Brand Equity

Concept of Brand

Branding has been around for centuries as a means to distinguish the goods of one producer from one another. Interbrand group bringing the history of brand as, “the word brand is derived from the Old Norse word brandr, which means ‘to burn’ ; as brands were and still are means by which owners of livestock mark their animals to identify them.”

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.” The different components of a brand that identify and differentiate and can be called brand elements.

Criteria for Choosing Brand Elements

• Memorable – easily recognized & easily recalled
• Meaningful – descriptive and persuasive
• Likable – fun and interesting, rich visual and verbal imagery
• Transferable – within and across product category and across nations
• Adoptable – flexible and updatable
• Protectable – legally and competitively

For example, brand names can be made meaningful by using it in many different forms. They are based on –

• Brand name based on people (e.g., Mercedes Benz)
• Brand name based on Animals or Birds (e.g., Air India, Times of India)
• Brand name based on Animals or Birds (e.g., Dove soap)
• Brand name based on Things or Objects (Shell Gasoline)
• Names with Inherent product meaning (e.g., Natural Ice cream)
• Names displaying Important features or attributes (e.g., Fair Glow soap, Fairever cream)

A brand is something that resides in the mind of consumers. It is a perceptual entity that is rooted in reality.

• Roles that Brands Play for Consumers and Manufacturers

Brand has a tremendous value for both the manufacturers as well as the consumers. A brand is supposed to play certain key function for both the parties

• For  consumer

• Identification of source of product
• Assignment of responsibility to product maker
• Risk reducer
• Reduction in search cost
• Promise, bond or pact with maker of product
• Symbolic device
• Signal of quality

• For manufacturers

• Means of identification to simplify handling or tracing
• Means of legally protecting unique features
• Signal of quality level to satisfied customers
• Means of endowing products with unique association
• Source of competitive advantage
• Source of financial returns

Tags: brand, brand equity, Brand Power, Brand sponser, Branding