If you are an entrepreneur, it’s important that you understand some branding terms about your own company.The following terms are included for that purpose, and are attributed to the completion of a brand circle.
1. The title ‘Brand’
According to Merriam Webster , A brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed. A brand name is the name of the distinctive product, service, or concept. Branding is the process of creating and disseminating the brand name.
Branding can be applied to the entire corporate identity as well as to individual product and service names.[mks_separator style=”dotted” height=”2″]
2. Brand Licensing
Licensing means renting or leasing of an intangible asset. It is a process of creating and managing contracts between the owner of a brand and a company or individual who wants to use the brand in association with a product, for an agreed period of time, within an agreed territory.[mks_separator style=”dotted” height=”2″]
“A marketing partnership between at least two different brands of goods or services. ” (Investopedia) Essentially to co-brand you “take the strongest elements of your products and combine them with the best complementary brands to offer new goods and services.” (Forbes)[mks_separator style=”dotted” height=”2″]
4. Brand extension
A company using brand extension hopes to leverage its existing customer base and brand loyalty to increase its profits with a new product offering.” (Investopedia) “In theory, launching a successful brand extension should be easy. All you have to do is take a familiar name and slap it on a new product in another category. Then again, in view of history’s epic flops including Hooter’s Air, Colgate TV dinners and the Evian water-filled bra, perhaps it’s not that easy.” (AdAge)[mks_separator style=”dotted” height=”2″]
5. Brand identity
A company’s brand identity is how that business wants to be perceived by consumers. The components of the brand (name, logo, tone, tagline, typeface) are created by the business to reflect the value the company is trying to bring to the market and to appeal to its customers. (Investopedia)[mks_separator style=”dotted” height=”2″]
6. Brand image
“A unique bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the consumers’ perception about the product.” (MSG)[mks_separator style=”dotted” height=”2″]
7. Brand Equity
The sum of all distinguishing qualities of a brand, drawn from all relevant stakeholders, that results in personal commitment to and demand for the brand; these differentiating thoughts and feelings make the brand valued and valuable.[mks_separator style=”dotted” height=”2″]
8. Endorsed brand
Generally a product or service brand name that is supported by a masterbrand – either dominantly e.g. Tesco Metro or lightly e.g. Nestle Kit-Kat.[mks_separator style=”dotted” height=”2″]
9. Parent brand
A brand that acts as an endorsement to one or more sub-brands within a range.[mks_separator style=”dotted” height=”2″]
10. Sub brand
A product or service brand that had its own name and visual identity to differentiate it from the parent brand.