Brand awareness is an important aspect for a business organization in being able to successfully promote a product.
Branding differentiates the brand name from the competitors’ brand names. It is the process by which companies distinguish their product offerings from the competition. The way in which a firm differentiates itself from rivals. Branding is a form of differentiating a firm’s products from those of its competitors.
What is brand awareness?
Brand awareness shows how much customers are aware of a particular brand. Specifically, how fast a given brand name comes to their mind when a product is mentioned.
Brand awareness is especially important for businesses operating in markets with products that have very few factors separating the many suppliers such as bottled water, staple foods, low-end passenger cars, etc.
Brand awareness is then built around tangible factors such as taste, functions or appearance that help to differentiate products from one another.
What does brand awareness measure?
Brand awareness measures the extent to which current customers and potential customers know that a particular brand exists on the market. They are also able to recognize a particular brand – this is called brand recognition.
Brand awareness is usually expressed as a percentage of the sample surveyed. The business will ask the general public through market research whether they recognize that brand or not.
Companies can improve brand awareness quite quickly by using an effective marketing strategy. Raising brand awareness is of particular importance during the launch stage of Products Life Cycle (PLC).
Examples of brand awareness
As many as 99% of survey respondents recognize the Coca-Cola brand.
Customers who purchase bottled water have high brand awareness of the following brands: Evian, Perrier, Voss, Dasani, Smart Water, Fiji, Nestle Pure Life, Aquafina, etc.
The Apple brand has incredibly high brand awareness among people who use smartphones and tablet computers.
Why is brand awareness important?
Creating brand awareness is a key part of promoting a product and business as it plays a major part in the buying decision of consumers.
Brand awareness gives the firm a competitive edge over its rivals, resulting in greater market share. It can also encourage repeat purchases if customers like and trust the brand.
In general, the higher the levels of brand awareness, the higher sales revenues the business is likely to generate. Finally, brand awareness is a prerequisite to brand development which will be introduced in the next article.
