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In today’s fiercely competitive market, brand perception plays a critical role in determining the success of a product. According to a recent survey, over 90% of consumers consider their perception of a brand when making purchasing decisions. In other words, how a customer perceives a brand can significantly impact the buying behaviour and loyalty towards the product.

Moreover, in the era of social media, where customer feedback and reviews are readily accessible, building and maintaining a positive brand perception is more challenging than ever. It requires a deep understanding of customer needs and preferences, a clear differentiation strategy, and consistent execution across all touchpoints.

This is where market research comes in. It provides valuable insights into customer perceptions, attitudes, and behaviours, which can help shape and improve brand perception. By leveraging market research, companies can gain a competitive edge by better understanding their customers and building a strong and distinctive brand.

In this blog, we will explore the role of brand perception in product marketing and provide insights from market research that can help Product Marketing Managers build and maintain a positive brand image for their products.

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Understanding Brand Perception

Brand perception refers to how customers perceive and evaluate a brand. It is formed through a combination of experiences, associations, and beliefs that customers have about a brand.

The term “brand perception” was first coined by David Aaker, a brand strategist and author, in his 1991 book, “Managing Brand Equity.” Since then, brand perception has become central to marketing research and strategy.

Brand perception is shaped by a variety of factors, including product quality, customer experience, and advertising. A study conducted by PwC found that 73% of consumers consider product quality as the most important factor in their perception of a brand. In contrast, poor customer experience can significantly damage a brand’s reputation. According to a study by NewVoiceMedia, 86% of consumers are willing to pay more for a better customer experience.

Advertising plays a crucial role in shaping brand perception. A company’s advertising message can influence customers’ beliefs and attitudes toward the brand. For example, Nike’s “Just Do It” campaign has helped to create a perception of the brand as one that promotes motivation, empowerment, and self-expression.

However, brand perception is not solely shaped by the company’s actions. External factors, such as media coverage, social media buzz, and word-of-mouth, also play a significant role. In 2019, Malaysian airline company AirAsia faced negative media coverage and social media buzz after a safety incident involving one of its planes. The incident sparked concerns about the airline’s safety record and raised questions about the company’s brand perception. AirAsia responded quickly to the incident, issuing a statement and working to address customer concerns. The company also implemented new safety measures and invested in training programs to improve its safety record. By taking swift action and prioritising safety, AirAsia maintained its brand perception and continued growing its business in the competitive airline industry.

Understanding brand perception is crucial for Product Marketing Managers. By understanding how brand perception is formed and the various factors that influence it, companies can develop effective marketing strategies that build and maintain a positive brand image.

The Impact of Brand Perception

Brand perception has a significant impact on the success of a product. Positive brand perception can lead to higher sales, increased market share, and greater customer loyalty. In contrast, a negative brand perception can significantly damage a product’s success.

One study found that brands with a strong and positive perception outperform those with a weak or negative perception by 20%.

Additionally, according to a report by Deloitte, customers are willing to pay up to a 16% price premium for products from brands they trust.

Cadbury has built a strong and positive brand perception around its chocolate. It is associated with high quality, indulgence, and nostalgia. This has helped Cadbury maintain its market-leading position in the UK’s chocolate market, despite the entry of many competitors over the years.

Similarly, in Singapore, Shangri-La Hotels has built a positive brand perception around luxury, hospitality, and attention to detail. It has used this perception to differentiate itself from competitors and attract high-end customers.

Brand perception has a significant impact on the success of a product. Companies that build and maintain a positive brand perception can outperform their competitors and attract a loyal customer base. By understanding the impact of brand perception, Product Marketing Managers can develop effective marketing strategies that leverage their brand’s strengths and address any weaknesses.

Conducting Market Research

Market research is crucial for understanding brand perception and gaining insights into customer behaviour. Surveys, focus groups, and social media monitoring are just a few of the methods that can be used to gather insights into customer perceptions and preferences.

Surveys are a common market research method that asks customers about their brand perceptions. Surveys can be conducted online or in person and tailored to specific customer demographics or preferences. Surveys can help companies understand customer perceptions of their brand, identify strengths and weaknesses, and gain insights into areas for improvement.

Focus groups are another market research method involving bringing customers together to discuss their perceptions of a brand. Focus groups can help companies understand how customers perceive their brand and how they interact with it. They can also provide insights into customer preferences and attitudes toward different product features.

Social media monitoring is a relatively new market research method involving analyzing social media conversations about a brand. Social media monitoring can help companies understand how customers perceive their brand, identify areas for improvement, and gain insights into emerging customer trends.

By leveraging market research, Product Marketing Managers can gain a deep understanding of their brand’s perception and develop effective marketing strategies that address their customers’ needs and preferences.

Interpreting Market Research

Interpreting market research findings is essential for gaining insights into brand perception and shaping product marketing strategies. To interpret market research findings effectively, brands must first identify key themes and patterns in the data. They should also compare and contrast the findings to identify any discrepancies or areas of inconsistency.

Once the key themes and patterns are identified, companies can use the findings to shape their product marketing strategies. For example, suppose a company’s market research finds that customers perceive their brand as low-quality. In that case, it might focus on improving the quality of its products and repositioning its brand as a high-quality option.

Market research can also provide insights into emerging customer trends and preferences. If a company’s market research finds customers increasingly interested in sustainability, they might develop new products or marketing campaigns highlighting their commitment to sustainability.

Companies can also use market research to identify opportunities for differentiation. If market research reveals that a brand’s customers value high-quality customer service, it might focus on developing a customer service strategy that sets them apart from its competitors.

Interpreting market research findings is essential for gaining insights into brand perception and shaping effective product marketing strategies. By identifying key themes and patterns, companies can use market research to address customer needs and preferences, identify opportunities for differentiation, and stay ahead of emerging customer trends.

Calculating Brand Perception

While there is no one-size-fits-all formula for calculating brand perception, Product Marketing Managers can use various methods to measure their brand’s perception.

Some common measurables are customer satisfaction, brand awareness, and brand loyalty. In addition, brands may develop their own measures that are specific to their brand and marketing goals.

Customer satisfaction is a key metric that can provide insights into brand perception. By measuring customer satisfaction through surveys or other means, Product Marketing Managers can better understand how customers perceive their brand and what factors are most important to them. For example, a hotel chain might measure customer satisfaction by tracking guest reviews on social media and review sites such as TripAdvisor or Booking.com.

Brand awareness is another measurable to consider. This can be measured by tracking how many people are aware of the brand and how well they understand the brand’s value proposition. Companies can use surveys or other methods to track brand awareness and compare their brand awareness to that of their competitors. For example, a new online retailer might track brand awareness by conducting market research to assess how many people are aware of their brand compared to established players in the market.

Brand loyalty is also an important measure of brand perception, reflecting customers’ commitment to a brand. Companies can track brand loyalty through metrics such as repeat purchases, customer retention rates, and customer lifetime value. For example, a subscription-based service might track customer retention rates to understand how well they are retaining customers and how this may be impacted by changes in their service offering or pricing.

There are also some indicators that brand perception may be declining, such as negative reviews, social media backlash, declining sales, or decreased customer loyalty. By monitoring these indicators, marketers can take action to address any issues that may be impacting brand perception.

For example, in the fashion industry, negative reviews, declining sales, or decreased social media engagement may indicate a decline in brand perception. In response, a fashion brand might adjust its marketing strategy, improve product quality, or invest in customer service to enhance the customer experience and win back customers.

Measuring customer satisfaction, brand awareness, and brand loyalty can provide valuable insights into how customers perceive a brand. Monitoring indicators of declining brand perception can help companies address any issues and improve brand perception over time.

Brand Perception and Product Launches

Brand perception’s role in a product launch’s success cannot be overstated. A strong brand perception can generate excitement and anticipation for a new product, while a weak brand perception can make gaining traction in the market more challenging.

Product Marketing Managers must leverage their brand perception and use market research to inform their product launch strategies to ensure success. Market research can help identify customer preferences and trends, allowing the development of products that align with these preferences. By leveraging their brand perception, companies can create products aligned with their customer’s expectations, generating significant buzz and excitement around the product launch.

To maximise the impact of a product launch, companies must also focus on creating a strong brand story and messaging that resonates with their target audience. This messaging should focus on the product’s unique benefits and how it meets the needs and desires of the target audience. Marketers can craft compelling and relevant messaging by using market research to develop a deep understanding of their target audience.

One example of a successful product launch that leveraged brand perception is the release of the iPhone in 2007. Apple’s strong brand perception around innovation, design, and quality helped to generate significant anticipation and buzz around the iPhone before its launch. As a result, the product gained considerable market share and established a loyal customer base.

Overall, the success of a product launch is heavily influenced by brand perception. By leveraging market research and developing a deep understanding of their target audience, companies can create products that align with customer preferences and generate significant excitement around the launch. Additionally, by developing a strong brand story and messaging, companies can establish a meaningful connection with their target audience and establish themselves as a leader in their industry.

Managing Brand Perception

Managing brand perception is an ongoing process that requires a deep understanding of customer preferences and trends. To maintain a positive brand image over time, companies must consistently deliver high-quality products and services, invest in customer service and support, and respond effectively to negative feedback.

One key strategy for managing brand perception is to consistently deliver high-quality products and services. This includes investing in product development and quality control, ensuring that products meet customer expectations, and continually innovating to stay ahead of competitors. By delivering high-quality products and services, companies can establish a strong reputation and build a positive brand perception over time.

Investing in customer service and support is also critical for managing brand perception. This includes providing prompt and effective customer service, being responsive to customer needs and concerns and continually monitoring and improving the customer experience. Companies can build customer loyalty and strengthen brand perception by investing in customer service and support.

Inevitably, companies will receive negative feedback from time to time, whether it be through social media, online reviews, or other channels. The key to managing negative feedback is to respond effectively and in a timely manner. This includes acknowledging the customer’s concerns, addressing the issue directly, and taking steps to prevent similar problems from occurring. By responding effectively to negative feedback, companies can demonstrate their commitment to customer satisfaction and build trust with their customers.

In the early 2010s, McDonald’s saw a decline in brand perception due to negative media coverage around the healthiness of its menu items. To turn this around, the company introduced several new menu items, such as salads and fruit smoothies, to appeal to health-conscious consumers. McDonald’s also focused on improving the customer experience by investing in restaurant renovations and digital ordering systems.

Brand perception plays a critical role in the success of any product marketing strategy. By understanding how brand perception is formed, how it affects consumer behaviour, and how to measure and manage it, Product Marketing Managers can ensure that their products and services resonate with customers and generate the desired business outcomes.

Market research is a valuable tool for understanding and shaping brand perception. By using methods such as surveys, focus groups, and social media monitoring, companies can gain insights into customer preferences and behaviour, which can then be used to inform product development, marketing campaigns, and customer experience strategies.

Effective brand management requires a commitment to quality, innovation, and customer service. By consistently delivering high-quality products and services, investing in customer support and engagement, and responding effectively to feedback, companies can build a positive brand perception over time and establish themselves as leaders in their industry.

Key takeaways:

Brand perception is critical to the success of product marketing strategies.
Market research is an essential tool for understanding and shaping brand perception.
Effective brand management requires a commitment to quality, innovation, and customer service.

As a global market research firm, Kadence International can help companies navigate the complexities of brand perception and consumer behaviour. With expertise in a range of research methods and a deep understanding of different markets and industries, we can provide the insights and guidance that companies need to succeed. Request a proposal today.

We live in the experience economy, meaning brands no longer only compete on the quality of their products but also their impact on consumers. In the experience economy, experiences are first, products and services second.

First coined by economists B. Joseph Pine II and James H. Gilmore in 1998, the experience economy describes an economy where “goods and services are sold by emphasizing the effect they have on people’s lives.”

In the experience economy, customer experience (CX) and user experience (UX) has become a critical differentiator for brands that get it right. However, Pines makes an important point when he says most brands equate CX to good service, which is good, “but rarely does it rise to the level of memorability.”

A brand may do a great job of making things easy and convenient for consumers, which is ideal, but it needs to create a distinctive memory to be considered a memorable experience.

There have been shifts in consumer behaviour, and they will purchase experience over material things. This is especially true for Millennials and Gen Zers. Psychologists have a good explanation for this shift. They believe experiences make people happier over the long term than material things. This is because experiences stay in our memories longer, give us better stories than material things, and help us form meaningful social connections and relationships that are key to happiness and health. For this reason, brands that nurture human experiences will grow faster than their competitors, who do not build unique, memorable events.

The importance of building a customer-centric business.

According to studies, customer-centric brands are 60 percent more profitable than those not focused on the consumer’s needs and wants.

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Research also shows that 74 percent of consumers are likely to buy based on experiences alone. The good news is that most companies and business leaders (89 percent) consider customer experience to be directly linked with loyalty and retention. However, only about 20 percent believe these brands to be customer-centric. Studies show a gap between brand promise and customer experience because organizations focus more on brand awareness. The reality of the market today is that brand experience management helps improve brand awareness.

So, what exactly is brand experience management?

Brand experience management refers to the discipline of managing, strategizing, measuring, controlling, and influencing every aspect of customer engagement and interaction with a brand.

Brands that get experience management right see higher revenues, stronger brand resonance, and happier, more loyal customers. In today’s marketplace, organizations have less time, more communication channels, and tighter competition, so brand experience management is essential to cut through the noise. It also aligns with your brand’s promise to match the customer experience. It can close the gap between the brand’s promises and the customer’s actual experiences.

Disney is, without a doubt, one of the earliest examples of brand experience management.

Disney has an impressive lineup of products and services that deliver exceptional brand experiences, including theme parks, movies, merchandise, and media content.

The brand has garnered a loyal following by creating immersive and engaging experiences and content across multiple touchpoints.

For instance, as guests enter Disney theme parks, they are instantly transported to a magical world with the type of memorable experiences Pines refers to in his definition of experience management. Disney’s unwavering attention to detail in every project and engaging storytelling contribute to its brand value and experience. Disney also transcends generations in its appeal and has a loyal consumer base across all ages. Disney’s consistent emphasis on creating a customer-centric brand and delivering an exceptional experience has made it the ultimate example of brand experience management.

Organizations need to move from brand management to brand experience management to win over consumers looking for a sweet spot between value, quality, convenience, and emotional experience.

Where is the experience data to manage brand experience?

To manage experience data, brands need reliable, real-time experience data to show how customers feel about your brand (in the moment) and identify any experience gaps. Markets move quickly, and when brands collect old and outdated data, it doesn’t help them make the right decisions.

Examples of brands getting it right.

Brands are working hard to ensure they delight their customers and never disappoint them because they understand how a great customer experience can build or break their brand, directly impacting brand value, customer loyalty, and revenue.

The Heineken Experience in Amsterdam is an excellent example of how a brand can create memorable experiences. Through its self-guided tour, visitors get an inside look at the beer brand and learn about its heritage, history, brewing process, and innovations and get a taste of the beer.

The building has more than 1,000 visitors a day.

Companies in the service industry are at the forefront of the experience economy. Restaurants are playing with themes and recipes to add that layer of experience wherever they can.

Le Petit Chef, a culinary experience, is an example of a brand taking it to the next level. Using visual mapping technology, the world’s smallest chef “cooks” your food on your table.

Photo credit: herfavfood.com

Although like any restaurant, the actual dish is prepared in the kitchen by real staff, guests are treated to an immersive show with custom animations. The animation on the table varies based on the story, but the tabletop transforms into a landscape and features Le Petit Chef working hard to grow your food, prepare it, and put it on your plate.

How can brands develop and measure their CX through research?

Define what the ultimate experience should be.

Brands that create excellent customer experiences first define what that experience looks like and work backwards. Once a brand understands what it wants to be known for, it can then initiate the values and strategies to achieve that vision.

CX is an organization-wide function.

CX continues beyond the leadership level. Business leaders must communicate the vision to everyone in the organization. Everyone should be excited about the CX’s why, what, and how, as defined by the brand, from IT to sales, marketing, and Human Resources.

Metrics used to measure CX

There are five broad types of research used to measure CX.

Customer satisfaction (CSAT). This is the best place to start, as CSAT captures survey questions explicitly asking about satisfaction or measures implicit metrics, such as reviews, ratings, delivery statistics, or mystery shopping scores.
Advocacy/reputation/brand. These metrics are important because they show how willing customers would be to recommend a product, service, or brand to others. Social media sentiment scores, online reputation, trust scores, and event participation are good ways to gauge these metrics.
Consumer loyalty. Customer retention and churn are more retrospective and measure the average consumer engagement period. They can also show the likelihood of a customer staying with a brand. These can be measured through loyalty program participation levels, buying frequency, loyalty program participation, average order size, and repeat orders.
Employee engagement. Customer experience has to be an organization-wide effort. Many organizations ignore this important metric. Employee engagement is a significant concern in providing CX advancements.
Brand promise and customer experience gaps. When a product or service does not align with the brand promise, the customer experience is poor, no matter what.

Putting experience insights into action.

Brands need suitable systems in place to pull the experience data so it can lead to insightful action. With the appropriate procedures in place, brands can immediately apply the insights they get from their data to action. For this to happen, customer feedback should be directed to the right people. This feedback is looked at with sales data and marketing spending so business leaders can connect the dots and measure the impact of their initiatives.

When everyone in the organization is responsible for brand experience management, and systems are in place along with real-time data, the organization develops a brand experience mindset, which leads to long-term growth.

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Fill out our Request for a Proposal here.

Brand awareness is the level of familiarity and recognition a consumer has with a particular brand or product. It is typically measured by asking consumers if they are familiar with a brand and if they can recognise it when presented with it. Brand awareness is also known as brand recognition or brand recall. The responsibility for brand awareness within an organization typically falls to the marketing and advertising departments.

There is no maximum amount of brand awareness that a brand can expect, as it can vary greatly depending on the industry and competition. A well-known brand has a high level of brand awareness among consumers. Brand awareness can be good or bad, depending on the reputation and perception of the brand.

Brand awareness metrics are vital for brands because they can understand how well their marketing efforts resonate with consumers and make strategic decisions accordingly. An organization should start measuring brand awareness as early as possible, ideally during the development and launching of a new product or brand.

As of 2021, the most valuable brand in the world is technology giant Apple. According to Interbrand’s “Best Global Brands” report, Apple’s brand value is estimated at around $234 billion. Apple has consistently been ranked as the most valuable brand globally for several years, thanks to its strong reputation for innovation, design, and customer loyalty. The company also has a diverse product portfolio that includes iPhones, iPads, Macs, Apple Watches, AirPods, and services like the App Store, Apple Music, and iCloud.

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Other top brands worldwide include Google, Microsoft, Amazon, Coca-Cola, and Samsung, which also have strong brand values and reputations. These brands have a strong presence in their respective industries and consistently show strong financial performance.

It’s important to note that brand value is subjective and can fluctuate depending on factors such as market conditions and brand performance. Factors that cause brands to lose awareness include changes in consumer preferences, increased competition, and negative publicity.

The history of brand awareness research

The first examples of brand awareness research can be traced back to the early 20th century with the advent of advertising and the growth of consumer culture.

One of the earliest examples of brand awareness research is the “Top of Mind” study, which was first conducted in the 1930s by George Gallup, the founder of the Gallup Poll. The study aimed to identify which brands were most frequently mentioned by consumers when asked to name a brand in a particular product category without any prompts or cues.

The “Top of Mind” study was a pioneering research method in brand awareness. Advertisers and marketers widely use “Top of Mind” research studies to understand consumer preferences and measure the effectiveness of advertising campaigns.

Additionally, in the 1940s, Louis Cheskin, an American psychologist and design consultant, developed the “Association Test,” which measured brand awareness and brand association by asking consumers to list the first word or phrase that comes to mind when thinking about a brand.

These early examples of brand awareness research laid the foundation for modern brand research and have been adapted and developed over the years to include more advanced methods and technologies such as online surveys, focus groups, and social media analytics.

Measuring brand awareness has changed over the years with the advent of new technology, such as online metrics and social media analytics. Modern technology has made researching brand awareness more efficient and cost-effective.

What is the best formula or method for measuring brand awareness?

There is no specific formula for measuring brand awareness, as the methods used can vary depending on the research objectives.

There are different ways to measure brand awareness, and some methods include the following:

Unaided recall: This method measures the percentage of people who can spontaneously recall a brand without any prompts or cues. It’s a measure of top-of-mind awareness.
Aided recall: This method measures the percentage of people who can recall a brand after being prompted or given a list of options. It’s a measure of brand recognition.
Brand association: This method measures the strength and relevance of consumers’ associations with a brand. It can be done by asking consumers to list the first word or phrase that comes to mind when thinking about a brand.
Brand loyalty: This method measures the degree to which consumers are loyal to a brand. It can be done by asking consumers how likely they are to repurchase a brand or recommend it to others.
Brand consideration: This method measures the degree to which a brand is considered by consumers when they are making a purchasing decision. It can be done by asking consumers if they would consider purchasing a brand in the future.
Brand tracking: Brand tracking measures changes in brand awareness over time by conducting regular surveys and comparing the results.

Different methods may be more appropriate for different types of research and various industries. Additionally, the sample size, the formulated questions, and the study’s context should be considered when measuring brand awareness.

How do you calculate the value of a brand?

There are different ways to evaluate a brand or trademark, including:

Brand Value: This is the most common method which measures the financial value a brand name or trademark contributes to the company. It is calculated using a combination of factors such as revenue, market share, customer loyalty, and brand awareness.

Brand Equity: This method refers to the added value that a brand name gives to a product or service beyond its functional attributes. Brand equity is built over time by creating positive associations in customers’ minds and can be measured by how consumers perceive the brand in terms of quality, reputation, and loyalty.

Brand Strength Index (BSI): This method calculates brand value by measuring the power of a brand in the marketplace. BSI takes into account factors such as brand loyalty, brand awareness, and brand perceptions.

Royalty Relief: This method calculates brand value by estimating the amount of money a company would have to pay to license the brand if it did not already own it. This method considers factors such as the brand’s strength, market conditions, and the company’s projected revenues.

Cost of Replication: This method calculates brand value by estimating the cost of creating an equivalent brand from scratch. This method considers factors such as the cost of developing the brand name, logo, and other intellectual property, as well as the cost of advertising and building brand awareness.

Brand Contribution: This method calculates brand value by estimating the revenue or profit a brand contributes to a company. This method takes into account factors such as market share, customer loyalty, and brand awareness.

Regardless of the method chosen, brand awareness is a critical aspect of a brand’s value. High levels of brand awareness can contribute to a strong reputation and customer loyalty and ultimately increase the financial value of the brand.

Can brands with higher awareness charge more?

While brand awareness is a key factor in a brand’s value, brands with a strong reputation for quality, for example, may be able to charge higher prices than others. Brands that have a loyal customer base and have built a strong emotional connection with them may also be able to charge a premium.

A brand with a strong level of awareness is often easier to license and can command a higher value for licensing agreements.

Consumers may be willing to pay a premium for a product or service from a brand they are familiar with and trust, as they perceive it to be of higher quality or offer more value than similar products from lesser-known brands.

Luxury brands may charge higher prices based on the exclusivity and prestige associated with the brand.

However, charging higher prices is only sometimes possible or appropriate for all brands. Brand awareness can be a factor in charging higher prices, but it is not the only one. It’s important to consider the competition, target market, brand reputation, positioning, and emotional connection with its customers.

Additionally, it’s essential to ensure that the higher prices are justified by the brand’s value and that the prices are not too high to discourage potential customers.

How can brands grow their brand awareness?

Brands can help grow brand awareness by implementing various marketing strategies, such as:

Building a strong visual identity and consistent brand messaging
Investing in advertising and promotions
Building relationships with influencers and media outlets
Creating engaging and shareable content
Leveraging social media and digital marketing
Hosting events and sponsorships
Creating a strong customer service experience
Building a solid reputation and positive brand image

It’s important to note that while these strategies can help increase brand awareness, it’s crucial to tailor them to the specific audience and objectives of the brand and to measure the strategy’s effectiveness to ensure they are working.

What happens to brands that fail to measure brand awareness?

If a brand fails to build brand awareness, it can have many negative consequences. Some of the most significant ones include:

Reduced sales: Without brand awareness, consumers may not be able to find or recognise a brand’s products or services, leading to reduced sales and revenue.
Difficulty standing out in a crowded market: A lack of brand awareness can make it difficult for a brand to differentiate itself from competitors and stand out in a crowded market.
Difficulty building customer loyalty: Without brand awareness, it can be difficult for a brand to build customer loyalty, as consumers may not have a strong emotional connection to the brand.
Difficulty attracting new customers: Without brand awareness, it can be difficult for a brand to attract new customers, as they may not know that the brand exists or what it offers.
Difficulty creating a strong reputation: Without brand awareness, it can be difficult for a brand to create a strong reputation and be perceived positively by consumers.
Difficulty in launching new products or services: Without brand awareness, it can be difficult to launch new products or services, as consumers may not be familiar with the brand or its offering.
Difficulty in expanding to new markets: Without brand awareness, a brand may find it difficult to expand to new markets, as consumers in those markets may not be familiar with the brand.
Difficulty in negotiating with suppliers and partners: Without brand awareness, a brand may find it difficult to negotiate favourable terms with suppliers and partners, as they may not see the brand as a valuable partner.

Overall, building brand awareness is an important part of building a successful business. It helps to create a strong emotional connection with consumers, increase sales and revenue, and create a competitive advantage in the marketplace.

Can brands reverse a trend of declining awareness?

Reversing a trend of declining brand awareness can be a challenging task. Still, there are several strategies that brands can use to improve their brand awareness and regain consumer recognition and trust. Some of these strategies include:

Re-evaluating brand positioning and messaging: Brands should review their current positioning and messaging to ensure they are relevant and resonate with consumers. They should re-position and re-brand themselves if necessary.
Investing in advertising and promotions: Brands should invest in advertising and promotions to increase consumer exposure to the brand. This can include traditional advertising, such as TV and print ads, digital marketing, and social media advertising.
Building relationships with influencers and media outlets: Brands should build relationships with influencers and media outlets to increase exposure and credibility.
Creating engaging and shareable content: Brands should create engaging and shareable content such as videos, infographics, and blog posts to increase brand visibility and build an emotional connection with consumers.
Leveraging social media: Brands should leverage social media to engage with consumers and build a community around the brand.
Building a solid reputation and positive brand image: Brands should focus on building a strong reputation and positive brand image through positive customer experiences and word-of-mouth marketing.
Reviewing and adjusting the customer service experience: Brands should review and adapt their customer service experience to ensure that it aligns with the brand’s values and goals and helps build a positive brand image.
Investing in market research: Brands should invest in market research to understand the brand’s current awareness and perception and identify the areas that need improvement.

Reversing a trend of declining brand awareness takes time and effort, and it’s not a one-time task. Brands should continuously monitor and measure the effectiveness of their strategies and make adjustments as necessary.

What insight can be gained through a brand awareness research study?

When gathering information about brand awareness, areas that should be researched include consumer recognition and familiarity with the brand, brand loyalty, and brand perception.

You can use metrics such as market share or brand recall to compare a brand’s brand awareness over its competitors.

Gathering brand awareness metrics can be different in international or foreign markets, as cultural and language differences may affect consumer recognition and perception of the brand.

It is essential to use a variety of research methods and to consider factors such as sample size and representation so that the information gathered in brand awareness research is correct and trustworthy.

Different types of brand awareness research include surveys, focus groups, and online metrics.

Gathering information about the awareness of brands is important because it allows companies to understand how well their marketing efforts resonate with consumers and make strategic decisions accordingly.

What factors and steps should you consider when conducting a brand awareness study?

When researching brand awareness, important considerations include sample size, representation, and research methods.

The steps for calculating brand awareness can vary depending on the specific research methods and objectives, but generally, the process includes the following steps:

Define the research objectives: Identify the specific information you wish to gather about brand awareness, such as consumer recognition and familiarity with the brand, brand loyalty, and brand perception.
Develop a research plan: Determine the research methods that will be used to gather information about brand awareness. This may include surveys, focus groups, or online metrics.
Conduct the research: Use the research methods identified in the research plan to gather information about brand awareness.
Analyze the data: Organise and analyse the data collected during the research phase to identify patterns and trends in brand awareness.
Make strategic decisions: Use the insights gained from the research to make strategic decisions about how to improve brand awareness, such as adjusting marketing strategies or targeting specific groups of consumers.

Brand awareness should be measured regularly, depending on the brand’s specific needs and the industry. Some brands may measure brand awareness quarterly, while others may measure it annually. The frequency of measuring brand awareness also depends on the level of competition, the product or service, and the market conditions.

What types of questions are typically asked during brand awareness research?

When collecting information about brand awareness, it is important to include metrics such as consumer recognition and familiarity with the brand, brand loyalty, and brand perception.

It’s important to remember that the research questions used, whether qualitative or quantitative, will depend on the survey’s specific research objectives and goals.

Several types of research questions should be asked to gather valuable information about consumer recognition and familiarity with the brand.

Some examples of these types of research questions include:

Recognition: “Are you familiar with [brand name]?”
Recall: “Can you name a brand in [product category]?”
Top of mind: “What is the first brand that comes to mind when you think of [product category]?”
Spontaneous: “What brand did you last purchase in [product category]?”
Aided: “Can you name a brand of [product category] that you have seen advertised recently?”
Unaided: “Can you name a brand of [product category] without any prompts or cues?”
Brand loyalty: “Would you consider purchasing from [brand name] again in the future?”
Brand preference: “Which brand of [product category] is your personal favourite?”
Brand association: “What words or phrases come to mind when you think of [brand name]?”
Brand perception: “How would you rate [brand name] in terms of quality, value, and customer service?”

After the data is collected, it is generally recommended to segment the responses to the brand awareness survey based on demographic factors such as race, age, income, and education.

Segmenting the data in this way can help identify patterns or differences in brand awareness and perception among different groups of consumers. For example, segmenting responses by age can reveal discrepancies in brand recognition and loyalty among different age groups. Segmenting by income helps to understand how brand awareness and perception differ among consumers with different financial means. Segmenting by education can reveal how brand awareness and perception may vary among consumers with different levels of education.

It is important to note that demographic segmentation may not be suitable or appropriate in all cases, and it is essential to consider the ethical and legal implications of collecting and using demographic data in research. Additionally, it’s crucial to ensure that any data collected is handled and reported in a way that respects the privacy and confidentiality of survey participants.

It’s also important to remember that demographic segmentation is one of many ways to segment the data. Other ways to segment the data include:

Behavioural segmentation (e.g., purchase history, brand loyalty, frequency of purchase)
Psychographic segmentation (e.g., personality, values, lifestyle, interests)
Geographic segmentation (e.g., region, urban or rural)

Why consider a research partner like Kadence International to conduct your brand awareness research?

There are several reasons to use a research agency when conducting brand awareness studies.

Expertise: Research agencies have the knowledge and experience in conducting research studies, including brand awareness studies. They can design a study tailored to the brand’s specific needs and provide actionable insights.
Objectivity: Research agencies are independent of the brand, which can provide a more objective perspective on the brand’s awareness and perception.
Resources: Research agencies typically have a wide range of resources, including staff, technology, and data collection tools, which can help conduct a brand awareness study.
Time-saving: Outsourcing the research to a research agency can free up time for the brand to focus on other important tasks, such as building the brand or developing new products.

Using a research agency like Kadence International when conducting brand awareness studies can provide valuable expertise and objectivity.

Kadence International partners with the world’s largest and fast-growing, emerging brands to help them make game-changing decisions. If you would like to discuss your brand’s awareness and how research can help, please reach out.

Why do people camp outside Apple stores to be the first to access newly launched iPhones? Why do consumers pay more for branded products than for non-branded ones?

It has everything to do with consumer perception or brand equity. When consumers favour your brand over a competitor’s brand and show loyalty to your brand over time, they are contributing to your brand equity. Brand equity is defined as the measure of the perceived value of a branded product over time. Brands need to measure brand equity because boosting it can help them improve their market share and profit margins.

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Brand equity is different from brand value

With an estimated brand value of about USD 355.1 billion, Apple has established itself as the world’s most valuable brand for 2022, followed by Amazon in second place with a brand value of approximately USD 254.2 billion.

So, what is brand value, and how is it different from brand equity?

Brand value is the price someone will pay for your brand if you were to sell it. There are many ways of measuring brand value and they include the costs associated with building the brand. The investment made in creating a brand, its identity, logo, graphics, brochures, and other assets is used in the brand valuation process.

Brand equity is not the same as brand value but can positively raise the worth of a brand because as you build your brand equity, you achieve greater brand recognition and positive brand associations, which can boost revenue and brand loyalty.

It should be noted that a brand can have value even if it has no equity. For example, a company may invest in developing a product and brand, so it will have a value attached to it even before it enters the market. Brand equity helps enhance and increase brand value.

What drives brand equity, and how can you measure it?

While brand value is easy to measure, brand equity can be vague and more difficult to calculate because it is influenced by opinions, perceptions, and behaviours, and not just financial metrics.

Let’s divide these drivers into three categories —namely, financial metrics, brand awareness metrics, and consumer sentiment.

Financial metrics

Although not the only factors responsible for brand equity, financial drivers like healthy profits help validate a brand’s equity to a great extent.

Metrics such as sales, average transaction value, customer lifetime value, profitability, growth rate, and the cost of doing business are essential data sets to measure overall brand equity. It is also important to calculate the competitive performance of a brand against other brands in the same space by measuring market share and customer acquisition rate.

These competitive metrics also help your brand identify gaps in customer service, product features, pricing, marketing messaging, positioning, social media engagement and following, and distribution channels.

No matter how well or poorly your competition performs, it will directly impact your brand. Conducting a thorough competitive analysis to evaluate how your brand measures up is essential.

When these financial metrics increase, so does your brand value.

Brand awareness metrics

A strong brand with a high level of recall and awareness will likely boost your brand equity. This is what sets successful brands apart as they endure even the most difficult economic conditions.

Customer awareness of a brand and its products and services is essential to brand equity. Brands should aim for consumer advocacy and, more importantly, for their consumers to actively engage with and talk positively about their brand.

Conversation share, measured by the number of times a brand comes up in conversations about the brand’s offerings, is a massive indicator of how aware consumers are of your brand.

Market research helps evaluate brand awareness through various methodologies online and offline. Commonly used methodologies in market research include:

Surveys and focus groups
Local store traffic
Traditional media mentions
Online search volume
Customer reviews
Social media mentions

Emotional metrics

Knowing how your consumers perceive your brand is critical—the more positive their perceptions, the higher your brand equity.

Market research helps track consumer behaviour and sentiment to obtain reliable information about brand perception. This type of metric is much more challenging to measure. Market research using qualitative surveys and the right text analytics software to interpret open text is beneficial in data collection and analysis.

Consumer preference and consumer perception of a brand are good indicators of brand equity. The former pitches the brand against its competition and gauges how consumers view it in relation to competing brands. The latter provides insights into the emotions and feelings associated with a particular brand. For instance, market research using qualitative methods can reveal how consumers react to a particular brand name.

Consumer preference influences purchase decisions, like paying a higher price for a brand name or going the extra mile to access the brand. A case in point is the annual beeline outside Apple stores when it releases its newest iPhone.

Quantitative methods like sales data are an excellent way to gauge customer preference; however, they should be used alongside qualitative methodologies such as surveys to identify to what extent your customers agree your brand is superior to the competition and how much they are willing to pay for your brand name.

These surveys are also used to measure how emotionally invested your consumers are in your brand and the emotions associated with it.

While a nebulous concept, brand equity provides the actual value of a brand beyond financial metrics.

Knowing how consumers feel toward a brand can open new opportunities for understanding key demographics within target audiences.

With a deeper understanding of the target audience, products and campaigns can be tailored to specific groups to improve ROI.

Utilizing quantitative methods, brands measure brand equity based on financial data, like sales, revenue, profit, and loss. Qualitative methods of measuring brand equity, on the other hand, include brand awareness, brand recognition, customer satisfaction, customer loyalty, and brand perception.

Brands like Apple, Amazon, and Microsoft did not build their brand value overnight, but we know they have devoted many years to creating memorable brands that resonate with their target audience, and they continue to tirelessly do so even today.

While tracking many of these metrics may be challenging, it is not impossible. Market research provides invaluable tools to etch out brands that stand out and shine using data, market intelligence, insights, and breakthrough technology.

The phrase “Never judge a book by its cover” does not apply to product packaging design. When package design is the only reference a consumer has, he is bound to go for the most appealing option. Years of market research have established that what’s outside the package is as important as what’s inside it. How else will a product stand out in a sea of competing brands? Yes, brand loyalty, ingredients, and other factors can make a difference, but in the end, most of it comes down to consumer psychology.

In a store, the package design is the gateway to the product. Successful brands use psychology in their product design and packaging, driving sales and brand loyalty. Consumers often perceive a product’s function and worth based on its packaging and design.

Product packaging is primarily dictated by the target audience and what they want. For brands targeting a younger demographic, for instance, it is essential to add personalization and brighter colours and fonts that appeal to the youth.

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This can change when catering to the same demographic in different countries. For instance, the environmental impact of packaging is a relatively less critical purchase factor for Japanese consumers, yet 80 percent of the respondents in India factor the environmental impact of packaging into their purchase decisions.

Understanding Consumer Psychology

Any buying decision involves consumers going through several cognitive stages when looking for a product actively. Their perceptions and opinions are based on what they see during this stage. After they select and purchase a product, they continue to evaluate their decision based on the product’s performance and experience.

When a product’s perceived value is high, consumers are less impulsive than when the value is lower. This explains why over 70 percent of supermarket purchases are not planned. Shoppers in supermarkets and grocery stores rely primarily on the instinctive cues they get from package design as they browse stores. These help them make quick judgments about the product’s quality and value and can be why they add it to their carts (or not).

Choosing the right colours

Research shows that colour is one of the first things our brains see when they come across a brand and is often the first thing that pulls consumers in.

Do you feel calm in a blue room, and does yellow make you anxious?

Pablo Picasso once said, “Colors like features, follow the changes of the emotions.” Colour is known to change emotions, moods, and feelings dramatically. Colours can have different meanings from culture to culture, as the idea of colour is deeply rooted in our experiences.

Colour psychology is a hot topic in marketing, branding, and graphic design because colours play a huge role in brand perception and image.

When selecting colours, it is imperative to look into the cultural significance of each colour. This becomes necessary for brands planning international market entry, as different cultures have different connotations and emotions attached to specific colours. For instance, while green is a colour of prosperity in many Muslim nations, it is a colour associated with illness and death in some South American cultures.

It is also essential to consider how your brand colours align with your brand and its identity. Other considerations are whether these colours stand out in a crowded marketplace and how they would work for those who are colourblind.

Format and materials

The format or shape of the packaging is often based on whether the package will be used or discarded. In case it’s part of the product, like a milk carton, the quality, materials, and function are important considerations. For instance, a square or rectangular base is better so it can fit in the refrigerator more efficiently, and an easy-to-pour spout enhances convenience and functionality.

Packaging design depends on many other factors as well. For instance. a luxury product needs to be packaged in a way that reflects the high price of the product. In recent years, sustainability has also become a huge factor in selecting packaging materials, and an exciting product design may encourage consumers to post the packaging or unboxing online.

Typography and labels

Typography is the art of placing text to make the copy clear, legible, and visually attractive. It utilises font style, size, and structure to evoke feelings and emotions and convey a message. It also helps balance the graphics on a package.

The font styles and sizes you use on your packaging play a huge role in the overall design and how consumers perceive your brand. The logo, typography, and fonts allow your brand to stand out from the competition. The typography helps catch your target audience’s attention and conveys the brand’s messaging. It also helps establish consistency, a vital aspect of brand identity.

For a successful packaging design that quickly moves the product off the shelves, brands need to know their target audience and stay abreast with the latest trends. The typesetting, fonts, and styles you use, just like the graphic and colour choices, are based on your target market —factors such as age, gender, language, culture, and preferences influence the typography of a product’s package design.

By providing invaluable information regarding current market trends and the unique wants and needs of a brand’s consumer base, market research helps a brand develop its business and marketing strategy. Market research benefits many different facets of business, including product design and packaging.

Brands need to have complete knowledge of consumer desires and the effect of specific product packaging on purchasing patterns and preferences. In market research, there are many different means for gathering this data, each with its own set of advantages. In most cases, it is best to use a combination of methodologies to understand the effectiveness of your packaging design and labels.

Market research allows brands to tap into the psyche of their target markets to gain a deeper understanding of how a package design impacts purchasing decisions.

This can be done in many ways by gathering data, each method with distinct advantages.

Some common forms of gathering data:

1. Focus groups

Market researchers often use focus groups and show them labels and packages to gauge their first reactions to the design, colours, typography, offers, and form. The focus group participants sample the product and look at the packaging and label to provide insights into what part of the packaging would influence their purchase decision.

2. Interviews and discussions

Many brands conduct interviews with consumers as they browse competing products in a store setting. Questions like, “what made you add a product to your cart?” can uncover purchase decisions and the effectiveness of your product packaging. You may also interview employees from different departments who know the product well.

3. Surveys

Online surveys are a quick and easy way to conduct a survey. These can be carried out for in-store and online purchases on eCommerce sites and allow for anonymity, providing information and insights into purchase decisions and behaviour. A well-designed survey employs a rating scale and asks open-ended questions.

4. Observation

Market researchers often use direct observation by visiting the store and observing how the products on the shelf move. In this manner, it is possible to see how the placement of items in a store affects sales. It also allows brands to look closely at the competition to see what graphics, colours, and other visual elements affect purchase decisions. How would your product look in comparison to competing brands? Does it blend in or stand out? Does it stand out in a good way? Making frequent visits to stores can provide a window of opportunity and is a powerful way to conduct market research.

Market research provides invaluable insights into market trends, consumer psychology, and behavior. It can help formulate the right business and marketing strategy for businesses, including package design.

Package design research is more critical now than ever. In many cases, the retail package design is the only advertisement for the brand. The brand’s packaging has a few seconds to draw consumers to the product and evoke purchase intent.

While brands use many quantitative and tried and tested package designs, they often tend to overlook the subjective side of research, which requires qualitative research methods and tools—knowing the “why” behind purchase decisions and consumer motivations can provide the essential piece in understanding the effectiveness of a new package design or redesign.

Emerging technological advancements are transforming market research forever. As many consumers move online, the way brands identify and understand consumer needs is being reimagined.

Many technology trends disrupt the market research industry —from data collection and new product launches to tracking brand performance. This blog post will focus on the breakthroughs in technology impacting brand tracking and product performance tracking.

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Brand and performance tracking refers to the process of continually measuring brand health over a period within the target audience. It allows brands to measure the performance of a product in relation to its competition. After a new product is launched, market research helps brands gauge performance to stay competitive.

With consumers increasingly moving online, brands can tap into new, vast, and reliable consumer behaviour data in real-time. This has also made Direct to Consumer marketing much more common. Brands like Happy Human (Singapore), Dime Beauty (U.S.A.), Joi (Malaysia), Sleepy Owl (India), Recess (Philipines), Adopt a Cow (China), and Knot (Japan) have eliminated the middleman to create, develop, sell, and distribute their products directly to the end-user. The absence of middlemen and brick-and-mortar stores allows them to maintain quality and reduce prices. But this is not all. These brands also have the added advantage of measuring performance directly without employing market research across several retail outlets. They can discover brand sentiment directly, making them more agile, nimble, and competitive.

While there is still a place for traditional research methodologies, technologies like machine learning, Artificial Intelligence, Virtual Reality, and chatbots continue to reinvent the market research industry.

Let’s look at the primary technologies in brand tracking and competition analysis that are changing the face of market research.

E-commerce brands utilise price monitoring software technology to track competitor pricing.

In the fiercely competitive E-commerce world, the key to outperforming the competition is tracking and monitoring the price competing brands charge for similar products and services. Brands need to keep a keen eye on their competitor’s pricing strategy and price changes over several products to stay competitive, and that’s not an easy task even for larger companies.

This is where e-commerce price monitoring technology comes into play.

Ecommerce price monitoring software allows brands to track their competitor’s price changes and dynamically adjust their pricing.

By employing this type of software, brands can stay abreast with competitor pricing and adjust pricing based on demand, competition, and inventory levels.

Many such tools are available in the market, including Minderest, Price2Spy, and Prisync, with sophisticated matching technology and high levels of accuracy.

Market research utilises machine learning and A.I. for brand and performance tracking to revamp advertising and messaging.

While some grey areas are associated with A.I. in other fields, the market research industry has embraced this technology.

One of the things brands need to track constantly is how their messaging is resonating with the target audience and how the market perceives their brand. This is because a brand is not just the logo and tagline. It is a sum of all parts and is an overall feeling that tells a narrative and evokes sentiment and emotion in the audience.

Technology helps brands better understand brand performance and perception to inform better decision-making. It allows brands to measure and bridge the gaps between their intent and how the audiences interpret and perceive their message.

The use of A.I. in brand tracking has allowed market researchers to analyze qualitative surveys at a fraction of the time taken by manual data collection methods. Furthermore, this enables them to ask more open-ended and follow-up questions, find the right panellists faster, eliminate bias, write reports quickly, and significantly improve the quality of their surveys and reports.

In today’s dynamic digital marketplaces, A.I. is powering brand tracking to gauge the changing consumer perceptions.

Sentiment analysis is a sub-category of A.I. and N.L.P., which automatically uncovers feelings, emotions, and sentiments behind plain blocks of text. It is extensively used in brand tracking because it is efficient, reliable, and accurate.

Over 45 percent of the world is on social media. There are about 500 million tweets per day, and about 1.96 billion people worldwide use Facebook every day. Consumers constantly call out brands on these social media platforms and review sites. It would be overwhelming and near impossible to collect data manually. Brands can effectively gauge overall brand sentiment across platforms and channels online using automated tools.

For instance, when the popular ride-sharing service, UBER, launched a new version of its app, it used social media monitoring and text analytics to measure user sentiment about the new version of the app. Eye-tracking technology works similarly and can track users’ engagement scores and emotions on a website.

There are several brand tracking tools available for brands. Candymaker Mars used one such tool that combines the standard digital video metrics, like view-through rates and skip rates, with facial expression tracking of the viewers while watching the ad using an A.I. algorithm.

While the tool measures digital behaviours, it puts enormous weight on gauging emotion and sentiment. This technology is essential to track brand performance in a world plagued with minuscule attention spans. It allows brands to obtain a complete picture of consumer perception.

Many technologies use participants’ webcams to track their facial and emotional responses while viewing ads, providing invaluable data used to inform sales forecasts.

Chatbots are aggregating vast amounts of consumer data.

The usage of chatbots as a communication channel between brands and consumers has increased by 92 percent since 2019.

As many consumers shop online, they engage with chatbots, making them the fastest-growing brand communication channel.

A survey found that up to 80 percent of users answered questions, three times higher than responses from email surveys.

Brands like IKEA are using chatbots to gather valuable consumer feedback. Companies use Whatsapp and Facebook messenger to measure consumer sentiment and feedback efficiently.

The use of brand tracking cannot be overemphasised. It allows brands to understand how their current audience perceives the brand. It can also lead brands to uncover until now undiscovered target audiences.

With brand tracking software, brands can see the true impact of their campaigns. Brand tracking holds the key to insights any brand needs to thrive. Using the right tools and technology, brands can obtain actionable information about the brand perception among the target audience and how it scores against the competition.

A brand is one of the most valuable assets of an organization. It is, therefore, critical to continually measure satisfaction, awareness, and perception. Incorporating brand tracking into their marketing strategy can help brands understand their target audiences and consumer needs and make more profitable marketing decisions. Technology has made it easier to uncover massive data sets to monitor a brand effectively and accurately. By combining this technology with digital metrics, brands can increase their competitive advantage.

Concept testing and test marketing are two very important concepts when it comes to developing new products for the market.

It’s common to confuse the two ideas – indeed there are indeed several significant similarities between the two. Both concept testing and test marketing play a similar role: ostensibly, to make sure a product is ready to launch and to iron out any issues that might have gone undetected during the design and planning phase.

However, concept testing and test marketing are different processes and are used for different reasons. In this article, we’ll take a look at each, exploring both their similarities and their differences. Let’s start with concept testing.

Concept testing

Concept testing is how we test a product idea before it enters the market. As the name suggests, it involves putting the concept in front of real customers and asking them to evaluate it in multiple areas. This helps us find out how real-life customers will react to the product.

Concept testing has a series of powerful benefits for marketers. It allows you to quickly notice and fix potential errors before the product launches for real, brings fresh insights to your project, and gives you data-driven feedback that you can use to get buy-in from other members of your organization.

There are a number of methods for doing concept testing, spanning quantitative and qualitative methodologies. Each has its own pros and cons and they have different applications.

(More information can be found in our comprehensive guide to concept testing).

Now we know the basics of concept testing, let’s take a look at test marketing and how it’s different.

Test Marketing

What is test marketing?

Test marketing plays a similar role to concept testing. Its goal, like concept testing, is to assess how well a product will perform in its market.

However, test marketing has a broader scope. Instead of focusing solely on the concept or product, test marketing aims to evaluate your entire marketing plan. It takes into account advertising, distribution, sales, and many other components of your overall strategy, but it does this without actually fully launching the product and taking on all the associated risks.

In product test marketing, you basically run a mini launch for your product in a selected market and see how it performs. It’s like a crash run of a product launch.

Neither the launch nor the test market is big enough that you would suffer greatly if the product were to fail. The goal is to trial run your entire strategy to get an idea of how it would fare on a bigger scale. This allows you to pinpoint any errors and make any changes in a relatively low-risk way.

What are the advantages and disadvantages of test marketing?

The pros of test marketing

You get real insights into how the product would perform in a natural marketing environment. There are many things you simply can’t predict or anticipate and the only way to highlight these issues is with a real test in a real-life environment.

You can gain an idea of how well the product will sell. This allows you to extrapolate predictions to the wider market, build more realistic budgets, gain buy-in from other members of the company, and make any changes needed.

It helps you determine the most suitable and effective channels for marketing. A small-scale test, as long as it isn’t too small, can give you a solid idea of the marketing channels your target customers respond best to, helping you allocate your resources and effort more wisely when the product launches for real.

It helps you identify the best distribution channels and build a data-driven distribution strategy for when the product launches.

Any weaknesses or flaws in your strategy will be exposed without any disastrous consequences. This way, you can make any changes and ensure your entire plan is on firmer footing when you launch for real. Failing during a test is far more preferable to failing on a grand scale.

You’ll see how customers react to your product, marketing, and other aspects of your brand in real-life scenarios. This gives you real data to work with as opposed to theoretical predictions and second-hand knowledge based on trends.

You’ll get a heads-up if your product is going to fail. Sometimes, despite best efforts, some products simply aren’t meant to be. If your product fails dramatically in your test (due to lack of interest, for example) it may be a sign to cut your losses and move on, avoiding a catastrophe.

The cons of test marketing

Although test marketing can be useful, there are also some major drawbacks. Anyone planning to carry out test marketing should make sure they are aware of these potential cons before they begin.

It’s expensive. Doing test marketing right involves a large-scale project which measures multiple factors across your business. This means that if you want reliable results from your test marketing, you need to be prepared to invest a lot of money.

It’s time-consuming. Again, test marketing is a big project with many different layers. It takes time to set up your test, and you’ll need to run it for a while before you get reliable results. This can delay your product launch, cause frustration among the members of your project team and cost money.

Test marketing can reveal your game plan to competitors. In a test-marketing project, you are revealing not just your product but also multiple crucial aspects of your marketing strategy in the real world. It’s very easy for competitors to view this and simply copy it with their own product before you even get close to launching.

The results can be misleading. With test marketing, there is a lot you need to get just right to yield useful results. If your sample size is too small and narrow, you’ll end up with a one-dimensional view of your market which doesn’t reflect reality. The channels you use to market your product and collect data might exclude certain demographics, too.

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Test marketing vs concept testing: which is best for me?

Test marketing and concept testing share many things in common, but they aren’t interchangeable. In this section, we’ll break down the similarities and differences between the two and help you work out which one is best for your situation.

The similarities

Both test marketing and concept testing are designed to learn about your product before doing a full launch.

Both can be effective ways to reduce the risk of failure, gain valuable insights about your product, and make necessary changes before a full launch.

Both require you to plan carefully in advance and make sure everything is set up right to get the most accurate and reliable results.

The differences

Despite their similarities, concept testing and test marketing are two very different processes. Let’s take a look at the things that separate them:

Concept testing is much easier to carry out. You can complete a solid concept test in a relatively short amount of time, and gain valuable insights from this.

Concept testing is more affordable. Concept tests can be done for a fraction of the cost of test marketing.

Test marketing involves launching a product in the market, even if it’s at a small-scale. As a result, it’s not suitable for early stage testing, where concept testing can play an important role.

Linked to this, concept testing can allow you to test ideas securely before launch. In contrast with test marketing your products are put into the market meaning that there is a risk of competitors getting hold of your ideas.
Test marketing is wider in scope as it takes a broader view of the entire marketing and sales process. It measures many different factors such as advertising effectiveness which can’t be evaluated in concept testing.

Which one should I use?

Whether you opt for concept testing or test marketing depends on your goals, the resources you have available, your product, where you are in the development process and your timeline, among other factors.

Concept testing is much easier and more cost effective to do than test marketing and can yield reliable results at speed. With concept testing, it’s not hard to get reliable feedback on your product and clear direction to inform actionable changes. This allows you to make meaningful improvements to your product and launch much more confidently.

Give yourself the best chance

Concept testing allows you to launch your product with the best possible chance of success. Instead of operating in the dark, guided only by guesswork and opinions, you can lean on real feedback from real customers.

At Kadence, we can help you with concept testing, ensuring your product goes to market with a strong chance of success. To find out how, request a proposal today or get in touch with your local Kadence team to discuss your options.

Since the onset of the pandemic we’ve been working with Bloomberg to understand the priorities, actions and attitudes of business decision makers across APAC. Take a look at the infographic for the key insights from our latest wave including:

69% of companies foresee adopting a hybrid model post-pandemic with a mix of in-office and work-from-home
Yet of the surveyed companies only 4% will no longer keep a physical office
The pandemic has placed greater attention on sustainability with 67% believing that COVID-19 has increased the importance of green / environment protection

We’ve all been there. That moment of frustration when you visit a store or restaurant or hotel and are so entirely and completely underwhelmed by the experience. Perhaps it was the inattentive or poorly trained staff. Or the unclear and confusing information. Or the restricting opening hours. But what makes the whole thing worse is that this is not what you were promised – the ads; marketing and branding all suggest a very different experience. As an extreme example, the hot water that United got into for forcibly removing a passenger is a complete mismatch of its brand promise of: “connecting people. Uniting the world.”

On the flip side, there are golden moments when the unexpectedly wonderful happens. The barista remembers your name and favourite order; you’re given a hotel room upgrade; the restaurant goes out of their way to accommodate your food allergy.

The reason for both of these reactions is because of the unexpected. The experience you were primed for by the brand promise is different. Causing an emotional reaction as we deal with that.

Experiences have become perhaps the most important aspect of shaping the brand. Not only can experiences be documented and shared more easily than ever with camera phones and social media; but an experience is more visceral and powerful than any marketing and will live on much longer in the memory.

However, a recent survey by the Chartered Institute of Marketing suggests that only 53% of marketers claim successful alignment between brand promise and experience; just 37% believe their employees understand how to deliver this brand promise; and a measly 17% feel they enable their employees to suggest way to improve brand experience.

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Part of the reason for this is that it’s hard to measure the brand experience. Brand health studies measure the brand promise not experience; Satisfaction studies test the brand’s SOPs rather than the consumers’ experience; and mystery shopping relies on a small sampling of outsiders’ opinions. Relying on these studies alone is not enough for the CXO to draw any kind of conclusions about how their customers are experiencing the brand. Also, is it even relevant?

After all, while ‘satisfaction scores’ and ‘likelihood to promote’ a brand can be assumed to imply that the customer ‘likes’ the brand, that inference does not necessarily show the CXO what is the nature of the experience, and what specifically about it created the ‘emotional hook’ strong enough for the customer to want to ‘promote’ the brand to other users or have been satisfied. In short, it will likely leave more questions than answers, rather than illuminating actionable next steps for improving the process.

Rather, you need a measurement tool that tells you what customers of your brand (as well as your competitor, and even category) value when it comes to experience. Something that complements current studies you already have; but offers deeper insights that can help you create a strategic plan of action. A piece of research that sheds light on not just the ‘what’, but the ‘why’ of your customers’ emotional connection (or disconnection) with your brand based on their experience.

In short, Kadence’s Emotional Connection Matrix (ECM) is what you need. We have completed a study amongst Singapore consumers across categories on how individual brands scored in terms of emotionally-connecting with them, how these brands compare to others, which product category has the highest tendency to provoke positive emotional connections based solely on brand experiences, and what kinds of actions actually lead to said positive emotional connections. Drop by the CX Conference 2019 at Four Seasons Hotel on 26th July to satisfy your curiosity, as we talk more about the Emotional Connection Matrix.

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Brands Exposed – what consumers want to see from your marketing as they emerge from lockdown

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We recently had an internal brainstorm around the topic of luxury. One of my colleagues mentioned that they thought that Calvin Klein as a fashion brand was no longer considered luxury but was at the height of luxury in the 90s. Alongside this, if you search for luxury brands in Google you get a list of the top brands by brand value in 2017 which includes the likes of Mulberry. If you looked at this 20 years ago, it would arguably have been different and would have included brands like Galliano or Lacroix that are less top of mind today.

Here at Kadence this got us thinking – what makes a brand ‘luxury’ and why do brands that consumers perceive as luxurious change over the years?

Looking first into what makes a brand ‘luxurious’ – we believe there are three main drivers:

High price: this doesn’t necessarily mean a high overall price, but a high price compared to other brands within that sector. For example, categories such as soap includes brands such as Molton Brown and L’Occitane that could be considered luxurious but may ‘only’ cost £20 compared to other categories like shoes or watches. As a side note, the quality also obviously arguably need to at least match expectations, especially if customers are spending large amounts.
Limited supply: luxury doesn’t have to be expensive but it arguably shouldn’t be easily obtainable. Sometimes a luxury brand can be one that not many people know about (like Delvaux or Serapian handbags) – adding to the feeling that you’re special and no one else really has an item like you have. Another example is the long waiting lists for Hermes Birkin bags – by limiting supply, they increase desirability.
Endorsement by celebrities: for some brands it is an A-list celebrity, for others a football player, but an endorsement by a celebrity can make items more appealing for consumers and potentially more ‘luxurious’ in their eyes. Brands do have to be careful though – Juicy Couture were propelled to fame by the likes of Paris Hilton, but that also put plenty of people off the brand too…

But we don’t think it stops there. Other elements can also come into play:

The packaging: brands are doing some really nice things with packaging nowadays. In Fall 2014, Chanel released a supermarket collection of bags – the packaging that they came in represented a supermarket carrier bag and the tag represented a barcode, all in-keeping with the overall theme of that season. And more broadly, when you buy an item of clothing from Net-a-porter they will put it in a box with a ribbon, and Christian Louboutin shoes come with a lovely red fabric bag. This makes the unboxing and unwrapping experience for the customer more memorable and special and can add that ‘luxury feel’.
Personalisation: customisation of a product is a great way to make the customer feel special and one of a kind. The fact that you know no one else has a product like yours makes the product a bit more luxurious. Kate Spade and Louis Vuitton are great examples of brands that have done personalisation well – allowing you to monogram your handbags or add a variety of ‘patches’ to them.

Why do brands become more or less luxurious? Michael Kors is a great example of how trying to reach the masses can arguably make you appear less luxurious – they released their ‘diffusion line’ MICHAEL Michael Kors which priced all goods to match the upper end of high street prices to cater for consumers shopping in high-street shops as well as larger department stores. This was very successful for them in terms of sales at first, but they have now slipped down to a more “casual luxury” brand forfeiting sales overall. In June 2017, Michael Kors announced that they been battling declining same-store sales for the past seven quarters with continuing decline into 2018. It was also announced that the retailer would shut more than 100 full-price retail stores in the next two years, and that their share prices are at their lowest in more than five years. In some ways they could be seen as suffering as a victim to their own success.

Brands will need to think carefully about each of these themes as the luxury sector continues to grow and develop, and these elements will differ depending on the product and category, which is where research comes in – we can actually speak to customers first-hand and unpick which elements are most important to them, uncovering brand perceptions and share of the market.

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