Assignment
Describe the concept and importance of branding. Explain the effect of retail branding on customer relationship
Branding is a concept that is used by the organizations to effectively utilize the marketing strategies of a company to enhance the image and identity of products and service offered by the company so that the customer is able to retain the product design, logo, image and concept and return to the purchase of the particular item. Branding helps in enhancing the product quality and image recognition in the mind of target customer and the concept helps in providing the certain guidelines that should be followed in the branding process. (Nic, 2011)
Branding helps develop customer relationships. Effective customer relations are important for the product to sell. It is critical that the product should be designed and brand image should be developed in a manner that customer relationship is increased and the customer feels satisfied. The relationship that the customer develops with the brand helps produce positive results for both. Customers develop a strong relationship with a brand and consider them as their own. Brand image cultivates within the mind of customers and give them a point to socialize and portray their cultural values along with certain symbolic meanings as well which goes beyond other benefits. (Nic, 2011)
The benefits of retail branding on customer relationship is that branding leaves a symbolic recognition in the mind of customers and it can help customers feel at ease when purchasing a certain product. For example, designer products of Armani, Louis Vuitton, Gucci, Armani, etc. are brands of luxury elite class so they are classified as symbols of affluence and money. Secondly, retail brands differentiate the product from competitors. Product differentiation is crucial in today’s business dynamic and global markets. Branding determines the kind of product the company is offering and business DNA and leaves a significant impact on the mind of retail customer. With a strong brand image, the customer already is aware of what to expect out of a product. (Nic, 2011)
The regulation which apply on the sales and promotion activity is based upon the level of risk and the impact that is offered by the advertisement of the promotional deal offered. At times such advertisements are designed that they tend to offend a community belonging to a certain class, race or ethnic concerns. There might be high-risk factors involved in certain message that might raise religious concerns or the theme is considered incorrect. This leads to the firm withdrawing or revising its upcoming campaigns. It is critical to note that sale promotion campaign should not provide any misleading message or displays a message in a way that it results in misinterpretation of that message. (Luft, 2009) Self-regulation of law plays an integral role in the regulation of sales and promotion. If any examination of the campaign is required, it is done justly by the Self-Regulatory Authority. Committee of Advertising Practice (CAP) exists which monitors that the consumer is not affected with any misleading information and if any complaint is file the authority is bound to take any legal actions as required. Another significant protection regulation that all advertisers need to comply with is Business Protection Misleading Marketing Regulation 2006. (Jane, 2006)
It is crucial that truth and honest promotion should be done by the companies. For example in early 40s and 50s the truth about smoking was not displayed in the advertising but now the ethical practices and industry legal laws have signified that truth about smoking hazards should be promoted and stated at the end of cigarette advertisement. Promotion of products that can be hazardous to health is also considered to be unethical marketing. If a product poses a certain threat especially children products and eatables items false promotion should be done in order to sell the product. Another example of unethical marketing practice is selling diet pills and height increase shoes. Customers tend to buy these products even though they are rarely effective but the effective promotion of the companies and exaggerated concept offered and the attractive tricks applied trap the customers in the concept. (Jane, 2006)
Promotional tools used by retailers to sell products. How each tool repeat visits build customer loyalty and increase market share
Sales promotional tools are used to generate sales of a product, to encourage customer to revisit and repurchase and enhance customer loyalty. Different promotional tools used by retailers are loyalty programs, coupons, free products, buy 2 get 1 free, demos, contests, etc. Loyalty programs can be used to retain customers by providing them immediate reward to their purchase and also delayed reward. For example, babyshop and Lifestyle gives a promotional deal that on the purchase of every PKR 10,000 you can receive a PKR 2,000 voucher. This immediate reward helps in customer retention and increase customer loyalty. Delay rewards are given on loyalty cards where the customers are required to accumulate a certain amount of points through their purchases, where these points can be redeemed. These are offered by designer clothing brands and car dealers. This helps in increasing the brand equity as well. Contests and incentives are announced where the purpose is to increase the sales of the product and increase product market share. I would recommend loyalty card and the discounts brands offer on this card on purchase of the product and the points that can be scored. This is a continuous promotional tool that does not end for long as the card has 3-4 years expiry time period of the promotion. So this tool should be effectively used by retailers to increase their sales. (Smith, 2011)
References
Jane Fergason (March 2006) “Legal Issues Affecting Promotions and Sweepstakes” http://www.gardere.com/Content/hubbard/tbl_s31Publications/FileUpload137/1387/Jane%20Fergason.pdf
Luft, Oliver.(May 5, 2009) “Advertising Boss: Print Will Struggle to Recover After Recession.” The Guardian,.http://www.guardian.co.uk/media/2009/may/05/maurice-levy-publicis-groupe
Nic Newman (September 2011) “Mainstream media and the distribution of news in the age of social discovery”, Reuters Institute for Study of Journalism, p.14 https://reutersinstitute.politics.ox.ac.uk/sites/default/files/Mainstream%20media%20and%20the%20distribution%20of%20news%20in%20the%20age%20of%20social%20discovery.pdf
Smith, PR., ZookZe. (2011) Marketing Communications (integrating offline and online with social media). Philadelphia, PA: Kogan Page.
