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Long-term impact of sales promotion on brand image

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  • Danijela Mandić

Abstract

Sales promotion (SP) is an inevitable tool in the marketing communications mix, especially in the FMCG markets, due to pressures such as retailers’ growing demands and increasing competition. This has proven to be an issue for many companies, especially those with a premium brand positioning and those concerned about the impact that SP might have on the long-term image of the company. Despite the fact that literature is replete with research on SP, it seems to be vastly generalized and mostly focused on price reductions. Thus, this paper aims to analyze and discuss the issue of the long-term impact that SP has on companies, especially on premium brands in the FMCG markets. It concludes that, when used properly and strategically, SP may have a positive long-term impact on brands.

Suggested Citation

  • Danijela Mandić, 2009. "Long-term impact of sales promotion on brand image," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 21(2), pages 235-246.
    • Handle: RePEc:zag:market:v:21:y:2009:i:2:p:235-246
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    References listed on IDEAS

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    1. Itamar Simonson & Ziv Carmon & Suzanne O'Curry, 1994. "Experimental Evidence on the Negative Effect of Product Features and Sales Promotions on Brand Choice," Marketing Science, INFORMS, vol. 13(1), pages 23-40.
    2. Bart J. Bronnenberg & Luc Wathieu, 1996. "Asymmetric Promotion Effects and Brand Positioning," Marketing Science, INFORMS, vol. 15(4), pages 379-394.
    3. Paul Dobson & Michael Waterson, 1999. "Retailer power: recent developments and policy implications," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 14(28), pages 134-164.
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