Posted in Marketing and Strategy Terms, Total Reads: 587
Definition: Brand Awareness
The probability that the existence and availability of a particular brand of a product is recognized well by its potential customers is known as brand awareness. Brand awareness is one of the key dimensions of brand equity.
It is often considered to be a prerequisite which stimulates a customers buying decision as it represents the main factor for keeping a brand in the consideration pool. Brand awareness leads to consumers’ assessment of perceived risk and their determination to make a purchase decision, driven by the familiarity with the brand and its varied characteristics. Brand awareness can further be segmented into at least two facets – unaided which is also known as brand recall and aided which is known as brand recognition.
The fact that brand awareness plays a very important role is driven by the cut throat competition which exists in the market due to minimal differentiation in commodity items. High degree of brand awareness leads to better sales and high market share.
The hierarchy of effects model typically demonstrates how a customer sequentially moves from a unaware stage to ultimatedly ending up in buying of the product. There are three main stages through which the customer goes through. These are: -
• Cognitive: - The first stage which focusses on building up the awareness about a particular product and associate the brand with it.
• Affective: - If the hammer strikes well in the first stage, the customer gets affceted and develops a liking or preference for that particular product.
• Conative: - This is the last stage which results in the puchase of the product after the customer is fully convinced.
Brand awareness falls in the first stage i.e. Cognitive, to make an impact on the customers’ mind that lasts for a longer span of time.
Example: - There are numerous soda and soft drink brands available in the market. But by default when it comes to soft drinks, people associate it with majorly two brands, Coca Cola and Pepsi. This is because the awareness level of these brands is very high as compared to other brands and this draws out the reason for their stupendous market share and sales.