Final answer:
Marketers aim to strengthen consumer commitment to brand names to ensure repeat business and enhance reputation, which can justify higher prices and deter competition. A reputable brand achieves customer assurance, loyalty, and acts as a barrier to new market entrants.
Step-by-step explanation:
A major goal of marketers in the future will be to strengthen consumer commitment to brand names because it leads to repeat customers who are likely to recommend the brand to others. Firms place a strong emphasis on establishing a good reputation as it assures customers about the quality of the product, and a well-reputed brand can often charge more for their goods than less established competitors. This branding also taps into the attention economy, where consistent and strategic advertising across various platforms helps to embed the brand in consumers' consciousness. Moreover, strong branding can act as a barrier to entry for competitors in the marketplace.
Example of Branding Influence
For instance, a well-established grocery store can charge a higher price for its goods compared to a temporary stand at a local farmer's market. The grocery store's brand name assures customers of its quality and reduces their concerns about poor products. This commitment to reputation often results in higher customer loyalty and price leverage.
Impact on Competitors
Establishing a strong brand name can also be a deterrent to the competition. As seen with national cola brands, large advertising budgets associated with well-known brand names make it difficult for new entrants to gain a foothold in the market. This essentially safeguards the market share of established companies.