WHAT IS A BRAND?

Branding has been around for centuries as a means to distinguish the goods of one producer

from those of another. In fact, the word brand is derived from the Old Norse word brandr,
which means “to burn,” as brands were and still are the means by which owners of livestock
mark their animals to identify them.2

According to the American Marketing Association (AMA), a brand is 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 competition.

” Technically speaking, then, whenever a marketer creates a new name, logo, or symbol for a
new product, he or she has created a brand.

In fact, however, many practicing managers refer to a brand as more than that—as something

that has actually created a certain amount of awareness, reputation, prominence, and so on

in the marketplace.

Thus we can make a distinction between the AMA definition of a “brand”with a small b and the
industry’s concept of a “Brand” with a big B. The difference is important

for us because disagreements about branding principles or guidelines often revolve around
what we mean by the term.

Brand Elements
Thus, the key to creating a brand, according to the AMA definition, is to be able to
choose a name, logo, symbol, package design, or other characteristic that identifies a
product and distinguishes it from others. These different components of a brand that
identify and differentiate it are brand elements

Brands versus Products

How do we contrast a brand and a product? A product is anything we can offer to a
market for attention, acquisition, use, or consumption that might satisfy a need or want.
Thus, a product may be a physical good like a cereal, tennis racquet, or automobile; a
service such as an airline,
We can define five levels of meaning for a product:4
1. The core benefit level is the fundamental need or want that consumers satisfy by
consuming the product or service.

2. The generic product level is a basic version of the product containing only those
attributes or characteristics absolutely necessary for its functioning but with no
distinguishing features. This is basically a stripped-down, no-frills version of the product
that adequately performs the product function.

3. The expected product level is a set of attributes or characteristics that buyers

normally expect and agree to when they purchase a product.

4. The augmented product level includes additional product attributes, benefits, or

related services that distinguish the product from competitors.

5. The potential product level includes all the augmentations and transformations that
a product might ultimately undergo in the future.

A brand is therefore more than a product, because it can have dimensions that
differentiate it in some way from other products designed to satisfy the same need.
These differences may be rational and tangible—related to product performance of the
brand—or more symbolic, emotional, and intangible—related to what the brand
represents.
What is a Brand – Meaning & Important Brand ConceptsBY CONTRIBUTOR BRANDING
TUTORIALS

What Is Brand?

The brand is any service, product or concept which is publicly different from that of other
services, products and concepts so that it can be communicated as well as marketed easily.
The brand name is the name of that distinctive service, product or concept and branding is the
process of creating and distributing the brand name.

Usually, brands are protected from being used by others through a service mark or a trademark
from an authorized agency which is usually affiliated with the government.

Definition of Brand

Branding is the name, design, type, symbol or any other features which tend to distinguish a
tangible product or intangible product, service or concept from that of its competitors in the
eyes of customers. With time, the image of the product, service or concept is associated with a
certain level of quality, credibility and satisfaction for the customers.

Why is Branding important for the Success of any Business?

Branding is very important for businesses as it creates a memorable impression on customers

and allows both customers and clients to know what they can expect from it. It is a great way
to distinguish the product or service from competitors and makes it easier for customers to
understand why the product, service or concept is a better choice.

A strong and consistent brand image is very helpful in establishing a business. Brand enables
customers to recognize, remember and recommend the product or service to others. Brand
image is usually a brand logo which should be designed so that it has a strong impression on
the target market at first glance.
In addition to this, a business can benefit from branding to generate future businesses. A well-
known and strong brand can increase the value of your business and will provide more leverage
in the industry. In this way, businesses can capitalize on potential investment opportunities as
it is firmly established in the marketplace.

Establishing an effective brand also allows companies to win referral businesses. Having a
strong brand means that customers have a positive impression of that product or service and
will likely be associated with other businesses because of the assumed familiarity and
dependability of that name which can be trusted upon.

Brand Concepts

Brand Name: It is that name which is given by the manufacturer or maker of the product or a
range of products. A brand name is most often trademarks.

Brand Attribute: This includes brand characteristics and its core values. Brand attributes
include consistency, credibility, sustainable, relevancy and appealing.

Brand Positioning: This involves determining where the brand is standing in the competitive
market. Positioning is that unique or distinctive position that the brand holds in the market or
in the mind of consumers.

Brand Identity: This is the way in which any business perceives its brand. This is basically the
image of the brand from the point of view of its maker and how the maker wants it to be
perceived by consumers.

Brand Image: It is the perception of customers about a particular brand. It is basically how
consumers perceive the brand.

Brand Personality: Brands also have the characteristic to speak and behave with customers.
Brand personality can be associated with human personality traits such as the brand of being
caring, luxurious, honest, etc.

Brand Awareness: This refers to the degree to which customers are familiar with a particular
brand.

Brand Loyalty: This refers to the tendency of a particular group of customers who will
continue buying the particular brand instead of other similar brands in the market.
Brand Association: Brand association is a link which a customer creates in his mind about the
brand. This link should be positive so that the brand is perceived as positive.

Brand Equity: This is the impact a brand can impose over the purchasing decision of a
customer.it is a set of brand assets and liabilities which can either add or subtract from the
brand value.

Brand Extension: This type of branding strategies basically uses a well-established brand
name for launching a new product or new product category.

Co-Branding: This is amongst brand management strategies which make use of multiple
brand names of a product or service as a part of a strategic alliance.

Sonic Branding: This refers to the use of sound in advertising a particular product or service.
The underlying concept is that when a customer hears that sound, they will think of that
particular product.

Features of Branding
Targetability

Branding should be planned according to the targeted audience. No

business firm can target the entire population. Business owners should
identify the type of people who are buying their products and services.
Research should be done on the basis of age, gender, income, the
lifestyle of their customers, etc.

Awareness

The percentage of people who are aware of a brand is known as brand

awareness. Well established companies have the benefit of a high level
of brand awareness. Brand awareness can be increased with the help of
advertisement on TV, radio, newspaper or social media marketing and
advertising. Logos also help companies build brand awareness, as
people often recognize brands by these symbols or diagrams.
 Loyalty

Brand loyalty is the highest achievement or apex of any company. A

customer who buys the product of a particular company extensively is
known as a brand loyalist. Many consumers prefer using certain brands
of clothing, deodorants or tubes of toothpaste, for example. They like
how these brands benefit them. Brand loyalty can be build by staying in
touch with the customers, asking them for their reviews.

Consistency

Consistency is necessary for a brand. A brand must remain

consistent. Small businesses make numerous promises in commercials
and ads about their brands, and consumers expect companies to
continue living up to these promises. Their products should also be
effective

The functions of a brand for consumers

 Brands play a role in terms of communication and identification. They offer

guidance, convey an expectation of quality and so offer help and support to
those making purchase decisions. Brands make it easier for consumers to
interpret and digest information on products.
 The perceived purchasing risk is thus minimized, which in turn helps cultivate a
trust-based relationship.
 A brand can also serve as a social business card, expressing membership in a
certain group. Premium brands, for instance, can even engender a sense of
distinction and prestige.
 Consuming certain brands is also a means of communicating certain values. By
opting for particular brands, a consumer demonstrates that he or she embraces
particular values; the brand becomes a tool of identity formation.

The functions of brands from a company’s perspective

 A brand fosters brand and customer loyalty. Particularly strong brands can
establish the prevalence of premium prices on the market and soften consumer
reactions to price changes. Specifically brand-oriented buyers – who are more
 concerned with brands than prices – are more resilient when it comes to
changes in the competitive scenario. This decreased sensitivity to price changes
makes them more valuable as customers.
 The reduction in perceived purchasing risk lays the groundwork for a
relationship of trust, giving brands a role to play in lashing customers to a
company.
 Brands can counter the swelling ranks of trade because dealers stock their
shelves and fill their order lists with products explicitly requested by
consumers. Strong brands in particular keep sales levels and market share
constant and considerably lessen dependence on short-term special
promotions.
 A brand unlocks great potential in terms of licensing opportunities as well,
helping companies achieve plans for international expansion.
 Finally, brands also offer companies potential for honing a clear profile and
overshadowing the competition. Strong brands in particular can reduce the risk
that new product launches will flop and can be used as platforms for successful
brand stretching (also in terms of launches in completely new product segments
and sectors)

Importance of Branding:

(i) It helps in product identification and gives ‘distinctiveness’ to a product.

(ii) Indirectly it denotes the quality or standard of a product.

(iii) It eliminates imitation of the product.

(iv) It ensures legal rights of the product.

(v) It helps in advertising and packaging activities.

(vi) It helps to create and sustain brand loyalty to a particular product.

(vii) It helps in price differentiation of products.

(viii) It helps the manufacturer for identifying the product.

(ix) It improves the effectiveness of product advertising and promotion. Product identity can be
created easily which would help easy ‘Repeat Sales’.

(x) It helps to increase and control the share of market. A brand has distinct image and character
that may make it more acceptable than a virtually identical competitor.
(xi) An accepted brand makes the introduction of new products easier and thereby helps in
expansion of product mix.

Types of Brand:

There are two main types of brand-manufacturer brands and own-label brands.

1. Manufacturer Brands:

Manufacturer brands are created by producers and bear their chosen brand name, brand is
marketed by manufacture. It is helpful in distribution of products in a wide area and to gain
brand loyalty.

2. Own-Label Brands:

Own-label brands are created and owned by businesses that operate in the distribution channel –
often referred to as “distributors”. Sometimes the retailer’s entire product range will be own-
label. However, more often, the distributor will mix own-label and manufacturers brands. The
major shopping mall and supermarket, have their own brands for example, Vishal Mega Mart is
having their own label brand.

There are many advantages to businesses that build successful brands.

These are:

a. Higher Prices:

For high branded products, consumers are prepared to pay a premium for products or services
that simply deliver core benefits, they are the expected elements of that justify a core price.

b. Higher Profit Margins:

Businesses that operate successful brands are also much more likely to enjoy higher profits. A
brand is created by augmenting a core product with distinctive values that distinguish it from the
competition.

c. Better Distribution:

A brand differentiates itself from the competition, customer recognizes the added value in an
augmented product and chooses that brand in preference, this creates demand and awareness in
market, it is easy to distribute product in market.
d. Customer Loyalty:

Successful brands are those that deliver added value in addition to the core benefits.
Alternatively, the consumer may be looking for the brand to add meaning to his or her life in
terms of lifestyle or personal image. Brands such as Nike, Mercedes, Sony or Microsoft ensure
guarantee of quality. Consistent high quality and performance generate customer loyalty.

Functions of Branding:

Branding is a powerful instrument of promotion which performs the following functions:

(i) Distinctiveness:

A brand name creates a distinctive impression among the customers. For instance, different
brands of soap such ‘Cinthol’, ‘O.K.’, ‘Lux’, Tears’, ‘Vigil’, etc. create different impressions
upon the users, though the article is the same, i.e., soap. Thus, a branded product enjoys distinct
or separate identity.

(ii) Publicity:

A brand name enables its holder to advertise his product without any difficulty. Once a brand
name becomes popular, people remember it for long.

(iii) Protection of Goods:

Generally, the branded products are packed in suitable containers or wrappers which provide
protection to the goods against heat and moisture and facilitate convenient handling. The
customers derive many other benefits from the branded products. They are assured of the quality
of the branded products.

(iv) Consumer Protection:

The prices of branded products are fixed by the manufacturers and are printed on the packages.
This protects the interest of the consumers because the retailers cannot charge more than the
printed prices. The prices of branded goods remain fixed at different places and over a
considerable period of time. They are not changed so frequently since it involves great
inconvenience to the firm and a considerable cost in advertising the new price.

(v) Wide Market:

Branded products are quite popular and have wide market. The wholesalers and retailers readily
handle the branded products which are advertised.
(vi) Customer Loyalty:

Branding ensures better quality at competitive prices. Branded products are available in all parts
of the country at uniform prices. This tends to create brand loyalty on the part of customers.
They ask for the goods by their brand name such as Taj Mahal (tea leaves), Nescafe (Coffee),
Tata (Iodised Salt), Natraj (Pencils), etc.