Blog post by: Drew Rhodes, Baer Performance Marketing Intern
What is brand awareness?
Investopedia defines it as the “extent to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services.”
Brand awareness is important when launching new products and services, and it drives consumers’ decisions when differentiating between competing companies. It encourages repeat purchases and leads to an increase in market share and incremental sales. Brand awareness is also very important to businesses that are marketing proactively through social media sites.
Being Proactive Through Technology and Social Media
Because we are in an era of constant advancements in technology, brand awareness is especially important for every business. This is because people always have some type of computer in their hand, whether it’s a smartphone, a tablet, or an actual laptop/desktop, which means they are able to quickly communicate with others in a matter of seconds.
This could either work in favor of, or against your business. It all comes down to how you go about using it and adapting to these many technological advances. Being proactive in brand building through social media will lead to a better brand experience for existing customers while turning prospective customers into loyal brand followers.
The Drive For Repeat Purchases
According to ISPO news, “90 percent of all purchasing decisions are made subconsciously. We use mental shortcuts to skip the process and avoid being overwhelmed by the number of available options from competitors.” With a good marketing campaign focused on your brand and business model, you will more effectively narrow in on your target audience and encourage them to feel connected to and empowered by your brand. Brand awareness affects perceptions and attitudes, which drive brand choice and even brand loyalty. This means that without brand awareness, repeat purchases are less likely.
Increased Market Share and Sales
By building brand awareness, you can also increase your market share. If you are the first to the punch in getting your brand fused into customers’ minds, you will raise the barrier to other companies that are trying to enter the market. According to the Strategic Planning Institute, “Aggressive marketing and advertising, are the key factors in increasing brand awareness and converting awareness into market share.” Brand awareness does not have a financial value on its own, but it is part of the collective marketing effort that drives incremental sales.
There are many ways you can go about boosting brand awareness amongst consumers, and making a brand mean something to consumers when they look at it is just as important as a sales pitch. Your marketing strategies may vary year-to-year, but a consistent brand message will help make your business top-of-mind when your target market is comparison shopping.