Brand: In todays world the hottest topic is what is Brand? The biggest problem is the
disagreement between experts is the definition.
Each expert comes up with his or her own
definition,
The problem gets more acute when it comes to
measurement: how should one measure
the strength of a brand? there are two paradigms. 1) One is customer-based. another 2)
The other aims at producing measures
in dollars, euros, Rupees or yen.
Both approaches have
their own champions.
For better understanding, i am discussing these two Paradigms below:
Customer-based definitions
The financial approach measures brand value by isolating the net additional cash flows created by the brand. These additional cash flows are the result of customers’ willingness to buy one brand more than its competitors’, even when another brand is cheaper. Why then do customers want to pay more? Because of the beliefs and bonds that are created over time in their minds through the marketing of the brand.
Brands as conditional asset
Financiers and accountants have realized the value of brands how does the financial perspective help us in defining brands and brand equity?
First, brands are intangible assets, posted eventually in the balance sheet as one of several types of intangible asset (a category that also includes patents, databases and the like).
Second, brands are conditional assets. This is a key point so far overlooked. An asset is an element that is able to produce benefits over a long period of time. Interestingly, the legal approach to trademarks and brands also insists on their conditional nature. One should never use the brand name as a noun, but as an adjective attached to a name, as for instance with a Toyota car, not a Toyota.
The legal perspective
An internationally agreed legal definition for brands does exist: ‘a sign or set of signs certifying the origin of a product or service and differentiating it from the competition’. A key point in this legal definition is that trademarks have a ‘birthday’ – their registration day. From that day they become a property, which needs to be defended against infringements and counterfeiting.
A brand is a name that influences buyers
This definition captures the essence of a brand: a name with power to influence buyers. Of course, it is not a question of the choice of the name itself. Certainly a good name helps: that is, one that is easily pronounceable around the world and spontaneously evokes desirable associations. But what really make a name become a brand are the saliency, differentiability, intensity and trust attached to these associations.
Regards,
Avi...
Comments will be appreciated!
