The meaning of brand

The goal of an enterprise is always sales, and brand is a strategic weapon to achieve sustainable and excess profit sales. This article will talk to you about the value and significance of brands, clarify the value and significance of brands, and those who are interested can come and have a look.

I held five consecutive project meetings yesterday. It was almost dawn when the meetings ended. After much thought, I decided to talk to you today about the value and significance of brands. I hope that I can clarify the value and significance of brands and strengthen the determination and perseverance of many companies in building brands.

The purpose of building and managing a brand is to gain customer brand loyalty, form brand associations, expand brand awareness, enhance customer quality perception, and strengthen brand endorsement. However, from the perspective of current KPIs, building a brand is for sales, and for sustainable sales that can bring excess profits.

Brand is just the most powerful means to achieve sales. The goal of an enterprise is always sales, and brand is a strategic weapon to achieve sustainable and excess profit sales. It is just that when an enterprise has achieved crystallization in the minds of consumers through long-term marketing and communication behaviors in the market, consumers will say that you are a brand. With this goal clarified, let's talk about the meaning of brand.

1. Enhanced recognition

The English word for brand comes from the Old Norse word “randr”, which means “burn” or “brand”. In the nomadic period, people used red-hot irons to brand the backs of livestock to mark their property ownership and distinguish it from other people’s similar items. In medieval Europe, craftsmen also used brands to mark their products, making it easier for customers to identify the origin and producer of the products, thus forming the earliest trademarks.

Therefore, the original purpose of a brand is to distinguish, identify, and prove ownership. In a word, "we are different." A brand distinguishes one's own products from others and makes the product stand out from the competition.

2. Establish credit endorsement

The second major role of a brand is to guarantee quality, dispel doubts, and provide consumers with credit endorsement. When you are choosing goods on a supermarket shelf, there are two products, one you don’t know at all, and one you have heard of and seen its advertisement. In most cases, you will choose the one you are familiar with without hesitation, because familiarity creates a sense of trust.

In the golden age of the last century, many companies would see a surge in sales and consumers would rush to buy their products if they hired celebrity spokespersons and advertised on CCTV. Because in the minds of many people, there is such a simple consumer psychology: since you can advertise on CCTV and can afford a spokesperson, your quality must be good. Those who can hire a spokesperson to advertise on CCTV are all big brands. Therefore, hiring celebrities to endorse + shooting TVCs and investing in CCTV have always been the most important means of building traditional brands. Because CCTV, a national media and celebrities, provide credit endorsements for this brand.

The existence of a brand also proves that what a company does is not a one-time deal. If there is a problem with the product you bought, you will definitely be able to find it. It is not that the company sells something to you once and then runs away. In fact, the greater the influence of the brand, the higher the social credit cost of the company. If there is negative news about the product, the damage to the company will be greater. Because you are a brand that everyone is paying attention to.

3. Create bargaining power

Companies build brands, on the one hand, to achieve greater sales, to let more consumers know and buy, and to buy continuously. On the other hand, it is to sell at a high price and bring in excess profits. The former is a requirement of quantity, and the latter is a requirement of quality.

In the early years, the first thing many consumers did after buying a car was to remove the car logo and replace it with a Volkswagen, Mercedes-Benz, or BMW logo. So many domestic car 4S stores even provide logo replacement services for car owners. The car is still the same car, but it is more valuable with a new logo? This is the premium effect of the brand.

The same mineral water, when put into a Nongfu Spring bottle, costs RMB 3.5, but when put into an Evian bottle, it costs RMB 18. Of course, there is a difference between Nongfu Spring water and Evian water, but consumers will obviously not pay RMB 15 more for a little difference on a physical level. The main reason for the premium is the brand.

In addition to functional value, brands provide consumers with identity and status labels, and bring consumers emotional and spiritual recognition and satisfaction, as well as aesthetic enjoyment.

Have firm confidence in building a brand, because branding is the most cost-effective investment for an enterprise. The more you invest, the more brand assets you will accumulate.

Author: Liu Yichun

Source: WeChat public account "Liu Yichun's Brand Business Innovation (ID: shangyeyiguohui)"