Meaning of Brand

Hi All – coming two weeks will be dedicated to brand management, I did a third semester project on brands, so have lot of stuff on this. Hope you will find this useful. Let me know your feedback which can help me improve.

Let us start with meaning of the term brand and how is it different from a product.

 

A brand is a name, word, symbol, design, or a picture or a combination of all of them to identify the product and distinguish it from that of the competitors. A brand is an offering from a known source.

The American Marketing Association (AMA) defines a brand as a “name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.

Brands are a means of differentiating a company’s products and services from those of its competitors. There is plenty of evidence to prove that customers will pay a substantial price premium for a good brand and remain loyal to that brand. It is important, therefore, to understand what brands are and why they are important.

Example, A Nike Shoe, here Nike is a brand and people are willing to pay a higher amount of money for this brand over other products.

Brand

The meaning of Brands

Brands are a means of differentiating a company’s products and services from those of its competitors. There is plenty of evidence to prove that customers will pay a substantial price premium for a good brand and remain loyal to that brand. It is important, therefore, to understand what brands are and why they are important.

Businesses that invest in and sustain leading brands prosper whereas those that fail are left to fight for the lower profits available in commodity markets.

One complete definition of a brand is as follows:

“A name, term, sign, symbol or design, or a combination of these, that is intended to identify the goods and services of one business or group of businesses and to differentiate them from those of competitors”

Three other important terms relating to brands should be defined at this stage:

As we discussed earlier it is very important to be clear about the difference between Brands and products. Brands are rarely developed in isolation. They normally fall within a business’ product line or product group.

Product

A product line is a group of brands that are closely related in terms of their functions and the benefits they provide. A good example would be the range of desktop and laptop computers manufactured by Dell.

A product mix relates to the total set of brands marketed by a business. A product mix could, therefore, contain several or many product lines. The width of the product mix can be measured by the number of product lines that a business offers.

The benefits of a strong brand

Here are just a few benefits you will enjoy when you create a strong brand:

  • A strong brand influences the buying decision and shapes the ownership experience.
  • Branding creates trust and an emotional attachment to your product or company. This attachment then causes your market to make decisions based, at least in part, upon emotion– not necessarily just for logical or intellectual reasons.
  • A strong brand can command a premium price and maximize the number of units that can be sold at that premium.
  • Branding helps make purchasing decisions easier. In this way, branding delivers a very important benefit. In a commodity market where features and benefits are virtually indistinguishable, a strong brand will help your customers trust you and create a set of expectations about your products without even knowing the specifics of product features.
  • Branding will help you “fence off” your customers from the competition and protect your market share while building mind share. Once you have mind share, your customers will automatically think of you first when they think of your product category.
  • A brand is something that nobody can take away from you. Competitors may be able to copy your products, your patents will someday expire, trade secrets will leak to the competition, your proprietary manufacturing plant will eventually become obsolete, but your brand will live on and continue to be uniquely yours.

In fact, a strong brand name may be your most valuable asset. Brands help people connect with one another.

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2 responses

  1. This is nice
    I will be visitng ur blog more often..will help me in my studies

  2. Awesome
    Keep it coming

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