 Branding & Types of Promotions  By the end of today you should have a good understanding of what the term branding means..  So, what is branding? Lesson Objectives

 A brand is an identifying symbol, name, image or trademark that distinguishes a product from it’s competitors  What is brand awareness?  –the extent to which a brand is recognised by potential customers and is correctly associated with a particular product What is a brand?

Types of Branding Family Branding – a marketing strategy that involves selling several related products under one name Product branding –each individual product in a portfolio is given it’s own unique identity Company or corporate branding –the company name is applied to products and this becomes the brand name Own-label branding –retailers create their own brand name and identity for a range of products Manufacturers’ brand –producers establish the brand image of a product or a family of products under the company’s name

 Creates a legal identity –unique and recognizable name  Creates a logo  Enhances the image of the business  Can create brand loyalty Why is branding important?

 What are the benefits to brand loyalty?  Greater market share  Ability to charge premium prices  Demand becomes more price inelastic  Fosters brand extension strategies  Higher barriers to entry Brand loyalty

 What do you think is considered to be the biggest brand in the world?  The company says this is the second most understood word in the English language (after O.K). This brand is synonymous with American culture and sponsors events such as NBA basketball, the Olympic Games and FIFA  Any guesses? Branding Example

The brand is

 Sometimes branding goes wrong;  Japanese sports drink: pocari sweat  Chinese chocolate: Swine  -See page 520 of green book for more! Branding Mishaps

 Businesses use many different forms of promotions  How does a business promote it’s products?  Promotions How do we know about brands?

 Advertising is often divided into two categories  Informative advertising –adverts that give information to potential purchasers about the product’s features.  Persuasive advertising –adverts that create a distinct image or brand identity Advertising

 This is one of the most famous and effective advertisement campaigns of recent years. The aims were to improve the public’s perception of Cadbury and the Dairy Milk Chocolate brand after a number of public relations disasters such as the 2006 food poisoning scare at one of the company’s factories  Increase annual sales of Dairy Milk, which seemed to have reached market saturation.  The advert:  Is this an example of persuasive or informative advertising?  What techniques are being used to sell the product?  Was this advertisement effective? The Cadbury gorilla advertisement

 It cost more than $12 million to run, as it was timed to play during the 2007 Rugby World Cup.  It was uploaded to Youtube and viewed over times in the first week  Sales rose by 9% in 2007 Was the advertisement effective?

 Above the line  -the business pays to communicate directly with the customers, this is advertising  Below the line  -not directly paid for means of communication, but based on short term incentives to purchase such as sales discounts, loyalty programs, buy one get one free, sponsorship Promotions -2 methods

 You should be able to explain the meaning of the term branding, and the different types (5 HL)  The purpose of promotion and the different forms of promotions  -Group Tasks 4 activities Summary