A Study on the Role of Advertising and Sales Promotions in Creating Brand Equity and Brand Loyalty

Communication in marketing today plays a major role in creating value for different brands, and as the links connecting a firm and its customers expand, the firm experiences greater brand equity and strength. Among different communication tools, advertisement and promotion activities have always played a prominent role. The present study examined the impacts of advertising and sales promotions, as an independent variable, on brand equity and brand loyalty, as mediator and dependent variable. The statistical population was composed of consumers of the products and services provided by mobile network operators. The findings indicated a positive relationship between most study variables, suggesting the importance of the role played by advertising and sales promotions as well as their impact on creating brand equity and brand loyalty.