BRAND LOYALTY Essay Example | Topics and Well Written Essays - 500 words

BRAND LOYALTY - Essay Example lty has five advantages; 1-profit, 2-reduction of new customer aquistion costs, 3-word of mouth helps marketing, 4-customer willingness to pay higher prices, and 5-higher Brand Loyalty results in higher market shares. The importance of Brand Loyalty are the same as the advantages. Brand Loyalty reduces price sensitivity for the consumer. If a consumer trusts a Brand, they are willing to pay more for a product. Loyal consumers will also recommend Brands to other people saving marketing costs. Brand Loyalty increases profits, while providing competitive advantages toward successful brands. Brand Loyalty inspires trust in consumers, raises market shares, and increases profits for the company marketing the Brand. Brand Loyalty does not have a set measureablity. A few vairables to measure Brand Loyalty are brand preference and attitude toward the brand. Different Brand manufacturers use different measurements. The measurement of Brand Loyalty is important because managers must cope with the disloyalty among customers and predict Brand Loyalty. There are six strategic Branding decisions corporations must make; 1-Brand context, 2-Brand construction, 3-Brand confirmation, 4-Brand consistency, 5-Brand continuity, and 6-Brand conditioning. After establishing these six strategic Branding decisions, Long Term strategic advantages for building Brand Loyalty are 1-improvement on return of all investment made in the brand, 2-maximising Brand growth potential, and 3-protecting the brand against consumer â€Å"disloyalty† triggers. There are four â€Å"disloyalty† triggers; 1-peer recommendations to try different Brands, 2-new products, 3- perceived shift in price-value relationship of the Brand/competitive Brand, 4-strong competition advertising. Long term strategic disadvantages include a lack of understanding of what the Brand stands for, inadequate funding/research, and private label threats. Short Term Branding challenges are 1-senior managements short-term focus