Examining the role of advertising and sales promotions in brand equity creation

This study explores the relationships between two central elements of marketing communication programs — advertising and sales promotions — and their impact on brand equity creation. In particular, the research focuses on advertising spend and individuals' attitudes toward the advertisements. The study also investigates the effects of two kinds of sales promotions, monetary and non-monetary promotions. Based on a survey of 302 UK consumers, findings show that the individuals' attitudes toward the advertisements play a key role influencing brand equity dimensions, whereas advertising spend for the brands under investigation improves brand awareness but is insufficient to positively influence brand associations and perceived quality. The paper also finds distinctive effects of monetary and non-monetary promotions on brand equity. In addition, the results show that companies can optimize the brand equity management process by considering the relationships existing between the different dimensions of brand equity. ► This study explores the impact of advertising and sales promotions on brand equity. ► Individuals’ attitudes toward the advertisements improve brand equity dimensions. ► Advertising spend only increases brand awareness. ► Monetary and non-monetary promotions have distinctive effects on brand equity. ► Brand equity dimensions inter-relate.