Brands 1.1.1

Brand - a product produced by one business using a specific name.

Tangible - something you can physically see as a difference

Intangible - something you cannot physically see as a difference

Branding involves the creation of an identity for the business that distinguishes that firm and it's products from other firms.

Consumers have a perception of what to expect from a particular brand.

BRANDING CAN ADD VALUE to a product allowing firms to charge higher prices and also leads to brand loyalty whereby customers will continue to buy products from that firm.

Brands help build loyalty and repeat business as well as adding value allowing businesses to charge higher prices.

Sometimes a brand is so strong it filters into our everyday language e.g Google, we now say we are going to Google something, it's turned into a verb.

Other benefits of having a brand and add value to a product are:
•BRAND EXTENSION
Brand extension can mean adding new product ranges to a recognised brand name e.g Heinz and their several products attached to the Heinz brand.
Consumers familiar with or loyal to the brand are more likely to be willing to try new products.
•BRAND VALUE
The brand name itself adds value to the product. It is therefore said to have a money value and less has to be spent on advertising once the brand is established.
•BRAND PERSONALITY
Brands almost take on a personal of their own; we associate them with certain human characteristics. E.g. what do you think of when you think Google or Innocent smoothies.

BENEFITS OF HAVING A DISTINCTIVE BRAND
1) Adds value so customers will be willing to pay more money. Cheap product - so need to add brand value. Increases revenue.
2) Celebrity endorsement advertises the brand, people look up to celebrities and want to be like them and buying the products they use. Celebrity endorsements can target a specific audience to buy the promoted product.

Links to videos and articles on Brands
• Brands and Branding

Or more can be found on "Branding" section of this website