Originally, an identifying mark burnt into something, such as the hides of cattle, with a red-hot iron. Today it has two main meanings:
1. A symbol that identifies a company and its products, distinguishing them from other companies and their products and usually consisting of a brand name combined with a brand mark. In this sense, roughly synonymous with the legal term trademark.
2. A set of mental perceptions of a company and its products that people associate with the brand symbol.
In marketing, a brand is a distinctive identity that symbolizes a promise associated with a product, service or organization, indicating the source of the promise. It is a mixture of tangible and intangible attributes, symbolized by a trademark, which, if managed properly, creates value and influence.
The position occupied by a brand in the minds of customers is often a company�s most valuable asset. An established brand is an entry ticket to new markets, and serves as an entry barrier to companies that lack strong brands. The value of a well-managed brand appreciates with time, while that of a badly managed brand depreciates.
It is not always feasible to create a new brand; the chances of success are small and the cost high. Brand extension or acquisition of companies that own strong brands may be easier.
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