The Impact Of Discounting On Brand Equity
- Topics:
- Brand Management
- Tags:
- Brand,
- Brand Equity,
- Branding,
- Marketing
- Source:
- Killian & Company
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Overview: Price discounting effect on brand equity has kept an increasingly heated debate boiling: advertisers vs. agencies, advertising agencies vs. promotion agencies, sales managers vs. marketing managers, manufacturers vs. retailers. Brand image is its personality, its promise to prospective customers. Brand equity is the worth of that image and its strength as judged by its ability to remain unaffected by temporary fluctuations in any of the comprising factors. Consumers have only one collective image of a brand, created by the deployment of the brand assets at your disposal: name, tradition, packaging, advertising, promotion posture, pricing, trade acceptance, sales force discipline, customer satisfaction, repurchase patterns, etc. A deal can always be beaten by a competitor. An image is quite a different thing altogether. Strong brands can withstand and benefit from a well thought out discount program, within the context of a brand equity building plan. Brands developing equity realize no benefit over the long term from frequent fire sales ... and may even suffer significant damage. Finally, with discounting a fact of life, a concerted effort must be made to assure the most effective deployment of all brand assets, unified by a central strategic vision, in order to build the quality side of the equation.
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Format: HTML | Date: Jan 2003 | Pages: 1
