This article explores the difference between brand awareness and brand differentiation, and when a brand needs what kind of approach. It gives pointers and examples of how to determine what the brand needs and how to then identify the best way to go about it.

1. 36 strategicmarketing September–October 2013
Branding: Awareness vs Differentiation
September–October 2013 strategicmarketing 37
When brand
awareness is
not enough‘Awareness’ versus ‘differentiation’.
Dr Thomas Oosthuizen ponders on one
of the eternal branding problems.
W
hat is more important,
brand awareness or brand
differentiation? It’s an
often-asked question and the answer
is – it depends!
As a marketer, whether you enter
a market first or second will largely
determine which of the two is more
important to your situation. First entrants
to a particular market need brand
awareness first and foremost. That’s
because they will, by virtue of being
first, become the default brands unless
their quality is bad or they are adversely
affected by some other circumstance.
If you are a marketer in a first-
entrant brand you need establish
broad awareness in your target market
as quickly as possible. This creates
a strong barrier to entry for competitors
and generally makes you top-of-mind
among buyers.
Once a brand has attained such
a position, it is extremely difficult for
later-arriving competitors to unseat
it. That is why, generally, first mover
brands retain their leads in markets,
even when very strong competitors
eventually arrive on the scene.
Of course, it is a bit more
complicated than that – otherwise we
would only have one ‘first mover’ brand
operating in each market segment,
with other potential competitors simply
electing to stay out of the market
because it would be unviable. The key
requirement is that the brand must
‘work’; if it doesn’t deliver the expected
quality and value to its consumers, it
will fail, either immediately or as soon
as a better brand offering comes along.
Many global multinationals clearly
understand this well, hence the reason
they will enter markets with a dominant
marketing expenditure, excellent product
quality and distribution dominance. If
these aspects of the brand are aligned,
the rest is easy and it becomes difficult
for later entrants. Companies like
Proctor & Gamble and Unilever are great
examples of this. In SA, our own MTN
has achieved the same in Africa.
For such brands, dominance of brand
saliency is important, rather than what
they say. Their entry will generally
establish them as the generic for the
category – as in Sta-Soft being the
generic brand of fabric softener. To be
‘generic’ means the brand offers the
So the bottom line is: if you are not
brand number one in a category, tell
consumers why you are a better option
than number one. Focus on a different
benefit and be clear in your own mind
that it is one that consumers seek.
Alternatively, target a different group
of consumers who may not have been
exposed to the market leader.
Unfortunately many brands do not
understand or achieve this, which leads
to them simply being lesser versions
of the brand leader with lower market
shares, inferior volume consumption per
user, and lower profit margins. They then
float around in an ill-defined space.
Although Rolex sells fewer watches
than Swatch, Rolex has a profit margin
that correlates with its design integrity
and positioning as a high quality brand
that is worn by people of distinction.
Consumers do not even compare
Rolex with Swatch or Citizen watches,
knowing that each offers buyers
something totally different.
Coca-Cola, Rolex and
Emirates Airlines are all
examples of branding
excellence in their
respective fields
key benefits consumers of the category
seek. In telecommunications networks,
for example, it will be network coverage
and capacity. When market research
is conducted, it will normally be found
that brand leaders ‘own’ the key
benefits of the category in the minds of
relevant consumers.
Although a brand like Coca-Cola
has done a superb job to keep itself
top-of-mind and evolve over the years,
it is probably less about what the brand
says about itself today that matters.
Rather, it is that the brand speaks to
its consumers consistently, dynamically
and at a high level of spend. This is an
instance where the leadership of the
brand is so strong that it straddles its
First mover
brands usually retain
their leads
Dr Thomas Oosthuizen
has a doctorate
in marketing
communications. He is an
honorary professor in
business management
at The University of
Johannesburg, a board member of the
Independent Institute for Education
at the JSE-listed Advtech Group, and
an advisory board member of the Vega
Brand School.
category and may even have taken on a
significance that transcends its category.
Most consumer research will also
indicate that when a leading brand
starts lagging in quality, marketing
spend or innovation, it will gradually
be eroded by smaller brands offering
unique benefits. So if you lead the
market, make sure you retain that lead
… it is far easier to retain it than to
regain what has been lost.
When differentiation matters
Second, or later, entrants to market
still need brand awareness. But, more
importantly, they need to show reasons
why they should be bought instead of
the market leader.
If you are not the first entrant or the
largest brand, what you say matters a
great deal. Unless a number two, three
or later entrant brand is very clear
about what it offers consumers that is
different, it can expect to play second
fiddle forever.
To give another example; even though
Emirates is far from being the largest
airline in the world, it offers travellers
better service and the public perception
is that it has grown its market share.
So, while American Airlines flies far
more people to far more places,
Emirates is perceived as providing a
higher quality service to the wise few.
The bottom line is that, as a
marketer, you need to understand
what is required for your brand to
achieve success in the marketplace;
is it awareness/dominance, or is it
differentiation? It’s unlikely to be both.
PHOTOS:supplied