What is a brand?
To some, a brand may just be a name, logo or corporate identity. To others it may be a trade mark or 鈥渢rust mark鈥 鈥 a guarantee of consistent quality. To a brand-focused company it聽will be its most valuable and yet intangible business asset.
A brand is perhaps best explained by adopting the perspective of the individual (whether shopper or user) rather than that of the company. A brand is the sum of聽that individual’s knowledge and feelings for a product, service or company, and provides the means for exercising choice and preference. Over time, a product or service may develop in an individual’s mind to become familiar,聽recognisable, reassuring, unique听补苍诲 trust-inspiring – in other words, a strong brand.
Strong brands tend to grow聽as a result of companies聽taking continuous, careful note of what people want. Great emphasis is placed on consistency but also on research and development in order to meet individuals’ current and anticipated requirements better while staying one step ahead of competitors. Continuous innovation is聽often therefore an integral聽part of successful brand-building.
“Branding” is the means whereby companies聽strive to聽create and build strong brands. Over 1 million people are employed and companies invest some 拢33 billion per year in the creation and building of brands in the UK. This equates to聽an investment in the聽economy of some 拢16 billion per year, according to Westminster Business School. Great British brands such as Rolls Royce, Dyson and Johnnie Walker drive聽the UK’s聽export performance while the desire to build strong brands makes companies accountable, prompting socially beneficial and responsible practices.
How they work: managing聽brands
There are four necessary activities to ensure a brand continues to be recognised and have a strong, positive reputation:
- Monitor lifestyle changes
Populations age, become richer or poorer and change their behaviour and values. A brand must remain constant throughout, making any necessary change in design, packaging and price, while always being good value. - Explore technological changes
Constantly changing technology can improve benefits, such as cans with easy-open ends. Brand leaders need to be one step ahead of the field in bringing those benefits to individuals. - Measure product performance
To achieve quality, products must never deteriorate or become inferior to the competition. - Never change positioning
The positioning of a brand is its promise to the individual. Changing positioning is breaking faith with them. External factors such as packaging, distribution and media communication will all change to ensure that the brand鈥檚 reputation and recognition are retained and strengthened, but its position must remain constant.
Next: The History of Brands