The degree of a word's familiarity with customers is influenced by brand awareness. The majority of consumers preferred to discuss and recommend well-known brands. It is the first step in the marketing funnel. It is the foundation upon which brand loyalty, consumer trust, and long-term success are built. When consumers are familiar with your brand products, they are likely to choose your product or services over competitors, even if they’re presented with other options.
Source: Safalta
Brand awareness refers to the level of familiarity consumers have with a particular brand. It is measured by how well consumers can recognize the brand’s logo, name, products, and other assets. An effective brand strategy defines a brand’s target audience, develops a unique selling proposition, and creates a consistent brand experience across touchpoints.- 81% of consumers need to trust a brand to consider buying
- 77% of consumers prefer shopping with brands they follow on social media
- 65% of consumers say a brand’s CEO and employees influence their decision to buy
- 55% of brand first impressions are visual
- There are over 10,000 branding & positioning agencies worldwide
Read More: 12 Creative Ways to Improve Your Brand Awareness Strategy
Trust and credibility
Brands with high awareness often enjoy trust and credibility around consumers.
It is built over time through a combination of integrity, competence, and meeting or exceeding customer expectations.
Consumers are more likely to trust it and choose it over competitors.
According to Northwestern University, brand trust describes the respect and loyalty customers have for a certain brand.
It is a measure of how strongly your customers believe that your business can live up to its promises.
When brand trust is lost, consumers look for alternatives.
Trust in a brand can be easily shared when it’s from a source that new customers believe in.
Nielsen has found that friends and family, as well as peers, have a huge influence on brand trust – 83% of respondents across 60 countries trust their close relations’ recommendations.
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Market Growth
Brand awareness helps to grow, and allows businesses to reach more audiences and tap into new markets.
this helps to increase sales opportunities and business expansion.
We can increase brand visibility and awareness through various digital marketing areas.
Example - brand advertising, SEO, content marketing, social media brand partnership, influencer marketing, etc.
Fine-tuning your profile's Recognition is a key element of building brand awareness.
When followers glance at your social profiles, they should be able to understand the basics of your brand, its purpose, and its personality.
From social bios to profile images, how you set up your profile determines whether or not people recognize you.
One of the primary reasons brand awareness is significant for the market.
share growth is that it helps establish a strong presence in the minds of consumers.
When consumers are aware of a brand and have positive associations with it, they are more likely to choose that brand over competitors.
Brand Allegiance
Brand awareness helps to attract new customers and generate interest in a brand.
Brand allegiance is when customers continue to purchase from the same brand of the same product.
You should also better understand the three levels of brand allegiance: brand recognition, brand preference, and brand insistence.
Brand loyalty occurs when people choose to repeatedly purchase a product from the same company instead of a substitute product produced by a competitor.
For example - when some person will buy a cake at the same grocery store.
While other people will always purchase Pepsi.
To cultivate their loyalty, you must be loyal to them first.
“Listen to customer feedback and use that feedback to improve your business and then tell your customer that you heard them and directly implemented solutions to give them a better experience,” said Nerissa Zhang, CEO of the Bright App.
These are some strategies to increase your brand allegiance.
Such as prioritizing consistency, giving feedback, thinking omnichannel, partnering with like-minded influencers, Running a thought leadership program, Advertising with intelligence, Becoming a sponsor, Be about more than just your products.
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Competitive Advantage
In competitive markets, strong brand awareness can provide a significant advantage.
your competitive advantage is the combination of marketing elements that sets your business apart.
A solid competitive advantage should be difficult to copy or recreate within another business.
The four methods of gaining a competitive advantage are cost leadership, differentiation, defensive strategies, and strategic alliances.
Competitive advantage– an instrument for obtaining company competitiveness
Competitive advantage represents a step and an instrument in obtaining and maintaining, maybe even increasing the company's competitiveness.
It can manifest itself, though it is desirable to be identified and used, as an instrument in all of the company’s activities, from the most basic ones up to the ones that have a low impact on the final result.
Competitive advantage may be singular or multiple and must have the company's competitiveness as a direct reflection.
In terms of perception, the competitive advantage represents an excess, an element based on which the client does not only decide to buy the product but pays more for it.
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Perceived value
The higher the perceived value, the more likely it is that people will spend money on you.
So it’s better to work on the customer’s perceived value rather than provide discounts on your products and services.
Perceived value is a customer’s perception of a product or service’s merit or desirability to them, especially in comparison to a competitor’s product.
Perceived value is measured by the price the public is willing to pay for a good or service.
Brand equity is based on, among other factors, a customer’s awareness of and associations with a brand (Yoo et al., 2002).
Marketing experts' main goal is shaping and increasing the value of goods or services offered.
The higher the perceived value, the more likely it is that people will spend money on you.
So, it's better to work on the customer's perceived value rather than provide discounts on your products and services.
Recognition and Recall
Brand awareness consists of two components: brand recall and brand recognition.
Several studies have shown that these two components operate in fundamentally different ways as brand recall is associated with memory retrieval, and brand recognition involves object recognition.
Finally, brand awareness doesn’t inform the likelihood for the brand to come to mind in certain circumstances, i.e.
day-to-day cues that people encounter.
This is why measuring brand salience as a secondary metric is important.
Strong brand awareness is a result of multiple simultaneous efforts that extend beyond trying to get paying customers.
If you expect to raise awareness of your brand by running a few product advertisements on Facebook, you won’t get very far.
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Market Efficiency
Enhanced Marketing Efficiency: Since brand awareness increases familiarity, it’s easier to engage consumers with marketing for new products or promotions.
Increased Sales: Recognizable brands tend to attract more customers, which can translate to increased sales and revenue.
Brand efficiency or Brand management efficiency is to be understood as a ratio of multiple brand inputs.
Products offering a maximum customer value relative to all other alternatives in the market are characterized as efficient.
Different efficient products may create value in different ways using different strategies (output-input-conclusion).
Word of Mouth and Referrals
Let’s get started! Word-of-mouth marketing is a strategy that relies on customers sharing their experiences with products and services with their friends and family members.
Though there are some similarities between WoM, referral marketing is a form of incentivized advertising that rewards users for taking specific actions.
How do referral programs drive brand awareness? Referral programs operate through word of mouth.
This word of mouth can be done in many ways.
It can be through face-to-face discussions and telephonic conversations.
It can also be online reviews, social media, testimonials, and other similar sources.
Examples of word-of-mouth marketing include sharing reviews or recommendations on social media, talking to friends and family about products or services, or leaving reviews on websites.
Is word of mouth good for marketing? Yes, word of mouth is generally considered to be a good form of free viral marketing.
Catchment analysis helps in identifying the target customers and making them loyal to the company.
Though titan has become the leader in the watch segment, more schemes and offers should be introduced in order to remain in the watch market.
Strategies for building the operations include visual merchandising, advertising, offerings, and reaching the customer satisfaction .
Here some frequently ask questions:
What is brand awareness nowadays
What is the goal of brand awareness
How effective is brand awareness
How do we raise brand awareness
- Prioritize consistency.
- Be about more than just your products.
- Give back.
- Think omnichannel.
- Partner with like-minded influencers.
- Run a thought leadership program.
- Advertise with intelligence.
- Become a sponsor.
