Excessive Sales Promotion and Brand Equity
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 on a particular season or festival. Sales promotions sometimes can be a better choice compared to advertising when the customer base is small and geographically distributed. Marketers have found that in the information world where the customers are continuously bombarded with nearly infinite amount of messages, advertising alone is not enough. To meet their sales they must use additional promotional methods in addition to advertising. Also, the high cost of advertising may cause marketers to seek alternative, lower cost promotional techniques to meet their goals. This role is fulfilled by sales promotion.
In this report, we will talk about the importance of sales promotions and the different types of sales promotions. We will explore the various options available to us other than sales promotion. Different types of sales promotions are most effective depending on the stage of the product life cycle. We will thus look at the options which the marketer should follow to get maximum benefit out of the promotion campaign. Before reaching a definite answer, we will also need to look at some of the possible negative effects of sales promotion. By exploring all these areas, we feel that we will be able to answer the question as to
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 on a particular season or festival. Sales promotions sometimes can be a better choice compared to advertising when the customer base is small and geographically distributed. Marketers have found that in the information world where the customers are continuously bombarded with nearly infinite amount of messages, advertising alone is not enough. To meet their sales they must use additional promotional methods in addition to advertising. Also, the high cost of advertising may cause marketers to seek alternative, lower cost promotional techniques to meet their goals. This role is fulfilled by sales promotion.
In this report, we will talk about the importance of sales promotions and the different types of sales promotions. We will explore the various options available to us other than sales promotion. Different types of sales promotions are most effective depending on the stage of the product life cycle. We will thus look at the options which the marketer should follow to get maximum benefit out of the promotion campaign. Before reaching a definite answer, we will also need to look at some of the possible negative effects of sales promotion. By exploring all these areas, we feel that we will be able to answer the question as to