Definition and the importances of a brand

Bài thảo luận môn tiếng anh 1.5 * * * Nhóm thảo luận 6 Nhóm trưởng: Nguyễn Phi Lâm Các thành viên: -Nguyễn Trung Khuyến -Ngô Bá Khánh -Nguyễn Văn Kiên -Nguyễn Hữu Hùng Đề tài 4: Definition and the importances of a brand Nội dung sơ lược: Definition of a brand Original Wikipedia’s definition Marketers and other specialists’s point of view The brand’s importance Benefits to owner _Memorability of customers _Loyalty of customers _Familiar with everyone _Benefits from awareness _Extensions of new products _Increase company equity _Lower marketing expenses Benefits to customer Definition of a brand Original: In this part, we will talk about when and where the word “brand” came from, what it meant from the start. As the document we’ve searched, the word "brand" is derived from the Old Norse(an ancient language used by the Viking) brandr meaning “to burn”. Why? Because there was no printer at that time, people had to use an burning iron stick with their own symbol on it to “brand” their products on purpose to identify them. And the products couldn’t be anything else than cattle. Althought the word “brand” was born this way in the ninth century when the Viking came to Bristish Isle, this actions have surprisedly been done much more sooner in the history by the ancient Egyptian about 4000 years ago. After so many years of developing, the definition of “brand” nowaday has became much more complicate than it original. So we decided to choose the word’s best known dictionary website wikipedia.com to define it. Here is the quote: “A brand is the identity of a specific product, service, or business. A brand can take many forms, including a name, sign, symbol, color combination or slogan.” Not only that, the definition has been extended even more in the psychological aspect like: thoughts, feelings, perceptions, images, experiences, beliefs, attitudes which are linked to the brand. To make it clearer, we found some specialist’s opinion about this subject.Simply said, their ideas can be presented in one sentence: “A brand is a collection of perceptions in the mind of the consumer about the products” From this, we can see that the “brand” we know today has seperated itself from the product or service, it exists in the mind of the consumers. This definition also help us to understand the idea of brand loyalty and how the advertising industry work. So why the “brand” from the past has developed and became so impostant at present? Because people have realised that it can bring not only a lot of benefits to the owner but also to the ones who use the products. Brand’s importances Benefits to owner +Memorability of customers: Brands help consumers remember the company's product and also are the base for companies to assess the results obtained in building their brands.  If your brand has a position in the mind of customers, they will not consider buying any product without the label of your brand. There are so many products in the market nowaday and it is impossible for us to remember them all. We will simply pick up something which we’re deeply impressed. +Loyalty of customers The term customer loyalty is used to describe the behavior of repeat customers, as well as those that offer good ratings, reviews, or testimonials. When people have a positive experience with a memorable brand, they're more likely to buy that product or service again than competing brands. People who closely bond with a brand identity are not only more likely to repurchase what they bought, but also to buy related items of the same brand, to recommend the brand to others and to resist the lure of a competitor's price cut. +Familiar with everyone Branding has a big effect on non-customers too. Consequently, people who have never done business with you but have encountered your company identity sufficient times may become willing to recommend you even when they have no personal knowledge of your products or services. Seeing your ads on local buses, having your pen on their desk, reading about you in the newspaper or internet, they spread the word for you when their friend or colleague asks if they know a kind product that you provided. +Extensions  With a well-established brand, you can spread the success you've earned to a related new product or service and easily win acceptance of the newcomer. For instance, when a winery with a good reputation starts up regional winery tours, then adds foreign ones, each business introduction benefits from the positive perceptions already in place. +Benefit from awareness  Branding can lift what you sell out of the realm of a commodity, so that instead of dealing with price shoppers you have buyers eager to pay more for your goods than for those of competitors. Some people are willing to buy the currently "in" brand of a product than to buy the one that has the same material, function, quality but with weaker brand. A simple example is when you see people smoking, they will rather choose vinataba than Thang Long’s cigarettes allthought their taste are allmost the same. The distinctive value in a brand can even lead people to dismiss evidence they would normally use to make buying decisions. +Company’s equity increasion Brand is the company’s invisible propety. A strong brand not only helps to enhance the product’s value but also the company’s one. Brand has became a very important invisible capital. It has made a completly changes in the thinking of many corporations and maketing specialists. Nowadays, the brand is the important factor that helps company to sell it’s shares with high price; negotiate about new projects with business partners. In addition ,it is also the precious thing which is left over after economic crisis. (A Coca-Cola executive once said that if all the company's facilities and inventory vanished all around the world, he could walk into any bank and take out a loan based only on the right to the Coca-Cola name and formula.)  + Lower marketing expenses The strong brand , With large market share and high level of presence, will make a enhancement effectively in marketing activities and reduce marketing costs per each product . On the other hand it is easy with the strong brand to receive the preferences from media channel. Customers know your company through looking at your logo, reading slogan or listening to music… And they know what your company produces while you don’t have to spend a lot of money on marketing. With the speed of developing in science and technology, we can have our brand to enlarge market easily thank to media channels. Benefits to customers Thanks to brands, customers can:- Knowing product’s origin: with the famous brand, we can know the origin of products, and avoid buying counterfeit goods.-Feel reliable: the customers can always assured of its quality of which guaranteed and no need to worry when buying products.- Saving time finding information about products: When we’re familiar with a product or almost everybody you know are using the same product, you will hardly choose something else. That’s the crowd psychology. - Affirming the self’s value: when using branded products you will feel proud of having a strong branded product, you will feel like you are at the higher class and more confident in the society.- Reduce risk of consumption: consumers can safely use the product because it is brand products and quality assurance of the suppliers. When someone feels under pressure to make a wise decision, he or she tends to choose the brand-name supplier over the no-name one.