Brands and Brand Names

What Are Brands and Brand Names?

Brands encompass names, terms, designs, signs, symbols, or a combination of these elements that identify a firm's products. They facilitate easy recognition and foster consumer loyalty through repeat purchases. Market research indicates that consumers' brand loyalty evolves through three stages: recognition, preference, and insistence.

The Stages of Brand Loyalty

1. Brand Recognition: This initial stage involves consumers becoming aware of a company's brand. Marketers aim to inform, persuade, and remind consumers about their products, with brand recognition focusing on informing. Achieving brand recognition in large markets like the United States is costly due to the vast geographic area and intense competition. Notably, small firms have successfully gained national brand recognition by advertising during the Super Bowl, despite the high costs associated with this premier television event.

2. Brand Preference: At this stage, consumers choose a particular brand over competing options based on past experiences. Brand preference often stems from long-term familiarity and positive experiences with a company's products. For example, Sears capitalized on brand preference by leveraging consumers' past satisfaction with their tools and appliances.

3. Brand Insistence: This highest level of brand loyalty occurs when consumers refuse alternatives and actively seek out their preferred brands. Airlines and hotel chains have effectively built brand insistence through frequent-flyer and stay programs, respectively.

Types of Brands

There are four primary types of brands: manufacturers', private, family, and individual brands.

1. Manufacturers' Brands (National Brands): Owned by the manufacturer, these brands, such as General Motors, Kodak, and Coca-Cola, are supported through extensive marketing and competitive pricing strategies to maintain and expand brand loyalty.

2. Private Brands: Created and marketed by wholesalers and retailers, private brands like Sears' Kenmore, Craftsman, and DieHard are produced under contract with manufacturers. Since World War II, retailers have increasingly used their market power to promote private brands.

3. Family Brands: A single brand name used for a group of related products. Johnson & Johnson, for example, markets various product lines under its family brand.

4. Individual Brands: Unique brand names for individual products within a company's portfolio. Proctor & Gamble's Tide and Crest Toothpaste are prominent examples of long-lasting individual brands.

Building Brand Equity

The ultimate goal of brands and brand names is to enhance consumer loyalty, known as brand equity. High brand equity means that demand for a firm's product is less elastic, allowing companies to maintain sales even when prices rise. Brand equity also facilitates the introduction of new products, as loyal consumers are more inclined to try new offerings from a brand they trust.

Creating Effective Brand Names

Developing strong brand equity is challenging and often expensive. Effective brand names should be easy to pronounce, recognize, and remember. They must align with the company's desired image, whether it conveys status, safety, or confidence. Trademarks, which are legally protected brand names owned by a company, play a crucial role in safeguarding brand identity.

Conclusion

Brands and brand names are vital components of a company's marketing strategy, driving consumer recognition, preference, and insistence. By understanding the different types of brands and the importance of building brand equity, companies can develop effective strategies to enhance consumer loyalty and ensure long-term success.