written by khatabook | November 25, 2022

Importance of Brand Awareness: Need of the Changing Times

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Table of Content


Marketers are aware that they must increase brand recognition. Building brand recognition has always been a top objective for both B2C and B2B marketers, based on the American Content Marketing Institute.

However, you shouldn't simply spend money on brand awareness because everybody else is. One must have a solid understanding of the value of brand recognition and how to leverage it if one wants to accomplish your company goals.

Here, we walk you through the key benefits of brand recognition and show why a lack of it can seriously hurt your company. Consider this: how will your company succeed if no one knows about it?

Did you know? 77% of marketers think that brand awareness is critical to future growth and has helped them to generate strong customers loyalty.

What is Brand Awareness?

The consumer's capacity to recall, recognise, and associate a brand with a specific good or service is a prerequisite for brand awareness. It is a phrase used to explain how well-known your brand is and what it offers.

The first step in strategically influencing a customer's purchase decision is brand awareness. Companies invest millions of dollars only to get their customers to know about their brands.

The fact that people are aware of your brand does not guarantee that they will purchase its items, therefore it remains a metric that cannot be accurately quantified. But for businesses, especially young ones, brand recognition is quite important.

Also Read: Market Analysis - How to Conducting a Market Analysis for Small Businesses

What are the Three Types of Brand Awareness?

  • Being aware of your name
  • Knowledge of your goods and services
  • being conscious of your brand's traits (logo, messaging, etc.)

Why is Brand Awareness Important?

The reasons mentioned below will help you to understand the importance of brand awareness

Perception

Brand recognition helps consumers recognise a product and sets it apart from rival brands. Because consumers are more inclined to purchase well-known brand names than unknown ones, companies with strong brand awareness are likely to make more money. Customers like to purchase from brands they are familiar with, 59% of them.

Trust

Brand awareness is the first step in building trust, thus the more people know about your brand or company, the more successful it will be. It is the cornerstone of attracting a clientele and assisting them in comprehending and feeling at ease with your goods and services, so boosting the value of your brand.

Network

If properly organised, awareness grows rapidly. The brand becomes a hot topic of conversation and establishes a network that can be leveraged to disseminate information further.

TikTok, for instance, never promoted itself. By sharing its films via word-of-mouth, its users raise awareness.

Association

Brand awareness can lead to an association when done properly. There are two different sorts of associations:

  • where consumers consider a brand when they come across a product category.
  • where the product category is indicated by the brand name.

Even though the second achievement is extremely challenging to do, several businesses, including Google, Xerox, Band-Aid, etc., have been successful in doing so.

Brand Equity

A brand grows more value the more the individuals are aware of it. The idea behind brand equity is this. Strong brand equity is the brand's value as a stand-alone asset. Just because something is provided by a particular brand, it helps a generic item stand out. Brand recognition increases the brand's perceived worth.

Also Read: 200+ Small Scale Business Ideas with Low Investment

What are the Types of Brand Awareness 

Depending on how much the target audience values the brand, there are three different types of brand awareness.

Knowing the different levels of brand awareness is crucial for marketers because current and future marketing strategies are created based on the level of brand awareness in the target market.

The three categories of brand recognition are:

  1. Brand Recognition: When a customer comes into contact with a brand, he should be able to identify it and tell it apart from other brands. The buyer does not need to remember the brand name to be aware of it. Whether the customer can recognise it when it is offered at the point of sale or when he sees the visual packaging is all that is considered.
  2. Brand Recall: A brand recall is a customer's spontaneous remembrance of the brand in response to the product category. Most users are only able to recall 3-5 brand names. It is impacted by both individual and brand characteristics, including usage, education level, and marketing tactics employed by the business, among others. These brands are a part of the customer's evoked set.
  3. Top-Of-Mind Awareness: A group of three brands that a customer consistently buys constitutes top-of-mind awareness. This is the customer's list of considerations. Every marketer's ultimate objective is to get their brand onto this list of considerations.

How to Increase Brand Awareness

The creation of a strong brand information campaign will aid in introducing your company's name and product line to consumers. The main objective is to improve knowledge among the target audience, but a successful campaign will also convey qualities that set you apart from your rivals.

Here are some strategies for raising brand recognition:

  • Give Voice to Your Brand- Give your company a personality so that your target audience can relate to it. Having a distinctive tone and voice will help customers remember your commercials. Be careful how you use words. An excellent illustration is a tagline that can help you become instantly known or a clever colour scheme that is both memorable and eye-catching.
  • Use outdoor advertising to your advantage- Out-of-home advertising is a fantastic way to promote your brand. Traditional advertising techniques like billboards have been used for a reason, though. They perform! Strategically positioned billboards in busy places will promote your business to thousands of people every day. They are present all day, every day, exposing your brand to anybody who goes by, unlike commercials or digital marketing.

Also Read: How To Get A Business License In India?

What are the Measures of Brand Awareness?

Businesses can assess their performance against rivals and increase their brand awareness via brand tracking. It is a continual evaluation of your brand's performance.

You can more clearly see how well your awareness campaign is doing by combining various reach and frequency data, which will enable you to make the best and most informed choice for your company.

  • Surveys- This simple but effective method of measuring will give you the data you need to forecast the course of your campaign. A survey can be carried out over the phone, online, or by email. To learn how individuals hear about your brand, ask current consumers how they first learned about it. By picking survey participants at random and questioning people if they're familiar with your brand, you may also learn more about how well people can recall your company.
  • Website traffic is measured- Information on brand awareness is available through website traffic. How many people are visiting your website can be tracked using tools like Google Analytics. You may examine wherever your visitors are coming from in the application to delve even further into the details. You can monitor the sources of your visitors with Google Analytics, including referrals, social media, direct visits (those who type your URL directly into their browsers), and organic search (links from other sites that direct visitors to your site). Changes in the information in your product awareness campaign will be easier if you keep an eye on these tendencies.
  • Search Alerts: A good indicator of awareness is natural social mentions and shares. You may measure social mentions and shares using a variety of tools, like Buzzsumo, Twitcount, etc.

A good approach to getting informed every time your brand is mentioned is through Google alerts. It is a free brand awareness assessment tool that notifies you through email whenever your company's name appears on a website.

Conclusion

You are aware that brand visibility requires investment post reading this article. Now you know why and can explain how to raise brand awareness and the importance of brand awareness. The foundation of your company's growth and your audience's comprehension of your value is brand recognition.

Brand awareness has the potential to drive sales, fuel new business prospects, and uncover audience insights that can improve your marketing operation, so it's important to understand this whether you're wanting to promote new items or reach out to new audiences.

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FAQs

Q: What is the the average increase in revenue attributed to always presenting a brand consistently?

Ans:

The average increase in revenue attributed to always presenting a brand consistently is 23%.

Q: Why is developing brand recognition through traditional media necessary?

Ans:

Compared to a pure social media campaign, traditional media has several benefits for boosting brand awareness. First of all, conventional marketing and media can offer regulated communication at one of the lowest costs per audience reached. Second, traditional marketing entails developing and putting into action something more concrete that can be enhanced by social and digital media. Last but not least, social media may not reach all of the audiences you want to reach.

Q: With social media, why do I need a brand?

Ans:

It is critical to understand that social media is a crucial marketing strategy rather than a comprehensive image plan. Every contact in social and digital media should be guided by brand strategy.

Q: How can I gauge how social media is impacting my brand?

Ans:

The solution is not that straightforward; much like many other things, it involves some trial and error. It's critical to first identify the things you are interested in and wish to measure. Second, remember what your ultimate objective is. Unique visitors, click-through rates, time spent on websites, time spent on tweets, and overall brand recognition are a few examples.

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.