A Professor Byron Sharp was reported as arguing that greater market penetration is more important than building customer loyalty.
That essentially, you need no marketing strategy, simply throw everything you have at every possible type of customer – the so-called scatter gun approach to selling.
While in theory this crude method may work in the short term, I would argue that customer loyalty is essential to maintaining sales and market share.
Consumers are constantly bombarded with marketing messages in an increasingly competitive and crowded marketplace.
How do they decide which brand to choose and trust? The ‘t’ word is crucial to retaining customers when a competitor sets its sights on your customer base. Without trust and brand recognition, consumers can be more easily swayed by choosing another brand when times get tough. Customers are more likely to spend that little bit extra with brands they trust. Without this important emotion, customers could deflect to a cheaper alternative brand.
In addition, food and drink is a unique market. Past health scares and a renewed awareness of the need for nutritional value have all combined to make customers wary of trying brands which do not communicate their value.
This is especially true in time of austerity – why part with your hard earned cash for a brand which is untried and untested by the most discerning critic of all – you?
With this in mind, it is perhaps more important than ever to build brand loyalty in case customers decide to move on to a more considerate brand.
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