What is 'Brand Recognition'

Brand recognition is the extent to which the general public (or an organization's target market) is able to identify a brand by its attributes. Brand recognition, also known as "aided brand recall," is most successful when people can state a brand without being explicitly exposed to the company's name, but rather through visual or auditory signifiers like logos, slogans, packaging, colors or jingles as seen in advertising. It differs from brand awareness, which is merely the knowledge that a brand exists.

BREAKING DOWN 'Brand Recognition'

Brand recognition is often paired with "brand recall," which is the ability of customers to think of a brand name from their own memory when told to think of a category of products. Brand recall tends to indicate a stronger connection to a brand than brand recognition. For example, people tend to think of more brand names when prompted by a product than by a category. Brand recall is also called "unaided recall" or "spontaneous recall."

To measure brand recognition and the effectiveness of promotional campaigns, many companies will perform experiments on study groups. Both aided and unaided recall tests may be used. With similar products, brand recognition will result in higher sales, even if both brands are of equal quality.

Brand Recognition Tips

Small businesses and big corporations alike can do much to build and maintain their brand recognition, with the goal of being "top of mind" with customers who are ready to buy online or in the store. 

For one, a company should utilize a unique, touching or heartfelt story that lets customers know why it's in business. Customers tend to remember brands that reach them on a personal or emotional level. Another way to build and maintain brand recognition is by providing exemplary customer service. Customers are more likely to recommend and buy products from a company they know values their patronage. Businesses should also aim to exceed their customers' expectations and also seek to educate their customers. Being known as an expert in a certain field or being able to relate to customers and how they use the products and services they buy goes a long way in ensuring consumer loyalty. One way to accomplish this is through email newsletters or blogs that ensure that customers or prospective customers have your company in mind. Small businesses and large companies can also utilize social media to make sure that their names and products or services are in constant circulation. Of course, a company's logo or visual theme should be used in all communications.

 

RELATED TERMS
  1. Brand Management

    Brand management is a function of marketing that uses techniques ...
  2. Brand Personality

    Brand personality is a set of human characteristics that are ...
  3. Brand Potential Index (BPI)

    The brand potential index (BPI) is the correlation between a ...
  4. Corporate Umbrella

    A corporate umbrella is a large, generally successful brand name ...
  5. White Label Product

    A product manufactured by one company that is packaged and sold ...
  6. Cobranding

    Cobranding is a marketing strategy that utilizes multiple brand ...
Related Articles
  1. Financial Advisor

    Why These Are the Most Valuable Brands of 2018

    A company's brand can be worth billions of dollars. Here are the most valuable global brands in 2018.
  2. Small Business

    How Companies Create A Brand

    We take a hands-on approach to creating a brand, and see what it can mean as an investor.
  3. Small Business

    The Power of Branding

    Power of branding is the ultimate economic moat, and we look at the approaches and effects of good and bad branding.
  4. Investing

    Brand Value Comes to Life in an ETF

    Investors that like big brands might just like this new ETF.
  5. Insights

    Tech and Auto Companies Dominate World's Most Valuable Brands List (AAPL, GOOG)

    Brand consultancy firm Interbrand released its 2016 ranking of the most valuable brands in the world, and technology and automotive brands dominated by holding a combined 29 positions. According ...
  6. Investing

    How Do Recalls Affect A Company?

    A product recall is the process of retrieving and replacing defective goods for consumers. When a company issues a recall, the company or manufacturer absorbs the cost of replacing and fixing ...
  7. Investing

    Recall Recoil: Will Toyota Recover?

    A product recall can decimate a stock in some cases, and have hardly any impact in others. What's the difference?
  8. Small Business

    9 Brands Resurrected Into Household Names

    All of these brands saw a dip in their popularity, only to have a revival to even greater heights.
  9. Personal Finance

    5 Dead Auto Brands And Why They Died

    These auto brands had their run, and have been sent off to rust.
  10. Small Business

    Reinventing Brands: Makeover Or Move Over

    Brands undergo various changes to remain competitive. Discover those that changed and those that fell behind.
RELATED FAQS
  1. How does brand image and marketing affect market share?

    Building a positive brand image is a must for companies that want an edge over the competition. Learn how marketing and branding ... Read Answer >>
  2. What are some of the benefits of positive brand equity?

    Learn how having positive brand equity enables companies to make a higher margin on sales and spend less money on marketing ... Read Answer >>
  3. What impact does brand equity have on profit margins?

    Learn how both positive and negative brand equity affects profit margins by influencing profit per customer, sales volume ... Read Answer >>
Hot Definitions
  1. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  2. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  3. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  4. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  5. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  6. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
Trading Center