Last updated on April 6th, 2024 at 02:12 am
In this article, we will learn about Why is Brand Awareness important in Business. What are the factors which are influenced? Due to Brand awareness and what Brand Awareness itself is.
Before we jump onto Why is Brand Awareness important in Business, we should learn about what Brand awareness is.
What is Brand Awareness?
Brand awareness refers to the identity of a business organization. It refers to how known and popular your organization’s brand is.
For mobile devices, Samsung and Apple are one of the most known brands around the world. That is what their brand awareness is, it is all over the world.
Companies use several marketing tactics, promotional campaigns, advertisements to increase their brand awareness to capture more markets.
For example, before the launch of every new iPhone and MacBook, Apple organizes a promotional campaign to let the world know about the new features added to the new MacBook and iPhones. This gets the word around people and increases the hype for the upcoming launch of the new product.
Now that we know the meaning of Brand Awareness, let’s see Why is Brand Awareness important in Business.
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Why is Brand Awareness important in Business?
For any business entity, the vision is to be recognised around the world. To be recognised for the nature of the business, to be the best in the world market. The only way it will be possible is if the world is aware about the existence and work the business performs.
Brand awareness is the concept where the consumers are aware about certain brands. The more consumers are aware about a certain brand, the more the product of that brand will be sold.
Customer Retention
Brand awareness not only just about the popularity of the brand, it also refers to the trust of people in the brand. When there is trust in customers, customer retention becomes higher.
This is a time of trending things, even products and services. People switch their brand shuts because others are trending. So, when a brand is well known and popular, along with capturing new customers, the old are always going to come back. Even if sometimes the service lacks a bit, they have their trust in the brand that the company will always offer the best.
Capture New Customer Base
When customers are well aware about a brand, whether they have used it or not, whenever they have to buy something that is in the same line as that brand, they are most likely to trust the brand just because they’ve seen the advertisements on TV and YouTube.
For example, I’ve never used an AC, it’s summertime and now I need an AC. I’ve seen several advertisements everyday on TV, posters about Samsung ACs, so as soon as I think about buying an AC, Samsung comes to mind. Automatically, I trust Samsungs Air Conditioners the most just because it’s a known brand to me.
This is why Brand Awareness is important in Business. It not only retains the previous customers, but brings in new markets as well.
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Increased Sales
The more people become aware about a brand’s existence, the more chances increase that they will buy the product from that brand whenever they are given options.
Not just customers who’ve seen the brand advertisement, people who hear about the brand’s product and quality they offer, it will also attract the customers’ circles whenever they are going to buy a certain product.
When a person sees a certain brand like Apple, they will remember what suggestion their friend gave to them about the iPhones. This automatically increases the chance of sale.
Developed Market Share
One of the most Important reasons Why is Brand Awareness important in Business is because it helps the company to capture more market and expand their market share.
The more famous the brand gets, people start to shift to the brand from the old ones. This increases the current market share of the company as well as reduces the market share of the competitors.
Even when the company explores new markets beyond the horizon or in a different market segment, the brand awareness of the company helps them acquire new markets and increase their market share in that new market.
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Influences Consumer’s Decision
Another one of the reasons Why is Brand Awareness important in Business is because a strong brand attracts customers, while a weak brand identity, however good, is not able to attract customers.
Suppose you produced a phone, it has better features than Samsung’s latest Note series but the only problem is your brand is new and less popular. Do you think anyone is going to buy your product?
The answer is a clear no. Even though you have better features, less price, better quality, due to lack of brand awareness, consumers will shift to Samsung anytime.
Samsung has a very strong Brand Awareness, meanwhile your company doesn’t. It will also have an impact on your existing customer base. They will slowly start to shift to more popular brands despite knowing your product is better just because your image in the market is low.
Companies feed the brains by the idea and image of their brands by extensive promotional tactics. They are so aggressive with their methods that the consumers get influenced that this is the only product worth buying.
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FAQs
What are the benefits of brand awareness?
Having a strong brand awareness can help to increase the sales of your company, capture more markets, capture new markets and increase customer retention.
What factors influence brand awareness?
The factors that influence brand awareness are the Promotional campaigns, Advertisements, trends, social media, and attractiveness.
Who is responsible for Brand Awareness?
The Marketing department is the one who handles and is responsible for the brand awareness of any organization.
Closing Statement
Brand awareness is an important factor for every organization. Make sure you study the market, the trends and customer feedback and use these factors to increase your brand awareness. Use the trends and demand to create more promising promotional campaigns. You now know what are the benefits of having a good and strong Brand awareness in the market.
I hope this article about, “Why is Brand Awareness important in Business?” Was interesting and useful to you. If there are any doubts or suggestions, spread it down in the comment box.