What Is a Brand, and Why Is a Strong Brand Important?

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When people say brand, the brands that come to mind straight away would be Coca-Cola, Nike or even Versace. The dictionary defines a brand as ‘a kind or variety of something distinguished by some distinctive characteristic’. However, in marketing terms it is defined as ‘a name, term, sign, symbol or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers of a product or service’ (Kotler, Brown, Adam, Burton, Armstrong, 2007). A brand can be defined in many ways, and there are several characteristics that make up a strong brand. Furthermore, strong brands have strong brand loyalty and the importance a strong brand is shown when brands expand their products. Moreover, brand strategy is…show more content…
The most important factor in brand equity is customer equity, which is ‘the value of the customer relationships that the brand creates’ (Kotler, Brown, Adam, Burton, Armstrong, 2007), what this means is that the real asset for a strong brand is the loyalty of its customers. Brand strategy plays an important role in making a brand strong. For example, ‘brand strategy decisions involve brand positioning, brand name selection, brand sponsorship and brand development’ (Kotler, Brown, Adam, Burton, Armstrong, 2007). With strong brands, their brand is positioned on ‘strong beliefs and values’ (Kotler, Brown, Adam, Burton, Armstrong, 2007). These strong brands arouse different emotions, for example, the brand Nike might make the consumer think that wearing Nike will give them a ‘cool look’. Another example of this is that using Colgate toothpaste will give consumers ‘healthy, beautiful smiles for life’ (Kotler, Brown, Adam, Burton, Armstrong, 2007). The importance of a brand is also important in a strong brand as it influences the types of brands that consumers will buy. In a study conducted by Swedish students, they found that consumer lifecycle stages affect how they view different brands. For example, when a person is single they seek to ‘define their self-identity’ (Sääksjärvi, Kedzior, 2006, p2). Therefore, the importance of a strong brand is that consumers can find the right brand for

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