(A) brand-the embodiment of the core value of a product or enterprise.
Brand-a tool for consumers or users to remember goods, not only to sell goods to target consumers or users, but also to make consumers or users have a good impression on goods through use, so as to repeat purchases, constantly publicize, form brand loyalty, and let consumers or users repeat purchases. Consumers or users form a sense of satisfaction through the use of brands and branded products, and they will form a consumption experience around brands and store it in their memories, forming the basis for future consumption decisions. Some enterprises have established a good image for their brands, endowed them with good feelings, or represented a certain culture, so that brands and branded products have formed beautiful memories in the minds of consumers or users, such as McDonald's. People will feel a kind of American culture and fast food culture about this brand, and associate it with a kind of quality, standard and hygiene, and can also arouse children's good memories in McDonald's restaurant through the brand.
(2) Brand-a discriminator for identifying goods.
A brand is established to identify a seller's products or services due to the needs of competition. Brand design should be unique, with distinctive personality characteristics, brand patterns, words and other characteristics different from competitors, representing the characteristics of enterprises. At the same time, different brands represent different products with different forms, different qualities and different services, which can provide reference for consumers or users to buy and use. Through brands, people can identify products and choose to buy according to brands. For example, when people buy a car, there are several brands: Mercedes-Benz, Volvo, Santana and Engel. Each brand of car represents different product characteristics, different cultural backgrounds, different design concepts and different psychological goals. Consumers and users can choose according to their own needs and product characteristics.
(c) Brand guarantee of quality and reputation
The purpose of designing a brand, establishing a brand and cultivating a brand is to hope that this brand can become a famous brand, so they work hard on product quality and after-sales service. At the same time, brands represent enterprises, and enterprises must work hard on product quality from the perspective of long-term development. Especially brand-name products, brand-name enterprises and brands, especially well-known brands, represent the quality grade of a class of products and the reputation of enterprises. For example, "Haier", as a home appliance brand, people will think of the high quality of Haier's home appliances, Haier's excellent after-sales service, and Haier's moving picture of considering consumers and users. Another example is the humanized design of Nike, a world-famous sports shoes brand. High-tech raw materials and high-quality products are widely seen. "Nike" represents the reputation of enterprises and the quality brand of products-the weapon of enterprise competition.
Building a brand and creating a famous brand are the knowledge gradually formed by enterprises under the conditions of market competition. People hope to distinguish products and enterprises more through brands, form brand follow-up through brands and expand the market through brands. The establishment of brand and the formation of famous brand can help enterprises achieve the above goals and make brands a powerful competitive weapon for enterprises. The appearance of brands, especially famous brands, makes users form a certain degree of loyalty, trust and follow-up, and makes enterprises have a backing foundation in the competition with rivals. Brands can also use their own market expansion capabilities to drive enterprises into new markets; Promote new products to enter the market; Brands can use the ability of brand capital operation to expand their own enterprises through franchising, contract management and other certain forms. In short, as a weapon of market competition, brands often bring unexpected results.
Brand-the cash cow of enterprises.
Brands win by quality, and brands often have cultural and emotional connotations, so brands add added value to products. At the same time, the brand has a certain degree of trust and follow-up, and enterprises can set relatively high prices for the brand and obtain higher profits. Well-known brands among brands are the most prominent in this respect, such as Haier household appliances, whose prices are generally higher than similar products; Nike sneakers are several hundred yuan higher than the equivalent Li Ning sneakers and Anta sneakers. On the one hand, we can look at the example of Coca-Cola, a famous beverage company: the total sales of Coca-Cola Company in 1999 was 9 billion dollars, and its profits were 30% and 27 dollars. Excluding the 5% profit brought by asset investment, the remaining $2.25 billion is the high profit brought by brands, so we can see that brands, especially famous brands, have brought huge benefits to enterprises, and brands, as intangible assets, have become people's.
[Edit this paragraph] The role and significance of brand in marketing
The primary function of (1) brand is to facilitate consumers to choose products and shorten the purchase decision-making process of consumers.
Choosing famous brands is undoubtedly a convenient, reliable and risk-reducing method for consumers.
Especially in the field of mass consumer goods, there are generally dozens or even dozens of brands of similar products for consumers to choose from. Faced with so many providers of goods and services, consumers cannot make accurate judgments by comparing the goods and services themselves. At this time, the "perceived risk" of the product (that is, the psychological risk that may have adverse consequences) appears in the consumer's purchase decision-making process. The size of this "perceived risk" depends on the value of the product, the uncertainty of product performance and the self-confidence of consumers. In order to avoid risks, consumers often prefer products of well-known brands to enhance their confidence in buying. Brand is the symbol of products in the eyes of consumers, representing the quality and characteristics of products, and also the code name of enterprises, which means the management expertise and management level of enterprises. Therefore, the brand shortens the consumer's purchase decision-making process.
(B) the creation of a strong brand can enable enterprises to enjoy higher profit margins.
In the traditional market competition, when consumers form a distinct brand concept, the price difference will be secondary. This situation is even more obvious when different brands are endowed with special personalities.
A survey shows that the average profit rate of the market leader brand is four times that of the second brand, and as high as six times in Britain. The high profit rate of strong brands has played an important role, especially under the conditions of market depression or price reduction competition. In fact, this advantage not only benefits from what we usually think of as economies of scale, but more importantly comes from consumers' recognition of the value of brand products, that is, the recognition of price differences.
(3) The brand can transcend the product life cycle and is an intangible asset.
Due to the change of demand and the promotion of competition, most products will not be accepted by consumers for a long time except a few products. Generally speaking, a product has a life cycle, and it will go through the whole process from being put on the market to being eliminated by the market, including four stages: input, growth, maturity and decline.
But the brand is different, which may exceed the life cycle. Once a brand has a large number of loyal customers, its leading position can last for a long time, even if its products have been improved and replaced. The Boston Consulting Group studied the market leading brands in 30 categories of products and found that 27 of the 30 leading brands in "1929" still ranked first in the market in l988. Among these classic brands are ivory soap, Campbell soup and gold medal flour. " Like some well-known overseas brands we are familiar with, it has a long history. Such as Gillette (1895), Marlboro (l924), Coca-Cola (1886) and Nestle (1938). Similarly, many time-honored brands in China still have brand advantages in today's market competition, such as Tong Ren Tang.
So the concept of brand is much broader than the product itself. It can be adjusted as the market changes. As long as we can keep up with the changes in the market and the progress of consumption, and maintain the consistency of brand personality by improving or innovating products, the brand will last for a long time.
It is precisely because the brand can transcend the life cycle, which makes the brand gradually develop from being attached to the product to being relatively independent of the specific product, and makes consumers accumulate their recognition and preference for a long time, thus making it possible for the brand to become an intangible asset. It can also participate in market transactions as a commodity.
Moreover, the relative independence of brand and product leads to the appearance of brand extension. The same brand has many kinds of products, and the brand has become the core of the product. For example, when Wahaha produces children's nutrient solution, the brand name is only a part of the product, but today, Wahaha brand has undoubtedly become the commander-in-chief of enterprise products.