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Customer-centered brand management.

Roland T Rust1, Valarie A Zeithaml, Katherine N Lemon

  • 1Robert H Smith School of Business, University of Maryland, College Park, USA. rrust@rhsmith.umd.edu

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|September 29, 2004
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Summary
This summary is machine-generated.

Focusing on customer equity over brand equity is key for long-term profits. Companies should adopt new strategies to manage customer relationships effectively for sustained growth.

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Area of Science:

  • Marketing Management
  • Consumer Behavior
  • Business Strategy

Background:

  • Many companies prioritize brand equity, but this can conflict with growing customer lifetime value.
  • Examples like Oldsmobile show the risks of focusing on aging brands instead of new customer acquisition.

Purpose of the Study:

  • To highlight the inconsistency between brand equity focus and customer equity growth.
  • To propose actionable tactics for aligning marketing management with customer lifetime value goals.

Main Methods:

  • Analysis of marketing management practices in large consumer-goods companies.
  • Case study examples, including General Motors and Oldsmobile.
  • Development of seven strategic recommendations.

Main Results:

  • The traditional focus on brand equity can hinder customer equity growth.
  • Seven tactics are proposed to shift focus towards customer equity.

Conclusions:

  • Shifting from brand-centric to customer-centric strategies is crucial for sustained business success.
  • Implementing tactics like customer segment management and individualized data analysis can enhance customer equity.