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Relationship Between Advertising and Sales Promotion

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This article studies the relationship between advertising and sales promotions and their impact on brand equity. A main priority for most companies is to establish and achieve a strong and powerful brand name. A company can build a strong brand name by creating the market for their customers want. By creating a strong brand name, a company will become more established. Brand equity is important to the producer, retailer and consumer. The consumer knowledge of the brand says how the producer will produce and market the product. The consumer knowledge of the brand name also determines the quantity the retailer will sale. Brand equity can have a positive or negative effect. A positive effect would be for everyone to recognize the name and purchase the product. The negative effect would be to have the product recalled. Brand equity is important because it can offer many advantages for a company. Brand equity can create a high demand for your product, reduce marketing cost and the company’s brand name will have high credibility.

Advertising and sales promotions pay a major role in establishing brand equity. Advertising is a promotional strategy with the intent to attract and create interest and desire to increase purchases and brand awareness. An example of advertising would be a television commercial for a new laptop showing all of the new or updated features.

Sales promotions offer customers an incentive to buy an item. Sale promotions are promotions such as coupons, percent off, rewards and rebates. Sales promotions can be an important part of building brand equity. Sales promotions can increase sales and attract new customers.

The Dimensions of the brand equity according to Aaker’s theory (Aaker, 1991):

1 Brand loyalty

L...

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...eir brand name. This research was conducted to show the relationship between sale and advertising and brand equity. The information included in this research can help managers to develop and implement more appropriate goals, both short and long term, for their company.

Works Cited

• Aaker, D.A., (1991), “Managing Brand Equity: Capitalizing on the Value of a Brand Name”. New York: Free Press. P. 134-140

• Barwise, Paddy. 1993. “Brand Equity: Snark or Boojum?” International Journal of Marketing Research. 10 (March), 93-104.

• Rahmani, Z., Salmani Mojaveri, H., & Allahbakhsh, A. (2012). Review the Impact of Advertising and Sale Promotion on Brand Equity. Journal of Business Studies Quarterly, 4(1), 64-73.

• Simon, C.J., & Sullivan, M. W. (1993). “The measurement and determinants of brand equity: A financial approach”. Marketing Science, 12(1), 28-52.
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