The essentials
A brand is a name, term, sign, symbol, design or a combination of these that identifies the goods or services of a seller and distinguishes them from those of competitors. Branding builds recognition and trust; customers choose a familiar brand because they expect consistent quality.
Elements of brand identity:
- Brand name: the part that can be spoken.
- Logo (brand mark): the visual symbol or design that represents the brand.
- Tagline (slogan): a short, catchy phrase that expresses the brand's promise or personality.
- Trademark: a brand or part of a brand that is legally registered, giving the owner exclusive right to use it.
Key points
Qualities of a good brand name:
- Short, simple and easy to pronounce and remember.
- Suggests the product's benefit or quality.
- Distinctive and capable of legal registration.
- Adaptable to new products and markets; no negative meaning in other languages.
Qualities of a good logo: simple, distinctive, works in black and white and in small sizes, and fits the brand's personality. Qualities of a good tagline: brief, memorable, positive and linked to the brand's promise.
- Brand loyalty: customers' repeated preference for a brand.
- Brand equity: the extra value a brand adds to a product because of its reputation.
Exam tips
- If a question mentions a picture or symbol, the answer is logo; a short phrase is a tagline; legal protection points to trademark.
Common mistakes
- Treating brand and trademark as identical; a trademark is the legally protected form.
- Choosing long, hard-to-pronounce names for a new venture.
Practice questions
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