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A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and store value as brand equity for the object identified, to the benefit of the brand's customers, its owners and shareholders. Name brands are sometimes distinguished from generic or store brands.
The practice of branding - in the original literal sense of marking by burning - is thought to have begun with the ancient Egyptians, who were known to have engaged in livestock branding as early as 2,700 BCE.[need quotation to verify] Branding was used to differentiate one person's cattle from another's by means of a distinctive symbol burned into the animal's skin with a hot branding iron. If a person stole any of the cattle, anyone else who saw the symbol could deduce the actual owner. The term has been extended to mean a strategic personality for a product or company, so that "brand" now suggests the values and promises that a consumer may perceive and buy into. Over time, the practice of branding objects extended to a broader range of packaging and goods offered for sale including oil, wine, cosmetics, and fish sauce and, in the 21st century, extends even further into services (such as legal, financial and medical), political parties and people (e.g. Lady Gaga and Katy Perry). Branding in terms of painting a cow with symbols or colors at flea markets was considered to be one of the oldest forms of the practice.
In the modern era, the concept of branding has expanded to include deployment by a manager of the marketing and communication techniques and tools that help to distinguish a company or products from competitors, aiming to create a lasting impression in the minds of customers. The key components that form a brand's toolbox include a brand's identity, personality, product design, brand communication (such as by logos and trademarks), brand awareness, brand loyalty, and various branding (brand management) strategies. Many companies believe that there is often little to differentiate between several types of products in the 21st century, hence branding is among a few remaining forms of product differentiation.
Brand equity is the measurable totality of a brand's worth and is validated by observing the effectiveness of these branding components. As markets become increasingly dynamic and fluctuating, brand equity is built by the deployment of marketing techniques to increase customer satisfaction and customer loyalty, with side effects like reduced price sensitivity. A brand is, in essence, a promise to its customers of what they can expect from products and may include emotional as well as functional benefits. When a customer is familiar with a brand or favors it incomparably to its competitors, a corporation has reached a high level of brand equity. Special accounting standards have been devised to assess brand equity. In accounting, a brand defined as an intangible asset, is often the most valuable asset on a corporation's balance sheet. Brand owners manage their brands carefully to create shareholder value. Brand valuation is a management technique that ascribes a monetary value to a brand, and allows marketing investment to be managed (e.g.: prioritized across a portfolio of brands) to maximize shareholder value. Although only acquired brands appear on a company's balance sheet, the notion of putting a value on a brand forces marketing leaders to be focused on long term stewardship of the brand and managing for value.
The word "brand" is often used as a metonym referring to the company that is strongly identified[by whom?] with a brand. Marque or make are often used to denote a brand of motor vehicle, which may be distinguished from a car model. A concept brand is a brand that is associated with an abstract concept, like breast-cancer awareness or environmentalism, rather than a specific product, service, or business. A commodity brand is a brand associated[by whom?] with a commodity.
- Haigh, Robert (18 February 2014). "Ferrari – The World's Most Powerful Brand". Brand Finance. Retrieved 9 February 2015.
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- American Marketing Association Dictionary Archived 2012-06-11 at the Wayback Machine. Retrieved 2011-06-29. The Marketing Accountability Standards Board (MASB) endorses this definition as part of its ongoing Common Language in Marketing Project Archived 2019-04-05 at the Wayback Machine
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