Question

What is a brand? How would you explain the concept to someone who had never heard the term before? How would you explain what a brand is to a CEO who believes a brand is just a logo?And How does branding help both buyers and sellers?

Answer 1

A brand can be defined as the name, logo, or any attribute of the product or services which sets it apart from the offerings of other competitors.

To explain this to someone who has never heard the term before, I would ask them to choose their favorite product and what they like about it the most and why they choose it from the alternatives available. When the other person replies by pointing out specific features that he/she likes in a product, I would explain that this is called the branding of a product.

To explain the CEO, I would use the famous example of Apple. I would tell the CEO how Apple continues to enjoy the success in spite of there being numerous companies offering similar features on their phones at lower prices. This is because Apple has branded itself as being a manufacturer of premium quality phones. Also, it uses its high prices to appeal to the upper-middle class and elite class to set itself apart from the rest of the competitors. Therefore, Branding is not confined to just the logo but comprises of many elements such as the name, packaging, features, and logo.

Branding helps both buyers and sellers. The seller can use its branding to set itself apart from other competitors and to create a lasting impression on the customers through effective advertising and marketing.

The buyers can be benefitted by trusting the brand and its product on the basis of using one product of the brand. If we take the above example of Apple, the buyer who is satisfied with the iPhone can trust the brand and buy a MacBook as he is familiar with the brand, its features, and qulaity. This helps the buyer in making an informed decision while purchasing a new prdocut.