Picture two bottles of water on a shelf. The water inside is almost identical, yet one costs nearly twice as much and still sells out. The difference is the brand: the name, the look, and the feelings and expectations that come with it. Customers do not only buy what a product does — they buy what they believe about it. Branding is how a business shapes that belief on purpose.
A brand is a name, term, symbol, design or combination of these that identifies one seller's products and separates them from competitors. A brand name, logo or slogan that identifies one business's goods or services is a trademark. In Canada, a business can register its trademarks with the Canadian Intellectual Property Office (CIPO), which gives it the exclusive right to use them across Canada for the goods and services listed.
Brand Elements
| Element | What it does | What makes a strong one |
|---|---|---|
| Brand name | The words customers say and search for | Short, easy to say and spell, memorable, legally available, suggests a benefit |
| Logo | A symbol customers recognize instantly, even without words | Simple, readable at small sizes, looks right in one colour |
| Slogan | A short phrase that sums up the brand's promise | Brief, repeatable, tied to a benefit the target market cares about |
| Packaging | Protects the product and sells it on the shelf | Stands out, communicates key information, fits the brand's personality |
| Colour | Triggers recognition and emotion before a word is read | Used consistently everywhere; fits the mood (green for fresh or eco, black for luxury) |
Brand Equity and Brand Loyalty
Brand equity is the extra value a brand name adds to a product beyond its physical features. It is the reason customers will pay more for a well-known brand than for an identical unbranded item. Brand equity is built from brand awareness (people know it), perceived quality (people trust it), brand associations (people link it with positive ideas) and brand loyalty (people keep coming back). High brand equity lets a business charge a price premium, win shelf space from retailers, and launch new products under the same name with less risk.
- Brand non-recognition — the customer has never heard of the brand.
- Brand recognition — the customer remembers the brand when they see it, but it has no special pull.
- Brand preference — the customer chooses this brand when it is available, but will switch if it is not.
- Brand insistence — the customer will accept no substitute and will go to another store or wait rather than switch.
National Brands vs Private-Label Brands
- Owned by the company that makes the product
- Sold in many different stores across the country
- Supported by the manufacturer's own advertising
- Usually priced higher because of brand equity and advertising costs
- Owned by the retailer and sold only in its own stores
- Often made under contract by an outside manufacturer
- Little separate advertising — the store name does the work
- Usually priced lower, yet often earn the retailer a higher margin