored entity experiences a scandal or controversy (e.g. In 2022, Kanye West was dropped by Adidas after his antisemitic outbursts)

Public relations (PR)

• Building relationships with the public and managing reputation

• Public relations activities can include media relations, crisis management and community outreach

• For example, in 2018, KFC in Ireland ran out of chicken due to some supply chain issues and ran a brilliant PR strategy in which it rearranged the letters in its name to "FCK" and owned the problem

• Can enhance a business's reputation and credibility

• This can lead to increased customer loyalty and sales

• Can be cost-effective when compared to advertising or personal selling

• PR can be time-consuming, and it is difficult to measure the direct impact of PR activities on profits

Digital communications

• Any form of marketing or communication that is delivered electronically, such as social media, search engine optimisation or mobile apps such as Instagram and Twitter

• Can be used for building brand awareness, generating leads or driving sales

• Can be highly targeted to specific customer segments

• Can provide real-time engagement and feedback from customers

• Can be easily ignored or filtered out by customers

• May require significant investment in technology or data infrastructure

• May be subject to data privacy regulations or security breaches

• May not be effective for reaching older or less digitally savvy customer segments

• Creates strong brand recognition and reputation for the company, which can increase customer loyalty and trust

• Allows the company to leverage its existing reputation and customer base to introduce new products more easily

• Helps build economies of scale by promoting multiple products under one brand, which can reduce marketing costs and increase profitability

• If a company's reputation is damaged by a product, it can have a negative impact on all the products offered under that brand

• If the company faces intense competition in one market (e.g. smartphones), it may affect the sales of all the products offered across other markets (e.g. laptops and desktops)

• Creates a distinct identity for the product, which can help to differentiate it from competitors and increase brand loyalty

• Allows the company to market different products to different segments of the market (e.g. Coca-Cola and Coke Zero)

• Can help build customer loyalty and trust by associating the product with a specific quality and benefits (e.g. Dyson vacuum cleaners)

• The cost of creating and promoting a new brand for each product can be expensive

• Introducing new products under different brands is difficult, as the business must build a new brand for each product from scratch

• Different products within the brand may have different levels of quality, which can affect customer satisfaction

• They can help retailers differentiate themselves from their competitors by offering unique products

• They allow retailers to offer products at a lower cost than branded products, which can help to increase sales and profitability

• They can help build customer loyalty by offering exclusive products that are not available elsewhere

• Own-brand products may have a lower perceived quality than branded products, which can affect customer loyalty and trust

• USPs are the features that make a product/service stand out from its competitors

• Brands can build their reputation by emphasising these unique qualities in their marketing efforts

• Apple is known for its innovative and sleek design and use of quality materials, which sets its products apart from its competitors

• The company has built its brand around this USP and is recognised worldwide for its premium design

• Brands can create compelling ads that resonate with their target audience, raise brand awareness and communicate their value proposition

• With the right advertising strategy, brands create a strong emotional connection with their audience and inspire brand loyalty

• Coca-Cola has successfully built its brand through advertising

• Iconic ads over the years have become synonymous with the brand

• For example, the "Share a Coke" campaign encouraged people to buy Coca-Cola bottles with their friends' names on them and was a massive success

• Partnering with events, organisations or individuals can help brands gain exposure and build their reputation by aligning themselves with positive associations or values

• Nike has sponsored many high-profile athletes and sports events, such as the Olympics and the World Cup

• Nike has built a reputation for being a brand that champions excellence and inspires people to be their best

• With the right social media strategy, brands can build a loyal following and create a community around their brand

• Glossier has a strong presence on platforms such as Instagram, and it engages with its audience and shares user-generated content

• Glossier's social media strategy has helped the brand build a loyal following