Mar 30, 2022 | Functions of brands

Functions of brands

1. Identification
The function of identification is the basic and original function of brands. Brands can reduce the time and effort that consumers spend while they are shopping. When consumers are buying commodities, they face a dazzling array of commodities and their buying behaviors are related to comparison and selection. In marketing, consumers’ cognition of brands is often expressed as an overall feeling, consistent trust and favorability of quality, characteristics, and product image, which affects consumers’ interest and preferences to a certain extent, and ultimately affects their purchase behaviors.

2. Value-added function
A brand is an intangible asset that itself can be bought and sold as a commodity. When the brand grows, brand awareness, reputation, and loyalty increase, and the value of the brand also increases. A successful brand is the “cornucopia” of a business. The top ten famous brands in the world bring lots of benefits to the companies so that the majority of operators are convinced that a successful brand will bring inexhaustible treasures to the enterprise. In 2002, the top 100 most valuable brand in the world was Coca-Cola, with a brand value of 69.6 billion US dollars, an increase of 1% over the previous year. Microsoft and IBM are close behind. It is worth noting that the Samsung brand, which ranked 34th, had the largest appreciation among the top 100 brands that year, and its brand value is increased by 30% over the previous year, reaching 8.3 billion US dollars.

3. Promotion function
Since the brand is a symbol of product quality, features and grades, consumers often choose products according to the brand, so the brand is conducive to attracting the attention of consumers and achieving the purpose of expanding product sales.

4. The function of protecting the rights and interests of enterprises and consumers
Due to the exclusive and exclusive characteristics of the brand, the brand trademark is legally protected after registration. Enterprises can protect their own trademarks from being infringed by others through legal channels; consumers can also trace the source of product quality problems, pursue the responsibility of brand operators, and seek compensation according to law.