In today’s competitive marketplace, brand managers and marketers need to understand their brand’s position in the market. Some of the key metrics that define a brand’s success are its brand awareness, preference, usage, and overall market share in its category.
These brand metrics provide a clear picture of a brand’s position in the market and help in formulating marketing strategies to improve the brand’s performance. In this post, we will discuss why it is important to understand your company’s brand awareness, preference, usage, and total market share.
Brand awareness is the extent to which consumers recognise a brand, whether it is yours or a competitor. It is an important metric because it determines a brand’s ability to attract new customers.
According to Millward Brown’s BrandZ, brand awareness is the most important driver of brand equity.
“The first and most important thing is to have a brand that is recognized, and known, and loved.” – Robert Jones, Managing Director at Wolff Olins
Brand awareness helps the creation of a positive brand image and is a key driver of customer loyalty. It is the foundation on which other brand metrics are stacked. The more consumers are aware of a brand, the more likely they are to consider it when making a purchase. Brands need to continually monitor their brand awareness to understand how it is changing over time and to identify areas for improvement based on market sentiment and competitor changes.
Brand preference is the extent to which consumers prefer one brand over another. It is an important metric because it determines a brand’s ability to compete in its category.
According to Kantar Millward Brown’s AdReaction study, brand preference is the second most important driver of brand equity.
Brands need to focus on creating a unique value proposition that differentiates them from their competitors. This could be in the form of product quality, customer service, or price. According to Mark Addicks, former Chief Marketing Officer of General Mills, “We need to be thinking about what makes our brand unique and different in the marketplace, and why consumers should choose us over our competitors.”
Brand usage measures the degree to which consumers use a brand’s products or services. It is a key metric because it determines a brand’s ability to retain customers.
According to Bain & Company, increasing customer retention rates by 5% increases profits by 25% to 95%.
Brands need to focus on creating products and services that meet the needs of their target customers. They also need to continually monitor customer satisfaction to identify areas for improvement.
“By putting the employee first, the customer effectively comes first by default, and in the end, the shareholder comes first by default as well.” – Richard Branson, Founder of Virgin Group.
Market share is the percentage of total sales in a market that a brand has. It is an important metric because it also determines a brand’s competitiveness in the marketplace.
According to the Harvard Business Review, market share is the most important metric for measuring competitive performance.
Brands need to focus on increasing their market share by growing their customer base and increasing customer loyalty. This could be in the form of launching new products or services, improving customer service, or increasing marketing efforts.
According to Tim Cook, CEO of Apple, “We’re not in the market-share business. We’re in the business of making the best products.”
Understanding brand awareness, preference, usage, and market share has several practical applications. Brands can use these metrics to:
- Identify areas for improvement and develop marketing strategies to improve their performance.
- Determine their position in the marketplace and understand how they compare to their competitors.
- Monitor changes in consumer behavior and adapt their marketing strategies accordingly.
- Measure the success of marketing campaigns and evaluate their return on investment.
In conclusion, brand managers and marketers need to understand their brand’s position in the market. Brand awareness, preference, usage, and market share are key