23-08-2013, 02:12 PM
CRM Assignment
CRM Assignment.docx (Size: 15.19 KB / Downloads: 18)
Brand Equity:
Companies can create brand equity for their products by making them memorable, easily recognizable and superior in quality and reliability. Mass marketing campaigns can also help to create brand equity. If consumers are willing to pay more for a generic product than for a branded one, however, the brand is said to have negative brand equity. This might happen if a company had a major product recall or caused a widely publicized environmental disaster.
Eg: Pepsi
The additional money that consumers are willing to spend to buy pepsi rather than the store brand of soda is an example of brand equity.
There are plenty of variables that could influence any particular consumer, including taste preference, packaging preference and availability within a particular market.
Value Equity:
Customer value is the benefit that a customer will get from a product or service in comparison with its cost. The idea that companies succeed by selling value is not new. What is new is how customers define value in many markets. In the past, customers judged the value of a product or service on the basis of some combination of quality and price. Today’s customers, by contrast, have an expanded concept of value that includes convenience of purchase, after-sale service, dependability, and so on. One might assume, then, that to compete today, companies would have to meet all these different customer expectations
Eg: Dell Computer
Dell Computer redefined value for customers in their respective markets. They are considering customers as the centre of their business strategy. For the convenience of the customers they starts online marketing.
Relationship Equity:
When consumers become committed to your brand and make repeat purchases over time. Brand loyalty is a result of consumer behavior and is affected by a person’s preferences. Loyal customers will consistently purchase products from their preferred brands, regardless of convenience or price. Companies will often use different marketing strategies to cultivate loyal customers, be it is through loyalty programs. Companies that successfully cultivate loyal customers also develop brand ambassadors – consumers that will market a certain brand and talk positively about it among their friends. This is free word-of-mouth marketing for the company and is often very effective.
Eg: Apple
Apple's release its iCloud service will not only set the company apart from its competition yet again, but it will also help to foster a loyal customer base. The service, which will be included for free on the new iPhones, along with an update of Apple's iOS mobile software, automatically uploads photos and songs on servers at Apple's data centers and synchs them with iPhone devices, including the iPad, iPod Touch, iPhone, Apple TV set-top boxes, and personal computers running iTunes. The release not only steps up the competition, but will keep customers loyal by making it difficult to switch to a rival mobile provider. Not only that, customers may not want to leave