Question 1
Brands that command a high market share have many buyers and high brand loyalty. Meanwhile, low market shares brands few buyers and brand loyalty. Advertising is an activity that tends to attract new customer and maintaining the existence ones. The response to advertising is attracting many customers and creating consistency in customers buying behavior. A brand commanding a high market share has already responded to the objective of advertising. Hence, advertising of a brand that has already attained a high market share may not effectively respond to advertising compared to brands with low market share (Lamb, Charles, Joseph, Hair & McDaniel, 201). This brands requires an intensive advertising activity to attract many customer and brand loyalty
Question 2
Advertising is usually used to introduce products in the market. Advertising does not increase sale because for existing products because it is used to introduce products to the customers. Advertising increases sales for products that are new in the market. Such will only create brand loyalty to customers.
Question 3
Sales promotion is a short-term activity that is used by a company to spearhead sales. The objective is to drive the sale force. The objective of marketing is to inform about a new product or of an existence of a product in the market. Its objectives are long term and may not be felt during the short term. The results of promotion are felt on short-term basis.
Question 4
Promotion is mainly accompanied by low prices of discounted prices. A product heavily promoted means it is sold at a lower price than the assigned price. In long run, the brand may lose brand equity (O'Guinn, Thomas, Allen & Semenik, 198). Customers also perceive a highly promoted product as low in quality and commanding low market share. This makes a product lose its equity.
Question 5
Sales promotion is a good short-term strategy especially for a company wiping old stock and in a certain festive season. A company should not use sale promotion as a long-term strategy since it can result to a brand losing equity.
Work cited
O'Guinn, Thomas C, Chris T. Allen, and Richard J. Semenik. Advertising and Integrated Brand Promotion. Mason, Ohio: South-Western/Cengage Learning, 2009. Print.
Lamb, Charles W, Joseph F. Hair, and Carl D. McDaniel. Essentials of Marketing. Mason, Ohio: South-Western Cengage Learning, 2012. Print.
