What is Brand Awareness
Brand awareness is the degree of consumer awareness of a brand and its related products. Creating brand awareness is one of the key steps in promoting and marketing a product. Brand awareness is particularly important when launching new products and services. It allows a company to differentiate itself from competitor-offered products and services.
BREAKING DOWN Brand Awareness
Products and services that maintain a high level of brand awareness are likely to generate more sales. Consider the soft drink industry in which many soft drinks are indistinguishably similar. Companies such as Pepsi and Coca-Cola use their brand to showcase their products and drive sales. Over the years, these companies have employed strategies to increase brand awareness among consumers, which have directly translated into higher sales. This higher rate of brand awareness typically serves as an economic moat that prevents competitors from gaining additional market share.
Creating Brand Awareness Using Social Media
As of 2017, internet users spent approximately 135 minutes (2.25 hours) per day on social media sites. As a result, companies find great value in generating brand awareness on these platforms. Consumers discuss products and services of interest and those that have overwhelmingly satisfied their specific needs and desires.
Alternatively, consumers also share unfavorable experiences, and often at a higher rate than satisfactory ones. Therefore, stimulating consumer interest and promoting the brand is a strategic process. As consumers view and interact with social media posts and updates, brand awareness will increase. For brand awareness to be most productive, consumers should be able to connect to the company's website seamlessly from the social media platform. Also, it is crucial for a company to respond to negative reviews and offer a solution to the customer's problem.
Other Ways to Create Brand Awareness
Although print media is not as prominent as it once was, there are still consumers who read newspapers and magazines. Advertisements placed strategically, such as in targeted locations on the page or in specific publications, can attract viewer’s attention and create brand awareness. For example, a new company who will be trading on the Forex (FX) may advertise in a prominent magazine that focuses on global trade and currencies to create brand awareness with investors.
Displaying a product or service advertisement at a physical location can create or enhance brand awareness. Impulse purchase products are well-suited for in-store distribution and advertising. A company marketing a new candy bar may distribute the product at a point-of-sale (POS) location to create brand awareness.
Sponsoring public events is another effective way to create brand awareness. Charitable events, sporting events and social awareness fundraisers allow for prominent visibility of a company's name and logo. For example, a health insurance company may increase brand awareness by distributing complimentary company-branded health packs at a charity marathon. Participants associate the company with acts of goodwill and as a member of the community, which further raises awareness of and promotes the brand.