Building Brand Loyalty by Innovative Marketing Strategies

By

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Background1

Problem statement1

Research objectives2

Research questions2

Significance2

CHAPTER 2: LITERATURE REVIEW4

Brand Loyalty4

Brand Building4

Antecedents of Brand Loyalty7

Utilitarian and Hedonic Benefits9

Brand Trust10

Brand Affect12

CHAPTER 3: METHODOLOGY14

Mixed Research14

Classification of research methods14

Steps in mixed methodology15

Strength and weakness of the mixed research16

Instrument for data collection17

Data analysis17

Reliability/Dependability18

REFERENCES20

CHAPTER 1: INTRODUCTION

Background

This research will focus on building brand loyalty through innovative marketing strategies. Building brand loyalty is very important in this competitive world. Every company is striving to gain an edge over the competitors. Customers takes second to switch brand and in such an environment it is very important to build brand image. There are various methods through which brand image can be built in the consumer mind but this research will focus on building brand image through innovative marketing strategies (Aaker 2003 83).

Problem statement

By building up brand loyalty and equity and desensitizing consumers to price the marketer need not rely so heavily on price promotions and other sales promotion tactics. Increasing brand loyalty in the short term may lessen the need for marketing activity directed to the consumer in the medium- and long-term. The reduction in marketing activity and its associated cost clearly enhances profitability. Brand equity and loyalty for consumer packaged goods (and other types of goods) may best be built up with the use of advertising and other marketing efforts that focus more on brand attributes and image and less on price. Sales promotions draw attention to price (Bridson 2004 403).

Research objectives

The researcher aims to study the impact of innovative marketing strategies on building brand loyalty. The aim has been broken into the following objectives

To study the literature on brand loyalty

To study the benefits and challenges of brand loyalty

To study the reasons as to why building brand loyalty is important

To study how brand loyalty can be built through innovative marketing strategy

Research questions

The researcher aims to address the following research questions

How innovative marketing strategies can help in building brand image?

Why building brand loyalty is important?

Significance

A basic tenet of the marketing concept is that it is the purpose of the firm to create and maintain satisfied customers (Calantone 2000 493). The importance of customer satisfaction cannot be trivialized; however, loyalty is a more certain leading indicator of profitability than satisfaction. Loyalty directly impacts the bottom line (Calderon 1997 293). Customers who do not remain loyal deprive the marketer of future profit making potential. Hallberg (1995) points to two ways in which brand loyalty affects brand profitability. Firstly, brand loyalty influences the share of total category purchases consumers give to any particular brand. The brand with the largest franchiser of loyal consumers should expect to enjoy the largest market share, ceteris paribus, as well as any incidental benefits that spring from being a market share leader. The relationship between brand loyalty and the proportion of purchases realized at the individual level translates to the observed relationship between brand loyalty and market share at the aggregate level. This points to the "double jeopardy" faced by small market share brands: 1) they tend to have ...