Critical Thinking sales promotions are designed to generate short-term sales and, as a result, are often associated with some sort of discount or special offer. the end goal is to increase market share through increased volume of purchases and drawing business from consumers switching from competing brands.

however, is there a downside for the brand in using a sales promotion or launching them too frequently?

Generally, strong brands like to achieve a price premium in the market to increase their long-term level of profitability. therefore, if a brand frequently uses various price-based sales promotions, how would it impact the brand equity? Would it influence consumers to “rethink” the true value of the brand?

are there any brands that you are aware of that may have damaged their brand equity through the overuse of aggressive sales promotions? are there brands that you are aware of that never or rarely use price-based sales promotions?