Price Promotions and Brand Growth

Abstract

Price is one of the important instruments in the process of marketing management. The success of investing in a brand can also be seen through its price elasticity. The price shows how the investment in the brand is capitalized, because the increase in prices, which is not initiated by the increase in costs, can be reflected in the increase in the profit of the brand. According to that, price changes, whether they are long-term or temporary, have an impact on other parameters of brand effectiveness. The aim of this paper is to try to link price actions (temporary price reductions) and long-term parameters of brand success. Special attention will be paid to long-term investment in the brand through advertising. In the first part of the paper, the author will review the theoretical framework of this topic. The second part of the work will be based on secondary data obtained by the marketing research agency GFK. Also, an effort will be made to review certain recommendations in the theoretical and practical domain.