A brand is an identification mark, symbol, name or other attribute that identifies one product or service as different from those of others. It is also known as the identifying trademark of a company. It is usually formed by a combination of letters and at most, a single X. Branding is important because it allows consumers to differentiate one brand from another. For example, milk is recognized as one of the brands in the market, while Feta is considered as a gourmet cheese.
The brand equity or worth of a brand can be calculated through many methods, including cost per unit, word of mouth, price per head, and total market share. The most common and reliable method is to divide brand equity by the total sales of each brand. Other methods to determine the value of a brand include the cost per head for a particular brand, the cost per unit for a specific brand, or the average ROI or return on investment. The break-even pricing concept is the opposite of cost per head. It considers the sales volume or the average sale price divided by the average sales price.
Advertising is the backbone of brand building. Advertisements, commercials, banners, websites, emails, and even billboards all help build the name of a brand. Some studies have shown that 85% of brand name recognition is due to advertising and marketing.
Brand names have been around since people began marketing centuries ago. The first brand name was created for a type of grain called “Somnus”. This was used by farmers to identify their products. Brand names are often based on a person, a product or a type of company. Examples include Ford, Apple, Sony, Visa and Southwest Airlines. People associate brand names with certain things.
Companies rely on brand names to create brand loyalty and to foster customer loyalty. They also use the name to show the relationship they have with their customers. A company named Southwest Airlines has several marketing campaigns including one called “The Southwest Experience”. This campaign includes television commercials, print ads and interactive websites that have various components, such as games, trips and gift cards.
Brand marketing can be done in many different ways. Brand names can be chosen from the pool of available catalogues, or they can be randomly selected. A brand name can be taken from the name of an existing business. Alternatively, the name of a new business can be taken from a book, a movie, a song, a TV series, a song or a brand of something that is already known or popular. There are so many ways to brand.