Brand Loyalty and Related Concepts

Introduction

• Concept of Brand Loyalty
  • Marketers strive for brand loyalty but often misunderstand or cannot define it.
  • True brand loyalty is rare among brands.
  • The presentation focuses on what brand loyalty is and isn't.

Key Brand-Related Terms

• Brand

  • An identifier for distinguishing products or organizations.
  • Example: Table salt brands (Morton vs. store brands).
  • Brands provide information on quality, service, and emotional connections.

• Brand Identity

  • Recognizable elements: logos, colors, design, mascots, spokespersons, audio branding.
  • Examples of sound logos: AT&T, Windows, 20th Century Fox.

• Brand Image

  • Audience perception of the brand.
  • Can vary across different audiences.
  • Consistency in brand image is not necessary across all audiences.

• Brand Personality, Persona, Voice, and Tone

  • Brand Personality: Traits attributed to the brand (caring, serious, sophisticated, etc.).
  • Brand Persona: A further step, visualizing the brand as a human.
  • Brand Voice: How the brand communicates (formally, informally).
  • Tone: Situational variant of the voice.

• Brand Equity

  • Value added or subtracted by the brand.
  • Positive brand equity can increase sales, allow premium pricing, reduce costs.
  • Influences deals, shelf space, co-op advertising, and brand extensions.

• Brand Architecture

  • Arrangement of products/brands within an organization.
  • Example: Procter & Gamble sub-brands.
  • Brand extensions and architecture can lead to brand dilution.

Brand Extensions and Challenges

• Dilution of Brand Meaning

  • Example: Virgin and its varied product meanings.
  • Arm & Hammer's shift from baking soda to multiple products (toothpaste, deodorant).

• Rebranding and Repositioning

  • Can involve aesthetic changes or strategic repositioning.
  • Impact on brand perception and understanding.

Understanding Brand Loyalty

• Brand Loyalty as an Attitude and Behavior

  • Personal and varied definitions of loyalty.
  • Measured through purchase patterns, opinion surveys, and experimentation.

• Degrees and Patterns of Brand Loyalty

  • Brand inertia, shifting loyalty, variety-seeking behavior.
  • Patterns: consistent purchases, switching between brands, multi-loyalty.

Building Brand Loyalty

• Brand Loyalty Hierarchy
  • Brand Awareness: Recognition and recall.
  • Knowledge of Brand Benefits: Understanding attributes and how they fulfill consumer needs.
  • Attitude Formation: Cognitive (data) and affective (emotions), leading to brand preference.
  • Evoked Set and Consideration Set: Brands that are top-of-mind and considered for purchase.
  • Purchase Intention and Repeat Purchases: Key indicators of loyalty.

Challenges in Achieving Brand Loyalty

• Factors Influencing Loyalty

  • Price, quality, location, social influence.
  • Loyalty often confused with these factors.

• Extreme Brand Identification and Sustainability

  • Example: Harley-Davidson's strong brand identification despite quality issues.
  • Sustainability through brand affinity and loyalty groups.

Conclusion

• Role of Marketers
  • Shaping brand image to build desired brand equity.

Remember, brand loyalty is as much about understanding what it isn't as it is about knowing what it is. Building a strong, loyal audience involves navigating multiple facets of branding, from identity and personality to architecture and equity.