A brand is a manufacturer's name, a trademark that has a high reputation among consumers.
We live in the brand era: people create personal brands; companies tend to create brands around their products. But only few people can say what a brand is, what it consists of, and why businesses need it.
People often apply for a name, a logo, a company identity, thinking that in this way they can create a brand. In fact, it is much more complicated.
A brand is an image in the consumer's mind that creates value for which he is ready to pay more.
To understand the image in your head, just think of any name: Volvo, DHL, Apple. Think of any brand name and say the first thing that comes to your mind. These can be completely unexpected stories associated with poor service, or vice versa with some kind of "wow effect", a pleasant experience of interaction with the product, or a high price. All of this finally forms the image and the brand that lives in your head. The name and logo are just the key to those memories.
Even if a company sells the same product as everyone else for the same price, it is possible to stand out with high-quality design. In this case, it is possible to satisfy an esthetic need, which also has a great value to the consumer.
Where did Brands come from
Over the history of mankind, brands have been used to differentiate goods. The idea of branding dates back to 2000 BC. At that time, merchants were selling their goods in different markets and used branding to denote ownership of goods or property.
Another form of branding began to be used by Italians in the XIII century. They put watermarks on paper. The term " brand" indicates a unique mark. Brands were also burned on the hides of cattle to identify animals of different owners. Then the branding came to be widely used in rural America. Cattle ranchers branded their cattle as a form of identification to distinguish producers, when companies began using product packing in the 19th century.
The type of brand depends on the specifics of the organization. Some of the most common forms of brands are listed below:
Corporate brands are used by companies to market themselves to obtain an edge over their competitors. A number of important decisions are made, such as pricing, mission, target market, and values.
Personal brands are used by people on social media to create their own persona, thereby boosting their brand. Regular social media posts, sharing images and videos, and holding meetings refer to a personal brand. Branding isn't just for companies anymore.
Product brands are supposed to market a specific product. Product branding requires market research and selecting the right target audience.
Service brands often require a lot of creativity, because you can't physically show the services.
A company's public image is created after defining its corporate identity, or forming a perception for consumers. The company logo often contains a message, slogan or product. A brand should be memorable and appealing to the consumer.
It is common for a company to ask designers to create a logo or symbol to give the idea of a visual brand perception. A properly designed brand accurately delivers the company's message to the consumer. The brand should be recognizable or show what it offers. Often, the brand is unsuccessful in case of misunderstanding.
A company's brand equity is created by earning positive sentiment among the target audience. Examples of companies with brand equity and very recognizable product brands are Microsoft, Coca-Cola, Ferrari, Apple and Meta (formerly Facebook).
The right brand boosts sales of not only the specific product, but also other products from the same company. A good brand inspires consumer confidence. A good experience with one product will lead the consumer to buy another product of the same brand. This practice is often called brand loyalty.
Having a brand provides many benefits to a corporation or an individual. A company that can deliver its message to the consumer is able to create emotion in its customers. Consumers allow companies to benefit from their loyalty. The loyalty of some consumers works as an attraction to new consumers.
People are more willing to buy goods and services (or brands) from companies they trust. Trust gives companies a competitive advantage over their competitors. When a brand is well-known to consumers, it means increased company profits. Consumer trust and loyalty helps corporations introduce new products and services, even if they are more expensive.
For example, Apple has built an extremely loyal customer base. Consumers are willing to replace their current electronics when the company releases new ones. Consumers ignore the price of an iMac, MacBook, iPad, or iPhone because of their loyalty to the brand.