Nov 19, 2020 in Analysis

Role of Advertising in creating Brand Loyalty
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Introduction and Research Question

The activities of any company start with the creation of high quality product. When the product is ready, it is up to its implementation. This is where the difficulties begin: the company risks to lose the rate of sales since its more famous competitors turn into leaders of trade. How can such an unpleasant situation be fixed? Of course, company should use its own weapons, namely, make its own brand recognized by hundreds and thousands of people. Substantial assistance in this difficult task may have vital techniques, such as advertising. The role of advertising in creating brand is undeniably great. It is one of the most efficient methods that gives the consumer information about the products and draws attention to a particular firm. Advertising and brand promotion push people to go and buy the products of the defined company, but not of a little-known competitors.

 

The aim of this paper is to understand how advertising influences the awareness of the company's brand and brand loyalty creation. Therefore, the paper is aimed to answer such questions:

  1. What is the role of advertising in building brand awareness?
  2. What is the role of advertising in brand loyalty creation?
  3. How does brand awareness affect brand loyalty?

The paper will be done with the examples based on the Mobily Company.

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Personal Interest

Advertizing is one of the most important things that affect todays life of all people throughout the world. It does not matter what event, company or product is under promotion, the advertizing is an approach that will influence and change minds. Brand is the well-known company or product, or even the person who is distinguished in the society, and only advertizing can create the needed brand image. Advertizing is the key element of sales and brand creation; therefore, it is under the meticulous attention of the most progressive scientists and managers of the companies. These are the main drivers of my personal attention to the understanding of the role of advertizing in brand loyalty and awareness creation.

Literature Review

Brand awareness is the level of recognition of the brand among potential consumers. It is measured by quantitative research of the target market and the number of potential customers aware of the brand (Jones & Slater 2003). Brand awareness is one of the most important parameters determining the amount of sales of the companys products in the early stages of the life cycle. For this reason, it often becomes the primary goal of marketing communications in this period. However, the impact on sales is reduced depending on the level of recognition of the unit.

Brand loyalty is a consumers preference for a particular brand to other brands in this product category. Frequently, it is both conscious and subconscious decision that is manifested either by the desire to acquire the products of a certain brand on a regular basis, or by the systematic acquisition of them for a long time. Brand loyalty is a clear indication of the success of advertizing and its significance both for consumers and for the owner of this company. It tends to reduce the cost of searching for products that meet requirements of customers, and it is the key element to long-term profitability and competitive advantage of the companies. In addition, consumers loyalty to the brand is aimed to reduce costs for the company's customer service and its acquisition as loyal consumers buy branded goods more often and in large quantities. Its purpose is also to show less sensitivity to price changes. Such method enables luxury brands to reduce the cost of attracting new customers, who tend to exceed the costs of customer retention.

The emergence of the consumer loyalty to a particular brand demonstrates customers belief that the brand will fulfill its promises; it is the highest level of consumer attachment to the brand. In some cases, brand loyal consumers perceive it as the only way to meet their needs and requests.

The main process of brand loyalty and brand awareness creation is called branding. Branding, in its turn, is the process of creating a brand and its management, implemented through a set of marketing activities. Large established companies usually engage in special advertising agencies, which are responsible for modernization, expansion and strengthening of families reputation brands. Advertising is always an integral part of solutions to marketing problems. However, it is only a "mean" resolution to marketing problems, but not an end itself.

Effective advertising is usually associated with a clear knowledge of what to do, and with a clear embodiment of the sources that affect the quality awareness and brand loyalty in reality. Advertising can create brand preference only if the target is placed above the beliefs of consumers in order to inform them. Commonly, the consumers motive to buy a product or brand reflects an aspiration to meet their needs. Therefore, advertising often indirectly affects sales, guiding the consumer needs and requirements in the direction of the brand. The essence of commercials in the modern world of brand is the conversion of societal requirements. The needs and requirements of the higher levels reflect the personality and general image of the man. They most often affect the choice of the brand.

Typically, the consumer chooses the brand, which is a symbolic reflection of his own image. The "magic" of brand advertising is that consumers see themselves in these commercials not as they are for real, but the way they want to be. Advertising is more effective when it affects the desires and aspirations of consumers. The most important for brand advertising is to follow the changing needs and desires of its clients. As a result, the role of advertizing in brand loyalty and brand awareness creation is huge, and the brands future popularity and profitability depends on the advertising effectiveness.

 
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Methodology

The aim of this research is to understand what is the main role of advertizing in the creation of brand awareness and building the brand loyalty. Whatever innovations may have been established by modern means of popularization, their role depends on the people's interests and motives, as well as their development. The control system is based on human activities. However, the technique can be explored in isolation from the people since all the factors of its use cannot be fully studied during complete working process. The subject of this research is literature review of the brand awareness and loyalty that is based on the advertising. Main practical issues of this research are shown by the example of Mobily Company.

The study used the following research methods: dialectical scientific abstraction exploring the characteristics of advertizing methods, finding out main points of brand loyalty building and brand awareness creation; economical and statistical method examining, evaluating and determining the dynamics of the advertizing techniques used to create the brand awareness and loyalty; comparisons or analogies comparison of the literature, understanding its limiting characteristics and role of the brand issue; extrapolation moving past trends for future periods; situational and systemic method investigation of factors that determine the role of advertizing in the process of brand recognition and its customers acceptance.

The next component in the context of methodology of this study is a meticulously chosen approach. Approach is the angle of research, which defines its original position, the starting point that helped to begin the study. A proper approach determines its orientation relative to the target. The main approach used during the fulfillment of this research was scientific method.

The systematic analysis of literature has obtained the result that shows the fact that brand marketers should hold a number of marketing activities in order to improve the performance of brand awareness. In order to make a brand easily recognized, it is necessary to invest in advertising. The primary role of advertising in brand awareness creation is to fix the image in the minds of a wide range of people, which means to make a positive image of the goods or services of your company. This type of advertising is aimed to persuade not only the buyers of the companys products and services, but a much wider community. This is done in order to ensure that the expansion of the list of products and scope of the company or product has caused positive emotions of the customers. The role of advertising in brand awareness creation is to achieve recognition and credibility of your brand, product or service.

The analysis of advertizing role in the brand awareness and loyalty building of Mobily was also elucidated in this research. For this purpose, the news articles and main web page of the company were used. This information helped to revise how the company tends to build its brand and what it specifically does for creating its brand awareness and increasing the brand loyalty.

Reflection

Consumers of goods often demonstrate a high degree of loyalty to the luxury brands and the emotional attachment to them so that such behavior seems irrational and logically inexplicable for outside observers. It is about the level of "consumer-brand" relations that come from the symbolic plane to meet the functional requirements and needs of its favorite passengers. The reason is the same: the luxury brands, and more specifically, their associativity with features such as "prestige" and "high status", help the consumer to satisfy his/her inner "Ego". These are the means of communication that the consumer uses to tell others and even himself about who he/she would like to become. Such a relationship with the brand and the consumers subconsciousness is the result of customer's loyalty to the brand.

Brand loyalty is a natural consequence of a successful brand positioning, the result of consumers awareness of the brand and its image, as well as understanding of the idea that lies at the heart of the brand. When consumers correctly perceive the brand, they put it in a cell of mind, and it turns into one of those brands that are considered as an alternative at the time of selection. If the brand is regularly preferred, it gradually takes a more prominent place in the minds of consumers. This is called the conquest of the brand share of attention, which, when high, makes a regular consumer purchase the products of this brand. This, in turn, leads to the formation of consumer loyalty to a given brand, which manifests itself in regular purchases of goods released under this brand, or in a sustained effort to buy such production.

To purchase a following loyalty, the Mobily has consistently met the tastes of consumers. Due to the rapid changes taking place in the usage of telecommunication goods, the products have to pull people to it, appeal to their tastes and needs. The consumers brand loyalty can only count in the event that: a) they are satisfied with the full range of services it offers, and b) they like its representation. This means that Mobily should constantly remind consumers about benefits they offer emphasizing the value of their products through advertising. This creates a consumers opinion about the brand and their relationship to it, which in turn leads to the formation of brand loyalty.

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Another important indicator of this kind of devotion is linked to the issue of customer satisfaction. Consumers of Mobily are becoming more demanding and are showing a greater level of individualism, which reduces the likelihood of their loyalty to any particular brand, and the traditional formula of attractive products with the symbol of the brand, plus luxurious design boutiques, plus a high-quality customer service is not as effective as before. Consumers are demanding much more because of a holistic experience of long-term relationship with the brand. In other words, the magic identity concepts "satisfied customer" and "loyal customer" offset. Today, even the most satisfied customer cannot avoid the impact of an avalanche of advertising messages and proposals from competing brands, and this greatly complicates the task of maintaining customer loyalty. The success of the constructive solutions promotes adherence to the principle treat their customers as persons of royal blood and the golden rule of 80/20 in the ability to allocate the most profitable customers and treat them accordingly.

Therefore, the advertizing has the highest effect on the brand awareness, which is a significant tool that affects customers brand loyalty. These fact makes us understand that the role of advertizing cannot be downgraded and the Mobily uses the right advertizing strategy for the customers attraction.

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