Brand Awareness and Brand loyalty

Question 1

Brand Awareness - impact, measurement

Answer 1

This reflects the recognition of a brand by the general public. Low brand awareness could reflect low marketing spend and lower growth of potential.

It reflects the potential to attract new customers since people are more likely to choose a business they have heard of.

It can be measured through a survey. it can measured overtime
Survey types should be aided, give customers options to pick from.

Question 2

Brand Loyalty - impact, measurement

Answer 2

Good brand loyalty means that a customer likes a brand and is likely to recommend it and buy again from the business.

Customer retention is easier and price increases can be restricted.

Bad brand loyalty can result in negative comment by customers and result in reduced sales.

It can be measured through
1. Repeat purchases - Repeat customers/ Total customers
2. Customer lifetime value - Total revenue generated by a customer. it will be lower for new customers
3. Net promoter score - ask customers a question - On a scale of 1-10 how likely are you to recommend the business to a friend

9-10= promoter
7-.8 = passive
0-6 = Detractors

so deduct percentage of promoters (9 and above) from detractors (6 and below) to find NPS

4. Likelihood to buy - customers could simply be asked how likely are you to buy from us this year.

Question 3

Exam Slide

Answer 3

1. Brand loyalty is merely knowledge that a brand exists
2. A survey of the public is needed to assess brand awareness
3. Brand loyalty is a qualitative aspect and can be positive or negative.
4. Brand loyalty can be measured by repurchase rate, lifetime value or net promoter score
5. Brand loyalty data can be used to estimate sales