Brand Loyalty

Brand loyalty is the situation when a consumer is reluctant to switch from buying and consuming the product from the brand he knows and trusts. It consists of a consumer’s commitment or preference to repurchase the brand and can be demonstrated by repeated buying of the product or service or other positive behaviors such as word of mouth advocacy. It is more than simple repurchasing behavior, since customers may repurchase a brand also due to:

· Situational constraints

· A lack of viable alternatives

· Out of convenience

Such loyalty is then referred to as “Spurious Loyalty”.

Three reasons why brand loyalty is important:

1. Higher sales volume. Through reducing customer loss.

2. Premium pricing ability. As loyal consumers are less sensitive to price changes, generally, they are willing to pay more for their preferred brand.

3. Lower costs for advertising, marketing and distribution. Brand loyalists are willing to search for their favorite brand and less sensitive to competitive promotions.

FOLLOW-ON QUESTIONS…

1. What is brand identity and how does it work?

2. What 3 elements make the branding successful according to Mary Jo Hatch and Majken Shultz?

3. To what extent do advertisers use persuasive techniques?

4. What emotional ties do you have to any brand and how do you describe them (e.g. exciting, reliable, innovative)?

5. What is country branding? What images and associations do you have of countries like China, the USA, Italy, Japan, etc?

Case Study «What’s in a name?»

Your company manufactures bicycles. It is about to launch a new adult bike: a cross between a mountain bike and a tourer (a so-called hybrid). The bike will be priced for the top end of the market and hopes to attract buyers in the AB social economic class. As with all such products, the name is crucial. It needs to be a name which can be used across the world as you hope to sell it into both the domestic and export markets.

The agenda below is designed to support the brainstorming process.

AGENDA

1. Presentation of the product

2. Presentation of a typical customer

3. Brainstorming on the name

4. Decision

Notes to the agenda

Presentation of the product

The Product Manager will present the new bike.

2. Presentation of a typical customer

The Marketing Manager will talk about the target customer.

Brainstorming on the name

The meeting will brainstorm the name.

Decision

A decision will be made.

BRAINSTORMING

Think over the task and sound your decision, providing with effective arguments.

Travel Costs

The company you work for wants to reduce the amount it spends on business trips abroad.

You have been asked to suggest ways of doing this.

Discuss the situation together and decide:

- how the total number of business trips might be reduced

- how the cost of some trips might be reduced

- how to make business trips more productive.

INDIVIDUAL PROJECT / Persuasive Speech:

Promoting an Internet Site (1 by choice)

Unit 11 THEORY: «Activity-based costing (ABC)»

«ABC offers management accurate information by delineating costs and tracing them to individual products and product lines»

Дата добавления: 2015-11-14