Lesson Objectives
 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?
What is a brand?
 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
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
Why is branding important?
 Creates a legal identity –unique and recognizable
name
 Creates a logo
 Enhances the image of the business
 Can create brand loyalty
Brand loyalty
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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
Branding Example
 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?
The brand is
Branding Mishaps
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Sometimes branding goes wrong;
Japanese sports drink: pocari sweat
Chinese chocolate: Swine
-See page 520 of green book for more!
How do we know about brands?
 Businesses use many different forms of promotions
 How does a business promote it’s products?
 Promotions
Advertising
 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
The Cadbury gorilla advertisement
 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:
http://www.youtube.com/watch?v=SP8E6ouSiC0
 Is this an example of persuasive or informative advertising?
 What techniques are being used to sell the product?
 Was this advertisement effective?
Was the advertisement effective?
 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 500000
times in the first week
 Sales rose by 9% in 2007
Promotions -2 methods
 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
Summary
 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