Branding
Defining a Brand
A brand refers to a name, term, symbol, or any other type of feature that defines or identifies a seller’s product or service.
LEARNING OBJECTIVES
Discuss the characteristics and connotations around branding products and services
KEY TAKEAWAYS
Key Points
- The word ” brand ” is derived from the Old Norse brand meaning “to burn,” which refers to the practice of producers burning their mark (or brand) onto their products.
- During the Industrial Revolution, the production of many household items, such as soap, was moved from local communities to centralized factories where they were branded with a logo or insignia, extending the meaning of “brand” to that of trademark.
- All of a brand’s elements (i.e., logo, color, shape, letters, images) work as a psychological trigger or stimulus that causes an association to all other thoughts we have about a brand.
- Brands provide external cues to taste, design, performance, quality, value, and prestige if they are developed and managed properly.
- Brands convey positive or negative messages about a product. They also indicated the company or service to the consumer, which is a direct result of past advertising, promotion, and product reputation.
- A brand can convey up to six levels of meaning: Attributes, Benefits, Values, Culture, Personality and User.
Key Terms
- watermark: A translucent design impressed on the surface of paper and visible when the paper is held to the light.
- brand: A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers.
- Trademark: A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify for consumers that the products or services on or with which the trademark appears originate from a unique source, designated for a specific market. It also distinguishes its products or services from those of other entities.
Defining a Brand
A brand consists of any name, term, design, style, words, symbols or any other feature that distinguishes the goods and services of one seller from another. A brand also distinguishes one product from another in the eyes of the customer. All of its elements (i.e., logo, color, shape, letters, images) work as a psychological trigger or stimulus that causes an association to all other thoughts we have about this brand. Tunes, celebrities, and catchphrases are also oftentimes considered brands.
History
The word “brand” is derived from the Old Norse ‘brand’ meaning “to burn,” which refers to the practice of producers burning their mark (or brand) onto their products. Italians are considered among the first to use brands in the form of watermarks on paper in the 1200s. However, in mass-marketing, this concept originated in the 19th century with the introduction of packaged goods.
Coca-Cola : The Coca-Cola logo is an example of a widely-recognized trademark and global brand.
During the Industrial Revolution, the production of many household items, such as soap, was moved from local communities to centralized factories to be mass-produced and sold to the wider market. When shipping their items, factories branded their logo or insignia on the barrels used, thereby extending the meaning of “brand” to that of trademark. This enabled the packaged goods manufacturers to communicate that their products should be trusted as much as local competitors. Campbell Soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker Oats were among the first products to be “branded. ”
Connotations
A successful brand can create and sustain a strong, positive, and lasting impression in the mind of a consumer. Brands provide external cues to taste, design, performance, quality, value and prestige if they are developed and managed properly. Brands convey positive or negative messages about a product, along with indicating the company or service to the consumer, which is a direct result of past advertising, promotion, and product reputation.
Mercedes-Benz: The Mercedes-Benz Logo suggests high-prestige as an automobile brand.
A brand can convey up to six levels of meaning:
- Attributes: The Mercedes-Benz brand, for example, suggests expensive, well-built, well-engineered, durable, high-prestige automobiles.
- Benefits: attributes must be translated into functional and emotional benefits.
- Values: Mercedes stands for high performance, safety, and prestige.
- Culture: Mercedes represents German culture, organized, efficient, high quality.
- Personality: the brand projects a certain personality.
- User: the brand suggests the kind of consumer who buys and uses the product.