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Why brand analysis is important for business development
Brands and their messages play an important role in building relationships with consumers. The right positioning of a company determines purchase decisions and the likelihood of repeat business. A comprehensive brand analysis can help you track changes in the sentiment of your target audience.
Importance of analysis
There are several elements to studying consumer perception of a company. One of these is brand equity. This indicator represents a company’s value in consumers’ minds. A high level of equity indicates the following characteristics:
- the company’s competitive advantages;
- an increased likelihood that customers will choose the brand’s product over a competitor’s;
- increased customer loyalty and trust.
Experts measure various performance indicators through consumer surveys and questionnaires. This helps to identify preferences and problem areas in customers’ perceptions of the company.
In-depth analysis also helps to understand the level of loyalty. Loyal customers make repeat purchases and remain loyal to the brand for a long time. Moreover, the company attracts new customers through such customers. Loyalty research can help identify problems and build an effective strategy to increase trust. This allows the company to develop long-term relationships with the target audience.
Proper positioning also depends on the accuracy of the analysis. In this case, experts can see the difference in the perception of brand components to study which approach works better. A firm may have a particular characteristic or industry. A prime example is the Apple brand, which most people associate with innovation and quality products.
How to conduct an effective analysis
Comprehensive research into a company and how consumers perceive it involves several steps, among them:
- Setting clear goals and objectives. It is necessary to follow certain algorithms to get the right answers.
- Combining quantitative and qualitative methods increases the effectiveness of the analysis. This includes gathering information through surveys, interviews and data analysis.
- Competitor research. This will identify weaknesses in the strategy and strengthen it with approaches that have worked for other companies.
- Working with customer feedback and comments. In this case, studying social networks and building user interaction is the optimal solution.
- Regularity of actions. It is important to analyse with a certain periodicity. This will allow you to track changes in consumer perception and sentiment.
You should be aware that market trends and the behaviour of the target audience change. Therefore, approaches that worked before may not work now. Analysis helps to identify problems in a timely manner and eliminate them. In this way, the company will be able to maintain the target audience’s trust and increase the number of customers.