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Brand

McDonald's, represented by the Golden Arches, is one of the world's most famous brands McDonald's, represented by the Golden Arches, is one of the world's most famous brands

In marketing, a brand is the symbolic embodiment of all the information connected with a company, product or service. A brand typically includes a name, logo, and other visual elements such as images, fonts, color schemes, or symbols. It also encompasses the set of expectations associated with a product or service which typically arise in the minds of people. Such people include employees of the brand owner, people involved with distribution, sale or supply of the product or service, and ultimately consumers.

In other contexts the term "brand" may be used where the legal term trademark is more appropriate.

Concepts

Some marketers distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service. The unicist approach to brand building considers the conceptual structure of brands, businesses and people.

Marketers seek to develop or align the expectations comprising the brand experience through branding, so that a brand carries the "promise" that a product or service has a certain quality or characteristic which make it special or unique. A brand image may be developed by attributing a "personality" to or associating an "image" with a product or service, whereby the personality or image is "branded" into the consciousness of consumers. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. You're creating the story.

A brand which is widely known in the marketplace acquires brand recognition. Where brand recognition builds up to a point where a brand enjoys a mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. One goal in brand recognition is the identification of a brand without the name of the company present. Disney has been successful at branding with their particular script font (originally Walt Disney's signature, but later translated to go.com).

Brand equity measures the total value of the brand to the brand owner, and reflects the extent of brand franchise. The term brand name is often used interchangeably with "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of a brand. In this context a "brand name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services. A brand owner may seek to protect proprietary rights in relation to a brand name through trademark registration.

The act of associating a product or service with a brand has become part of pop culture. Most products have some kind of brand identity, from common table salt to designer clothes. In non-commercial contexts, the marketing of entities which supply ideas or promises rather than product and services (eg. political parties or religious organizations) may also be known as "branding".

Consumers may look on branding as an important value added aspect of products or services, as it often serves to denote a certain attractive quality or characteristic. From the perspective of brand owners, branded products or services also command higher prices. Where two products resemble each other, but one of the products has no associated branding (such as a generic, store-branded product), people may often select the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner.

Advertising spokespersons have also become part of some brands, for example: Mr. Whipple of Charmin toilet tissue and Tony the Tiger of Kellogg’s.

History

Brands in the field of marketing originated in the 19th century with the advent of packaged goods. Industrialization moved the production of many household items, such as soap, from local communities to centralized factories. When shipping their items, the factories would literally brand their logo or insignia on the barrels used, which is where the term comes from.

These factories, generating mass-produced goods, needed to sell their products to a wider market, to a customer base familiar only with local goods. It quickly became apparent that a generic package of soap had difficulty competing with familiar, local products. The packaged goods manufacturers needed to convince the market that the public could place just as much trust in the non-local product.

Around 1900, James Walter Thompson published a house ad explaining trademark advertising. This was an early commercial explanation of what we now know as branding.

Many brands of that era, such as Uncle Ben's rice and Kellogg's breakfast cereal furnish illustrations of the problem. The manufacturers wanted their products to appear and feel as familiar as the local farmers' produce. From there, with the help of advertising, manufacturers quickly learned to associate other kinds of brand values, such as youthfulness, fun or luxury, with their products. This kickstarted the practice we now know as branding.

Modern branding practices are studied and analyzed at research institutes such as the Zyman Institute of Brand Science at the Goizueta Business School at Emory University.

Examples of well known brand names

Business Week magazine publishes an annual "brand scorecard" of the top 100 most valuable brands worldwide. Some results from the 2005 survey, which contained 53 American, 37 European, 7 Japanese, and 3 South Korean brands, are listed below.

The European breakdown is as follows: 9 German, 8 French, 5 Swiss, 4.5 British, 4 Italian, 3.5 Dutch, 1 Finnish, 1 Spanish, and 1 Swedish

United States Of America

American Express (credit card)
Apple (computer)
Citi (banking)
Coca-Cola (soft drink)
Disney (entertainment)
Ford Motor Company (automobiles)
GE (household appliances)
Global Gillette (shaving accessories)
Google (internet)
Harley Davidson (motorcycles)
Heinz (food)
IBM (computer)
Intel (computer)
KFC (fast food restaurant)
Levi's (clothing retailer)
Marlboro (tobacco)
McDonald's (fast food restaurant)
Microsoft (software)
Nike (footwear)
Pepsi (soft drink)
Starbucks (coffee)

Europe

BMW (automobile—Germany)
Volkswagen (automobile—Germany)
Mercedes-Benz (automobile—Germany)
UBS (banking—Switzerland)
HSBC (banking—UK)
Philips (electronics—Netherlands)
Nestlé (food—Switzerland)
Alessi (Home Accessories—Italy)
IKEA (furniture—Sweden)
Louis Vuitton (leather goods and luxury apparel—France)
Chanel (luxury apparel—France)
Gucci (luxury apparel—Italy)
Nokia (mobile phones—Finland)
BP (petrol—UK)
SAP (software—Germany)
Diesel (Apparel—Italy)
Giorgio Armani (luxury apparel—Italy)
Barilla (food—Italy)

Japan

Canon (photography)
Honda (automobiles)
Nintendo (video games)
Nissan (automobiles)
Sony (electronics)
Toyota (automobiles)

South Korea

Hyundai (automobiles)
LG (electronics)
Samsung (electronics and mobile phones)

Bibliography

External links

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