B for Branding: terms to know

I have always explained branding as an art of articulationย by the companies about their business to their consumers. And thus, branding as a subject for marketers doesย  not necessarily have a standard procedure or SOP to successful brand building. It is a learning game for most of us…reading about the success stories and imbibing the learning into making one of ours (someday)!

To hone my business branding skills for understanding and handling brands better, I often refer to case studies, online courses and interviews of brand managers of leading companies. The one thing that I’d have handy for understanding branding exercises better is the following glossary of branding terms:

Brand equity โ€“ the commercial value a brand provides to a firm through its effects on the attitudes and behaviours of its stakeholders.

Brand identity โ€“ a name, symbol or design that identifies a product, service or entity from others.

Brand image โ€“ a set of associations attached to a brand identity in the minds of its stakeholders.

Brand promise โ€“ the customer value proposition or benefits communicated by the brand to the customer and/or consumer.

Brand purpose โ€“ this answers the question of why a brand exists with respect to the positive difference it aims to make in peopleโ€™s lives.

Brand valuation โ€“ the Net Present Value (NPV) of future cash flows stemming from the brand as an intangible (separable) asset, for example, as estimated in the avoided royalty payments through ownership of a trademark and associated intellectual property (e.g., brand guidelines).

Brand value โ€“ the incremental Net Present Value (NPV) of future cash flows stemming from a branded compared an unbranded business and product via its effect on all stakeholders (e.g., customers, employees, suppliers, financiers, channel partners, etc.). In simpler terms, what deploying the brand is worth to management, the bottom line, and shareholders.

Branding โ€“ the creation of names, symbols, characters, and slogans that (1) help identify a product and (2) create unique positive associations that differentiate it from the competition by (3) creating additional meaning (value) in consumersโ€™ minds.

Hope this helps!