BUS631 Study Guide
Unit 8: Consumer Relationship Management (CRM)
8a. Compare brand association models, distinguishing between functional and emotional brand relationships
- How are brand association models used in marketing?
- How can you distinguish between functional and emotional brand relationships?
- Why is it important to consider emotions in branding?
It may be important to associate brand models with customer loyalty, and a few associations are consumer behavior, motivational influences, and intentional choice. By aligning these brand association models to measure customer loyalty, you may distinguish reasons why a consumer might make a purchase. Each of these influences may determine how a consumer might make a connection to a product or brand.
For example, when a consumer has an emotional connection to a brand, they may be more likely to make a purchase. Bath and Body Works is the perfect example of this because people connect scents to childhood memories or happy times in their lives. By making this connection, a consumer is much more likely to purchase a product or remain loyal to a brand they have such a strong connection to.
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8b. Evaluate how successful brands create active and lasting customer relationships using consumer behavior modeling
- How can consumer behavior modeling be used in marketing?
- What is an example of how a brand may create loyal customers?
- Can consumer behavior modeling predict a consumer's buying habits?
Consumer behavior modeling may be used to predict a consumer's buying habits, behavior patterns, or loyalty to a brand. Buyer behavior may be determined by some demographics, including education, personal interests, background, or life goals. If a brand can make a connection with a consumer based on buyer behavior, then it may be able to create customer loyalty as well.
The retail store REI makes a strong connection with consumers because of their love of the outdoors, and this connection may be based on their childhood behavior and a sense of trying to reconnect with those memories. By creating marketing that is specific to that love of the outdoors and using promotions that utilize outdoors and the use of equipment, REI has created a loyal consumer base.
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8c. Apply Maslow's Hierarchy of Needs to evaluate luxury and mass brands in the marketplace
- How can Maslow's Hierarchy of Needs be related to a brand?
- What is an example of using Maslow's Hierarchy of Needs in marketing?
- How can Maslow's Hierarchy of Needs be applied to a mass brand?
Maslow's Hierarchy of Needs has been used in marketing to help understand why consumers buy or what behavior might help predict purchases. By having the basic needs of food and shelter met, a consumer is then able to concentrate on higher-order needs in their life. These levels of Maslow's Hierarchy of Needs include love, self-esteem, and self-actualization. Brands that assist in helping the consumer meet these higher needs may find a way to connect with the consumer on that level.
For example, self-esteem needs might include showing others that the consumer has achieved a certain level of success in their life, and this consumer may want to show that with a more expensive car, new clothes, or a new house. This is an example of how Maslow's Hierarchy of Needs may be used in the luxury or mass brands market.
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8d. Apply the segmentation model to design multiple consumer segments and geographies among diverse populations
- How can the segmentation model be used in marketing?
- What is an example of using geography to segment a market?
- How can you use segmentation to diversify the consumer market?
A segmentation model is one way of dividing your consumer base into groups. For example, to sell a home, you may target current homeowners in a particular geographic location. You may also use demographics to determine the education levels of consumers for a potential degree program. By segmenting the market, you can focus on a specific consumer population and ensure that your marketing is very specific to the market you would like to reach.
Demographics can also be used to pinpoint age, sex, race, income, marital status, employment industry, etc.. By using demographics to segment your market, you can create a potentially diverse consumer population to market your brand. The more specific you can be with your target market, the easier it will be to market to that consumer base.
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8e. Explain how brand managers use CRM analysis to gauge brand awareness, attitudes, and behaviors
- What is CRM, and how does it relate to marketing?
- How can you better understand brand awareness?
- Why is it important to understand a consumer's brand awareness, attitudes, and behaviors?
Customer relationship management (CRM) is a data drive software that helps companies maintain customer information and build their relationship with customers. Some types of CRM are used by almost every company. This system helps to track data, sales, customer information, and purchase history and can assist in predicting consumer behavior.
CRM can also help a brand manager to better understand consumers' brand awareness, attitudes, and behaviors. For example, a young couple begins to have children and, at some point, will most likely purchase a home or buy a minivan. This pattern of behavior will occur as a natural succession in their lives, and a brand manager can use this information to help predict those needs.
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Unit 8 Vocabulary
This vocabulary list includes terms you will need to know to successfully complete the final exam.
- brand association models
- consumer behavior modeling
- customer relationship management (CRM)
- demographics
- geographics
- Maslow's Hierarchy of Needs
- segmentation mode