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Did you know that a brand is defined as an intangible asset? This means that it’s often the most valuable asset on a corporation’s balance sheet. Proper branding can result in higher sales. If people know and trust your brand, there is no reason for them to divorce you. I know that might sounds like an overkill, however people often stand by their favorite brand and protect them as they would their spouse.
To be successful in branding any company, you must first have a foundational understanding of the topic, which begins at clearly defining branding terms. I’ve seen numerous articles using these terms without actually explaining what they mean. Because of this, I decided to provide a lists of Branding Definitions that will help you grasp the basics.
Brand – A brand is a mixture of attributes, tangible and intangible, symbolized in a trademark, which, if managed properly, creates value and influence.
Brand Association – The feelings, beliefs and knowledge that consumers (customers) have about brands. These associations are derived from the consumer’s total sum of experiences and must be consistent with the brand positioning and the basis of differentiation.
Brand Equity – The added value a brand name gives to a product beyond the functional benefits provided. Brand equity should provide a competitive advantage that should allow consumers to be willing to pay a higher price premium for that company’s products or services.
Brand Experience – The means by which a brand is created in the mind of a stakeholder. Or, in other words, all the interactions people have with a product, service, or organization; the raw material of a brand.
Every interaction between an individual and a tangible or intangible brand artifact can be seen as a brand experience. Some experiences are controlled such as advertising campaigns, products and services, information put on company websites, etc. Some are uncontrolled like comments from journalists and word of mouth.
Brand Identity – A brand identity similarly provides direction, purpose and meaning for the brand. It is central to a brand’s strategic vision. It represents what the brand stands for and simply a promise to customers from the organization members.
Brand Management – is a communication function that includes analysis and planning on how that brand is positioned in the market, which target public the brand is targeted at, and maintaining a desired reputation of the brand.
Brand Name – Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller’s goods or services. Some brand names include Pepsi, Mercedes and McDonalds.
Brand Personality – A set of human characteristics associated to a brand name. Research often shows that people pick brands that are consistent with their own personalities. If a consumer is sophisticated, then they are more inclined to purchase a product that is branded to be sophisticated.
Brand Positioning – is how the brand is perceived in the context of competitive alternatives.
Brand Strategy – is the process of illuminating the brand’s behavior in every internal action taken by stakeholders, and in all mental and physical interactions customer/consumer’s experience. An easier definition is a plan for the development of a brand to enable it to meet its agreed objectives.
Brand Value – The code by which the brand lives.
I hope this short and sweet guide has helped you. Always remember, a brand is more than just a logo.