The paper "Building Brand Equity and Brand Loyalty in Sроrt Industry" is an excellent example of a research proposal on marketing. In today’ s highly competitive market, businesses have understood the importance of satisfying their customers as customer retention ensures a constant demand for goods and services. Building brand equity and enhancing customer loyalty have been deemed as the most sustainable means towards long-term profitability and competitiveness. Customer relationship management (CRM) is termed as a multidimensional process where various information technologies are applied. CRM focuses on a proper understanding of the client’ s needs, wishes, wants and behavior and thereafter addressing them effectively.
It helps businesses or companies understand the present and future needs of their clients, which allows proper planning (Injazz & Popvich, 2003). The importance of CRM is that it lowers the costs that could have otherwise been incurred in mass marketing. Other factors that have increased the importance of CRM in contemporary times are the increased importance of the concept of ‘ customer share’ , as opposed to ‘ market share’ . Additionally; one to one marketing, customer satisfaction, customer loyalty, and information technology developments, promote CRM.
The availability of information regarding the various products offered in the market in the face of cut-throat competition sees organizations refocus their strategies to remain profitable (Russell, 2001). Combining modern technology in CRM programs promotes accurate planning both in the short, as well as, long term. Understanding customer behavior wishes, and needs while developing effective means to sufficiently address them promotes customer satisfaction. Satisfied customers are long term buyers; they buy more new products or more quantities of existing products and services, advertise or praise the products and bring in more business.
They are also, insensitive to prices, and will remain indifferent regardless of the influx of other competitors. Furthermore, they help organizations improve their products by giving suggestions or advice on products and services delivered. Customer loyalty can be defined as the long and uninterrupted retention of the relationship by offering services that meet or surpasses the customers need. In other words, customer satisfaction promotes customer retention and subsequently, loyalty. Customer loyalty is measured by the frequency of buying a certain good or service in the face of increased information about varied brands giving similar outputs (Chaudhuri, 1999).
Some methods used to ensure customer loyalty include the quick response to customer queries, appreciation cards, rewarding for referrals made, and making them feel that they matter a lot to the organization (Allaway et al, 2011). According to the Marketing Science Institute, brand equity refers to the ‘ set of associations and behavior on the part of a brand’ s customer, channels members and parent corporation that permits the brand to earn greater volume or margin than it could without the brand name’ (Leuthesser, 1988).