Last updated: 27th November 2016
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What is brand?
American Marketing Association defines brand as a "name, term, sign, symbol or design, or a combination of them, intended to identify the goods and services of one group of seller or group of sellers and to differentiate them from those of competition" (Keller, 2013).
The term is derived from an old Nordic word 'brandr' which can be roughly translated into English as 'to burn'. The term became synonymous with a technique called livestock branding. Livestock branding is a process in which animal owners use burning irons to issue a mark on their livestocks in order to declare ownership of the animals. This practice was common from the Medieval period (5th-15th century) to the American Old West in the 1800s.
The history of branding can be traced back as far as ancient kingdoms. The earliest record of branding was 3,000 years before Christ. In ancient Egypt (3,000 BC) stonemasons issued insignia on the exterior of their potteries as a source of identification. In 1266, the English parliament passed a law whereby all bakers were forced to put marks on all loaves of bread. Between 17th and 18th centuries, tobacco manufacturers in the United States were among the pioneers of trademark and issued labels such as Smith's Plug and Brown and Black's Twist on their products to be exported to other countries as a source of tobacco quality. By the late 1850s, the US tobacco industry began to issue creative names (i.e. Cantaloupe and Rock Candy) to make their products more appealing to customers (Keller, 2013).
The term is derived from an old Nordic word 'brandr' which can be roughly translated into English as 'to burn'. The term became synonymous with a technique called livestock branding. Livestock branding is a process in which animal owners use burning irons to issue a mark on their livestocks in order to declare ownership of the animals. This practice was common from the Medieval period (5th-15th century) to the American Old West in the 1800s.
The history of branding can be traced back as far as ancient kingdoms. The earliest record of branding was 3,000 years before Christ. In ancient Egypt (3,000 BC) stonemasons issued insignia on the exterior of their potteries as a source of identification. In 1266, the English parliament passed a law whereby all bakers were forced to put marks on all loaves of bread. Between 17th and 18th centuries, tobacco manufacturers in the United States were among the pioneers of trademark and issued labels such as Smith's Plug and Brown and Black's Twist on their products to be exported to other countries as a source of tobacco quality. By the late 1850s, the US tobacco industry began to issue creative names (i.e. Cantaloupe and Rock Candy) to make their products more appealing to customers (Keller, 2013).
Why do brand matters?
To understand how valuable a brand is, consider this scenario. A tourist went to Harrods department store in London to purchase a Crème de la Mer serum and a new iPhone 6s before flying for an exotic getaway at Banyan Tree Phuket via the luxurious Singapore Airline. Whether it's a facial cream, a gadget, a place or an airline, they are all branded to make them more special than other competitors.
But why do customers prefer to choose these brands instead of other alternatives? The reason is that many people appreciate the value of brands. High quality brands give promise to customers about what they can expect from the brands. Brand is an important asset for many companies, but very few people understand how important branding helps company to establish one of the most valuable assets.
The purpose of branding is to create a sense of uniqueness and lust towards a particular product, service and company. Brand can offer an emotional appeal to customers far reaching from the physical attributes they offer. In this globalised world, competitors are able to provide products with similar functions which undergo similar process. Competitors may imitate the same products, designs and manufacturing process. Brand is supposed to make yourself stands out among the crowd of alternatives.
Sources
Baines, P. and Fill, C. (2014) Marketing. 3rd ed. Oxford: Oxford University Press
Keller, K. L. (2013) Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 4th ed. London: Pearson.
Keller, K. L. (2013) Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 4th ed. London: Pearson.
External Readings:
Baines, P. and Fill, C. (2014) Marketing. 3rd ed. Oxford: Oxford University Press
Keller, K. L. (2013) Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 4th ed. London: Pearson.
Kotler, P. and Armstrong, G. (2013) Principles of Marketing. 6th European ed. London: Pearson.
Kotler, P. and Kevin, K. L. (2015) Marketing Management. 15th ed. London: Pearson
Available at:
www.amazon.com
www.kinokuniya.com
www.asiabooks.com
www.barnesandnoble.com
www.waterstones.com
Baines, P. and Fill, C. (2014) Marketing. 3rd ed. Oxford: Oxford University Press
Keller, K. L. (2013) Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 4th ed. London: Pearson.
Kotler, P. and Armstrong, G. (2013) Principles of Marketing. 6th European ed. London: Pearson.
Kotler, P. and Kevin, K. L. (2015) Marketing Management. 15th ed. London: Pearson
Available at:
www.amazon.com
www.kinokuniya.com
www.asiabooks.com
www.barnesandnoble.com
www.waterstones.com
Copyright belongs to Bloomsbury Business Limited 2016
No parts of this publication can be copied and distributed on print or online medium without the consent of the company.
No parts of this publication can be copied and distributed on print or online medium without the consent of the company.