Excessive Sales Promotion and Brand Equity - 5059 Words

A marketing report: Does excessive sales promotion result in dilution of brand equity? Group 4 Amandeep Singh Gandhi Chetna Kirtan Acharya Murthy BBTGS Ravish Malik Sirish CP Vivek Singh Contents What is sales promotion? Why is it required? Decisions involved in sales promotion Types of sales promotion Sales promotion to be used at different stages of the product lifecycle Direct and interactive marketing A special case: Intrusive sales promotion Conclusion What is Sales Promotion? Sales promotion is an incentive given to the consumer to buy the company’s products or services. Although some sales promotions can be continuous (frequent flier miles), most of such programs are short-term. They are usually used to cash in†¦show more content†¦For example, providing details about the various travel packages available by travel sites like MakeMyTrip.com or TravelGuru.com through email to the people is nothing but sales promotions. The additional information about various mutual funds, various insurance policies given by the companies through any form of media can be considered as a sales promotion. This is where the companies need to draw a line. As the article says, the company needs to inform the customer to the intangible benefits of buying a certain policy, not just the monetary savings he will make by using the policy. Stimulating Demand - Apart from building initial product awareness, another important use of sales promotion is to build demand by convincing customers to make a purchase. Special promotions, especially those that lower the cost to the customer can be employed to stimulate sales. Sales promotion can be used as a tool to help consumer in making a choice between two similar commodities. For example if there are no points of difference for two commodities, then sales promotion helps consumer to make choice between the two commodities. Reinforcing the Brand – Once customers have made a purchase, sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty. Loyalty programs may include price discounts, free products etc. Many companies, including airlines and retailShow MoreRelatedDoes Excessive Sales Promotion Result in Dilution of Brand Equity1842 Words   |  8 PagesDoes  excessive sales promotion  result in dilution of  brand  equity What is Brand? A brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed. A brand name is the name of the distinctive product, service, or concept. Branding is the process of creating and disseminating the brand name. â€Å"The value of a brand establishes the positive differentiation that the name of the brand hasRead MoreHM Marketing Framework742 Words   |  3 Pagespurchase ↠ How do they compare HM vis-a-vis key competitors? ↠ What are the perceived strengths weaknesses? ↠ ââ€"   Target customers – demographics, psychographics ââ€"   Marketing strategies – product, price, promotion, place, etc. ââ€"   Positioning, images II. Target customers – understanding of customers need and expectations †¢ How to describe the target customers of HM? ↠ Demographics ↠ Psyhchographics – what are their attitudesRead MoreRed Bull Case Analysis1712 Words   |  7 PagesRed Bull Case Analysis Purpose: to provide the chain of strategies Red Bull used to develop their brand equity and global market dominance in the energy beverage industry. Target Market: Red Bull does not target to a specific demographic or psychographic. 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A variety of strategic and operational costs apply to both retailers and suppliers including decreases in store and brand equity and attenuated impact of promotions and trade promotion funds. Out-of-stocksRead MoreThe Adidas Brand2920 Words   |  12 PagesQ: Brands vary on the amount of power and value they have in the marketplace. A powerful brand has high Brand Equity Intro Brand equity is the marketing and financial value associated with a brand s strength in the market (Dibb and Simkin Ââ€" pg 73) Some of the factors that contribute to the creation of high brand equity are brand association, awareness, attractiveness to buyers and brand loyalty. For a company to see major success it must establish and sustain high brand equity. TheRead MoreImpact Of Corporate Social Responsibility On A Companys Performance1127 Words   |  5 Pagesoperating costs. One of the key areas in CSR practices is paying attention to environmental issues such as energy saving and avoidance of excessive use of inputs. The promotion of resource efficiency including using less energy and water lower the utility costs. Nonetheless, a reduction in the use of packaging materials helps to reduce production cost. Brand equity has been viewed as the most crucial intangible assets of the company. Cornell and Shapiro (1987) suggested that the firms are able to