Brand awareness refers to how well-known a brand is and is usually the result of marketing communications, while brand perception is formed by consumer experiences with a brand's products or services and refers to the values consumers associate with a brand. While both awareness and perception impact market share, for a growing company awareness may be more important for driving product usage, whereas for a mature business perception is likely more important, as awareness is already high. The relative importance of awareness versus perception also depends on other factors like level of competition and type of product. Understanding a brand's awareness and perception can help craft an effective brand strategy.

1. Brand Awareness and Brand Perception are the two key metrics companys use to measure brand strength.
Unfortunately, these two terms are incorrectly used interchangeably. To make a clear distinction between
the two terms, let's take a closer look at each term.
Brand perception is created by consumer experience with the brand's product or service. In other words,
perception is the values consumers attach to a brand. To measure brand perception, studies often include
questions like “How do you rank each given brand in terms of safety, quality or performance?"
Brand awareness simply refers to how many people know your brand, and is often the result of the brand's
marketing communications. Usually awareness is measured through studies that ask participants a series of
questions like “What brand comes to your mind if you want to buy coffee?" In general, companies measure
unaided brand awareness---what percentage of study participants mentioned the brand without any kind of
hint.
Research has shown that both brand awareness and perception
have a significant impact on the brand's market share. So, which is more important? Awareness or
perception? For a growing company or industry like social media providers, awareness could be the key
driver to grow product/service usage. On the other hand, for a mature business segment, awareness may
not be the major driver of market share. For example, nearly 100% of consumers are aware of the Cadillac
brand, but many would not be likely to buy Cadillac vehicles. In this case, perception matters the most for
Cadillac. However, the stage of a company and industry are not the only variables that drive the importance
of awareness vs. perception, other factors such as type of product, level of competition, switching cost and
risk of switching also have an impact.
Now that we understand the difference between the two terms, why should they be important to you?
Branding is crucial for products and services sold in huge consumer markets. It’s also important in B2B
because it helps you stand out from your competition by bringing your competitive position and value
proposition to life. In essence, your brand consistently and repeatedly tells your prospects and customers
why they should buy from you.
Understanding your brand's awareness and perceptions and crafting a brand strategy around them can be a
daunting task. Strategic Marketing Services has vast experience in this area and would be happy to discuss
your specific brand awareness or perception needs. Ultimately, we want to help you be in a position to use
your brand strategy in every market interaction so you can strengthen your marketing communications,
relationships and your bottom line.