Learn more about what a brand is in business.
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As a business owner, it’s good to understand the definition of a brand when planning for your business’s future. Our team has created this page with everything you need to know about the brand definition and starting your business.
A brand is the public perception of your business, product, or service. A brand is intangible, meaning it exists in the consumer’s mind. Combining your company vision, marketing, and quality, your brand creates a cohesive connection with your customer. Some brand elements are factual, like the color of the box or the product name. A brand is also an emotional connection, where customers trust a company because they demonstrate quality or other commitments.
One of the main advantages of a brand is public recognition. A strong brand makes your product stand out from the competition. It conveys the value of your product or services to new and existing customers. When you form a successful brand, you develop brand equity. Customers who feel loyalty to the brand will pay higher prices for your product than the competitors. Your brand has a value all on its own, reflecting your customers’ awareness and positive perception of your company.
Building a strong brand has few disadvantages. While a positive public perception can improve your bottom line, a brand can also have negative effects. When things go wrong, an integrated brand might result in a negative company image and a loss of customer loyalty. A product recall or environmental disaster can cause a brand to lose its positive reputation. When this happens, smart business owners quickly meet with their marketing team to find a way to revitalize their brand.
One of the most well-recognized brands around the world is Coca-Cola. When the Coca-Cola Company introduced its product in 1886, the market was saturated with caramel-colored sodas. The company sought to differentiate itself with a unique, market-tested formula, a proprietary bottle, and a timeless font in its logo. Since then, the company has continued to push its product through rigorous advertising campaigns associating it with happiness and relaxation.
An example of a negative brand image occurred with the BP oil spill in 2010. The Deepwater Horizon offshore drilling rig exploded and sank, leaking 4 million barrels of oil into the Gulf of Mexico. As one of the worst environmental disasters in recent history, BP saw its stock fall and lost relationships with suppliers. The company immediately responded with a PR campaign, and ultimately it sold off assets and reorganized to continue doing business.
An individual can also have a brand. Donald Trump is a good example of an individual brand. Trump plastered his name on buildings, casinos, and golf courses to present the image of a rich and famous lifestyle. He presented himself as a successful businessman and boss in his TV show, The Apprentice. Then, he used his successful brand to launch himself into politics and the presidency in 2016.
This page explains all the details of the brand business definition. A brand is the public perception of your company’s or product’s attributes and qualities, positive or negative.
Starting your own business is our business. We help entrepreneurs with everything from a simple brand definition to understanding liability and taxes. Our Business Formation Services can help you get your corporation or limited liability company up and running quickly. Then, use our Worry-Free Compliance Service to stay up to date with all the legal requirements in your state. Our team of business experts is here to keep you organized and remind you of upcoming deadlines.
Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.