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
Loyalty is an important concept in marketing strategy and as Aaker said the brand loyalty is the center core of brand equity. Loyalty can get a chance for a company to react against threats such as competition.
2 Brand awareness
There are four types of brand awareness: High mental awareness, Brand reminding, Brand recognition and Unawareness.
3 Perceived quality
Perceived quality is the customer’s judgment about a products overall quality or superiority of one goods or service in comparison with customer’s tendency to its substitutions (Simon and Sullivan, 1993).
4 A set of brand dependents
Dependents are made a basis for loyalty and buying decision. Dependents could be made value by below ways: process/information recovering and distinction are the reasons for buying brand and making positive feeling and vision.
5 Other brand’s private property
First three groups of brand equity are indicated customer’s perceptions and reactions. The forth is the customer’s base. The last group indicates the other brand’s private properties such as franchises and registration rights and trademarks.
Advertising and sale promotions with brand equity
Despite tremendous tendency to brand equity, few...