Definition: Brand recognition is the consumers’ ability to recognize a firm from its distinctive logo, motto, or artistic symbol.
What Does Brand Recognition Mean?
What is the definition of brand recognition? Branding pertains to brand awareness as consumers associate a brand with a firm and can identify the firm’s products or services without even seeing the brand name, but rather by recognizing elements such as graphics, logo or colors. Companies implement branding strategies aiming to get their brand recognized by consumers through targetability and consistency.
Targetability refers to identify the customer base and its preferences and offer to customers what they are most likely to purchase. Marketing managers perform market segmentation based on demographic factors, seeking to identify which appeal the most to specific consumer types.
Consistency refers to offering the same value proposition unfailingly.
Let’s look at an example.
Example
Company ABC is an insurance company that offers reliable health insurance policies at competitive prices, thereby attracting a growing number of customers. The company has branches in different locations across the US, and therefore, branding is an important element of its branding strategy.
Mark, the marketing manager, along with the marketing team have created a market segmentation profile to identify the individual demographic characteristics of consumers in the different locations that the company operates across the country, such as age, sex, education level and income level.
In addition, they have set up a method of measuring the company’s branding by determining what features do consumers associate with the company’s brand name. For instance, the company’s logo is blue and orange. Mark has performed a research and has found that consumers subconsciously judge a product (or a person) within 90 seconds based on color alone. So, the company’s logo is blue to show that the brand is professional and confident and orange to show that it is friendly and approachable.
The prerequisite for branding is brand awareness. Consumers won’t trust a company they have never heard of only because it has a fancy logo. Marketing managers know that the first step in building customer loyalty is brand awareness. Everything else follows.
Summary Definition
Define Brand Recognition: Branding means creating a company image that can be recognized by consumers looking at a logo, phrase, or mark.
