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TOO L KI T
Brands exist to serve customers,
not the other way around .
But youd never know that fro m
the way brands are managed .
Customer-Centered
Brand Management
by Roland ! Rust, Valarie A.ZeithamI , and Katherine N. Lemon
OST MANAGERS TODAY AGREE tomer management in most large com-
Mwith the notion that they should panies, and that focus is increasingly
focus on growing the lifetime value of incompatible with growth.
their customer relationships. Building Consider the story of Oldsmobile, an
loyalty and retention, cross selling re- American car brand launched earlier
lated goods and services, broadening than any other in existence today. In
offerings to fulfill more of customers the 1980s, it enjoyed outstanding brand
needs - all are ways of adding to over- equity with many customers. But as the
all customer equity. Indeed, given the century wore on, the people who loved
cost of winning new customers (much the Olds were getting downright old.
higher than that of keeping current The managers that parent company
ones), and the ultimately finite universe General Motors put in charge ofth e
of buyers out there, a mature business brand realized that maintaining mar-
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