Brand Equity Essay Example | Topics and Well Written Essays - 1000 words

Brand Equity - Essay Example Attrition can quickly set in, rendering them vulnerable to competition. "Consumer-based brand equity is defined as the value of a brand signal to consumers." (Swait 1998, p. 7) . For Marcoms, once again, proactive commitment to customers separates successful companies from the rest. Because positive equity is so critically important an element of customer loyalty, operational flexibility and value innovation are especially meaningful here. Earlier, the lack of customer loyalty in the supermarket industry was discussed, with real equity being quite elusive for most chains (see appendix 1). At the heart of Marcoms equity package is providing convenience, quality, a variety of services, for customers who want it and who will pay more to get it. It is a premium service identified as such by customers because it delivers more. The equity pressure for companies like Marcoms is that, as they continue to raise the bar on customer expectations, they must also be able to see over the bar and continue to anticipate customer needs (Boone and Kurtz 2002). There are a lot of parallels between (1) the effect on loyalty of customer self-expression and choice and (2) the old-fashioned idea of romance and courtship. Customers are fickle; romance can be fickle. Boy meets girl. Boy wins girl. Boy loves her but takes her for granted. Choice is largely driven by a customer's relationships with a service, and with the companies that offer them. It's about experience, and levels of trust and commitment, through contact with suppliers. Because, in most industries, choices are so readily avai lable, customers are increasingly less hesitant to change suppliers. When replacement is perceived as more positive than negative, they'll move on. Industries such as banking and managed care have seen this occur (see appendix 2). This must translate to positive relationships and contacts, earning and keeping customer loyalty (Crawford 2003). "This perspective on brand equity focuses on the impact on consumer utility of a brand's signal credibility, rather than on the mere clarity of the provided information" (Swait 1998, p. 7) For Marcoms, the long-term value strategy is built on creating strong relationships with customers and anticipating their requirements. A significant new challenge is emerging with regard to value. Companies must now strategize with respect to both the physical product and the "virtual" product, such as information. Overlaps in physical and virtual product occur in many industries, particularly those where a tangible product, such as an automobile, and an int angible product, such as service advice or computer-based information support, coexist. Emancipated thinking and embracing the "possible shapes of things to come" now includes strategies that go beyond reliance on the company's own resources. Increasingly, companies are seeking strategic partnerships and relationships that bring complementary strengths, provide greater customer value, and result in higher share of customer (Boone and Kurtz 2002). Marcoms can build its brand equity through advertising. Marcoms should create a positive brand image and promotes its main goals and strategies appealing to emotions and mind of consumers. Perceptions and tributes towards Marcoms brand will be