Types of branding

Definition of branding A characteristic name or symbol that distinguishes one product from another suppliers You will need to learn this and use it in questions about branding Source: Edexcel A Level sample paper

Types of branding Manufacturers brands Own-label brands Created by the manufacturers Use advertising and promotion to build brand loyalty Can charge higher prices Consumers stay loyal Repeat purchases Created by the retailers Good value for money for the consumer High profits for the retailer Ties consumer to retailer Gives retailer bargaining power with major manufacturers to supply brands at discounted rates

The benefits of strong branding

Benefits of strong branding Added value Apple iWatch cooler than normal watches because it is from Apple? Ability to charge premium prices Rolex, Omega Reduced price elasticity of demand If the price rises then consumers will still demand the goods (only up to a certain point)

Ways to build a brand

Ways to build a brand - USP Unique selling points – how a business can gain competitive advantage by being the only business in the market to offer that product or service. Move over Poundshop! New trendy cafe opens in London selling homemade cakes, coffees and salads... and EVERYTHING is priced at just £1

Ways to build a brand - Advertising The goal of advertising is to focus attention on what sets a business apart from others. Branding, through repeated, frequent advertising, is the most effective way to accomplish that goal Advertising means generating opportunities, and good advertising is generating thousands of potential opportunities every day Advertising broadcasts the sales message to target audience It communicates the functional message of the brand and also any symbolism or values attached to the brand that the consumer might identify with The more the consumer identifies, the more persuasive the advertising is, and the more likely it is that the consumer will purchase SEE THESE EXAMPLES ON THE NEXT SLIDES…

Ways to build a brand - Advertising

Coke vs Pepsi Challenge Can you tell the difference? Can you taste the difference? What is the main colour of each product? Press the cans to watch the adverts:

Ways to build a brand - Sponsorship Association of a product with a popular celebrity or sports person can increase sales and the profile of the product… see the celebrity and name the product: Kiera – Chanel no 5 Charleze Theron – Dior Cheryl Cole – Elnet / L’oreal Online quiz here if you want more – or just to test your knowledge of sponsorship

Ways to build a brand - social media Hashtags on twitter are a way of alerting customers following a popular topic that your brand has an association with it. Have a look at today’s trending hashtags if these can be added to the tweet then they attract attention to the product. Events – businesses can take photos and hashtag in some popular events e.g. World Cup football or Olympic games that attracts a huge following

"Conversationprism" by Brian Solis and JESS3 - http://www "Conversationprism" by Brian Solis and JESS3 - http://www.theconversationprism.com/. Licensed under CC BY 2.5 via Wikimedia Commons - http://commons.wikimedia.org/wiki/File:Conversationprism.jpeg#/media/File:Conversationprism.jpeg

Social media is a way of Communicating Adding and building trust Providing value in a fun and creative way through daily content, apps, videos, contests, competitions, and infographics. The opportunities are endless. Interacting with customers Having accountability e.g. dealing with customer complaints Click to read article Video from BBC

Starter – 20 questions, get ready to play….

Changes in branding and promotion to reflect social trends

Viral marketing – video examples Discussion, watch the video then consider what makes a marketing campaign “viral”?

Viral marketing This is a buzzword which refers to brand awareness created thorough word of mouth The original message is posted via twitter, facebook or youtube Consumers then watch / experience / share the message with their friends The business does not have to pay for the distribution of the advert or message

Emotional Branding Emotional branding seeks to create a bond between the consumer and the product by provoking an emotional response to the advertising Long lasting attachment to a product is a strong brand loyalty Look at the examples on the next few slides – what kinds of emotions do they provoke?

Interactive branding tool here

Revision Video

Glossary Differentiation; How well a business can change the product so that a consumer recognises it as superior e.g. Audi / BMW German technology engines Consumer recognition; How well a business knows their customers, age, gender, lifestyle etc Barriers to entry; How difficult is it to get into the market, e.g. Mobile phone market high technology so high barriers ot entry, market stalls, easy to start so low barriers Price elasticity of demand; How much demand for a good or service is likely to fluctuate with a change in price e.g. petrol will still be demanded no matter what the price is, therefore it is inelastic in that demand doesn’t change by much with a price increase Strong brand; A brand that is recognised by everyone, e.g. Rolls Royce, Rolex, Ford, Chanel Marketing mix; Price, place, promotion and product, how a business uses these 4 elements strategically Distribution channel (place); Where a product is sold and how many stages it takes to get to a customer e.g. factory outlet = 2 stages: manufacturer > customer