Brand

A branded or branded goods is a tangible good that is provided with one or more trademark (usually a word - picture mark ). The brand that is referenced by the trademark may be a maker's mark or a trademark. Brand products are found under both consumer and capital goods under.

Typically, a brand has properties in which it differs from other brands characteristic differs (see Brand (Marketing) ). When badge engineering, however, identical or nearly identical brand products are sold under different brand names.

Branded goods is a collective term for branded (as antonym to " non-branded / unbranded / unmarked goods").

  • 9.1 General representations
  • 9.2 Sales of branded products
  • 9.3 Psychology of brand product
  • 9.4 Brand Sociology
  • 9.5 History of the brand product

Definition to the term "brand (Marketing) "

The terms " brand " and " brand" are closely related, but should not be equated:

  • Brands are not only in material goods (goods brands), but also in services ( service marks ).

In material goods also applies:

  • A brand includes only those properties of a branded article in which it differs from competing products from other brands.
  • Is a brand a brand or range brand, her various products can belong to (Brand).
  • To a brand includes not only the actual but also (according to brand owner) alleged and the supposed (according to target groups) properties belonging to the brand brand.

The system " branded "

Both non-branded goods as well as goods of unknown brand the quality and Nutzen-/Schadeneffekte the product can not assess clients often. However, with different consequences:

Unbranded goods is not necessarily worse than branded goods. If unbranded goods (eg fruit, vegetables, plants) sold by an inpatient or outpatient distributor, is located on regular customers, one can assume the customer that the merchant pays attention to quality of the purchase of goods to its customers not to disappoint.

However, manufacturer and retailer of non-branded goods often only on short-term economic success ( the so-called " quick mark") are interested. After a transacted business, the merchants often disappear permanently from sight the buyer (affects parts of the outpatient trade). If they do not (stationary ), they point at customer complaints that the latter had to be clear to enter into with the purchase of unbranded commodity risk. Typical non-branded for many manufacturers and distributors of goods is high pressure sales (german high-pressure selling). They do not care if buyers are dissatisfied with the goods. Since the manufacturer can not be identified for end users, they need to worry about defective goods no negative sanctions of the end customer.

Brand - loop

As a consumer-friendly alternative to this " After us the deluge " mentality, the concept of branded article is based on a control loop between the brand owner and the end user: Are the users / consumers disappointed by a branded product, "punish" them to the proprietor purchase abstention. This feedback ( engl. feedback ) forces him to rectify the branded product to offer cheaper or withdraw from the market.

Benefits for the customer / buyer

Specifically, a brand offers its customers / buyers numerous advantages:

  • The brand increased for the customer market transparency: Detects the customer to a product a trademark that is it (eg from advertising or from a previous purchase ago) known ( = function of recognition of the mark), and he associated with this sign certain (positive or negative ) properties ( brand awareness ), it can be in a buying situation specifically for or against the product with this brand decide ( = information and orientation function of the mark ).
  • If a buyer with a brand ( eg its price - value ratio) dissatisfied, he may waive the re- purchase of this brand product (or other products of the same brand to avoid ).
  • Also, the buyer can other potential buyers talk about his negative experiences with this brand and any appropriate from buying the branded product (or other products of this brand ) advise ( = negative word of mouth ).
  • As a legally protected trademark may be used only by the owner of the mark ( = monopolize the trade mark ), the buyer can identify the trademark owner ( in the worst case, with the help of that register, provided that the trademark is not used illegally ). If there are certain legal requirements, the purchaser may make the manufacturer liable ( eg, product liability, product liability in ).
  • Is the proprietor located at a long-term customer relationship, he will - endeavor in its own interest therefore, to provide the purchaser of its products not only unique, but satisfied with every purchase - at least in theory. For this self-interest results - also, according to theory - a kind of self-commitment of the proprietor, to meet the legitimate expectations of the customers.
  • A proprietary product (or its brand ) is established in the market and should therefore be free of negative surprises, not only has a value in use, but also adds value to the buyer. This added value consists in security or certainty - so to speak, a "promise" of the trademark owner - that it has done everything to ensure that the brand products except the generic usual standard features and benefits effects also meets the special, communicated by the brand owners benefit promises of the brand. From this " construction " results of the central concept of the brand concept: " Lasting reliability " ( motto: " Because you know what you have "). This means: On the part of the proprietor of the customer should be allowed to have confidence that the desired brand basically always and everywhere with the known / specified characteristics ( = unit product) and the resulting, material - functional and ideological and symbolic benefits effects
  • In the known / agreed quality ( = unit quality )
  • On the known / agreed price level ( = unit price)
  • In the known / agreed points of sale ( = " ubiquity " ) is available ( = Legitimate function of the mark ). The brand acts as a signal for power quality and reduces felt by buyers due to the information asymmetry risk. - With a maker's mark " guaranteed ", the manufacturer, at a trading name of dealer to the customer for these " commitments ".
  • Many brand name products donate their users not only intersubjectively verifiable, material- technical base value, but also a subjectively felt, psychosocial additional benefits (see Benefits Scheme of the Nuremberg school). This brand products enjoy in the public or certain circles of society an appreciation that goes beyond the functional value of the products concerned. The possession of such branded products suitable for their owners as a means of profiling one's own personality ( in the belief that would characteristics of the brand personality (eg, cool, dynamic, creative ) radiate to the owner of the brand product ),
  • As a means of recognition by the social environment and to enhance the social prestige ( status symbol ) ( symbol = function of the mark ) or
  • As " evidence" of membership in a social group, which ( among other things) by the possession of such branded products defined ( = demonstration function of the mark ).

Disadvantages and risks for the brand owner

For the owner of a trademark is a brand with a number of disadvantages and risks connected:

  • The introduction and management of a branded product (or a brand ) are associated with a significant increase in staff, time and money.
  • The advertising for the brand (or brand ) consumed a significant portion of the profits from the sale of the article.
  • The trademark owner runs the risk of failure ( " flop " ) is a result of errors in the marketing mix or competing (eg generic ) products.
  • Due to the generally higher sales price of fashion products, the brand owner sets out the risk that very price-conscious customers reduce its sales, because they - temporarily or permanently - access to cheaper non-branded goods.
  • With the marking of the article, the trademark owner from anonymity emerges, is identifiable (eg by traders and end customers) and must, if necessary, make ( the purchasers of its products for example ) the responsibility of third parties. This means that it can actually be held accountable for breaches of duty legally responsible.

Is a brand (or a brand ) successfully established on the market, it offers (or her) customers / buyers and also to the other parties in the supply chain (ie manufacturers, distributors ) advantages.

Benefits and opportunities for the trade mark owner

From the strategic decision of a manufacturer or distributor to produce a branded article or to act grown the brand owner also benefits and opportunities. If the manufacturer or dealer not convinced that the positive effects outweigh the negative, he would bring a ( much easier to handle ) unbranded products on the market.

Specifically, open the proprietor following opportunities and benefits:

  • Since a brand has a name, the manufacturer may nominate the article and apply directly to the end customer. So it depends no longer dependent on the advertising and advertising behavior of trade or of these.
  • Should the applicant trademark owners to gain the trust of buyers in its brand and keep it takes for the purpose of customer loyalty to afford until further notice less convincing than the owner of a new brand or the manufacturer / dealer of an unknown non-branded goods.
  • In so far as it is worth something to the buyers, a branded article in the "good feeling " to purchase to be immune to unpleasant surprises, the trademark owner can capitalize on buyer confidence in its reliability over price and quantity premiums. That means: Either the brand owner for the added value of reliability demand a higher price, or the market rewards the added value of having a higher or more stable demand. - The same is true for a possible additional benefit (see above ) that a brand gives to its users.
  • If the mark is a well-established brand or range brand, customer confidence / buyer radiated into the brand to other products from the same brand ( Image Transfer). That is to say: of the opportunities and benefits that the proprietor of a brand, will also benefit the other products of the brand because customers these articles without further examination benevolent face as products of lesser known brands or unbranded goods.
  • Are consumers / users with a brand ( eg its price - value ratio) satisfied, the probability that the buyer increases, the same product will buy again at the next opportunity ( = higher repurchase rate )
  • Other products of this brand buy ( = brand loyalty, brand loyalty ),
  • Products of this brand over other brands give preference ( = brand preference ) or
  • The brand (or brand ) to third parties Recommend ( = positive word of mouth ).

On the part of the buyer, this requires both brand awareness and brand trust.

Benefits and opportunities for trade

Trade also benefits from the loyalty of customers to a brand or a brand goods:

  • The probability that from a dealer georderte brand goods actually find buyers, is due to the higher appreciation by the customers generally greater than for non-branded goods ( = lower sales risk). Higher subjective appreciation however, is based mainly on greater awareness intensively advertised brands. Ways objectively comparative testing lower quality brands like in comparison to lesser-known brands, grow the trade from brand rankings corresponding advantages.
  • Due to the loyalty of the customers to the brand merchandise planning the purchase quantities for the dealer is basically predictable than non-branded goods, their properties and benefits for customers are more difficult to assess.
  • The probability that a trader by the sale of branded goods a higher gross profit, is generally greater than for non-branded goods due to the higher sales price. On the other hand, well-known brand products are particularly suitable for attractive price reductions for which the waiver of gross profit is offset by higher inventory turns, which in turn may result in financial benefits.

Quality of the brand - loop

Customer confidence in the reliability of a trademark owner is only justified if the control loop between the brand owner and the end user works. This control loop is based on the fact that a trademark owner, the product does not meet expectations, to feel the loss of confidence of the end users as soon and as clearly gets (feedback ) that he either nachbessert the branded product, the (excessive ) Price adjusts to the low quality or the brand takes off the market. This feedback works better the longer fulfilled the following conditions:

  • The brand is easily to be replaced Substitutionsgut: In a continuation or recurrence of dissatisfied customers may need at least one other, at least equivalent or even better branded dodge (example: bread ) (= competition from alternative offers ).
  • The brand will be tested as soon as possible after its launch from a known, trusted and independent consumer protection organization (eg Stiftung Warentest). This can incorporate the test result in their buying decision as many potential buyers.
  • The brand has a relatively short average life or useful life (eg yoghurt). The more likely it can be assessed conclusively and inform other potential buyers the quality and Nutzen-/Schadenseffekte the branded product. More likely enters a purchase situation in which the customers switch to alternative brand items and " punish " the trademark owner for poor quality.
  • Between the past and the potential buyers of a brand product, there is a simple and fast communication. That is: As many buyers of a brand product share as soon as possible with their experiences they have had with the brand. It is important to specify, they have how long and how intense the brand products in use. Especially for brand name products with longer life or useful life, an initially positive impression Fold with increasing use or consumption of the brand product to negative, so prove initially positive estimates may over time be premature or rash (example: car).
  • As many potential buyers learn from this experience and take into account - and appropriately with the necessary critical distance - in their own purchasing decision.

Special features in paragraph

For the special responsibility of a brand-name manufacturer's heard that the end customer to purchase the branded products so that they

  • The essential product characteristics ( eg, quality, service, shelf life ) know,
  • Be able to quickly and easily contact the manufacturer with complaints and
  • Be provided quickly satisfied with legitimate complaints.

In achieving these objectives, many brand-name manufacturers support the trade, for example advertising or sales promotion.

In consultation-intensive branded goods manufacturers often limit the distribution to retailers. Connected this is usually associated with training the salesperson by the manufacturer.

Also follow producers and distributors of branded goods is not always common interests. In response to these trade-offs select brand-name manufacturers often the direct sales of its products to the end customers, bypassing the trade. This is done in the following manner:

  • Selling factory ( factory outlet stores, factory outlets )
  • Selling its own stationary branches
  • Sales through its own sales force
  • Sale or order acceptance by phone (call center)
  • Sale or order acceptance via the Internet ( online shop )
  • Dropship (factory shipment, factory shipment ).

The direct selling has for the manufacturer (often also for the customers ) several advantages. So the producers

  • Organize the sale and distribution according to their own ideas and their own responsibility,
  • The end user offer cheaper prices because the profit margins for wholesale and retail accounts,
  • Communicate directly with end customers to unfiltered learn from the ideas, wishes, suggestions, reactions and complaints of consumers ( " the ear of the customer" ), as well as
  • The end customer the manufacturer's mark as a whole ( "brand world " ) present (see also fire country).

History of the brand product

The history of the brand product is also a story of the brand thinking and brand concepts.

Brands are as old as the inter-regional trade in ancient times. As early as the Egyptian, Greek and Roman Empire were first marks for trading activity. Artists signed their works and products, workshop characters were as an expression of special quality.

In the Middle Ages origin, ownership and guild signs were needed to allow the manufacturer of goods or the trading company identification. Pronounced brand quality first developed the exchange with the Indosso special merchants or homes. In particular, the use of trading houses trademark, its usually ( corroborating quality and reliability) with a cross symbol provided House and Hofmarken mark the beginning of the industrial products label.

In modern times, the commercial importance of strategic branding was recognized very early example of Josiah Wedgwood (porcelain manufactory in England) in the 18th century. However, this was at the time only a few symptoms. In Germany Farina are opposite (since 1709) and Meissen porcelain (since 1710) with the oldest brand. From the mid 19th century, the concept of brand has grown into a widespread phenomenon.

As a result of industrialization and the consequent mass production of standardized products and due to the increasing distance between producer and consumer, many still well-known brands such as Maggi (1887 ) and Persil (1907 ) emerged. Among them was invented by John Pemberton, Coca Cola, which was touted as a stimulating headache and nerve agents (also for depression ). Later, the brand concept sprang up all sorts of household products on tea, coffee, soaps, detergents, creams, cigarettes and so on. Companies such as Kellogg's, Heinz, Cadbury, Henkel, Lever Bros. and Procter & Gamble had a heyday.

Since the 1950s, brands have evolved in parallel with the growth of importance of marketing a total continuous. While initially dominated Manufacturer Brand, won in the second half of the 1960s Trademarks increasingly important. This led in the 1970s and 1980s, initially to an increasing -price brand polarization in luxury and discount brands. Since the 1990s, the trademarks have been able to distinguish and establish with high quality awareness through the use of modern brand management and psycho strategic brand orientation. Today they cover a wide range of items, from genus brands to so-called premium brands.

The development towards a service society and the increasing globalization since the 1980s were reflected in the growing importance of service marks, or international brands. Since the 1990s, global brands ( umbrella brand ) are indeed due to the merger and acquisition boom on the rise; for cross -border acquisitions but numerous established individual brands will be maintained only careless and go under.

Spin-off of brand names in language use

Some brand names have become conscious of the Society for the epitome of a product category. They are often then used in everyday language, if the speaker is unclear what the brand is actually present in the concrete situation. Classic examples are "4711" ( for Eau de Cologne, 1881), " Odol " ( for mouthwash, 1895), " Nivea " (for skin cream, 1911), "Tempo" (for paper handkerchief, 1929), " UHU " ( for all-purpose glue, 1932) or " Tesa " ( for transparent tape, 1936).

Similarly, the term " canning ". He found in 1907 in the dictionary input and goes back to a brand which is known as " jam jar " in the vernacular. Preserving jars of the company " J. Weck and Co. " ( Weir Öflingen ) enjoyed his time in a unique position in the market. Were you with the word mark " J. WAKE " (1906 ) in the referred to the (1902 retired ) founder, Johann Carl Weck.

Services as " branded "

In a figurative sense ( non-material assets so ) also services can be understood as a brand. However, this is only the case if based on trademark is clear who the "Supplier" (contractor ) the power ( for further details: see service mark ).

In this sense, also well-known personalities (such as artists, athletes ) market their economic potential similar to a brand with the help of a manager in the music or sports management or through an agency ) (= personality marketing, Eng. Personality marketing). The person's name stands for the brand name, the characteristics of the person for the brand ( brand = personality, Eng. Branded personality ). - Similar to operate freelance professionals who are interested in the extension of a contractual relationship: In order to distinguish themselves from potential competitors, they do over the previous client their particular skills and qualities out (see also self- marketing).

Abuse of branded goods principle

Originally enjoyed the term " brand " a good reputation among consumers, but he stood for reliable quality ( " Quality" ) compared to goods of unknown origin.

With the flood of branded goods but try "free riders " among the manufacturers to benefit from the mere use of a trademark from the positive connotations of the word " brand " without warrant on the historic reason consumer confidence in the brand principle of " quality". Thus, the term " brand " has lost much of its " aura ".

Today branded products are no longer per se as trusted. It requires in each individual case of an audit by the consumer or a recognized consumer association, whether and to what extent the price- performance ratio of the respective trademark article is true or whether it is more appropriate discourage the buying of the brand product.

There are also countless cases of trademark counterfeiting. Manufacturer provided inferior, but confusingly similar with the original product copies fraudulently with strangers, prestigious trademark. This is done in violation of trademark law and possibly other rights, which is often hardly recognizable to the unsuspecting layman. Under mislead the buyer that sway in good faith to acquire an original branded product, these producers emphasize with this method, an unjustified turnover and, where appropriate profits.

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