Advertising vs sales promotion: a brand management perspective
Abstract
Brand managers in packaged goods firms are under pressure to increase or maintain high sales promotion spending at the expense of media advertising. This study investigates the antecedents and outcomes of brand managers’ advertising and sales promotion budget allocations by adopting a bounded rationality perspective. Based on survey data collected from 165 brand managers in the USA, higher advertising (vs sales promotion) allocations are associated with: single, relatively high priced brands in the early phases of the product life cycle; and more experienced brand managers who are subject to less retail influence. Also, brands with higher budget allocations to advertising, relative to sales promotion, tend to have more favorable consumer attitudes, stronger brand equity, and higher market share increases and profits. Managerial implications and areas for future study are discussed.
Keywords
Citation
Low, G.S. and Mohr, J.J. (2000), "Advertising vs sales promotion: a brand management perspective", Journal of Product & Brand Management, Vol. 9 No. 6, pp. 389-414. https://doi.org/10.1108/10610420010356984
Publisher
:MCB UP Ltd
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