Marketing Communications: How Strategic Advertising Enhances Good Customer Relations and Assures Brand Loyalty – The Case of Celtel, Tanzania

Abstract

This study investigates how marketing communications in strategic advertising scientifically brings long-term profits to a company in regard to management of customer relations and brand loyalty. Advertising being a function of attention, perception and trial brings about brand expectation to customers. Customers compare brand performance to their pr-existing expectations to judge and position themselves from brand’s perspective. Using a Tobin’s ‘q’ concept, the authors analyze the advertising strategy of Celtel, Tanzania and study how it is used to manage customer relations and project repurchase behavior for Celtel services. A comparative study of Celtel Customers and non-Celtel customers is done. Empirical results show that Celtel customers are more loyal to Celtel brands and Celtel advertising strategies encourage higher brand loyalty. Further, an analysis of the customer confidence for repurchase behavior projection using similar measures shows a higher value with Celtel Customers database than Non-Celtel Customers database.