Transcript presentation

How price promotion can be
applied without damaging
brand equity
Ding Ling
Group 8
Outline
 Introduction
- Brand equity
- Price promotion
 Problem
 Solution
 Implication
 Evaluation
 List of references
Introduction
 Brand equity
Definition
“Brand equity is a set of assets and
liabilities linked to a brand's
name and symbol that adds to (or
subtracts from) the value provided
by a product or service to a firm.”
Perceived quality
Brand loyalty
Brand equity
Brand association
Brand awareness
Other
brand’s
private property
Source: Aaker, 1991; Aaker, 2012
Introduction
Price promotion
Outline
Nonmonetary promotion
Perceived quality
Brand
equity
Price promotion
Brand association
Source:Aaker (1991)
Advertising campaigns
Thesis Statement
 How price promotion can be applied
without damaging brand equity by
combining the non-monetary promotion
and advertising campaigns.
Problem
 The negative effect of frequent price promotion to
perceived quality and brand association
price promotion
Non-monetary
promotion
Perceived quality
Brand association
Source:Buil, I., de Chernatony, L. and Mart\'\inez, E. (2013). Examining the role of advertising and sales
promotions in brand
equity creation.
1st Solution
 Non-monetary promotion
-- Definition (Yi and Yoo, 2011)
Promotional strategy
Hedonic benefits
-- Different from price promotion
2nd Solution
 Advertising campaigns
--Definition (Kotler, 2012)
paid form of non-personal presentation
promotion of ideas, goods and services
--Different channels
Implication of Non-monetary
promotion
 Positive
--customers may receive the high-quality
perception
--enhance brand equity
Negative
--enterprises could spend large budget on free
gifts and free samples etc.
Implication of Advertising
campaigns
 positive
--influence consumer behaviours in a large extent
--deepen the impression of products or services
 negative
--further investment
--less originality
Evaluation
 the overall relationship between frequent price
promotion and brand equity is negative
 The most effective practice: nonmonetary
promotions
 The alternative possible solution: advertising
campaigns
 As long as non-monetary promotion and
advertising campaigns are implemented
appropriately, price promotion can be
applied along with the combination of
two solutions without damaging brand
equity
List of references
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Aaker, D. (1991). Managing brand equity. 1st ed. New York: Free Press.
Buil, I., de Chernatony, L. and Mart\'\inez, E. (2013). Examining the role
of advertising and sales promotions in brand equity creation. Journal of
Business Research, 66(1), pp.115--122.
Keller, K. (2008). Strategic brand management: building, measuring, and
managing brand equity. 3rd ed.
Kotler, P., Keller, K., Brady, M., Goodman, M. and Hansen, T.
(2012). Marketing management. 2nd ed. Pearson Education.
Villarejo-Ramos, A. and S\'anchez-Franco, M. (2005). The impact of
marketing communication and price promotion on brand equity. The
Journal of Brand Management, 12(6), pp.431--444.
Yi, Y. and Yoo, J. (2011). The long-term effects of sales promotions on
brand attitude across monetary and non-monetary
promotions. Psychology \& Marketing, 28(9), pp.879--896
Are there any question?