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Branding and brand awareness

IB Business Management • Unit 4

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🏷️ What is a brand?

Big Idea: A brand is a name, symbol, design or reputation that makes a product recognisable and different from competitors. It's what makes customers choose YOUR product over someone else's! ✨

What is brand awareness?

Brand awareness means how well customers recognise and remember a brand — by its name, logo, colours or even a jingle.

  • High brand awareness = customers think of your brand first when they need that product
  • Built through advertising, social media, sponsorship and word of mouth
  • Takes time and investment to build, but very valuable once established
If an exam asks you to 'define brand awareness', say: the extent to which customers recognise and can recall a brand by its name, logo or other features.

💪 Why branding matters

Strong branding gives a business major advantages over competitors.

  • Brand loyalty — customers keep coming back and don't switch to rivals
  • Premium pricing — customers pay more for a brand they trust
  • Easier product launches — customers are willing to try new products from brands they know
  • Competitive edge — stands out in a crowded market
  • Brand value — the brand itself becomes a financial asset
Example: People will often pay significantly more for branded trainers than identical-quality unbranded ones — that's the power of branding.

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❤️ Brand loyalty and brand value

Brand loyalty

  • Customers repeatedly choose the same brand over competitors
  • Reduces price sensitivity — loyal customers are less likely to switch for a cheaper option
  • Leads to repeat purchases and stable revenue
  • Can be strengthened by loyalty programmes, consistent quality and good customer service

Brand value

  • The financial worth of a brand — how much the brand name alone is worth
  • Strong brands can be worth billions of dollars
  • Brand value makes the business more attractive to investors
  • Appears as an intangible asset on the balance sheet (goodwill)
Brand awareness → Brand loyalty → Brand value. Build awareness first, loyalty follows, and value grows over time! 📈

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