Brand - Definition & Importance
What is Brand?
A brand is a perception that represents a company or product in the minds of consumers. Brand represents the image of what a company is and the purpose of its existence. Usually a brand is identified by the company’s logo, a tagline or a jingle associated with its products in all its advertising. It provides a reason with which the consumers associate themselves with. It is what a firm promises to its customers.
Importance of Brand
A brand is trademark and cannot be used by other companies. It is developed over time and is like an umbrella under which the company offers several products and services and the user can identify the source of these offerings by the brand they carry. Every product created by a company is made to offer a unique benefit. This product is identified and differentiated as compared to competitor products by giving it a name, logo, tagline etc. Each product hence gives a certain message to the consumer and this message can be different for different consumers.
The essential constituents of a brand are shown above.
Advantages of Creating a Brand
There are several advantages for companies to invest and create a good brand. Some key advantages are:
1. It helps people remember the product, service or company despite competition. Since there are so many products offering the same benefits, a different name or logo helps customers remind of the products.
2. It helps build loyalty towards the product or service. If a customer likes a product used, they can buy it again it they remember its name.
3. A good presence builds trust with the customer. A company which invests in promotion, creating a unique name or logo, attracts customers as it sends signals of trust.
4. A good brand ensures that customers have a high recall and can lead to repeat purchase. If customers remember the name or logo or product, they can spread a positive word of mouth.
Hence, this concludes the definition of Brand along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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