The Concept of Brand

Abstract

Be it a sign, symbol, drawing, name or term (or any combination of these elements) that facilitate the identification and recognition of material goods and services of a manufacturer or seller their differentiation from the competitors, the brand can be presented in various forms (logo-type, siglo-type, phyto-type, zoo-type, geo-type, ampho-type etc.). The role of the brand is very well established and it expresses itself through its functions, contributing, on one hand, to the identification of the product and its differentiation from the competitor's products, and, on the other hand, to the assurance of a constant quality level of the product for the consumers, communicating, however, a series of information about it. Therefore, it must be clear, expressive, have a distinctive character, easy to remember, attractiveness, have a meaning related to those products etc. This concept should be analyzed with others, such as brand names, trade name or brand.

Headnote

Abstract

Be it a sign, symbol, drawing, name or term (or any combination of these elements) that facilitate the identification and recognition of material goods and services of a manufacturer or seller their differentiation from the competitors, the brand can be presented in various forms (logo-type, siglo-type, phyto-type, zoo-type, geo-type, ampho-type etc.). The role of the brand is very well established and it expresses itself through its functions, contributing, on one hand, to the identification of the product and its differentiation from the competitor's products, and, on the other hand, to the assurance of a constant quality level of the product for the consumers, communicating, however, a series of information about it. Therefore, it must be clear, expressive, have a distinctive character, easy to remember, attractiveness, have a meaning related to those products etc. This concept should be analyzed with others, such as brand names, trade name or brand.

Keywords: brand, trade name, brand names

Introduction

The concept of brand derives from the verb to brand, from the action of branding, through which the one who conducts it (manufacturer or seller) provides certainties or guarantees on the market regarding quality, competence, reliability etc.

In current language, the noun brand has the meaning of distinct mark applied to an object (or subject) to distinguish it from others or to recognize it, respectively the meaning of inscription indicating the source of manufacturing [1, 599].

In marketing, brand means the same things, namely a sign, symbol, drawing, name or term (or any combination of these elements) that facilitate the identification and recognition of material goods and services of a manufacturer or seller their differentiation from the competitors. It represents the essential element of product strategy, increasing the value of the offer.

The brand name is a concept with a more limited content, representing only one (or several) of the elements of this symbolic ensemble (verbal), (often) being registered in the Trade Registry Office as a unique name, and protected by the law.

On the other side, the trade name is the name under which a firm is registered and conducts commercial activity.

In order to avoid confusion among traders (and the public), when registering a firm in the Trade Registry Office, the trade name (like the brand one) must meet the following conditions:

1. should be available, distinctive (not already assigned and used by someone else);

2. should be legal;

3. should not overlap the name of a well known personality (without its consent).

According to the Paris Convention, of which Romania is a part of, the trade name shall be protected in all countries of the Union, without the obligation of filing or registration, whether if he is part of a trade name or not.

The brand, according to the American Marketing Association, is defined the same: "Name, term, sign, symbol or any other element that identifies a product or service of a seller as being different from others" [2]. In addition to ensuring the differentiation of the object it is attached to, it is also a promise and a guarantee regarding its quality, which is found in the mind and eyes of those it interacts with - those it is addressed to. Typically, it is addressed to a well defined market segment.

Opposite of the "object" promoted by the brand, it may not be necessarily a material product, service or company, but also a person, an event or even a state.

It is widely acknowledged that the brand is the intangible part of business to the firm that uses it (a collection of intangible elements - ideas, feelings, associations of words etc. - that are stored in our minds) while the products are tangible.

Often, the brand name overlaps the institutional name (of the firm), respectively over its trade name, while the brand names refer to its products.

1. Presentation Forms

Brands can take a variety of forms, their identity problem being the subject of numerous concerns [3, 99135], a range of solutions are highlighted, such as:

* logo-type, which is a representation of the brand in a word, respectively a name (Ford, Philips, Honda);

* siglo-type, which is a visual representation of the brand through the initials of the name or expression that designate the firm's objective (FIAT, IBM, ING) - being more business names than product names;

* phyto-type, materialized in the image of a plant (such as the palm, for the Palmoliv soap);

* zoo-type, which is based on the image of an animal (such as the lion's, for Peugeot cars);

* geo-type, that uses a geometrical figure for brand representation - such as the rhomb, for Renault cars;

* spatial brand, represented by a three-dimensional body (bass-relief, statue);

* ampho-type, which represents the brand through a combination based on some of the elements mentioned (as in the Mercedes cars case, they use a name and geometrical figure);

* phono-type, rarely met, when the brand is presented through some audio signals (song) etc.

Each one of these solutions present a series of characteristics: specificity, clarity, force of attraction, capacity of being easily remembered reproducibility, perennially, development capacity, esthetics, capacity to cover all products of firm missions etc.

Opposite the product and brand name, the following situations can be identified:

a) the brand name is unrelated to the main activity of the firm or products specific (Apple - computers - or Ariel, Orno - detergents);

b) the brand name, indicating the origin of the merchandise, is different from the name of the product (Ford brandproducts: Focus, Mondeo etc.);

c) the brand name (Nestlé) and product name are combined (Nesquik, Nestea, Nescafé);

d) a single name, representing both the brand and the product (Canon, Coca-Cola, Lego, Orangina, Pampers). If it is found on a range of different products (Philips, Moulinex), it is an umbrella brand [4].

Both for brands (and firms), as well as for products, manufacturers prefer to attribute to them frequently:

* their last or baptismal name (in the case of the cars - Ford, Renault - or fashion articles - Versace) - or even their name and surname (Louis Vuiton);

* names of femous people (in the case of hotels: Decebal, Traian);

* names of plants or animals (Zmeura, Pescâru§ul, Colibri, Rândunica)\

* names of characters loved by children (in the case of sweets or toys);

* names of counties or cities (in the case of dairy products - Dorna, wines - Cotnari, Bucium - beer - Märgineni etc.);

* names inspired by onomatopoeia (Zu-Zu - yoghurt, Crunch - chocolate with cereal, Tic-Tac - candy);

* names containing words and numbers (Renault 12, Paralela 45);

* names with no sense (such as Sarmalele Reci or Bere Gratis).

All these names are recommended in areas where the human side is significant, the approach and communication with customers in a manner ''from person to person", where the name translates into authenticity and guarantee of success based on quality - or where innovative products are launched, with which the customer is not used to or where the activity must be ensured by personal guarantees to generate trust.

A particular brand name consists of semi associative or allusive names (such as Microsoft, Duracell or Nescafe), that offer (in addition to those already mentioned) a descriptive perspective on the brand, becoming friendlier and easier to promote. The fact that some of them can become devoid of originality, difficult to individualize and promote (among other brands in the same industry), difficult to defend in court and record must not be neglected.

At the opposite end there are abstract or invented names (such as Nokia or Marlboro), that become efficient only by the possibility of association with business, the ease of defense in court and the quality of being a good differentiator when covering quality products [5]. In order to reach them, the starting point is the possibility of the listeners' unconsciously understanding of sounds, fragments of language and ability to incorporate them in such names. The allocation rules of the brand name are displayed in the case of the product name.

2. Role

Unprecedented extension of brands can be explained only by the crucial role they play in promoting the interests of companies that support them financially, but also of the consumers.

In favour of manufacturers and distributors, the brand plays various roles.

1) First, it provides products (that wear it) a clear identity, differentiating them from the competitors', which ensures them some history, a good positioning on the market and an even easier identification for the customers.

2) Then, as soon as it is registered, the brand assumes its role of protecting the firm's products against imitation or counterfeiting attempts, providing the right of industrial ownership.

3) Consumer loyalty is another task the brand is responsible for, a known fact is that brand products are a major attraction for most of the customers (after, of course, it has aquired a certain position on the market).

4) In the case of unique brands, for new products, they constitute a powerful support in launching them on the market, the consumers that have gained confidence in a brand being more accepting in buying them.

5) However, the brand's role is to enhance the economic strength of the firm, it allowing, on one hand, the sale of products at a higher price, and on the other hand, contributing to the increasing of the firm's assets (being, like the product, an economic product which can be sold or rented).

This last aspect is very important in adopting the decision to use a brand. The big expenses (often) it entails are justified economically by such effects.

Concerning the consumers, the brands are placed to support them, assuming a different set of roles.

1) Thus, according identity to products and differentiating them more clearly, the brands ease the identification and choice process, so that it could become (eventually) even a reflex act.

2) At the same time, the brands ensure the reducing of risks of choosing products they are linked with involve, imposing them on the market offering buyers some guarantee concerning their quality.

3) Also, brands create additional satisfaction to the buyers who want to highlight the privileged status given to them by the possibility of buying brand products.

Being protected by law, brands provide some guarantees and certainties that manufacturers and consumers can enjoy in an almost equal measure. The advantages manufacturers gain from the use of the brands are well deserved, since they bear the additional efforts to impose and administer them. This does not mean that the advantages the consumers benefit from the brand products are undeserved, as one might think at first glance. On the contrary, they are well deserved, because for their capitalization buyers pay an (additional) price, the brand products being more expensive than the anonymous ones. If a part of the investment in the brand by this increase in the price, it will be covered from the incomes brought by increase of the demand (all the buyers' contribution).

3. Managerial Implications

An entire series of problems to solve concerning the brand is assigned to the management of the firm [6, 597-615]. Balancing the expenses it involves (design, test, launch, publicity and positioning, protection etc.) and the effects of using a brand generate (the most important being strengthening its market position), the first decision that the management of a firm must make opposite this is related to the question: Is brand necessary or not?

There are numerous products (such as: salt, wheat, sugar, some clothing articles) that became common, that the manufacturers deliver without any kind of brand, unable to visibly differentiate them from one manufacturer to another. On the other hand, there are goods whose constructive and qualitative characteristics are very different from manufacturer to manufacturer, the firms that produce them or market them having to analyze the opportunity of using brands (this tendency manifesting itself with a higher intensity since the end of the last century). Where, according to the analysis conducted, the manufacturer concludes that the brand is inappropriate, the whole decision-making process regarding the brand ceases. The same thing does not happen regarding the distributor, because he is also obligated to analyze the same thing. Not infrequently, distributors who purchase goods with no brands from manufacturers, sell them under their own brands. We are talking about distributors that launch on the market, under their own brands, products purchased without brand, at low prices, in special packaging, through stores that offer certain facilities etc.

There are situations when even distributors are the ones who determine the manufacturers to produce the goods under their own brands, considering that they can be a guarantee of their sale.

If, at the previous question, the analysis indicates the fact that brand is necessary, a second question is raised: Mho should it belong to? Concerning the owner of the brand, the firm can choose from:

1) own brand, it reserves exclusively, to the manufacturer, all expenses and effects its use has;

2) the distributor's brand, when expenses (and risks) related to the use of the brand are borne solely by the dealer, him getting its advantages as well - the manufacturer (remaining anonymous) benefiting only from the possibility of placing his merchandise faster and safer, but at a lower price;

3) licensed or leased brand, this solution being much more convenient and cheaper than the first (purchasing the license costing less than creating and imposing their own brand), the actual manufacturer of the merchandise remaining anonymous;

4) the combinations of the first three choices.

Also when the brand proves to be useful, a second decision that must be adopted is to choose between:

1) the unique brand for all the products of the firm, that presents at least two big advantages:

a) spending less on each brand (including when total expenses with brand use are relatively high);

b) the support provided by a brand already devoted to new products that are launched on the market;

2) individual brands for each product of the firm, which implies a very big effort from it, providing at least two huge advantages:

a) the safety of the other products in case one of the brands has been compromised;

b) facilitating the differentiation of products offered by the same manufacturer, for his advantage, and also for the consumers'.

It is possible to appeal to slightly different solutions this time as well. For example, the unique brand can even be the name of the trade company. Also, along with the unique brand, the individual ones can find their place and common brands (on family products), also called mega brands, this last option trying to capitalize the advantages (and diminish the disadvantages) of the first two solutions.

In the situations when the firm already adopted one of the mentioned solutions, at the launching of the new products on the market it has a choice between adding new individual brands to the existing ones and continuing to use the unique or common brands.

The first option does not raise problems for the firm different from the ones it had to solve initially (when such a solution was adopted). In the case of the second one, the firm is facing a decision of extending the brand. By adopting it, the action of launching new products on the market is easier, benefiting from a reputation and an image already formed about another product of the same manufacturer. More specifically, the firm relies on two categories of effects:

* an "adequacy" effect, the consumers accepting the new product as something logical, being used to new products appearing under the given brand;

* a lever effect, the customers, through the simple knowledge of the brand, being convinced that its extension is equivalent with perfecting the characteristics of products that are already on the market [7].

On the other hand, the fact that this approach can lead to confusion among the buyers (especially when the new product is poorly adapted to the existing brand) must not be forgotten. That is why, such a decision is not easy to justify and adopt.

Conclusions

When launching new products on the market, two more solutions can be adopted: the combined brands, that bears the name (or signs) of other already established brands of the same firm, and the double brands, in which case the two brands under which the new product appears belong to different firms.

In spite of all that has been said and nice things are said about the brand, a new idea has been launched recently, that overshadows all the benefits of using brands. Its concept is that of no brand. No brand is the new brand! Is a motto that more and more marketers adhere to, be they American, European or Asian? Since brands (even the most famous ones) come on the market with mass products, for many consumers with "çtaif' (high quality products consumers), buying such a thing becomes trivial, unattractive. Instead, absolutely anonymous products become more attractive that, by certain something can simply fascinate you. For the German or American maverick, a "clop oçenesc" (traditional man hat), a Chinese armchair or a flower-patterned blouse from Bucovina, found absolutely by chance in a who knows what boutique from their country, they can take (and with great success) the place of similar products offered by the most famous brands in the world at any time.

References

References

[1] Dicfionarul explicativ al limbii române,(1998), Univers Enciclopedic Publishing House, Bucharest

[2] Lake, L., What is Branding and How Important is it to Your Marketing Strategy? marketing.about.com/brandmktg/whatisbranding.htm; American Marketing Association Dictionary. Retrieved 2011-06-29. The Marketing Accountability Standards Board (MASBL en.wikipedia.org/wiki/Brand

[3] Veys, P., (1991), Le secteur tertiaire, Vuibert, Paris

[4] Chiç, D., Nume de firmä, nume de marcä, nume de produs Câteva observafii, www.culturasicomunicare.com/pdf/chis

[5] Dragan, M., Naming, alegerea unui nume potrivit pentru brand, www.mihaidragan.ro

[6] Kotier, Ph., (2003), Managementul marketingului, 3rd edition, Teora Publishing House, Bucharest

[7] Tauber, E.M., Leveerage, B., (1988), Strategy for Growth in a Cost-Control World, Journal of Advertising Research, no. 28

Supplementary recommended readings

American Marketing Association Dictionary. Retrieved 2011-06-29. The Marketing Accountability Standards Board ÍMASB). en.wikipedia.org/wiki/Brand

Ridderstrâle, J., Nordstrom, K., (2007), Funky Business, Publica Publishing House, Bucharest