What Is Brand Recognition? Why It’s Important and Benefits

It’s Finger Lickin’ Good !!

You do not even need Google to understand the tagline belongs to KFC. That is brand recognition. From logos to taglines and jingles, there are brands that affirm their popularity without any hullabaloos. What Is Brand Recognition? Why It’s Important and Benefits ? is a question asked by many. So, read along our blog by the experts at Inter Smart, to know about the term and more info.

What Is Brand Recognition?

Remember the iconic Airtel Jingle Ad by AR Rahman? Anyone who hears literally goes. ‘The Airtel Ringtone!!!”. That’s the power of brand recognition. To put it simply, Brand recognition can be defined as the concept used in marketing and advertising to pull on the customer’s ability to recognize their brands through visual and auditory cues including colors, logos, taglines, jingles, etc. Marketing companies conduct market research to find the effectiveness of their brand effectiveness projects/strategies. A strong brand recognition can help you in higher sales and profit margins. 

How Brand Recognition Works

Brand recognition is all about how well people can identify and remember a brand just by seeing its logo, colors, or hearing its name. When a brand is easily recognized, it builds trust and can influence buying decisions.

Visual Identity: Brands use logos, colors, and designs that stand out. Think of McDonald’s golden arches or Coca-Cola’s red and white. When you see these, you immediately think of the company.

Consistency: Successful brands maintain a consistent look and message across all their marketing. For example, Nike always uses its iconic swoosh logo and “Just Do It” slogan. This repetition helps people remember the brand.

Emotional Connection: Brands often try to create an emotional bond with their audience. For example, Apple markets its products as innovative and user-friendly, appealing to people’s desire for cutting-edge technology and creativity.

To cite an example, Coca-Cola’s brand recognition is nearly universal. A study revealed that over 90% of people recognize its logo. Their marketing campaigns are known for making nostalgia and happiness, making them very memorable among the masses.

Research also showed that people are more likely to choose Nike products because of their strong brand image. The “Just Do It” campaign has also created a sense of motivation and empowerment, making the brand more relatable.

Building and Maintaining Brand Recognition

A Harvard Business Review study of 597 corporate logos revealed that  descriptive logos—which “clearly communicate the type of product or service a brand is marketing”—are generally more effective at building brand recognition than nondescriptive logos, which “contain design elements that are not indicative of the type of product or service these brands are selling.” The writers used the Burger King logo, which consists of the word “burger” and the top and bottom half of a hamburger bun, as an illustration of a descriptive logo. However, McDonald’s has long employed the generic Golden Arches logo, which became a popular symbol in the advertising world.

What is The Difference Between Brand Recognition and Brand Awareness? 

A company’s brand is like a person’s reputation. You earn a reputation by trying to do hard things well, says Jeff Bezos, Founder and Executive Chair of Amazon. We can say, brand recognition and brand awareness come under the same umbrella but different concepts. Brand recognition means that people can identify a brand when they see its logo or hear its name. For example, when you see the Nike swoosh and immediately think of sports shoes, that’s brand recognition.

Brand awareness, on the other hand, is about how familiar people are with a brand overall. It includes knowing what the brand stands for and what products it offers. For example,  knowing that Nike sells athletic clothing, shoes, and accessories reflects brand awareness. In short, recognition is about identifying, while awareness is about understanding.

Companies With the Most Brand Value 2024

According to the statista report, Apple will overtake Amazon as the world’s most valuable brand in 2024. The IT behemoth had an estimated brand value of 516.6 billion US dollars, while Amazon had 308.9 billion. 

A closer look at the 2024 brand rating reveals that US technology brands once again dominate the top ten list. For example, among the 100 most valuable brands in 2023, the business technology and services platforms industry had the highest global value. Meanwhile, consumer technology and services platforms took second place on the list.

The ‘Three C’s’ of Branding?

The three C’s of branding serve as key guidelines for building and sustaining a successful brand. They include : 

1. Clarity ( Making sure it’s obvious what the brand offers),
2. Consistency (Maintaining uniformity in visuals, messaging, tone, and more)
3. Constancy (Regularly reminding potential customers of your presence).

The Major Benefits of Brand Recognition 

Builds Trust

Brand recognition = Consumer trust. Some of the most easily identified brands create confidence among customers. It is common to find people recognizing some logo or name of a company and automatically think that the company delivers quality products. It will encourage them to make purchases.

Helps to stand out from Competitors

In a competitive world of business, one stands to benefit from his or her company being well known. Consumers are more likely to purchase from a well-recognized brand, and thus the task of making a decision is made easier for the consumer.

Increases Sales

These surveys reveal that customers tend to believe the brands they are acquainted with. Such knowledge can translate into high sales within a greater market share hence improving the overall revenues.

Boost Customer Loyalty

Loyal customers are those who constantly acknowledge and have faith in a particular brand. They retain the familiar brands they have known and used, even when there are new brands out in the market which results to long-term business results.

Word of Mouth Advertising

There is no advertising as effective as word-of-mouth advertising.  Having positive experiences people will discuss it with colleagues or other members of the family. It will also enhance the brand awareness and brand image.

Want to know the importance of branding in Business?

How Do You Trademark a Brand?

To trademark a brand in India, start by choosing a unique name or logo. Conduct a search to make sure it’s not already registered. Then, file an application online or offline with the Trademark Registry, detailing your brand and its category. After examination, your trademark will be published in the Trademark Journal. If there are no oppositions, you’ll receive a registration certificate, valid for 10 years and renewable thereafter. You can find the administrative steps involved in the process on the Government of India’s official website.