Why do established brands still advertise?

What is a brand? What is a fire?

A brand (English: fire) is a marketing and law term. A trademark is legally a protected symbol. In marketing, the fire as a means of representing a differentiated set of characteristics of a company or an offer. As part of brand management, you position the brand and try to increase the brand value.

 

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Definition: The brand as a mark of origin and a seal of quality

If you search for the term brand in the marketing literature, you will find a wide variety of definitional approaches that differ depending on the point of view as well as the type and scope. The legal, the classic feature-oriented and the effect-related approach are particularly common. From a legal point of view, a trademark is a legally protected one Sign of origin. No more and no less. The classic characteristic-related approach, however, can be called seal of quality be interpreted. According to this, a brand is a mark that is supposed to guarantee the consumer a constant quality of a product.

However, a brand conveys a lot more than a legal delimitation or a guarantee of quality. The effect-based approach has established itself in marketing in particular. The basic idea behind this brand understanding is the subjective perception of a brand in the consumer's mind, which is anchored in his or her psyche and provides an unmistakable image of a product or service. A brand status is achieved with the consumer as soon as he assigns a positive, unmistakable image to a product or service.

Brand architecture

As already shown in the definitional part, the modern term brand refers in particular to the subjective perception of the brand by the consumer. A strategically well-chosen brand architecture helps a company to present the brands to the customer in a target-oriented manner.

The design of the brand architecture includes the structuring of all brands within a company to control the market position. When it comes to brand architecture, you can choose between a vertical and horizontal branding strategy be differentiated. The vertical brand alignment expresses the hierarchical gradation of the brands among each other, while the horizontal brand strategy includes the number of brands that are managed within a hierarchy level. Basically, with the horizontal brand alignment, you can choose between a single. A distinction is made between family and umbrella brand strategies.

Single brand strategy

The focus of the single brand strategy lies in the establishment of an independent brand for each product of a company. The corporate brand usually remains in the background and is often not known to the consumer. Companies with a very heterogeneous customer environment in particular have the opportunity to address them in a more target-group-specific manner by building up different brands and to build up different images.

The advantage of the single brand strategy lies in the avoidance of spillover effects. This means that especially negative characteristics of a brand are not transferred to other brands of a company or the corporate brand. The disadvantage, on the other hand, is that this effect also does not occur with a positive brand perception. The single brand strategy is often found in the consumer goods industry. The company Ferrero with the brands Nutella, Hanuta, Raffaello can be mentioned here as examples.

Family brand strategy

The family brand strategy is also strongly based in the consumer goods sector. It is to be positioned between the single brand strategy and the umbrella brand strategy. In the family brand strategy, different product groups are combined into a uniform brand with the aim of addressing a specific target group. The advantages and disadvantages of this brand strategy are to be assessed similarly to the single brand strategy, only that the charisma effects are lower. Beiersdorf, for example, is pursuing this strategy with the family brand of the NIVEA care product line.

Umbrella brand strategy

The corporate brand is the focus of the umbrella brand strategy. All products of a company are united under the umbrella brand of the company. The brand strength and competencies of the company can thus be transferred to the products. The umbrella brand strategy is often used in the automotive industry, but also in rare cases in the consumer goods sector, such as the Dr. Oetker or Bahlsen.

Functions of a brand

The functions of a brand can be examined from the supplier's point of view as well as from the customer's point of view. Depending on the perspective, a strong brand offers a large number of advantages for the consumer but also for the supplier of a product.

providers

By creating a strong brand, suppliers of products have the opportunity to create a high recognition value for their products in order to differentiate themselves from their competitors. If the provider has succeeded in doing this and has been able to form sufficient preferences with the customer, then in the long term he has the opportunity to bind the consumer to himself and create a Brand loyalty build up.

From a corporate policy point of view, there are further advantages from a large, loyal customer base. Long-term corporate development can be better planned through secure sales and market entry barriers can be created against competitors. A reduction in the price sensitivity of regular customers can also be assumed. Regular customers are more likely to accept price increases for their familiar brand than for less familiar brands.

Enquirer

A strong brand offers the consumer above all one Orientation aid and transparency when choosing between many product offers. She creates Trust and credibility. The consumer can thus minimize his purchase risk, since he has a constant quality of the product or service.

The hallmarks of successful brands

Successful and strong brands are particularly characterized by the fact that they are unmistakable and, in the consciousness of the consumer, stand out from competing products through positive distinguishing features. Achieving this position is often a long and arduous journey. In the literature, six requirement criteria are often named, which should pave the way to a successful brand. First of all is the Brand conciseness to call. The brand characteristics must be clearly and unmistakably profiled. By Brand authority the brand is charged with competence and efficiency. The Brand integrity ensures a coordinated image of all appearances of a brand. The Brand relevance contains problem-solving and benefit-related statements. With the help of a Brand continuity The brand will continue to develop harmoniously and logically in the future. And ultimately, management needs to be targeted through Brand management provide precise branding rules for the entire company.

Frequently asked questions about the brand / brand

What is a brand anyway?

A trademark is legally a protected symbol. In marketing, the brand serves as a means of presenting a differentiated set of characteristics of a company or an offer. As part of brand management, you position the brand and try to increase the brand value. More on this in this post ...

What types of brand strategy are there?

One can differentiate between single brand strategy, family brand strategy and umbrella brand strategy.

What are the typical characteristics of a brand?

  • Brand authority
  • Brand conciseness
  • Brand integrity
  • Brand relevance
  • Make Continuity

Further sources on the subject of brands

If you feel addressed by this article and would like to deal with the term brand in addition, I recommend the following sources to read:

–Corporate Brand Management: An International Management Approach? by Christian Eggert

–Digital dialogue marketing: basics, strategies, instruments published by Heinrich Holland

-From product to brand - from people to brandby Sabrina Fish

-Brand architecture: strategies between individual and umbrella brands as well as local and global brandsby Andres Strebinger

–The energy of the brand: A consistent and pragmatic brand management concept by Detlef Schmidt, Peter Vest

-Profiling of service brands in vertical systemsby Claudia Meffert

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