Reviewed by Sep 30, 2020| Updated on
A brand is a sign, label, logo, name, word, and/or sentence which companies use to differentiate between their products and others'. To build a brand identity, a combination of one or more of those elements can be used. Legal protection bestowed on a brand name is called a mark.
A brand is viewed as one of the most valuable assets in a business. It represents the company's image, the identifiable emblem, slogan, or symbol that the business shares with the public. In reality, their brand always refers to the company, and they become similar.
A company's brand also carries with it a monetary value in the stock market (if the company is public), which affects stockholder value as it rises and falls. For these reasons, it's essential to uphold the integrity of the brand.
If a company decides to agree on a brand to be its public image, it must first establish its brand identity, or how it wishes to be seen. A company logo, for example, also incorporates the message, slogan, or product the organisation is selling. The aim is to make the mark memorable and appealing to the user.
The company generally consults a design team or firm to present ideas for the visual aspects of a brand, like a logo or a symbol. A successful brand precisely depicts the message or feeling that the company is attempting to communicate and results in brand awareness or the recognition of the brand's presence and its offerings. On the other hand, an incompetent brand often results in miscommunication.
Once a brand has established positive sentiment among its target audience, the firm is said to have built brand equity. Some instances of firms with brand equity—holding very recognisable brands of products—are Microsoft, Ferrari, Coca-Cola, Apple, and Facebook.
Companies incur millions of dollars to market their brand and build awareness of their products. The payoff can make or break a company. Both brand value and brand equity consider how much a brand is worth it.
Brand value relates to the financial amount the brand is worth as given on the balance sheet. Brand equity is the understanding of consumers and how they feel about the brand.
A business requires brand equity to raise the brand value. The better the visibility your brand has, the higher the value. For example, a biscuit brand like Britannia Good Day or Parle-G is well known than a smaller brand. The money they have put into marketing their brand, creating awareness of their products, and building loyalty with biscuit-buying consumers, enhance the revenue when buyers choose their biscuits over the other lesser-known brands.
Here are four basic steps for finding brand values: Step 1: Discover what matters. Step 2: Know your customers and competitors. Step 3: Stand for something. Step 4: Stay consistent.
Three methods to calculate the brand value are: - Cost-based brand valuation - Income-based brand valuation - Market-based brand valuation