Does Excessive Sales Promotion Result in Dilution of Brand Equity
Does 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.
“The value of a brand establishes the positive differentiation that the name of the brand has over the clients reactions with the product and service in discussion” -Philip Kotler
Brand Equity
The Brand can add significant value when it is well recognised and has positive associations in mind of customers. This concept refers to brand Equity.
The brand equity represents the value of a brand; which is established following the next criteria: * the level of loyalty towards the brand * the perceived quality * strong associations with the respective brand * other possession of the brand: patents, registered marks, relations in the distribution channels
Strong Brand Equity provides following benefits: * Facilitates a more predictable income inflow. * Increases cash flow by increasing share, reducing promotional costs and allowing premium. * Brand Equity is an asset which can be sold also.
Brand Loyalty
Brands that consumers generally buy from the same manufacturer repeatedly over time rather than buying from multiple suppliers within the category.
It also refers to the degree to which a consumer consistently purchases the same brand within a product class.
Generally, loyalty that can be loosely defined as a customer’s willingness to choose a brand more often over a period than its rivals, is dependent on the price of the product, the level of involvement, the level of competitive marketing activity (including but not limited to advertising), and the number of brands available with similar perception of value
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.
“The value of a brand establishes the positive differentiation that the name of the brand has over the clients reactions with the product and service in discussion” -Philip Kotler
Brand Equity
The Brand can add significant value when it is well recognised and has positive associations in mind of customers. This concept refers to brand Equity.
The brand equity represents the value of a brand; which is established following the next criteria: * the level of loyalty towards the brand * the perceived quality * strong associations with the respective brand * other possession of the brand: patents, registered marks, relations in the distribution channels
Strong Brand Equity provides following benefits: * Facilitates a more predictable income inflow. * Increases cash flow by increasing share, reducing promotional costs and allowing premium. * Brand Equity is an asset which can be sold also.
Brand Loyalty
Brands that consumers generally buy from the same manufacturer repeatedly over time rather than buying from multiple suppliers within the category.
It also refers to the degree to which a consumer consistently purchases the same brand within a product class.
Generally, loyalty that can be loosely defined as a customer’s willingness to choose a brand more often over a period than its rivals, is dependent on the price of the product, the level of involvement, the level of competitive marketing activity (including but not limited to advertising), and the number of brands available with similar perception of value