The paper "Advertising And Promotion Issues" Is a wonderful example of a Marketing Assignment. A brand is expected to create a strong relationship with its customers for effective marketing. The relationship should be strong and sustainable. To create strong lasting customer relationships, the organization starts by managing sources of value and through acquiring and retaining the most desirable customers. After acquiring the most profitable customers, the firm expands the relationship through stimulation of usage, upgrades and cross buying. Not all customers are profitable and investment in the brand customers is based on their profit potential (Parvatiyar & Sheth, 2001). Building customer relationship starts with customer acquisition.
This is through targeting the right customers based on firm offering, future profitability and their contribution to the overall risk. After acquiring the right customers, the brand focuses on customer retention. The firm works hard to ensure high customer satisfaction and better price perceptions. This ensures that the firm has a long relationship with the customer. The brand then focuses on relationship expansion. This involves programs aimed at retaining customers as well as marketing programs. It involves enhancing customer loyalty and cross buying (Storbacka & Lehtinen, 2001). The loyalty and reward programs are aimed at stimulating the purchase behavior and enhance customer relationship.
This can be proved by the successful guest loyalty program introduces by the Hilton Hotels more than a decade ago. Through the program, Hilton hotels were able to focus on their profitable customers and reduce the weight of their brand positioning. Loyalty programs help a lot in reinforcing purchase behavior through the vitreous cycle. This is where high experience with the product leads to more usage hence more experience.
Through the loyalty programs, it becomes possible to strengthen the customer perception of the brand. Frequency programs are used to reward customers based on the number of purchases (Peppers & Rogers, 2004). The business tries to enhance the customer experience beyond having personalized connections. The customer is considered the most valuable asset in the organization. Consistency and relevancy are used to enhance the customer experience. Consumer experience is managed through communication, visual identities, brand environment, people, and cobranding among other brand contacts (Parvatiyar & Sheth, 2001).
Another example of a firm that managed to build customer relationships is Guinness which is a global firm. Due to trends in the Irish beer market where customers were drinking at home due to high prices, Guinness came up with a plan to enhance loyalty. The company started by identifying its target audience which was aged between 21-60 years. The marketing strategy that was used aimed at maximizing relationship value between the pubs and customers. The firm leveraged on the relationship to build brand loyalty and cross-selling the cans to customers who used to change brands when drinking from home.
The firm came up with a program for customer acquisition. Staff was trained in pubs to recruit consumers. Customers were encouraged to register and personalized vouchers were mailed to customers at home from their favorite pubs. Consumers were given a welcome pack after signing up. There were competitions, sports tickets and holiday prize draws. Consumers were invited to watch sports facilitated by Guinness and product vouchers were provided. The campaign was a winner and the consumption levels rose.
The company was able to reach its goals and increase the number of loyal customers through enhanced customer relationships (Stone & Jacobs, 1988).
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