Brand Loyalty Marketing: Today's Marketing Mandate

By Light, Larry | Editor & Publisher, December 10, 1994 | Go to article overview

Brand Loyalty Marketing: Today's Marketing Mandate


Light, Larry, Editor & Publisher


MARKETERS WILL END the millennium in one of two groups: those who practice Brand Loyalty Marketing, and those who do not. Those who do, recognize that building strong brands is the only basis for enduring profitable growth. They will thrive, while those who do not will struggle to survive.

What is a brand? A trademark indicates and sets apart the source of a product, service, corporation. A brand indicates and distinguishes the source of a promise. Without the loyalty of its customers, a brand is a mere trademark. With the loyalty of its customers, a brand is more than a trademark, it is a trust mark. When a customer invests trust in a brand, a bond grows between the customer and the brand.

A brand as a distinguishing name/sign/symbol/design which identifies a trustworthy, relevant and distinctive promise associated with a product, service or organization and is intended to set apart that promise from those ofcompetitors. A power brand is a leading trustworthy, relevant, distinctive promise. It is a trust mark of enormous value. Creating and increasing brand loyalty results in a corresponding increase in the value of the trust mark.

What is brand equity? In the 1980s, the financial community recognized the extraordinary value of brands. For example, when Philip Morris purchased General Foods for billions of dollars, Hamish Maxwell, CEO of Philip Morris, explained that he did not buy General Foods, he bought great brands like Maxwell House, Jell-O and Kool-Aid, among others. This kind of thinking led to the current interest in brand equity.

Brand equity is a relatively new marketing concept. It represents the financial value of the brand separate from the value of the product or service to which it is attached. In other words, brand equity is the added value that the brand adds to the product or service. While there are various approaches to valuing brand equity, the results are consistent that brands can be worth billions. For example, Financial World conducts an annual valuation of brands. Their evidence suggests that brands like Marlboro, Kodak, Disney, Sony and Barbie are worth billions of dollars to their owners.

While marketers have in the past viewed brands as assets, we now know and recognize that the real asset is brand loyalty. The process by which we create, nurture, build and strengthen the bond between a customer ad a brand is called Brand Loyalty Marketing. The greater the strength of the brand bond, the greater and more valuable the brand.

With all this in mind, advertisers, agencies and media formed the Coalition for Brand Equity (CBE). The purpose of the coalition is to gather and synthesize available information on how to build, manage and defend brand equity. To date, the CEB has collected over 800 studies on brand equity.

The CBE, an organization devoted to synthesizing available information on how to build and manage brands, recently published a second booklet, The Fourth Wave: Brand Loyalty Marketing. The booklet elaborates on the principles of Brand Loyalty Marketing and includes evidence that building brand loyalty is the only basis for enduring, profitable growth. Here are just a few key ideas from the new CBE booklet.

The Four Pillars of Brand Loyalty Marketing

We must know how to identify, attract, defend and strengthen brand loyalty. These are the new marketing imperatives. Studies show that loyal customers not only pay more but account for a disproportionate share of a brand's sales.

Keep Your Loyal Customers Loyal

The Brand Loyalty Marketer's goal is to win and keep brand-loyal customers. Conquest, acquisition and trial are important for growth. But when studies show that it costs four to six times as much to get a new customer as it does to keep a customer loyal, we must focus on the new marketing imperative -- create and build brand loyalty. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Brand Loyalty Marketing: Today's Marketing Mandate
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.