Promotional campaigns like monetary or non-monetary sales promotion do influence brand equity status, but there is definitely involvement of other influential factors which at times increase or decrease the firm value and brand equity. The study will put a light on this question that does brand equity precisely relate to sales promotion or there are other factors that have an association in this respect. Economic experts described sales promotions in two distinctive categories The first category is of tools used for instant sales promotion and the second category is of tools used for postponed sales promotion. The study concluded that no matter which tools organization applies in their strategy, all are effective in lowering prices and adding values to the brand.
With respect to several studies, here are two different types of tools used for sales promotion. The first basic types of tools used for primary sales promotion are tools of sampling, trial offers and coupons. This is to promote fresh items in order to bring them up in the market segment. The second category tools of price-offs, premiums and contests. These are to promote those items which are already present in the market. According to recent studies , there are several tools which can be used for effective sales promotion and these are sweepstakes, event sponsorships, rebates, frequency and discount offers. Such tools are effective for raising sales and increasing firms’ value in the consumer market section.
The study expressed that if an organization is successful in promoting its sales there is a probably chance that it could its brand value on the long term. According to past studies, there are different tools used for periodic sales promotion. Such tools are mainly categorized in two types of sales promotion, and those are short and long term sales promotion. The above mode illustrates the parallel relationship of sales promotion, sales promotion tools and brand equity, which is to indicate that how sales promotion tools are effective for increasing sales and for compelling brand equity and firm value at the same time.
From past empirical studies it can be noted that strategic tools which are applied in sales promotion have an impact on brand equity in the end. No matter sales promotion is short term or long term, monetary or non monetary it holds an impact for the firm’s value or brand equity. With recent studies on brand management, it is signified that sales promotions can be divided in two parts, one consumer based promotions and second non consumer based promotions. Consumer based promotions are those which are in response from the buyers comparatively different from non consumer based promotions which are based on push methodology.
