Question

Topic: Advertising/PR

Sales Promotion And Cusotmers' Brand Perception

Posted by Anonymous on 1/15/2009 at 8:41 PM ET 25 Points
Hello marketing experts. Here's something that I am trying to evaluate lately. Can sales promotion build brand equity the same way advertising can? Could it damage the customers' perception of value by lowering price or other incentives offer?

I am also thinking of examples for this. Thanks.
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RESPONSES

  • Posted on 1/15/2009 at 11:24 PM Member
    Sales promotion can create a good pull in the market for a product, it can generate demand and hence a fillip to sales as well as brand image.
  • Posted on 1/16/2009 at 8:21 AM Accepted
    Hi, Gazoo:

    Yes sales promotion can build brand equity as sales promotions, whether sales or not, are still a form of advertising/marketing. Every image, every offer, every contact you make with customers and potentials is making (or breaking) your brand equity.

    If the brand is new on the market, planned price incentives may entice purchases to "try" a new brand or a new service. I saw this work well for a new haircuttery where they placed grand opening signs and incentives for $5.00 cuts then increased that to $8.00 cuts and then finally increased to their normal pricing schedule over a two to three month period. They were "introducing" their services to a new area and gained clientele through price incentives.

    Marketing-Riot
  • Posted by CarolBlaha on 1/16/2009 at 9:36 AM Accepted
    No, it won't decrease your brand. Your product has not been altered, its the same quality it was before the promo. Yes it will build as advertising-- it perks our ears up and we actually may listen.

    There are many ways to give incentive without altering price. BMW does not advertise lower sales prices but deals on financing and reminds people of their free maintenance-- their life cycle analysis.

    Yarn manufacturers for carpet give their dealers coop dollars and their sales staff rebate dollars. They don't even make the final product. The manufacturer is always running a promo-- reduced pricing- which is the product the dealer advertises (using his coop dollars).

    I know you want examples, if you give us the industry, maybe we can come up with specific examples for you. I can think of hundreds that work for the brand, and can't think of one that it does not.
  • Posted by matthewmnex on 1/18/2009 at 7:23 PM Accepted
    The more frequently you can get the brand name and logo in front of the public. the more you will develop brand recognition and long term loyalty.

    The old saying 'there is no such thing as bad press' holds true here as it does for a celebrity.

    If people are talking about your brand, it is always good news.

    The single factor that makes a brand strong is time. The longer the brand can survive, the more loyalty and trust it will earn. (worthy or not).

    Just keep the brand name active and out there in the market as often as possible.

    Good luck,

    Matthew

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