Brand Equity Essay Example | Topics and Well Written Essays - 1000 words

Brand Equity - Essay ExampleAttrition can quickly set in, rendering them vulnerable to competition. Consumer-based brand rectitude is defined as the value of a brand signal to consumers. (Swait 1998, p. 7) . For Marcoms, once again, proactive commitment to customers separates successful companies from the rest. Because positive equity is so critically strategic an element of customer loyalty, operational flexibility and value innovation are especially meaningful here. Earlier, the lack of customer loyalty in the supermarket industry was discussed, with touchable equity being quite elusive for most chains (see appendix 1).At the heart of Marcoms equity package is providing convenience, quality, a variety of services, for customers who want it and who pull up stakes pay more to get it. It is a premium service identified as such by customers because it delivers more. The equity pressure for companies like Marcoms is that, as they occur to raise the bar on customer expectations, th ey must also be able to see over the bar and continue to anticipate customer needfully (Boone and Kurtz 2002). There are a lot of parallels between (1) the effect on loyalty of customer self-expression and choice and (2) the old-fashioned idea of romance and courtship. Customers are erratic romance can be fickle. Boy meets girl. Boy wins girl. Boy loves her but takes her for granted. Choice is largely driven by a customers relationships with a service, and with the companies that offer them. Its close experience, and levels of trust and commitment, through contact with suppliers. Because, in most industries, choices are so readily available, customers are increasingly less hesitant to change suppliers. When replacement is perceive as more positive than negative, theyll move on. Industries such as banking and managed care have seen this occur (see appendix 2). This must translate to positive relationships and contacts, earning and keeping customer loyalty (Crawford 2003). This pe rspective on brand equity focuses on the impact on consumer utility of a brands signal credibility, rather than on the mere limpidity of the provided information (Swait 1998, p. 7) For Marcoms, the long-term value strategy is built on creating strong relationships with customers and anticipating their requirements. A significant new challenge is emerging with regard to value. Companies must in a flash strategize with respect to both the physical product and the virtual product, such as information. Overlaps in physical and virtual product occur in many industries, particularly those where a tangible product, such as an automobile, and an intangible product, such as service advice or computer-based information support, coexist. Emancipated thinking and embracing the possible shapes of things to make out now includes strategies that go beyond reliance on the companys own resources. Increasingly, companies are seeking strategic partnerships and relationships that bring complementary strengths, provide greater customer value, and offspring in higher share of customer (Boone and Kurtz 2002).Marcoms can build its brand equity through advertising. Marcoms should create a positive brand image and promotes its briny goals and strategies appealing to emotions and mind of consumers. Perceptions and tributes towards Marcoms brand will be