Hi
2118kool,
let me address your questions.
1. From an HR perspective, a promotion is a change (upwards) in the job title. In your case, going from Engineer Associate (Engineer Level 1) to Engineer (Engineer Level 2) will be considered a promotion.
2. There is no such thing as a number of promotions that one should aim when applying to b-school. Furthermore, more than an official change of title in the HR system, what matters the most is to be able to show an increase of responsibilities (i.e. job size in HR jargon) over time, even if this increase came with no change in your official title or even increase in salary.
Depending on the company, title and position could be two different things. For example, someone in sales could be Manager (title) and Head of North American Accounts (position). This same person could be given the additional responsibility of leading Latin American accounts as well. However, this could come with no change in title (or even salary), for example, because of strict HR policies on when and how often promotions can be awarded. From an admissions perspective, even though this wasn't an official promotion by HR terms, this will be seen as an increase in responsibilities and therefore will be seen very positively.
I hope this helps.
Thank you very much.
Warm regards
Alex