In contrast, companies love to bring their prices down to influence customer to buy their product. At the same time, they appeal to customer ethos by rhetorically stating “I understand hard time. Therefore, my company lower prices, because we understand and appreciate our customers”. This is not an everyday conclusion. However, there is evidence that shows customers are more likely to buy from a company that have lower prices. Company’s strategies range from repeated advertisement, lowing prices, to teaming up with universities (school), and hospitals etc. The main goal is to a higher percentage of brand loyalty.
Defining Brand Loyalty
Brand Loyalty is customer buying a product over and over again. It is a major component for any business to excel. According to “Not All Repeat Customers Are the Same: Designing Effective Cross Selling Promotion on the Basis of Attitudinal Loyalty and Habit” by Yuping Liu-Thompkins & Leona Tarn discourse covers brand loyalty and habits, that results for contextual cues. The author argues:
“Consumers exhibit behavioral loyalty when they repeatedly patronize a business, often to the exclusion of competing offers. Although such repeat purchases are desirable from a financial perspective, it is not optimal to take behavioral loyalty at face value, because consumers' repeat purchases may be driven by different reasons, such as favorable attitude, switching barriers, and sunk costs (Dick and Basu 1994). Identifying the drivers of behavioral loyalty can help properly allocate resources among marketing tactics (Seetharaman 2004) and enable the creation of customized marketing programs for maximum effectiveness”. (Liu-Thompkins & Tarn 2013)
The authors wish to show customers are unconsciously infl...
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...otal revenue at Britvic rose by 9% to 353.6 million in the estimated six months to April”. (Food & Drink Technology 2007)
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Food & Drink Technology. “Diet Pepsi sparkles for Britvic” July/August 2007 Bell Publishing Ltd.
Liu-Thompkins Y., Tarn L. “Not All Repeat Customers Are the Same: Designing Effective Cross Selling Promotion on the Basis of Attitudinal Loyalty and Habit”
Romaniuk, J., Wight, S., “The influence of brand usage on responses to advertising awareness measures” International Journal of Market Research Vol. 51 Issue 2
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In this mock press release from The Onion, the author is parodying the way products are branded to consumers. He assumes that the techniques utilized by sponsors are misrepresented and manipulative. The author shows his disdain for marketing techniques by using irony, hyperbole, and diction.
After the use of Reese’s Pieces in the movie E.T. product placement has risen to extreme heights. Some ask the question if product placement was around before the popular use of it in E.T. Research has proven that this form of advertisement has been around and used since the beginning of cinema, Ben Kozary states “the first reported product placement occurred in 1896, with the deliberate integration of Sunlight Soap by Unilever into several Lumière films” (2) from his paper “The Influence of Product Placement Prominence on Consumer Attitudes and Intentions: A Theoretical Framework.” This makes product placement one of the longest running uses of advertisement around. Product placement in movies and television shows, while unethical in some situations, is the most preferred and effective form of advertisement today.
To consider the power of marketing execution (e.g., product placement) versus traditional media planning strategy. How does this new marketing approach affect shifts in brand image?
Have you ever walked into a store and notice that your favorite items are always at the end of the store or on the right side? Stores and businesses use different ways to target your ability as a shopper to get you to purchase more and frequent their stores more often than what you would normally do. Malcolm Gladwell and Charles Duhigg explain different shopping method in which stores and businesses use to get you to walk into their store and purchase items in which you need and don’t need. In Gladwell’s article of the “The Science of Shopping”, Gladwell explains with great analytical detail the strategies that stores and businesses use to bring in customers frequently and buy more products than what the customer actually needs. As well as Duhigg implements his ideas and the psychology of “ The Power of Habit” that trigger the process of cues and rewards that creates a habit that maybe hard to break. Vons uses Duhigg’s and Glagwell’s marketing techniques well to attract more customers into their store by using the tracking of recent purchase made by the customer to provide coupons for the customers next purchase.
Ninety percent of Canadians are enrolled in at least one loyalty program. Market research has shown that loyalty programs are growing to be very popular in today’s market. A loyalty program is a program offered by a company to customers, who make frequent purchases. Loyalty programs are of benefit to both the consumers and the business. The consumers benefit by receiving coupons, special access to sales and new products whereas the company benefits by gaining an abundance of knowledge about the consumers, through their purchasing habits. Loyalty programs have proven to be very successful for several companies such as Target, Starbucks, and Shoppers Drug Mart. The senior management in sales and marketing believe that initiating a loyalty program
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Consumers with brand loyalty are indifferent with too many choices in shopping as they tend to ignore other brands and chooses product from their preferred brand.
Berkman, Herald W. and Gilson, Christopher. Advertising: Concepts and Strategies, 2nd ed.. (New York: Random House, 1987). 244.
Lastly, brand awareness is a crucial consideration. And It may be thought of as a consumers’ ability to find a brand within a group in adequate detail to make a purchase. It is important to remember that adequate detail does not always need identification of the brand name. Often “brand awareness is no more than a visual image of the package that stimulates a response to the brand.” Moreover, recall of the name is not necessarily required because brand awareness in which can try via brand recognition. According to Emma Macdonald and Byron Sharp (2003), suggested, when a brand is recognized at point of purchase, its brand awareness does not need brand recall. This is a major point in the consideration of brand awareness as the most important communication objective. In fact, the difference is misunderstood by marketing and advertising managers. The difficulty is to relate to the essential difference between recognition and recall, that is extremely important to advertising strategy. Brand recognition and brand recall are two separate types of brand awareness. The difference depends upon the communication effect that occurs primarily in the consumers’ memory.
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It is not secret that marketing plays one of the key roles of a successful business. As Phillip Kotler said: “Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential”. Simply stated, marketing is everything you do to place your product or service in the hands of a potential customer.
Thanks to my fascination with PepsiCo and partly because this is an assignment, I went online and search for some of PepsiCo’s most successful and ongoing marketing campaigns and strategies. During my research I noticed several daring marketing strategies Pepsi employed throughout the years. For example, gaining the support of Michael Jackson in the 1980’s and latest gaining the endorsement of global pop star Beyoncé.
Stafford, Marla R., and Ronald J. Faber. Advertising, Promotion, and New Media. Armonk, NY.: M.E. Sharpe, 2005