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Presentation transcript:

Brand Loyalty

Business-to-business - Buying behaviour in a B2B environment 1 Companies seek long term relationships as any experiment with a different brand will have impacts on the entire business. Brand loyalty is therefore much higher than in consumer goods markets.

Intel - Early history 1 By launching its Intel Inside marketing campaign in 1989, Intel was able to associate brand loyalty with consumer selection, so that by the end of the 1990s, its line of Pentium processors had become a household name.

Intel - Intel Inside 1 The Intel Inside advertising campaign sought public brand loyalty and awareness of Intel processors in consumer computers. Intel paid some of the advertiser's costs for an ad that used the Intel Inside logo and xylomarimba jingle.

Customer engagement - The need for customer engagement 1 2. Decreasing brand loyalty: The lowering of entry barriers (such as the need for a sales force, access to channels and physical assets) and the geographical widening of the market due to the internet have brought about increasing competition. In combination with lower switching costs, easier access to information about products and suppliers and increased choice customer loyalty is hard to achieve.

Customer engagement - The need for customer engagement 1 The proliferation of media that provide consumers with more control over their advertising consumption (subscription-based digital radio and TV for example) and the simultaneous decrease of trust in advertising and increase of trust in peers point to the need for communications that the customer will desire to engage with. Stimulating a consumer’s engagement with a brand is the only way to increase brand loyalty and, therefore, "the best measure of current and future performance".

Prize (marketing) - Cereal prizes 1 Other manufacturers of major brands of cereal (including General Mills, Malt-O- Meal, Nabisco, Nestlé, Post Foods, and Quaker Oats) followed suit and inserted prizes into boxes of cereal to promote sales and brand loyalty.

User experience - Momentary emotion or overall user experience 1 The industry sees good overall user experience with a company's products as critical for securing brand loyalty and enhancing the growth of customer base

IPhone 4S - Critical reception 1 Lu of Gartner believed that Apple no longer had the leading edge and that the 4S would only sell due to brand loyalty, as fans had been expecting an iPhone 5 with a thinner profile, edge-to-edge screen, and stronger features

History of video game consoles (sixth generation) - Xbox 1 In Japan, Xbox sales were very poor, partly due to Microsoft's inability to attract major Japanese developers and game franchises. The console's physical size, which did not fit local aesthetic standards, and brand loyalty to Japanese companies such as Sony and Nintendo were considerable factors as well.

Brand awareness - Importance 1 Awareness, attitudes, and usage (AAU) metrics relate closely to what has been called the Hierarchy of Effects, an assumption that customers progress through sequential stages from lack of awareness, through initial purchase of a product, to brand loyalty

Brand awareness - Importance 1 Finally, high brand awareness about a product suggests that the brand is easily recognizable and accepted by the market in a way that the brand is differentiated from similar products and other competitors. Brand building also helps in improving brand loyalty.

ITunes Store - Pricing model 1 Some iTunes television programs have begun the same technique to encourage brand loyalty; although those stay longer

Apple, Inc - Brand loyalty 1 Apple's brand loyalty is considered unusual for any product. At one time, Apple evangelists were actively engaged by the company, but this was after the phenomenon was already firmly established. Apple evangelist Guy Kawasaki has called the brand fanaticism something that was stumbled upon. Apple has, however, supported the continuing existence of a network of Macintosh User Group|Mac User Groups in most major and many minor centers of population where Mac computers are available.

Connected Revolution 1 At the same time, they often have a lower threshold for brand loyalty and expect immediate gratification and delivery of services.Opinion: Welcome to the Connected Revolution, archive/58481-opinion-welcome-to-the- connected-revolution In addition to retail and Social Media, consumers have leveraged the concept of the connected revolution to share political news such as the Tunisian revolution,No “Twitter Revolution,” But a Connected Revolution in Tunisia,

Karmaloop - Traffic 1 As of 2013, Karmaloop.com receives 4.5 million unique visitors a month, was ranked the 1,980th most visited website in the U.S. by Alexa.com, and has a widespread global network that includes an opt-in list of over 950,000 people. Karmaloop grew 81% in 2011 and generated $130 million in revenue. The company also utilizes its 100,000-member global Karmaloop Rep Program to drive online sales and build brand loyalty.

Deal aggregator - Business model overview 1 The deal-of-the-day business model works by allowing retailers to market discounted services or products directly to the customers of the deal company, who receives a portion of the retailer's profit. This allows retailers to build brand loyalty and quickly sell surplus inventory.

Subscription business model 1 Thus, a one-time sale of a product can become a recurring sale and can build brand loyalty

Target market - The psychology of target marketing 1 A principal concept in target marketing is that those who are targeted show a strong affinity or brand loyalty to that particular brand. Target Marketing allows the marketer / sales team to customize their message to the targeted group of consumers in a more focused manner.

Citroën - Michelin era 1 This began a period of unusual brand loyalty normally seen in the automobile industry only in niche brands, like Porsche and Ferrari

Food marketing - Product 1 Brand loyalty is, of course, a matter of degree

Fast moving consumer goods - Scope 1 ** Low involvement (little or no effort to choose the item – products with strong brand loyalty are exceptions to this rule)

Intel Corporation - Early history 1 By launching its Intel Inside marketing campaign in 1989, Intel was able to associate brand loyalty with consumer selection, so that by the end of the 1990s, its line of Pentium (brand)|Pentium processors had become a household name.

Consumer neuroscience - Consumer Neuroscience Explains Brand Loyalty 1 Brand loyalty has been shown to be the result of changes in neural activity in the striatum, which is part of the reward system|human action reward system.Plassmann H, Kenning P, Ahlert D

Miniature wargaming - Scale 1 Part of the reason for the profusion of miniature sizes is the need for manufacturers to differentiate themselves in what is a niche market. This results in what has been termed 'scale creep' where miniatures listed in a catalogue may be identified by a measurement, but in reality may vary significantly from that advertised size. This is to encourage the purchaser into brand loyalty based on the aesthetic desire to maintain a look of uniformity on the tabletop.

Enterprise social networking - Applications 1 To build brand loyalty through support of charitable giving, Pepsi decided to forego Super Bowl ads in favor of launching the Pepsi Refresh Project that helps people improve their communities through a variety of projects submitted and chosen through web voting by the general public funded by the Pepsi.

Chief digital officer - Responsibilities 1 The CDO's responsibilities are to devise and execute social strategies that grow brand loyalty and advocacy on social networks by:

Vendor-managed inventory 1 Vendors benefit from more control of displays and more customer contact for their employees; retailers benefit from reduced risk, better store staff knowledge (which builds brand loyalty for both the vendor and the retailer), and reduced display maintenance outlays.

PeopleSoft - Oracle Corporation 1 Oracle moved to capitalize on the perceived strong brand loyalty within the JD Edwards user community by rebranding former JD Edwards products

Operating system advocacy 1 'Operating system advocacy' is the practice of attempting to increase the awareness and improve the perception of a computer operating system. The motivation behind this may be to increase the number of users of a system, to assert the superiority of one choice over another or out of brand loyalty, pride in an operating system's abilities, or to persuade software vendors to porting|port specific applications or device drivers to the platform.

Spin-off product 1 This tactic is undertaken due to the brand loyalty and brand awareness they enjoy consumers are more likely to buy a new product that has a tried and trusted brand name on it

Loyalty - Marketing 1 Brand loyalty is a consumer's preference for a particular brand and a commitment to repeatedly purchase that brand in the face of other choices.Dick, Alan S

Digital omnivore - Implications for marketing, advertisers and publishers 1 Brands that strategically manage their communication strategy across this complementary messaging matrix are best positioned to create long term Brand loyalty|loyalty and high Brand engagement|engagement with their audiences

Affinity marketing 1 The shared incentives would be more credit card usage and brand loyalty for the bank and more event and merchandise purchases for the sports team

Brand equity - Construction 1 The greater a company's brand equity, the greater the probability that the company will use a family branding strategy rather than an individual branding strategy. This is because family branding allows them to leverage the equity accumulated in the core brand. Aspects of brand equity include: brand loyalty, awareness, associationhttp://web.archive.org/web/ / 5/brand-association-what-we-mean.html and perception of quality.

First-mover advantage - Switching costs and buyer choice under uncertainty 1 Switching costs play a huge role in where, what, and why consumers buy what they buy. Users, over time, grow accustomed to a certain product and its functions, as well as the company that produces them products. Once a consumer is comfortable and set in their ways they apply a certain cost, which is usually fairly steep, to switching to other similar products.Wernerfelt, B. ‘Brand loyalty and user skills’, Journal of Economic Behavior and Organization, 1985, pp. 381–

First-mover advantage - Examples of switching costs 1 If the products satisfy people, then they will keep their brand loyalty, therefore increasing the firms' revenues.Porter, M

Monopolistic competition 1 This illustrates the amount of influence the firm has over the market; because of brand loyalty, it can raise its prices without losing all of its customers

Kellogg Company - Cereal box prizes 1 Other manufacturers of major brands of cereal, including General Mills, Malt-O- Meal Company|Malt-O-Meal, Nestlé, Post Foods, and Quaker Oats Company|Quaker Oats, followed suit and inserted prizes into boxes of cereal to promote sales and brand loyalty.

Marketing mix modeling - Components 1 'Base Sales': This is the natural demand for the product driven by economic factors like pricing, long-term trends, seasonality, and also qualitative factors like brand awareness and brand loyalty.

Superstar (celebrity) - Early 1900s: Development of the Hollywood Star System 1 By 1909, the silent film companies began promoting picture personalities by releasing stories about these actors to fan magazines and newspapers, as part of a strategy to build brand loyalty for their company's actors and films. By the 1920s, Hollywood film company promoters had developed a massive industrial enterprise that... peddled a new intangible—fame.

Bird's Eye - Captain Birdseye (United Kingdom) 1 Because the Birds Eye brand is marketed to families, many of the advertising campaigns feature Captain Birdseye as having a crew composed mostly of children in the preteen to teenage age groups, encouraging brand loyalty from children and emphasising the convenience of serving the company's products to their parents

Adidas - Marketing 1 Adidas, like other sports brands, is believed to engender high consumer brand loyalty. Brand loyalty towards Adidas, Nike, Inc., Puma AG and several other sportswear brands was examined in a recent study.Dawes, J. Brand Loyalty in the UK Sportswear Market. International Journal of Market Research, Vol 51, No The study found consumers did not exhibit unduly high loyalty towards such brands.

Alcohol advertising 1 Scientific research, health agencies and universities have, over decades, been able to demonstrate a correlation between alcohol beverage advertising and alcohol consumption; however, it has not been proven that alcohol advertising causes higher consumption rather than merely reflecting greater public demand. Many commentators suggest that effective alcohol campaigns only increase a producer's market share and also brand loyalty.

Alcohol advertising - Advertising 1 Many advertising campaigns have tried to increase consumption, brand loyalty|brand and loyalty business model|customer loyalty.

BMX racing - Sanctioning bodies 1 In the US, loyalty to one sanctioning body or another is a fundamental example of brand loyalty, where devotees of one vigorously assert the superiority of their chosen body overall others.

Tobacco advertising - Customer loyalty 1 Tobacco companies use advertising to drive brand awareness and brand preference amongst smokers, in order to drive sales and to increase brand loyalty|brand and loyalty business model|customer loyalty. One of the original forms of this was the inclusion of cigarette cards, a collectible set of ephemera.

Tobacco advertising - Trends 1 With the restrictions placed on general advertising, tobacco companies have moved to new promotions to establish new customers and maintain existing ones. For example Altria has a strategy of growth by promotions that build brand equity through adult consumer experiences.[ ss_release/03_02_pr_2004_11_05_01.asp Altria – Media – Press Release – 11/05/2004 – 01] The intent is to reinforce brand loyalty by building consumer communities.

KAMP-FM - The demise of FM Talk and launch of 97.1 AMP Radio 1 The company stated that testing AMP Radio on HD 2 and online showed brand loyalty and the success of the format

Student marketing 1 Attracting students at this time has huge long run brand loyalty effects

Target markets - The psychology of target marketing 1 A principal concept in target marketing is that those who are targeted show a strong affinity or brand loyalty to that particular brand

Porter's generic strategies - Differentiation Strategy 1 Successful differentiation is displayed when a company accomplishes either a premium price for the product or service, increased revenue per unit, or the consumers' loyalty to purchase the company's product or service (brand loyalty)

Customer delight 1 In the past customer satisfaction has been seen as a key performance indicator. Customer satisfaction measures the extent to which the expectations of a customer are met (compared to expectations being exceeded). However, it has been discovered that mere customer satisfaction does not create brand loyalty nor does it encourage positive word of mouth.

Lexus LS - Sales and production 1 Automotive analysts have suggested a possible rationale for the sales disparity, in that European buyers place less emphasis on vehicle reliability and have more brand loyalty to established domestic marques

Sunbeam (car company) - Chrysler era 1 Brand loyalty started to erode, and was greatly damaged when they decided to drop former marques and start calling everything a Chrysler

WALL-E - Religion 1 Dreher emphasized the false god parallels to BnL in a scene where a robot teaches infants B is for Buy n Large, your very best friend, which he compared to modern corporations such as McDonald's creating brand loyalty in children

Console manufacturer - Third-party support 1 Although brand loyalty, technical capabilities and price certainly plays their part, people tend to purchase the console that offers the games that they enjoy most

Daimler Company - Jaguar-based Daimlers 1 While the 2.5 V8, later renamed the V under new ownership, became the most popular car Daimler ever produced, it was not enough to establish brand loyalty

David A. Aaker - Aaker Model 1 Aaker is the creator of the Aaker Model, a marketing model that views brand equity as a combination of brand awareness, brand loyalty, and brand associations. The model outlines the necessity of developing a 'brand identity', which is a unique set of brand associations representing what the brand stands for and offers to customers an aspiring brand image.

Point of difference 1 Brand loyalty depends upon the ability of the company to establish and maintain clarity of communication with the consumer regarding their brand; and to maintain and expand the points of difference that define the brand.

Brand loyalty 1 'Brand loyalty' is where a person buys products from the same manufacturer repeatedly rather than from other suppliers.American Marketing Association [ tionary.aspx?dLetter=B Dictionary]. Retrieved The Marketing Accountability Standards Board (MASB) endorses this definition as part of its ongoing [ project/ Common Language: Marketing Activities and Metrics Project].

Brand loyalty - Construction 1 For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality.

Brand loyalty - Construction 1 'Factors influencing brand loyalty'

Brand loyalty - Construction 1 Commitment and repeated purchase behavior are considered as necessary conditions for brand loyalty followed by perceived value, satisfaction, and brand trust.Punniyamoorthy, M and Prasanna Mohan Raj, An empirical model for brand loyalty measurement, Journal of Targeting, Measurement and Analysis for Marketing, Volume 15, Number 4, September 2007, pp

Brand loyalty - Construction 1 Among the benefits from brand loyalty — specifically, longer tenure or staying as a customer for longer — was said to be lower sensitivity to price

Visual brand language - Brand personality 1 By establishing a brand personality, businesses can form emotional bonds with their consumers which in turn establishes future behaviours of Brand loyalty|brand loyalty

Ipsos MORI 1 The company also specialises in mass media, brand loyalty, marketing and advertising research

Cockshutt Plow Company - History 1 Immediately after assuming control in early 1962, White opted to cease production in Brantford, but to take advantage of Cockshutt's eight decades of brand loyalty, they continued to sell Cockshutt tractors

Chevrolet Chevy II / Nova This was considered to build brand loyalty with respective GM divisions although the company later fused their badge engineering with platform sharing to cut expenditures

Miniatures game - Scale 1 Part of the reason for the profusion of miniature sizes is the need for manufacturers to differentiate themselves in what is a niche market. This results in what has been termed scale creep where miniatures listed in a catalog may be identified by a measurement, but in reality may vary significantly from that advertized size. This is to encourage the purchaser into brand loyalty based on the aesthetic desire to maintain a look of uniformity on the tabletop.

Nissan Cherry - First generation (E10; 1970–1974) 1 The question given greatest prominence was the final one which asked whether or not respondents would buy another car of the same model: 76% of Cherry owning respondents answered “yes”, which was the top score for this question achieved by any model to date, and beat even the 66% “yes” score given by owners of the previous leader, the Volkswagen Type 1|Volkswagen Beetle, at the time well known in the UK for its owners’ brand loyalty.

Herzogenaurach - Economy 1 Herzogenaurach is the birthplace of two sporting goods giants: Adidas and Puma AG|Puma, founded by the two brothers Adolf Dassler and Rudolf Dassler, after an acrimonious family split in Both companies' headquarters are still located in the town on opposite sides of the Aurach River, and brand loyalty is sharply divided as well. [ world.de/popups/popup_printcontent/0,, ,00.html]

Cap'n Crunch - Marketing 1 In 2014, a Cornell University studied the box designs of 65 brands of cereals and discovered that buyers show 28% greater brand loyalty where the box cover features a mascot making direct eye contact with the purchaser, citing Cap'n Crunch as an example.

Free sample - Free samples 1 Although an expensive method of targeting customers, conversions to sales can range between 20% to 90% for various brands. With effective sampling, marketers can create brand loyalty and assist in the launch of a product through the word of mouth.

Edsel - The wrong car at the wrong time 1 Compounding Edsel's problems was the fact that the car had to compete with well- established nameplates from the Big Three, such as Pontiac, Oldsmobile, Buick, Dodge and DeSoto (automobile)|DeSoto, as well as with its own internal sister division Mercury (automobile)|Mercury, which itself had never been a stellar sales success. To make matters still worse, as a new make, Edsel had no established brand loyalty with buyers, as its competing makes had.

AAdvantage - History 1 Increased competition following the 1978 Airline Deregulation Act prompted airline marketing professionals to develop ways to reward repeat customers and build brand loyalty

Five Guys - Reception 1 The chain has something of a cult following and remarkable brand loyalty. Five Guys has been rated one of the most talked-about burger brands online.

Brand Keys - Key personnel 1 * Leigh Benatar, EVP in Brand Loyalty Consumer Insights.

Don Jazzy - Samsung deal, Mavin Records and Mavin League 1 The launch took place in Cape Town, and Don Jazzy had the following to say,[ samsung-offers-afro-pop-home-theater-with-don- jazzy-through-their-audio-visual-product-line-up “Previously, in 2011, Samsung were focused on the consistent improvement on sound quality and levels – which they were very successful in however, product innovations such as this one will drive the demand and brand loyalty towards their products far more and as long as they continue with this type of product development and drive I am sure they will continue to deliver strong, market relevant products – built specifically with the African consumer in mind,” concludes Don Jazzy.]

Think Small 1 The campaign has been considered so successful that it did much more than boost sales and build a lifetime of brand loyalty [...] The ad, and the work of the ad agency behind it, changed the very nature of advertising—from the way it's created to what you see as a consumer today.[ stories/1999/11/15/smallb4.html Top ad campaign of century? VW Beetle, of course]

Holden New Zealand - Brands 1 General Motors New Zealand's marketing strategy created little brand loyalty and consumers did not accept 'GM' as a brand, probably due to the multiple brands on offer.

ICICI Lombard - Awards 1 10.The Customer and Brand Loyalty Award- 5th Loyalty Summit 2012 ( standard.com/article/press-releases/icici- lombard-receives-the-customer-and- brand-loyalty-award-in-the-insurance- sector-general-category _1.html)

ICICI Lombard - Awards 1 13.The Customer and Brand Loyalty Award 2011 ( standard.com/article/press-releases/icici- lombard-receives-the-customer-and- brand-loyalty-award-in-the-insurance- sector-general-category _1.html)

ICICI Lombard - Awards 1 20.Customer and Brand Loyalty Award Insurance Sector Non-Life 2nd Loyalty Awards, 2009 ( of-insurance-companies/icici-lombard- profile/)

KarmaloopTV - Marketing profile 1 Karmaloop's opt-in mailing list| list is distributed to over 950,000 people. The company also utilizes a 100,000-member global affiliate marketing program to drive online sales and build brand loyalty.Young Entrepreneur, Karmaloop's Greg Selkoe on Social Media the Verge Culture. Maria Muto-Porter,

No Name (brand) - Launch 1 And strangely enough, Loblaws shoppers seem to be developing a brand loyalty to these unbranded products. The Japan- based unbranded multinational Muji first products released in 1980 that eventually surpassed No Name in sales.

Greg Selkoe - About Karmaloop.com 1 The company utilizes its global Karmaloop Rep Program – a street team – to drive online sales and build brand loyalty with exclusive word-of-mouth discounts.

Women and video games - Female gamers as a demographic 1 *Brand loyalty - In 2013, Nintendo claimed that 50% of its users were female.

College rivalry - The spectators 1 Fans exhibit intangible feelings of pride, solidarity, and pleasure for a particular team and brand loyalty, which means that they “heavily identify[y] with a particular team or university and have shown that the self-esteem of these ardent fans can be affected by their team’s success in competition”

1979 oil crisis - Automobile fuel economy 1 Detroit was not well prepared for the sudden rise in fuel prices, and imported brands (primarily the Asian marques which were mass marketed and had a lower manufacturing cost as opposed to United Kingdom|British and West German brands - the rising value of the Deutsche Mark and English Pound resulted in the transition to the rise of Japanese manufacturers where exporting their product from Japan at a lower cost would yield profitable gains despite accusations of price dumping) were now more widely available in North America and had developed a loyal brand loyalty|customer base - the Japanese Big Three launched their respective advertisement campaigns (Honda with its 'We Make It Simple' tagline, Datsun (Nissan after 1984) with the tagline 'We Are Driven', and Toyota with 'Oh What A Feeling' (they ran a previous ad campaign prior to 1979 where the company mocked the Plymouth Volare with the tagline 'You Asked For It - You Got It') - luring away traditional Big Three consumers (Subaru in the late 1970s ran an ad campaign where former owners of a Big Three automobile drove their products - one TV ad started with the tagline 'Ford drives Subaru')

Filmstar - Hollywood, first years 1 promotion (marketing)|Promotion in advertising led to the release of stories about these personalities to newspapers and fan magazines as part of a strategy to build brand loyalty for their company's actors and films

Videotape format war - End of Beta 1 While Betamax was believed to be the superior format in the minds of the public and press (due to excellent marketing by Sony), consumers wanted an affordable VCR (a VHS often cost hundreds of dollars less than a Betamax); history.htm#BetaMax Sony believed that having better quality recordings was the key to success, and that consumers would be willing to pay a higher retail price for this, whereas it soon became clear that consumer desire was focused more intently on recording time, lower retail price, compatibility with other machines for sharing (as VHS was becoming the format in the majority of homes), brand loyalty to companies who licensed VHS (RCA, Magnavox, Zenith, Quasar, Mitsubishi, Panasonic, even JVC itself, et al.), and compatibility for easy transfer of information

Troy Carter (music industry) –present: career 1 In 2011, he co-founded The Backplane, a Silicon Valley-based Startup company|startup that attempts to redefine social media by allowing celebrities and brands to connect with fans, foster community, and cultivate brand loyalty

Star Trek: Legacy - Xbox With the game's appeal thus reduced to those faithful fans still willing to suffer in the name of brand loyalty, it remains an impossible game to recommend without serious caveats.

Lithium (disambiguation) - Other 1 *Lithium Technologies, an online customer support and brand loyalty company

Moto Guzzi ndash; Origins 1 Ravelli, ironically, had died just days after the war's end in an aircraft crash and is commemorated by the eagle's wings that form Moto Guzzi#Logo, Guzzisti brand loyalty|the Moto Guzzi logo.

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