Brand Knowledge - Definition, Importance & Example
What is Brand Knowledge?
Brand knowledge refers to the thoughts, feelings, experiences, become associated of a customer with a business’s brand or a company. Brand knowledge is developed due to interactions in the form of advertisements, communication etc which the company develops, its logo and has an ambassador for representation but is truly identified by its consumers only. The consumer will develop their own interpretation of the company’s brand based on their thoughts that they go through and what they experience in dealing with the company along with their feelings about the company’s products.
Brand knowledge is the brand image, brand association etc which a customer creates after the company has created brand awareness through campaigns. A consumer may develop a poor brand image if they have a poor experience with the company let’s say in terms of poor servicing or poor product exposure.
Brand knowledge eventually helps in creating brand equity through brand recognition.
Importance of Brand Knowledge
A successful brand is one that creates brand knowledge in the most positive way in their consumer’s minds. Brand knowledge is a unique combination of brand awareness and brand image. Brand awareness is how much a customer recalls a brand when it comes across and advertisement of it. Brand image a pool of mental imageries that influence a buyer’s purchase decision. Although different brands may mean differently to people, brand knowledge is universally a function of awareness and image.
Brand knowledge is a very delicate balance between brand awareness and brand image. Example- Tiger Woods is a classic example of high awareness and bad brand image leading to a disaster of a brand. Brand awareness consists of brand image and brand recall and is a subset of ad awareness. Brand image is a lot more challenging, because it is the influences in the consumers’ mind of both real and imaginary thoughts and feelings and shortcomings that influence the customer’s purchase decision.
Starbucks has built a strong, favourable and unique brand. Due to the unique brand experience as much as the coffee. Therefore, creating brand image means selecting the right brand elements that become an asset to the brand. They should identify and differentiate a brand and are:
1. Memorable
2. Meaningful
3. Transferable
4. Adaptable.
5. Protectable
Creating a strong brand identity is one of the best competitive advantages a company can have.
Difference between Brand Knowledge and Brand Equity
Brand awareness refers how well is your brand recalled by your customers because of ad awareness. In contrast, brand equity is the value addition that happens to a brand due to consequent marketing activities that have happened in the past or present.
Brand knowledge if a delicate balance between brand awareness and brand equity, hence brand equity is a subset of brand knowledge. Overall, brand knowledge has a vast impact on the consumers mind and is far more important to have a positive impact and note left on their minds.
Examples of Brand Knowledge
1. Nike products are made with cutting edge innovation and technology. Their advertisements although are kept simple thereby keeping it not so high on the brand awareness aspect from the ad awareness area. Whereas the Nike swoosh logo is one of the most identified logos across the world, giving them points(high) on brand image. Their slogan “Just Do It” is one of the most well associated slogans across brands giving them an edge over others. The moment customers start remembering these minute details about your brand is when the realisation happens that they have started associating themselves with the brand on a personal level. Nike’s association with Michael Jordan, the basketball legend led to it’s uber positive branding and hence greater brand knowledge. Nike’s innovative way of collaborations with celebrities led to greater brand identity and hence a better hold on brand knowledge by its customers.
2. For example, we take two very popular aerated drink brands which are very well known, namely Coca Cola and Pepsi. Both have the same level of of brand awareness as is shown when a consumer is asked what they remember in terms of soft drinks, the first few names if not top two would be these two brands. But if Coca Cola is being advertised by a very popular celebrity, let’s say Celebrity X and Pepsi is advertised by Celebrity Y who seems not to be as popular as his counterpart, customers tend to remember Coca cola more than Pepsi. Hence, even is Pepsi tastes better or has better sugar content, consumers prefer to have Coca Cola because of the celebrity associated with it. Taste in an attribute that comes after purchase. It is the marketing and advertising really that influences purchase in this case more. Consumers believe and are concerned that Coca Cola is a fun and trendy brand. This becomes an added advantage over its competitors. This showcases how the brand equity of both brands are different. Hence two brands may, share the same level of brand awareness, however, their level of brand equity can be very different.
Hence, this concludes the definition of Brand Knowledge along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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