The paper "Using Customer Relationship Management and Consumer Behaviour to Build Brand Equity and Brand Loyalty" is a perfect example of a case study 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. Research Background From the early 1980’ s, several researchers have tried to understand ways in which consumers make choices. However, many of them agree that making profits and giving consumers what they want forms the basic principles of marketing.
Universally, all the researchers agree that it may be too pricey for clients who undertake their purchase process blindly. According to Cova and Cova (2002), the costs and benefits of meeting individual customer preferences are less deterministic and extremely complex than has been assumed. This is because what customers prioritize is susceptible to different influences and is often ill-defined. Additionally, in many cases, customers have little understanding of their preferences. In one of their recent research work, Delpy and Bosetti, (1998) tackle the issue of customer relationship management and how it influences brand equity.
Nonetheless, many supporters of this marketing approach have agreed that maintaining a good relationship with customers and also by meeting their needs will build an insurmountable barrier against competitors and enhance customer loyalty. For instance, during major sporting events such as athletics and football, the sporting superstar characters are run on billboards and through shopping malls portraying NIKE brand hence enticing the entire public to identify with the brand.