1-What is Brand?
A brand is a name, term, sign, symbol or a combination of them intended to identify thegoods and services of one seller or group of sellers and to differentiate them from thoseof competition. For example, Coke, Nestle and Microsoft are well renowned brands. Intechnical speaking whenever a marketer creates a name logo symbol he or she has createda brand.
2-Why do Brands matters?
Brands really matter for both consumer and manufacturer.
From consumer’s point of view:
Identification of source of product
Assignment of responsibility to product maker
Search cost reducer
Promise, bond, or pact with maker of product
Signal of quality
Brands identify the source or maker of a product and allow consumers to assignresponsibility to a particular manufacturer. From an economic perspective, brands allowconsumers to lower search costs for products both internally and externally.
Consumers offer their trust and loyalty with the implicit understanding that the brandwill behave in certain ways and provide them utility through consistent productperformance and appropriate pricing, promotion, and distribution programs and actions.Brands can serve as symbolic devices, allowing consumers to project their self-image.
Certain brads are associated with being used by certain types of people and thus reflectdifferent values or traits. Researched have classified products and their associatedattributes into three major categories: search goods, experience goods and credencegoods. There is difficulty in assessing and interpreting product attributes and benefits sowith experience and credence goods, brands may be particularly important signals of quality. Brands can reduce the risk in product decisions. These risks involve functional,physical, financial, social psychological and time risk.
From manufacturer’s point of view:
Means of identification to simplify handling
Means of legally protecting unique features
Signal of quality level to satisfied customers
Means of endowing products with unique associations
Source of competitive advantage