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Defining brand loyalty - by Paul Herbig - Helium

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Def,rning brand loyalty

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Created on: May 15, 2009 Last Updated: May 16, 2009 BRAND LOYALTY Does it Exist and where is it Going?

INTRODUCTION
As consumers, we all have heard ofgiant companies such as Coca-Cola, Proctor and Gamble and H.J. Heinz. However, how many ofus are familiar with the lucrative, rapidly exlanding, Loblaw's Company, Merico lncorporated, Pe[igo, and the Japanese company Daiei Incorporated? These latter companies all have one thing in common - they are all private-label brands. Du.ing the eighties, the trend was to buy top notch items regardless ofthe quality or the price. Brand names provided people with the image they were looking for The nineties have changed the way consumers are shopping. The brand name is losing some of its clout, and private label brands are sweeping the marketplace. This report analyzes the affect the new trend has on brand name manufacturers, and ways to tackle the problem of lost sales.

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0l/04/2012 l0:45 AM

Defining brand loyalty - by Paul Herbig - Helium

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BACKGROUND INFORMATION
Brand names can be defmed as " a word, letter, or a group ofwords or letters" (1 271). Branding means the use ofthis name combined with other synbols or designs that identilj/ the product. Branding was first invented during the ![idc!le-dgq!. Guilds were formed to control the quantity and quality ofproduct made and sold. Every producer put their mark on their products, so quantity could easily be reduced, and poor quality could be traced. This is the beginning ofthe association between brcnd names and good quality or reliability. Although this laid the foundation for the contemporary beliefs ofconsumers, people now use brands for identification ( 1 272). Brands also make shopping easier for the consumer. The choices of products can be nanowed down easier, and the customer usually knows what they are purchasing,

In addition to benefittingthe customer, it also benefits the ploducers. " A good brand speeds up shopping time for the customer and thus reduces the marketer's sellingtime and effort. Sometirnes the brand name is the only method of differentiation that a company has, Good brand names also make the introduction ofnew products easier for companies. For some types ofproducts, it is essential to establish a brand to differentiate it fiom the competition. Establishing a respected brand is not as easy as it may seem. There are several conditions that should apply when forming a new brand.

l) product should be easily identifiable 2) quality is the best value for the price 3) dependable and widespread availability 4) demand for the product class is large
5) demand is strong so

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Definirg brand loyalty

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by Christina Pomoni Being a product-sjryice or concept. a brand publicly distinguishes an organization's products or sen,ices from conrpetiti-o,!l

2 of 4 by Michelle Wilkinson Brand lovaltv involves customers continuall), goins back tolhe sanre brand product or service. rather than shoppins
around

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by Bg!.1_H-ilba

BRAND LOYALTY
Does it Exist and Where is it Going?

INTRODUCTION
As consumers. we all have heard of giant companies such as

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by D. James Brand lovaltv will alwavs be a t'actor in any

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pa$.,_ue!e!f! a! fulug-Hawever. therc has been a move toward brand

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Sales promotion - Sales promotions are shorl-term incentives lo encowage the purchase or sale of a product or service.
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incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interesl, trial, or purchase. Examples ofdevices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests,
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Sales Promotion Strategies


There are three types ofsales promotion sfategies: Pash, Pull, or a combination of the two.

A push stratery involves convincing trade intermediary channel members to "push" the product through the distribution channels to the ultimate consumer via promotions and personal selling efforts. The company promotes the product through a reseller who in tum promotes it to yet another reseller or the final consumer. Trade-promotion objectives are to persuade retailers or wholesalers to carry a brand, give a brand shelfspace, promote a brand in advertising and/or push a brand to final consumers. Typical tactics employed in push stratery are: allowances, buy-back guarantees, free trials, contests, specialty advertising items. discounts. displays. and premiums.

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Strategy Selected Depends on: lYpe of Product{ularket & Product Life-Cycle Stage

A pull strateg/ attempts to get consumers to "pu[[" the product from the manufacturer through the marketing channel. The company focuses its marketing communications efforts on consumers in the hope that it stimulates interest and demand for the product at the end-user level. This stratery is often employed ifdistributors are reluctant to carry a product because it gets as many consumers as possible to go to retail outlets and request the product, thus pulling it through the channel. Consumer-promotion objectives are to entice consumers to try a new product, lure customers away from competitors' products, get consumers to "load up" on a mature product, hold & reward loyal customers, and build consumer relationships. Typical tactics employed in pull strategl are: samples, coupons, cash refunds and rebates, premiums, advertising specialties, loyalty programs/patronage rewards, contests, sweepstakes, games, and point-of-purchase (POP) displays.
Car dealers often provide a good example ofa combination strates/. Ifyou pay attention to car dealers' advertising you will often hear them speak of cash-back offers and dealer incentives.

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