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The most important assets of any business are intangible — including its base
of loyal customers, brands, symbols & slogans — and the brand’s underlying
image, personality, identity, attitudes, familiarity, associations and name awareness.
These assets — along with patents, trademarks, and channel relationships —
comprise brand equity, and are a primary source of competitive advantage and future
earnings.
The brand
is a distinguishing name and/or symbol (logo, trademark, or package design) intended to
identify the origin of the goods or services — and to differentiate those goods or
services from those of competitors. A brand signals to the customer the source of the
product — and protects both the customer and producer from competitors who would
attempt to provide products that appear to be identical.
By developing strong & consistent images, well-regarded
brands generate hidden assets — or brand equity — that give them distinct
advantages. Brand equity is a form of wealth that is closely related to what accountants
call "goodwill."
A brand is a promise made to its customers and shareholders. Promises that
are kept yield loyal customers and produce steady streams of profits. Brand equity is
initially built by laying a foundation of brand awareness — eventually forming
positive brand images — and is ultimately maximized by high levels of brand loyalty: |
