Using Brands to Build Long-Lasting and Strong Relationships with Customers - Essay Example

MARKETING Course Instructor Institution City/State Date Table of Contents MARKETING 1 Table of Contents 2 Abstract 2 Introduction 3 A. Innovation Culture 4 B. Communication and Advertising Strategy 6 C. Using Brands to Build Long-Lasting and Strong Relationships with Customers 8 Conclusion 9 Reference 10 Abstract After years of cost-cutting and the emphasis on process excellence, a culture has been created in many companies that focus on risk avoidance and operational excellence. For innovation to be successful, the culture should be changed so as to accommodate the uncertainty and risk that go together with it. Basically, changing the corporate culture so as to embrace and accept innovation is one of the key challenges that companies face when becoming innovative. This report outlines the factors that should be considered when building an innovation culture, examines the crucial elements of a firm’s communications strategy, and analyses how brands can build a strong and long-lasting relationships with customers. Introduction When designed intelligently and rationally, the advertising strategy can reflect other business concerns (such efforts for brand recognition and overall budget) as well as objectives (such as market share growth and public image enhancement). As it will be evidenced in the report, an advertising strategy is a campaign designed with the intention of communicating ideas concerning services as well as products to potential consumers in attempt to convince them to purchase those products and services. For strong and lasting consumer relationship, the brands should be able to meet the customers’ vital emotional needs, and not just their rational necessities. A strong customer relationship can be instigated if the brand inspires high degrees of integrity, confidence, passion, and pride. A. Innovation Culture In markets typified by rapid change as well as a constant search for a rapid, improved means to operate, innovation is regarded as the most prized attributes of the company. However, the majority of the corporate success by-products, specifically routinization, hierarchy, and risk elimination can suppress the ability to innovate (Angel, 2006). Some of the factors than should be considered while creating innovation culture include: Experiment and learn, considering that the innovation realm is characteristically filled with the unknowable and unknown. Only a culture that is ready to learn, test, and experiment can generate as well as sustain innovation over time. Imperatively, new ideas are not just meaningful, if they cannot be implemented and tested. Therefore, effective experimentation as well as learning, needs a commitment to trying new ideas and changing the ideas into insight that fast-tracks innovative reasoning in addition to the actual innovations. Collaboration and network should also be considered when developing innovative culture bearing in mind that great ideas are infrequently generated by a solitary mastermind. Normally, innovation originates from the right network of teams or persons sharing different ideas. As mentioned by Kasper and Clohesy (2008), collaboration encourages development, which normally results in unexpected opportunities while networks are important for the spread and diffusion of innovation. Besides that, good communications practices are very important while creating innovation culture. In view of the fact that organizations require a process so as to generate as well as share information so as to reduce uncertainty brought about by innovation and the resultant change. Furthermore, ability to communicate facilitates broader involvement in the process of innovation (Kasper & Clohesy, 2008). Another factor worth consideration is innovation democratisation: this practice encourages people to take part in new ideas generation practices, facilitate adaptation as well as translation of existing ideas to new situations and helps combine different existing ideas into an innovative concept. Evidently, the majority of companies’ with innovative culture are trying to achieve something special as well as very specific; for instance, IBM uses its innovative culture to transform its business services, Google is using it to redefine how information is accessed by people, Toyota is using it to develop the next-generation green vehicle while Nike is using it to push the athletes performance boundaries. When Nike+ was launched by Nike, it was considered as a breakthrough concept that enabled runners to utilise their iPod as a digital motivator as well as coach. This innovative concept was not achieved by one person effort, but through a collaborative solution designed and perfected by the shoe designers, marketing experts, usability specialists, software engineers as well as other people from different disciplines. They all collaborated so as to achieve the goal. The collaborative concept is also noticeable in other companies with innovative culture as Toyota during the design of Prius, Ad-Sense by Google, Telepresence an online meeting system by Cisco, among others. In view of the above examples, it is evident that innovation culture cannot be steered by a person but through multiple perspectives facilitated by the collaboration of people or teams. B. Communication and Advertising Strategy As stated by Greenland et al. (2012), a communications strategy is designed purposely to facilitate effective communication in attempt to meet core objectives of the organisation. Communication strategies enable the companies establish a suitable method of spreading messages to customers, the industry, or partners. If done properly, advertising efforts increase product or brand awareness, revenue as well as customer bases. Without a doubt, communication very important in advertising strategy; the company can have a right message, but without communication, it will not have any effect. There are a number of factors that need to be considered while designing an advertising strategy: Innovation, when preparing an advertising strategy the company must examine the impact that innovation has on the mind-set of the end-users. For instance, Apple is considered as the most innovative company, and so their advertising message has always been received with respect by both the competitors and customers. Therefore, it is imperative to integrate innovation in the advertising strategy. Developing customer intimacy is very imperative considering that the majority of advertising strategies focus separately on the customer retention and customer satisfaction. A company can achieve a lot by focusing on the customers in terms of knowing them, their preferences, dislikes, and likes. Furthermore, local culture and language should always be taken while designing the advertisement strategy so as to make sure that the advertising message is delivered effectively. Message and content are the key factors that need to be considered considering that the company must effectively communicate its message to the targeted audience. For that reason, the company should first define its target market or the audience so as to be able to decide how to effectively communicate the message through images and text. Evidently, messages that are poorly communicated can result in reduced profitability or can give the competitors a competitive advantage. The message content should take into account the target audience language, culture, preferences, and if possible religion. A successful advertising strategy can be evidenced by Cadbury after embracing social media in 2012. Shifting to social media from traditional mainstream media such as Television and newspaper, Cadbury ran numerous campaigns on Google+ and Facebook with the goal of building up engagement and awareness amongst the users. Cadbury had realised that merely 16 per cent of its followers in Facebook had seen the company’s posted content. In order to solve this problem, the company built a gigantic Facebook ‘like’ thumb from Dairy Milk pieces, and then developed a campaign around it. It led to over 40,000 new Facebook likes, and nearly 350,000 persons were actively involved in this campaign. In view of Cadbury advertising strategy, it is evident that customer engagement differs from one audience to another, but it leaves the potential customers curious about the product. So while designing an advertising strategy, it is important to consider the positive impact of consumer engagement since it results in stronger relationships and generates enthusiasm for sustaining connections with customers. Other companies have successfully utilise advertising strategy to improve awareness and increase their customer base include; Red Bull in the Space Jump advertisement that enables customers to witness something unique, Old Spice Guy Q&A that encouraged consumer involvement, and Dollar Shave Club that used humour to attract more customers. C. Using Brands to Build Long-Lasting and Strong Relationships with Customers Basically, companies that have built reliable relationships with their customers have not just gained a considerable market share but have also won the heart and mind of their customers. Scores of companies have concentrated on the product, and even though this is irrefutably important, companies that are using brands to build relationships with consumers have achieved more success in the short- and long-term. Evidently, brand loyalty is the key to success, and so there are numerous ways to use brands to create relationships with consumers include: first, is being authentic, whereby the company should be genuine and original in personality and approach so as to win the customers’ trust. Another way is to remain relevant by continuously monitoring the trendsetting changes, especially the consumer behaviour. The company should also remain persistent and consistent by using a similar tone and perspective across all mediums. This needs that every stakeholder working with the brand should use a similar approach to market or distribute the products. Furthermore, brand communication should remain consistent with core values of the brand so as to build a strong relationship with customers in the marketplace (Blythe & Zimmerman, 2005). A company can also use technology to build a long-lasting relationship with end-users, given the number of CRM alternatives now available. Organizations need to use technology such as social media to identify what the customers need and prefer, and then offer products that meet those needs. An example of a company that successfully used a brand to create a strong relationship with customers is the Virgin Atlantic through its Virgin Atlantic Flying Club. Initially, the Virgin Atlantic Flying Club experienced the challenge of making this program more relevant to the targeted customers. The earlier attempts to give different offers were less utilised by their customers since it had failed to resonate with their interest or need. This problem was solved by changing the airline reward program. For this reason, Virgin Atlantic Flying Club collaborated with its partners to ensure that Virgin Flyers could gain Trip Club miles from booking hotels to shopping at retail stores. As a result, it benefited not just their partners, but also created a strong and lasting relationship with their customers. Another example is Dunkin’ Brands that utilise social technologies so as to connect with the customers. The objective is not just to sell the brand but to relate with their customers. Imperatively, Dunkin’ Brands utilises Marketing Cloud’s Social Studio so as to interact and converse with the customers with regard to their brand; thus, facilitating the company to successfully build brand awareness, drive word-of-mouth, as well as creates a strong relationship that leads to loyalty. In view of these examples, it is evident that social media can be used as a platform for communicating and interacting with the customers, and can result in strong and lasting customer relationships. Conclusion In conclusion, the report has indicated that for a company to develop a successful innovative culture, it should; experiment and learn, exhibit leadership and intentionality, democratize innovation, run the risk, be accountable, and communicate. Moreover, factors to consider while designing advertising strategy include; the content and message, communication, technology, and developing customer intimacy. As indicated in the report, advertising strategy generates a positive connection between where the company and the customers. To create a lasting relationship with the customers, the brand must resonate with the customers, and the brand should be unique from that offered by the competitors. Reference Angel, R. (2006). Putting an innovation culture into practice. Ivey Business Journal, 70(3). Retrieved from Ivey Business Journal: http://iveybusinessjournal.com/publication/putting-an-innovation-culture-into-practice/ Blythe, J., & Zimmerman, A. S. (2005). Business to Business Marketing Management: A Global Perspective. New York: Cengage Learning EMEA. Greenland, S., Bainbridge, J., Galloway, C., & Gill, R. (2012). Strategic Communications: Cases in Marketing, Public Relations, Advertising and Media . Melbourne. Pearson Higher Education AU. Kasper, G., & Clohesy, S. (2008). Intentional Innovation: How Getting More Systematic about Innovation Could. Improve Philanthropy and Increase Social Impact. Battle Creek, Michigan: W. K. Kellogg Foundation. Read More