Strategic Marketing Management (Semester 2): Brand Loyalty Report

This report examines the concept of brand loyalty in marketing management, emphasizing its importance for businesses. It defines brand loyalty and highlights its advantages, such as repeat business and cross-selling opportunities. The report uses Nike Inc. as a case study, analyzing the strategies employed by the company to foster customer loyalty, including high-end branding, emotional branding, consistency, and offering discounts. The report references relevant academic sources to support its findings, offering insights into customer behavior and marketing strategies. This report is a valuable resource for students studying marketing, providing a comprehensive understanding of brand loyalty and its practical applications.

Strategic Marketing Management
3/21/2018

Marketing Management 1
Contents
Brand loyalty...................................................................................................................................2
Advantages of loyal customers....................................................................................................2
Example of product..........................................................................................................................2
References........................................................................................................................................4

Marketing Management 2
Brand loyalty
Brand loyalty refers to as the propensity of the customers to make the regular buying one brand’s
product over an alternative. The loyal customers continuously obtain products from their desired
brands irrespective of the price of the product. In addition, there are numerous companies who
use marketing strategy to make customer loyal (Nam, Ekinci and Whyatt, 2011).
Advantages of loyal customers
 Repeat business: - Loyal customers make the repeated purchase of the products and
service from the brand which helps the brand to conduct the repeat business.
 Cross-ups selling opportunity: -The customers who make the purchase, again and
again, are able to form the good connection with the business which helps the business to
get an opportunity to cross-sell products. This will help the company in enhancing sales
volume and acquiring new customers.
 Reduce marketing cost: - Business will be able to save the amount of marketing as word
of mouth is one of the effective tools in marketing. A loyal customer can make the other
potential customers aware of the brand.
Example of product
Nike Inc. is an American multinational corporation that is involved in the development,
manufacturing, and design of the products. The company offers different products like footwear,
shoes, apparel, and others.
Strategies used by Nike for generating customer loyalty for Nike shoes

Marketing Management 3
 The way of presenting brand- Brand presents itself as high-end, high-performance and
product catering for athletics which makes the customers loyal.
 Emotional branding- Nike advertisement for the heroism inspire customer loyalty by
making the customer emotionally connected towards the Nike shoes. Moreover, the
company offers innovation in their products which attracts the customer again and again
towards the brand (Westwood, 2015).
 Consistency- The brand is consistent towards the quality of the products with the
innovation which motivates the customers to show loyalty towards the brand.
 Offers and discount- There are some customers who become loyal towards the brand
when they find fair prices with quality.

Marketing Management 4
References
Nam, J., Ekinci, Y. and Whyatt, G. (2011) Brand equity, brand loyalty and consumer
satisfaction. Annals of Tourism Research, 38(3), pp.1009-1030.
Westwood, R. (2015) Three Ways To Build Brand Loyalty [Online]. Available from:
https://www.forbes.com/sites/ryanwestwood/2015/07/30/three-ways-to-build-brand-loyalty/
#2b82fe6a79c3 [Accessed on 21st March 2018]