If I were to put two packages of coffee before you, one being Folgers and the other an unbranded coffee, and asked you to purchase one of them, in all likelihood you would choose Folgers. Why? Because Folgers is a brand that you easily recognize, and more importantly it is the brand that you know that it provides you with value. Consumers will always align themselves with a brand name that they know and trust. In fact, they won’t hesitate buying it, even if it costs more.
That simple scenario gives an example of the twin concepts of brand recognition, and brand value. In order to achieve brand recognition on the market and create brand value, small businesses need to focus on product branding.
Brand value is a precious yet intangible asset, which will make a consumer pay premium price for a product. To a large extent, the value of a particular product is determined by the consumers. However, it is the role of the business to focus on the quality, and ensure that the product features are satisfying enough to bring about a positive response from the consumer. By focusing on quality and meeting expectations, the product will gain respect in the marketplace. This will make consumers all too happy to buy it.
On the other hand, brand recognition relates to the level of consumer awareness your brand has in the market. It is the extent to which your product is recognized, as a result of specific attributes. When these attributes are successfully communicated to the market, the brand will be well known. The company can also gain brand recognition by undertaking a sustained media campaign. However, it is possible for the product to attain recognition in the market, but not bring in additional sales. This is usually caused despite marketing efforts, by a failure of specific product to gain respect or get any positive response.
Consumers develop opinions on various brands. These opinions are formed on the basis of the good or bad experiences they have with the product. Their opinions then become benchmarks, which are used to rate the different brands. If the results of this informal assessment by the market are negative, then even in the face of significant brand recognition, more sales will not be generated. However, when a product has brand value, it is an indication that the product means something to consumers. They value it, and will therefore buy it.
Think of it as a multilevel branding process. First off a business must establish a brand name, so that the product and business will be easily identified in the market. Having done that, they should then seek to create brand recognition. Brand recognition is achieved through effective marketing communication. It causes the consumer to associate the brand with a particular industry or class of product, and enhances their ability to recall it.
Finally, a business must harness the goodwill from brand recognition to build brand value. Any business that wants to improve their bottom line, must aim to satisfy consumers by offering a good quality product, and giving value. Brand recognition will get you noticed in the market, but it is brand value that will take you to the top.