What is Brand loyalty

1. MIT School of Distance Education What is Brand Loyalty

2. What is Brand Loyalty ? Brand loyalty is a consistent consumer behavior characterized by a strong commitment to a particular brand or product, leading to repeated purchases. • It involves an emotional connection, as consumers make the decision to buy the same brand repeatedly due to their belief that it consistently fulfills their expectations. • This loyalty is rooted in the perception that the brand possesses qualities that align with the consumer's needs and establishes a personal connection. • In essence, brand loyalty reflects a consumer's ongoing dedication to a specific brand based on positive experiences and a sense of identification. •

3. Types of Brand Loyalty Consumers engage with products and often form a mental perception or image associated with those products. Different types of Brand loyalty are as follows – 1) Hard-core loyals - They are customers characterized by their consistent and repetitive purchasing behavior, demonstrating a strong commitment to a particular brand. These individuals not only make repeated purchases of the same brand but also actively promote and support the brand as staunch advocates. In simpler terms, hard-core loyals are devoted customers who consistently choose and enthusiastically endorse a specific brand. 2) Split loyals – They represent a form of brand loyalty where customers exhibit a distinct preference for a few select companies or brands, showing strong allegiance to two or three choices. In other words, these consumers display loyalty by consistently favoring and sticking with a limited number of brands, showcasing a clear and deliberate preference for specific companies over others.

4. Types of Brand Loyalty 3) Shifting loyals – They are customers characterized by their tendency to frequently switch from one brand to another. In simpler terms, these consumers do not exhibit a consistent preference for a particular brand; instead, they are inclined to change their choices and try different brands over time. Shifting loyals are characterized by their lack of long-term commitment to a specific brand, as they explore and experiment with various options in the market. 4) Switchers – They represent a form of consumer behavior where customers do not exhibit loyalty to any specific brand. Instead, they prioritize factors such as affordability, quality, or effectiveness, irrespective of the brand or company. In simpler terms, switchers are consumers who make purchasing decisions based on immediate needs or preferences without being committed to a particular brand. Their choices are driven by seeking the best value, performance, or price, without a strong allegiance to any specific brand.

5. Brand Loyalty Factors Providing high-quality products ensures satisfied customers, fostering brand loyalty in the process. Brand loyalty can be solely influenced by customer psychology, leading to situations where excellent products lack loyal customers, and subpar products garner a following. Product Quality Brand Image Customer Psychology A brand that is customer-friendly and maintains a consistent positive image builds loyalty among customers. Brand Loyalty Factors Customer loyalty is built when good products are readily available when needed, and excellent after-sales service enhances a positive perception. Perceived value Availability and service Customers become loyal to a brand when they believe the value they receive is worth the price paid. Companies can enhance this value perception through loyalty discounts or programs. Switching cost Customers may switch brands if a more affordable option with comparable quality is available; therefore, pricing is a crucial factor in brand loyalty.

6. Advantages of Brand Loyalty Brand loyalty offers several advantages for both businesses and consumers. Here are some key advantages: 1) Repeat Business: Brand loyal customers are more likely to make repeat purchases. This consistent patronage provides a stable and predictable revenue stream for businesses. 2) Customer Retention: Building brand loyalty helps retain existing customers. Loyal customers are less likely to switch to competing brands, reducing customer churn. 3) Word-of-Mouth Marketing: Loyal customers often become brand advocates, recommending the brand to friends, family, and colleagues. This word-of-mouth marketing can contribute to acquiring new customers. 4) Long-Term Business Success: Establishing brand loyalty contributes to the long-term success and sustainability of a business. Loyal customers provide a foundation for growth and prosperity over time.

7. Advantages of Brand Loyalty 5) Cost Efficiency: Brand loyalty reduces the need for extensive marketing efforts and promotions to attract new customers. 6) Brand Stability: Brand loyalty contributes to the stability and resilience of a brand, especially during market fluctuations. Loyal customers may remain loyal even in the face of competitive challenges. 7) Emotional Connection: Brands that successfully build loyalty often create emotional connections with their customers. This emotional bond can deepen the customer-brand relationship. 8) Competitive Advantage: In competitive markets, having a base of loyal customers can be a significant advantage. It creates a barrier for competitors trying to attract the same customer base.

8. Example of Brand Loyalty - Apple Apple stands out as a brand with incredibly loyal customers. According to a Morgan Stanley survey, 92% of iPhone users express a strong likelihood of upgrading to another iPhone in the next 12 months. Apple's success lies in its emphasis on customer convenience and a premium image. Rather than focusing solely on technical specifications, Apple communicates the benefits that customers value. The company strategically combines these benefits with a unique operating system (iOS), premium marketing, and pricing strategies, creating appeal among urban high earners who appreciate standing out from the crowd of Android users.

9. Learn Brand Loyalty - PGDM in Marketing Management A marketing manager is responsible for overseeing the promotion of a company's offerings, aiming to strategically advertise products or services. The primary objective is to draw in customers and improve the overall perception of the business within the market. The PGDM Marketing Management course aims to empower students with the expertise and capabilities needed for proficiently devising, executing, and evaluating marketing plans. With Post Graduate Diploma in Marketing Management course learn Communication Skills, Strategic Thinking, Market Research Skills, Leadership Skills, Customer Focus etc.

10. Why MITSDE ? • Develop analytical skills to forecast market movement, competitor strategies and growth rate • Learn Marketing Information System tools for effective CRM, implementation of marketing strategies and perfect the marketing mix • Evaluate and strategize according to the ethical and environmental scenario • Apply knowledge of concepts and tools to develop creative marketing strategies and overcome challenges • Learn the tools and techniques of Digital Marketing

11. Potential Careers Opportunities A full-fledged course in marketing shall prepare you to take up challenging roles namely: 1) Advertising Manager 5) Digital Marketing Manager 2) Advertising Art Director 6) Public Relations Manager 3) Market Research Manager 7) Business Development Manager 4) Marketing Manager 8) Brand Manager

12. About US MIT School of Distance Education is one of the largest distance learning center in India. We offer various Post Graduate Diploma and Certificate programs & Online MBA Course across various industry sectors that include Operations Management, Project, Information Technology, Banking and Finance, Digital Marketing, Business Analytics and many more. MITSDE has, an online assessment system, flexi-learning approach and provides state-of the-art Learning Management System (LMS) which is in line with its mission 'flexible learning opportunities anywhere, anytime, and to provide ultimate convenience, ease, and flexibility to our students.

13. Advantage of learning with MITSDE o Self-paced learning o Regularly updated syllabus o Live webinars and doubt solving sessions o Industry-relevant course offerings o Quick and highly-responsive student o Courses taught by Industry Experts support o Affordable courses o Dedicated student support team o No cost EMI options

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15. Placement Record at MITSDE

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