A brand is the organization's strongest asset. Successful brands, which are the focus of coherent blending of marketing resources, represent valuable marketing assets. A large amount of power is intrinsically vested in all brands, especially those which are managed successfully. Brands fly higher than companies. They have a freedom that functional products and companies don't have. For a start, brands live in the hearts and minds of consumers. Brands are strongly linked by consumers' emotions, since human beings, by nature, are emotional. They are endowed with a great deal of emotional depth and richness. When Bavarian Motor Works (BMW) drivers proudly turn the ignition keys for the first time in the ultimate driving machine, they are not only benefiting from a highly engineered car with excellent performance, but also taking ownership of a symbol that signifies the core values of exclusivity, performance, quality and technical innovation.
Brands are powerful assets and the marketplace is intensely competitive today. In the light of these two overriding facts, companies have realized that the key to sustained profitability is to nurture loyal customers. The development and maintenance of consumer brand loyalty is placed at the heart of companies' marketing plans, especially in the face of highly competitive markets with increasing unpredictability and reducing product differentiation.
Traditionally, marketing's main goal has primarily been to increase sales by constantly attracting new customers. Of late, the focus of marketing has shifted towards a company's existing customer base. The existing customer base consists of customers who, over years of regular usage of the brand, have developed certain affinity levels for the said brand. This affinity translates into loyalty for the brand. Studies show that as brand loyalty goes up, consumers grow less sensitive to changes in the brand's price. And loyal customers are less likely to be sensitive to competitive promotions, driving down the marketing costs. As brand loyalty goes up, so does consumer's interest in trying out new products and services from that brand and most importantly, the brand's profitability. Brand loyalty is something that every brand and company strives for and believes they can attain. The eternal search for companies has been to identify a brand loyal customer who in the long run proves to be a valuable asset. |
