Business Management English (BME) Presessional 2012
BME COVER SHEET AND DECLARATION
Student ID. No. & Name | 1278789 | Jianhao Wang | BME Group No. | 3 | Assignment Title | “Customer loyalty can make or break a brand.” How far do you agree with this statement? | Assessed Case, Assessed Essay, PDP, Feasibility Report | Assessed Essay | Home Teacher | Dave | Second Teacher | Wendy | Date of Submission | 27/July/2012 | Total Word Count | 2091 | First/Final Submission | Final Submission |
By completing the above, I declare that this submission is my work; that it has been written in my own words; and that all references, direct or indirect, to other published or unpublished sources have been accurately acknowledged using the Harvard Referencing System.
To make a brand is many businessmen’s dream which they could sacrifice their whole lives struggle of the market. In the modern commodity economic age, compared with before, the ways of how to make a brand is much more complex than ever before. As a company, if it could stick to supply good products or services to satisfy consumers’ both physical and psychological needs, and make its products or services quite popular, as a result this company will make customer loyalty, it represent that this company is already quite successful, but it does not mean that this company has already built a brand, there still exists certain disparities between customer loyalty and make a brand. However, it is true that customer loyalty is the foundation of achieving the ambition of making a brand. The other key point that could let this company make the leap is that if it could or not break through the confine of just making products to focus on creating new better lives for customers and build the outstanding spiritual values, which could even affect around the world.
The notion of ‘loyalty’ has been built in thousands years ago. In the ancient times, ‘loyalty’ was always been applied to maximize the rulers’ power and authority. The excellent olden Roman Empires usually utilized the loyalty comes from their subjects to achieve their political ambition (Kumara & Shahb, 2004). For example, Zedong Mao, the most feared Chinese leader of the middle twentieth century, accomplish extraordinary consequence through the unrelenting loyalty of his soldiers.
Thinking about the fact that lot industries possess, in highly competitive conditions which challenge companies more than that just to set up but also to defend already founded marketing positions, businessmen could be encouraged to reconsider or even change brand positioning strategies based on present trends and improvements. Aaker (1996) stated that, the temptation is “to dig in, diagnose the problem or trend, and take action — even when the “action” course may actually end up hurting the brand.” However thus actions could issue in short-term brand success, in the long-term they influence the substance of the brand mark as it is perceived by buyers.
The marketing strategy of Branding has been utilized for a long time to distinguish the services or products supplied by one organisation from those to another. For consumers, brands could promise a particular quality level, reduce risk, and build trust in the property of services or products (e.g., Erdem& Swait, 1998; Rao, Qu, & Ruekert, 1999). Wernerfelt (1988) stated that the tendency could be in particular apparent with difficult-to-access goods or services in markets which was characterized by imperfect and asymmetrical information structure. In this market, brands are characterized as insignificant marks, supplying benefits to buyers by serving worthy functions (e.g., Erdem & Swait, 2004; Erdem, Swait, & Louviere, 2002; Keller, 2002).
Brand signals are consisted of the past and present marketing mixture devices and activates connected with the brands, reflecting…