Concerns about the Increased Role of Sales Promotion

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It is very important to note that the increased use of sales promotion is coming at the expense of media advertising. This has led to concern that the increased use of sales promotion is having a negative effect on brand equity.

 

Brand equity refers to a type of intangible asset of added value or ―goodwill‖ those results from the favorable image or differentiation that a brand has achieved. Another term used synonymously with brand equity is consumer franchise. There are many examples of situations where a company‘s have hurt the brand equity of their products by placing more emphasis on consumer and trade promotions than advertising.

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