Chapter 1 INTRODUCTION
brand promotion: overview
Brand promotion is a strategy that is commonly used in marketing in order to increase customer loyalty, awareness of products, and sales. Instead of focusing on a specific product or products, a company instead tries to focus on the promotion of its brand. This strategy has been proven to be very effective in marketing, and many companies currently employ it. Typically, companies rely on repetition in advertising in order to familiarize customers with the brand. Companies have used brand promotion for many years, and it is still successful in today's market. With this strategy, one of the primary objectives of the company is to increase brand awareness. When customers become aware of a brand, they are much more likely to give it a try. Brands that are unknown generally do not perform as well as commonly known brands.Another primary objective of brand promotion is to create customer loyalty. Studies have shown that customers are very loyal to brands. Once the habit of purchasing a brand is formed, a consumer will generally go back to that same brand again and again. There are certain types of consumers who only focus on purchasing the cheapest product in the market; however, many consumers are loyal to brands and may be willing to pay a little bit more for them.Brand promotion also leads to increases in sales in many cases. Businesses hope that by utilizing brand promotion, they can increase the number of units that are sold and increase profitability as a result. While brand promotion does not always succeed, businesses that do it effectively are often much more successful than their competitors.In most cases, businesses try to create brand awareness by utilizing repetition. Typically, the average person has to see or hear of a brand more than five times before it sticks in the mind. This means that businesses try to advertise the brand name and get it out into the public so that customers will become aware of it. This brand promotion advertising can be done in a variety of ways. In many cases, businesses will employ a multimedia approach to their advertising efforts. For example, they may spend a certain amount of money on television advertisements, a certain amount on radio advertisements, and some on newspaper ads. The hope is to bombard the public with their branding efforts.
Direct marketing is a sometimes controversial sales method by which advertisers approach potential customers directly with products or services. The most common forms of direct marketing are telephone sales, solicited or unsolicited emails, catalogs, leaflets, brochures and coupons. Successful direct marketing also involves compiling and maintaining a large database of personal information about potential customers and clients. These databases are often sold or shared with other direct marketing companies.For many companies or service providers with a specific market, the traditional forms of advertising (radio, newspapers, television, etc.) may not be the best use of their promotional budgets. For example, a company which sells a hair loss prevention product would have to find a radio station whose format appealed to older male listeners who might be experiencing this problem. There would be no guarantee that this group would be listening to that particular station at the exact time the company's ads were broadcast. Money spent on a radio spot (or television commercial or newspaper ad) may or may not reach the type of consumer who would be interested in a hair restoring product.This is where direct marketing becomes very appealing. Instead of investing in a scattershot means of advertising, companies with a specific type of potential customer can send out literature directly to a list of pre-screened individuals. Direct marketing firms may also keep email addresses of those who match a certain age group or income level or special...
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