What is a brand?
The English word brand stands for brand and is a central term in marketing. It refers to all properties in which objects associated with the brand name differ from other competing objects (with other brand names). Such objects can be goods and services, but also, for example, companies, persons and sports teams.
- Defines the distinction from other objects
- Distinguishes itself by identifying name, logo etc.
- May be associated with legal protection
- Purchase-decisive characteristics are “brand defining”
This is what Brand stands for
When we speak of a brand, we almost always mean a unique design, as well as certain identifying symbols and words or a combination of these. It is about creating an image that identifies a product and distinguishes it from the competition. Over time, this image will ideally be associated with a (preferably high) degree of credibility, quality and satisfaction in the consumers mind (positioning). In this way, brands help consumers to orientate themselves in a completely crowded and complex market by standing for certain advantages and values. When a brand name identifies or represents a company or other entity, it is also simply called a brand name. A brand is therefore a unique and identifying symbol, logo, name, word or phrase that companies use to distinguish their product or service from others. A combination of one or more of these elements can be used to create a brand identity. The legal protection of a brand name is also called a trademark. When it comes to branding, the primary concern is how consumers perceive it. A brand is the way a company, organization or person is perceived by those who experience it. However, a brand is always more than just a name, a term, a design or a symbol. It is the recognisable feeling that a product or company evokes. Brands therefore live above all in the mind – namely in the minds of all those who experience them: be they employees, investors, media or, of course, customers.
Brand as most valuable capital
According to many experts, a strong brand is probably the most valuable asset of any company. Despite their intangible nature, brands are enormously important business tools that increase commercial value. Strictly speaking, a brand cannot be held, heard or touched. However, this does not mean that the brand is not the most valuable thing a company owns. A good brand or brand can often be the ultimate competitive advantage. A strong brand simply increases the chances that (potential) customers will prefer a product or service over those of competitors. A brand attracts more customers at a lower cost per acquisition, who are also willing to pay a little more and buy a little more frequently. To understand even better why a brand is so valuable, it is best to break it down into its basic elements. As perceptions, brands comprise a multitude of different elements. It is helpful to take a look at the most important ones when talking about brands: The basic elements of a brand are first and foremost the name and the slogan, the “brand compass” (values, vision, purpose, etc.), the corporate culture, the identity, the language and the message, the website and the brand architecture if applicable. The name and slogan of a brand is its most immediate face to the world. These should be as meaningful as possible or the result of a methodical brand narrative. Nowadays, a lot is usually invested in the creation of the brand name and slogan, as this is an extremely worthwhile measure in the long run. In-depth market research, brainstorming, constant refinement and testing – all these processes are designed to ensure brand success in the end. Above all, a strong name conveys the unique value propositions of a brand, clearly distinguishes it from those of the competition and always leaves a strong impression on the people or consumers who experience it. An effective brand identity embodies all the defining characteristics of a brand, including its personality, its promise and its purpose. The goal is an aesthetic symbol full of meaning that has the power to convey the essence of a brand in a visual moment to all who experience it. The brand personality is the unique spectrum of thoughts, emotions and behavioural patterns inherent in a brand – the most individual characteristics of a brand.