Brands and BrandingLO1Mr J Patel

Alperton College 2010

LO1:Explain the concepts of Brand and Brand Equity.

Basic Information

What is a brand?

Definition of Brand

A brand is the identity of a specific product, service, or business. A brand can take many forms, including a name, sign, symbol, color combination or slogan. The word brand began simply as a way to tell one person's cattle from another by means of a hot iron stamp. A legally protected brand name is called a trademark.

Branding is a way of clearly highlighting what makes your product or service different to, and more attractive than, your competitors'.

What is Branding?

The value a brand adds to a business is called Brand Equity.

Brand equity is one of the factors which can increase the financial value of a brand to the brand Examples: changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand values.

Brand Equity

Consumers buy what they recognise and trust what they buy in shops.

The higher the brand visibility and value, the greater the trust consumers will have in a product. This leads to repeat custom. Also if your parents buy something, children will trust it and also buy the good once they are adults.

This is why companies spend millions of pounds investing in brand image as the right brand can secure the long term market share of a company.

Brands affect consumer behaviour

Draw 3 logos you can easily remember off the top of your head

Explain in 3 sentences, why each logo is valuable and how it encourages trust and consumer loyalty.

What do you understand by the term ‘brand equity’?

Activity