What is 'Brand Awareness'
Brand awareness is the likelihood that consumers recognize the existence and availability of a company's product or service. Creating brand awareness is one of the key steps in promoting a product. Brand awareness is particularly important when launching new products and services; and for a company to differentiate similar products and services from its competitors.
BREAKING DOWN 'Brand Awareness'Products and services that maintain a high level of brand awareness compared to competitors are likely to generate more sales. For example, in the soft drink industry, very little separates a generic soda from a brand-name soda, in terms of taste. However, consumers are very aware of the brands Pepsi and Coca-Cola, in terms of their images and names. This higher rate of brand awareness typically equates to higher sales and also serves as an economic moat that prevents competitors from gaining more market share.
Creating Brand Awareness Using Social Media
As of 2015, 28% of time online is spent on social networking platforms such as Facebook, Inc. and Twitter, Inc. Social networking sites are, therefore, effective tools for creating brand awareness. Consumers frequently discuss and like products and services that are of interest to them, or that they have purchased or intend to purchase. Brand awareness is created as other consumers view and interact with posts and updates. It must be a seamless experience for consumers to connect to the company’s website via social media.
Creating Brand Awareness Using Traditional Advertising
Although print media is not as prominent as it once was, there are consumers that continue to read newspapers and magazines. Advertisements placed strategically, such as in targeted publications, have the ability to attract viewer’s attention and create brand awareness. For example, a new online forex trading company may advertise in a prominent forex magazine to create brand awareness with forex traders.
Brand awareness can be created or improved by displaying a product or service in a prominent bricks-and-mortar location. Impulse purchase products that consumers want immediately are well suited for in-store distribution and advertising. A company that has recently introduced a new candy bar may distribute the product at a point-of-sale location to create brand awareness.
Creating Brand Awareness Using Sponsorship
Sponsoring public events is an effective way to create brand awareness. Events such as charity days or social awareness fundraisers allow for prominent visibility of the company name and logo. For example, a health insurance company can increase brand awareness by distributing complementary company branded health packs at a fun run. Sponsoring local events can lead consumers to associate a brand or company with a community.