Relationship between marketing communication and brand loyalty

relationship between marketing communication and brand loyalty

relationship between marketing communications and integrated brand loyalty brands and be able to make the crucial element of loyalty in the people's mind. Integrated Marketing Communications (IMC) focuses on building brand by Customers benefit from brand relationships by reducing their risk of IMC recognizes four levels of brand loyalty and associated brand value: no. Design/methodology/approach: The theoretical framework consists of links between customer-perceived value, marketing communication.

The industry then risks legislation regulating the behavior of direct marketers if it is not successful in self-regulation. The Direct Marketing Association, the leading trade organization for direct marketing, works with companies and government agencies to initiate self-regulation. In March of the National Do Not Call Registry went into affect whereby consumers added their names to a list that telemarketers had to eliminate from their out-bound call database.

relationship between marketing communication and brand loyalty

Database marketing is a form of direct marketing that attempts to gain and reinforce sales transactions while at the same time being customer driven. Successful database marketing continually updates lists of prospects and customers by identifying who they are, what they are like, and what they are purchasing now or may be purchasing in the future.

Like IMC, database marketing is viewed by many marketers as supplanting traditional marketing strategies and is a major component of most IMC programs. At the core of database marketing is the idea that market segments are constantly shifting and changing. People who may be considered current customers, potential customers, and former customers and people who are likely never to be customers are constantly changing.

By identifying these various segments and developing a working knowledge of their wants, needs, and characteristics, marketers can reduce the cost of reaching non-prospects and build customer loyalty.

Perhaps the most important role of database marketing is its ability to retain customers. The cumulative profit for a five-year loyal customer is between seven and eight times the first-year profit.

MARKETING COMMUNICATION

Since database marketing is expensive to develop and complex to implement effectively, companies considering database marketing should consider three important questions. First, do relatively frequent purchasers or high dollar volume purchasers for the brand exist? Secondly, is the market diverse enough so that segmenting into subgroups would be beneficial? Finally, are there customers that represent opportunities for higher volume purchases?

Sales promotions are direct inducements that offer extra incentives to enhance or accelerate the product's movement from producer to consumer. Sales promotions may be directed at the consumer or the trade. Consumer promotions such as coupons, sampling, premiums, sweepstakes, price packs packs that offer greater quantity or lower cost than normallow-cost financing deals, and rebates are purchase incentives in that they induce product trial and encourage repurchase.

Consumer promotions may also include incentives to visit a retail establishment or request additional information. Trade promotions include slotting allowances "buying" shelf space in retail storesallowances for featuring the brand in retail advertising, display and merchandising allowances, buying allowances volume discounts and other volume-oriented incentivesbill back allowances pay-for-performance incentivesincentives to salespeople, and other tactics to encourage retailers to carry the item and to push the brand.

Two perspectives may be found among marketers regarding sales promotion. First, sales promotion is supplemental to advertising in that it binds the role of advertising with personal selling. This view regards sales promotion as a minor player in the marketing communication program.

A second view regards sales promotion and advertising as distinct functions with objectives and strategies very different from each other. Sales promotion in this sense is equal to or even more important than advertising. Finding the right balance is often a difficult task. The main purpose of sales promotion is to spur action. Advertising sets up the deal by developing a brand reputation and building market value. Sales promotion helps close the deal by providing incentives that build market volume.

Sales promotions can motivate customers to select a particular brand, especially when brands appear to be equal, and they can produce more immediate and measurable results than advertising. However, too heavy a reliance on sales promotions results in "deal-prone" consumers with little brand loyalty and too much price sensitivity. Sales promotions can also force competitors to offer similar inducements, with sales and profits suffering for everyone.

Sponsorships, or event marketing, combine advertising and sales promotions with public relations. Sponsorships increase awareness of a company or product, build loyalty with a specific target audience, help differentiate a product from its competitors, provide merchandising opportunities, demonstrate commitment to a community or ethnic group, or impact the bottom line.

Like advertising, sponsorships are initiated to build long-term associations. Organizations sometimes compare sponsorships with advertising by using gross impressions or cost-per-thousand measurements. However, the value of sponsorships can be very difficult to measure.

Companies considering sponsorships should consider the short-term public relations value of sponsorships and the long-term goals of the organization. Sports sponsorships make up about two-thirds of all sponsorships.

Exhibits, or trade shows, are hybrid forms of promotion between business-to-business advertising and personal selling. Trade shows provide opportunities for face-to-face contact with prospects, enable new companies to create a viable customer base in a short period of time, and allow small and midsize companies that may not be visited on a regular basis by salespeople to become familiar with suppliers and vendors. Because many trade shows generate media attention, they have also become popular venues for introducing new products and providing a stage for executives to gain visibility.

The role of personal selling varies from organization to organization, depending on the nature and size of the company, the industry, and the products or services it is marketing. Many marketing executives realize that both sales and non-sales employees act as salespeople for their organization in one way or another. One study that perhaps supports this contention found that marketing executives predicted greater emphasis being placed on sales management and personal selling in their organization than on any other promotional mix element.

These organizations have launched training sessions that show employees how they act as salespeople for the organization and how they can improve their interpersonal skills with clients, customers, and prospects.

Employee reward programs now reward employees for their efforts in this regard. Personal selling is the most effective way to make a sale because of the interpersonal communication between the salesperson and the prospect. Messages can be tailored to particular situations, immediate feedback can be processed, and message strategies can be changed to accommodate the feedback. Sales and marketing management classifies salespersons into one of three groups: Creative selling jobs require the most skills and preparation.

They are the "point person" for the sales function. They prospect for customers, analyze situations, determine how their company can satisfy wants and needs of prospects, and, most importantly, get an order. Order takers take over after the initial order is received. They handle repeat purchases straight rebuys and modified rebuys.

Missionary sales reps service accounts by introducing new products, promotions, and other programs. Orders are taken by order takers or by distributors. Virtually unheard of in the s, the s saw this new medium explode onto the scene, being adopted by families, businesses and other organizations more quickly than any other medium in history.

Web sites provide a new way of transmitting information, entertainment, and advertising, and have generated a new dimension in marketing: E-commerce is the term used to describe the act of selling goods and services over the Internet. This works the same way for all types of businesses and organizations. All organizations must sell including nonprofits. How they sell may differ, and everyone in an organization is, with their every action, either constructing or deconstructing the brand.

The Difference Between Marketing and Branding

Every thought, every action, every policy, every ad, every marketing promotion has the effect of either inspiring or deterring brand loyalty in whomever is exposed to it. All of this affects sales. Back to our financial expert. Is marketing a cost center? Poorly researched and executed marketing activities can certainly be a cost center, but well-researched and well-executed marketing is an investment that pays for itself in sales and brand reinforcement.

Is branding a cost center? On the surface, yes, but the return is loyalty. The return is salespeople whose jobs are easier and more effective, employees who stay longer and work harder, customers who become ambassadors and advocates for the organization. Branding is as vital to the success of a business or nonprofit as having financial coherence, having a vision for the future, or having quality employees. Industry restructuring[ edit ] Restructuring followed by disintermediation and reintermediation is one of the essential features of the transition from traditional to Internet marketing communications.

The Internet may force traditional distributors or retailers out of business simply because Internet transactions are less costly. Haoyu Shen, the chief executive of the JD. As an ecommerce business, JD. Social media[ edit ] Social media's market penetration is rising thanks to services like YouTube, Facebook and Instagram.

Companies are using these external social media platforms to personally engage with existing and future customers, reinforce brand messaging, influence customer opinions, provide targeted offers, and service customers more efficiently.

In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It usually involves using email to send ads, request business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness. Email marketing can be done to either sold lists or a current customer database. Broadly, the term is usually used to refer to sending email messages with the purpose of enhancing the relationship of a merchant with its current or previous customers, to encourage customer loyalty and repeat business, acquiring new customers or convincing current customers to purchase something immediately, and adding advertisements to email messages sent by other companies to their customers.

In-product communication[ edit ] Another channel for direct digital marketing is in-product communication or in-product marketingwhich delivers marketing content directly to a user's internet-connected device or software application.

In-product marketing content is often very similar to that of email marketing campaigns, but the segmentation and delivery is more targeted.

relationship between marketing communication and brand loyalty

Because email has become a standard tool in the digital marketing toolkit, the email channel often is overloaded and overused, leading to much lower open rateslower engagement rates, lower click-through rates CTRand lower conversion rates.

The rise of internet-connected IOT devices is enabling a growing number of consumer products manufacturers to take advantage of this channel of marketing communications, to supplement other digital marketing channels. Direct marketing[ edit ] In direct marketing the producer communicates directly with potential customers, instead of through third party media.

Individual customer's responses and transactions are recorded. It is designed to build the relationship between the customer and the brand, [51] known as customer relationship management CRM. Organizations use customer accounts in order to monitor and understand their needs. They manage detailed information about the customer's touch points with the objective to maximize satisfaction and loyalty. The communication can be in person, by telephone, mail, email or website.

Direct marketing relies on CRM databases which contain valuable customer information. Good quality databases can provide a competitive advantage and increase profitability. Treating the customer database as an expense rather than an investment, or not continuously maintaining or updating them can be detrimental.

This communication is most effective when the recipient has shown interest in or has previously purchased from the organization.

Advantages of direct mail are personalisation, careful targeting, creativity and flexibility. Email is low-cost, but can be lost through spam and junk email filters. Direct mail is dependent on accurate databases. There are two types of telemarketing: Inbound telemarketing is where people call the organization to complain or inquire about products.

Both outbound and inbound can be used as a customer service strategy to boost sales and receive suggestions for improvement. Advantages of telemarketing include targeted communications, flexible and direct interaction between the organization and the customer, it can be an effective personal selling partner and it is cost effective compared to face-to-face contact. A disadvantage is that call centres are usually used to handle outbound and inbound telemarketing, which need to be implemented, managed and financed.

This form of direct marketing dates back over years. Home shopping, online shopping and teleshopping now accompany it. With current technology mail order has improved. Now there can be a larger range in catalogue, delivery is faster, and complaints are dealt with professionally. Mail order exerts less pressure on the customer than telemarketing and sales are easy to manage, however costly infrastructure is required in maintaining the back-end.

It is a message transmitted through traditional communications media that requires the reader, viewer, listener or customer to respond directly to the organization.

A common example of direct response advertising is in television "home shopping immediately to receive a particular deal or discount. Disadvantages are that focus can be lost because of the medium of communication and the targeting can be less narrow compared to direct mail.

Organizational messages can get cluttered and crowded. Advantages are a high level of flexibility and easy integration through computer systems using the Internet to send mass text messages.

relationship between marketing communication and brand loyalty

This marketing communications platform allows organizations to directly target customers to remind them to renew subscriptions, give exclusive product discounts, or build brand reputation through competitions or sweepstakes.

The disadvantage is that some customers are charged to receive SMS, so opt-in permission is required.