Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Relationship marketing approaches
Relationship marketing approaches
Importance of pricing in marketing strategy
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Relationship marketing approaches
Brand equity goes beyond the financial assets and profitability to incorporate the recognition and loyalty of customers toward the brand. Customers are trust familiar brands in a similar way that they trust people who they have known for a long period of time. This is because familiarity leads to a sense of comfort and emotional attachment that customers often opt to purchase a recognised brand rather than a less familiar brand although the generic product is essentially the same. Retailers have the options to offer products which carry another company’s brand, developing private-label products or selling a combination of branded and private-label products
Retail pricing The main retailing communications strategies are used by retailers such as Sephora to link their sustainability in this market places nowadays. Traditionally, the emphasis of promotions has been on winning new customers but todays, there is more focus on adopting techniques to retain existing customers and placing greater efforts on relationship marketing. Communication is the exchange of ideas, information and knowledge between senders and receivers through an accepted code of symbols. The most effective retail
…show more content…
Sephora utilizes promotions and sales that are consistent with and it will enhance store image such as offering discounts in this recent weeks. Product image of Sephora versus availability in terms of manufacturers goal to create a positive image for the products and able to differentiate it from competing products by not only providing other branded products, Sephora also offered their in-house label of beauty merchandises. Moreover, promotion for specific product benefits versus price retailers such as Sephora wish that customers to purchase their merchandise in their store rather than competitors stores that also offered the same merchandise
In every given business, the name itself portrays different meanings. This serves as the reference point and sometimes the basis of customers on what to expect within the company. Since personality affects product image (Langmeyer & Shank, 1994), the presence of brand helps in the realization of this concept. Traditionally, brand is a symbolic manifestation of all the information connected with a company, product, or service (Nilson, 2003; Olin, 2003). A brand is typically composed of a name, logo, and other visual elements such as images, colors, and icons (Gillooley & Varley, 2001; Laforet & Saunders, 1994)). It is believed that a brand puts an impression to the consumer on what to expect to the product or service being offered (Mere, 1995). In other application, brand may be referred as trademark, which is legally appropriate term. The brand is the most powerful weapon in the market (LePla & Parker, 1999). Brands possess personality in which people associate their experience. Oftentimes, they are related to the core values the company executes.
Definition; - “brand equity is the added value endowed on products and services. It may be reflected in the way consumer think, feel, and act with respect to the brand, as well as in the price, market share and profitability the brand commands.”(Kolter and Keller.2012, p265) according to the case study of Holland and Barrett, brand equity refers to high brand value, brand with high value equity means, H&B has the ability to create some sort of positiv...
Sephora has started its digital presence in the year 1999 with the launch of its website, “Sephora.com” and pioneered in the digital and beauty retail business. With around 3 million visitors per month to its website, Sephora has not put a single step wrong in its marketing strategy. The introduction of Sephora Beauty Insider program in 2007 followed by the Customer Relationship Management programs, the number of online customers have been exploded in multi-fold across Sephora’s online channels. Although Sephora was known for its in-store experience, the shear increase in the number of customers on its online portals had almost blacked out the online system in the holiday season of 2014. This led many of its Asian loyal customers
... brands and reducing their reliance on the larger brands. In addition, retailers such as Wal-Mart and Target are increasingly offering private label premium goods at affordable prices. A huge advantage with private label brands is that they can be positioned as a lower cost alternative for national and international brands. Increase in demand for the private label products provides better margin and would generate more business for the group.
Brand equity is crucial as it implies that the brand itself is an important (financial) asset and can be calculated in financial terms (Barwise, 1993). This is particularly important in the luxury sector as from a behavioural viewpoint, brand equity can differentiate a company or product from other competitors, adding to their competitive advantages based on non-profit competition (Aaker, 2004). The model created by Aaker (1992) states that there are four categories of brand equity; Loyalty, Awareness, Perceived Quality and Associations. Luxury branding relies on a high level of perceived quality, loyalty and associations, although potentially less so for awareness, as it is thought that consumers choose luxury brands based on their exclusivity and as such the more the awareness that surrounds the brand, there is potential for it to become less valuable (Phau and Prendergast,
Kevin Keller’s brand equity model is known as the Customer Based Brand Equity Model (CBBE). This model was first introduced in his book, Strategic Brand Management. According to the model, a company must shape how customers think, feel, and act towards a product in order to build a strong brand. A consumer must have the right type of experience around the brand, which foster positive thoughts, opinions, perceptions, beliefs and feelings. By building strong brand equity, customers will recommend company products and will buy more of them. Moreover, this increases brand loyalty and decreases brand switching to competitors. One’s memory consists of a network of associations and connecting links, and any association ever processed about a brand
The source of the brand features is in a connection between customers and companies that sell services or products. Consumers who choose a specific company fundamentally acknowledge to prefer that brand more than other brands rooted from the recognition of the brand’s worth.
Promotion. Finally comes promotion - informing the customer on the qualities and advantages of the product so that the potential buyer learns about the product, prefers it to those of the competitors, and has an opportunity to buy it at some place.
12. Raman, K., and Naik, P.A., (2005), Integrated Marketing Communications in Retailing, [online] Available at: http://ramanassoc.com/yahoo_site_admin/assets/docs/IMC_in_Retailing.26100503.pdf, Accessed on: 1st April 2014
Companies use a collection of brand equities to represent their products in the market (Voolnes, 2012). Brand equity refers to the commercial value that is derived from the perception of consumers on any given brand name of particular products in the market as opposed to the product itself. Ataman (2003) notes that the effect to the consumer is in the brand name and not the product itself. Companies use logos, trademarks and a collection of other symbols to present this information to the customers. The use of these symbols is meant to try and capture the customer mindset so that they can be thinking about the company products at all times through the items they possess at home (Estes, Gibbert, Guest, & Mazursk, 2012). This can well be explained by use of the customer-based brand equity model that brings together the requirements for a publicly renowned brand in the market.
In conclusion, the customer- based brand equity model is an important platform that may help in building a strong brand. It could assist a company in assessing its progress as well as providing a blueprint for marketing research activities. If properly planned and implemented, it could help the company in achieving its marketing strategies and in the realization of an increased profit margin
Marketers assert to develop branding and packaging strategies that signify the brand’s products in a way that establishes lasting impressions in consumers’ thoughts. Because brands distinguish the many product offerings in the marketplace, brands help consumers choose between product offerings. When branding and packaging strategies clearly illustrate worthy product expectations, and products remain true to branding messages, positive consumer perceptions ensue, and brand value is strengthened.
Promoting Avon’s products and high chance of increasing direct-sales is to offer incentives to its consumers. Incentives provide a positive motivational influence to encourage and excite buyers to buy the products. Such incentives, appropriate for this situation, are coupons, rebates, product samples and awards. Coupons can be attached in mail, beauty magazines, newspapers, and advertisements on mail or on the internet company’s official website. Rebates can be offered also to attract more buyers to buy the products. Rebates can be advertised also on coupons through mail or the internet. Another successful way of attracting consumers is by offering samples of Avon’s cosmetic products, which can be done door-to-door or attached on an advertisement through mail. Finally, awards through prizes, contests or sweepstakes can offer consumers the chance to win something small or big like cash or a free-trip to the Bahamas. Also, prizes can be offering a free gift whenever a consumers purchase one of Avon’s products. This last incentive option attracts more attention from consumers than the three other options.
The review of relevant literature is to identify what's brand awareness and how to carry out in strategic marketing, and consumers' behavior. The study prove that the significant factors on brand awareness as a perception of product, service, and image of the company and has a tremendous effect on consumers’ evaluation of system results. From reading all of the relevant journals, it is understandable that the significant factors on building a successful brand image and awareness is consumers and their relationship with the brand, company, service and the product. Brand awareness is the vital importance to marketing strategy and marketing communications because it links customer behavior to firms’ financial metric. Keller (2001), noted, customers’ reaction toward brand awareness is associated profitably brand equity.
A company’s brand is one of its most valuable assets (Green and Smith 2002). Brands owners invest millions of dollars every year in advertising and promotion to raise awareness and create demand for their brands.