Brands perform many functions that benefit the consumer and the organisation

Introduction

In a market, where globalisation is dominant and competition is intense, products may struggle to appeal to consumers. Therefore, effective branding strategies and a positive corporate image can help differentiate organisations and brands from their competitors and can add value to products and services. Schultz and Schultz (2005, p.316) argue that a strong brand helps the company sell products among competitors that in comparison, are “generic or weakly branded”. Moreover, corporations have come to realise the need to create a very strong brand for both the company and the products they sell. The company will have many benefits, if it possesses a strong brand and also effectively applies it to the corporate image.

According to Kotler and Amstrong (2006, p.251), a brand is a name, term, sign, symbol or design, or a combination of these intended to differentiate an organisation from its competitors. Furthermore, brands perform many functions; the simplest function is as an identifier. As well as being an identifier, brands also perform many other functions which will be discussed further. It is true that brands can benefit both organisations and consumers. Brands can give brand equity to organisations, and can also give self-actualization and confidence to consumers. This essay will analyse the function of brands along with their benefits within organsations and for consumers.

The development of brand

Today's modern concept of branding developed from the consumer packaged goods industry and the process of branding has grown to include much, much more than just a way to identify a product or company. Branding today is used to create emotional attachment to products and companies. Branding efforts create “a feeling of involvement, a sense of higher quality, and an aura of intangible qualities that surround the brand name, mark, or symbol” (Marketing Dissertation, 2009). Today, brands do not have a unified definition. On the contrary, there are many definitions of brand. In addition, the word brand, when used as a noun, can refer to a company name, a product name, or a unique identifier such as a logo or trademark.

Historically, before fences were used in ranching to keep one's cattle separate from other people's cattle, ranch owners branded, or marked, their cattle so they could later identify their herd as their own. The concept of branding also developed through the practices of craftsmen who wanted to place a mark or identifier on their work without detracting from the beauty of the piece (Dolak, 2003). These craftsmen used their initials, a symbol, or another unique mark to identify their work and they usually put these marks in a low visibility place on the product. Moreover, a brand is something that can be used to distinguish the goods from one producer or provider from the other competitors. The goods can be a product, or service, or both. Keller (2003, p.3) pointed out that the word “brand” is derived from the Old Norse word “brand”, which means “to burn”, as brands were and still are the means by which owners of livestock mark their animals to identify them. Therefore, when something is “branded”, that thing should be easy to identify and differentiate from the others, which becomes a unique feature of that thing

It is believed that all companies aim for their business to have a good image to their customers. In this case, brands signify more than a product. While products are made in the factories, a brand is bought by a customer; while products can be copied by competitors, a brand is unique (Varey, 2002, p.152). A brand comprises of brand identity and brand image. In addition, a strong brand has an important indicator to the values of the company (Elliot and Percy, 2007, p.87). That is, if a company has a strong brand it can impact on the customers’ awareness and thus influence to them to purchase a product. Finally, brands can create loyalty as well. Brand loyalty is useful for a company because consumers are likely will purchase a product that is well known and familiar to them. In addition, brand loyalty is created by building and maintaining good customer relationship (Pearson, 1996, p.146). For example, many customers are loyal to companies that have “powerful brands” such as, Coca-Cola, Nescafe and San Miguel. This is because consumers have built trust and respect for these brands (Moiij, 2005, p.129). It is caused these companies have good reputation of products and their corporate responsibility in the communities and consumers as well.

Strategi pemasaran untuk konsumer

a. Membuat logo sebagai identitas

A logo in its simplest form is the way in which a company image is represented on their official letterhead or on the front of the shop or business premises. A logo usually consists of a symbol, the business name and sometimes a tag line that describes what the company does. The symbol can provide cohesion to identity and make it easier to gain recognition and recall to consumers. According to Aaker (1996.p.83), “a symbol or logo involves visual imagery which can be memorable and powerful”. The symbolic functions of these brands are used as a means of communication. The value of the brand is based on the symbolic meaning presented (Franzen, 2002).

Furthermore, it is very important to look at the role of brands from the cultural or social point of view. Cultural symbol can emotionally enhance the experience of consuming products and services. Many brands help consumers in their search for self-definition and expression. From self-pampering to external displays of status, brands provide consumers with important emotional benefits beyond communicating the functionality of the product and service. According to Knapp (2000, p. 9) “…. the brand should be to add value to people’s live”. Consumers purchase the products according to what they believe in. Since customers perceive brands in their minds, there is a need for the products to be able to satisfy the need of the customers. For instance, all moslems customers worldwide will recognise the halal brand in certain products and that will make them feel secure in purchasing them because of their religious value.

b. Membantu Konsumer di dalam membuat keputusan

A decision making process is directly related to the level of importance that the consumer places on acquirement of the specific product , a lifestyle perspective of consumer purchase and consumption and post-purchase activities (Joon Moon, 2004). In addition, an analysis of income levels, socioeconomic or socio cultural descriptors and an understanding of basic psychological principles are important in understanding. Furthermore, it is very important to look at the role of brands from consumers’ decision-making process point of view. The symbol of brand is emotionally enhancing the consumption of products and services. They attach to a brand the same way they attach to each other: first emotionally and then logically. Similarly, purchase decisions are made the same way, first instinctively and impulsively and then those decisions are rationalised.

c. Membuat Brand and organisasi lebih kepada target personal

The brand personality is what people think and feel, consciously and subconsciously, about a company identity or product. The brand is the personality of the company and the way in which words, messages and images are used to support the logo. In addition, brand personality relates to the notion that consumers express and transfer their personality towards a brand (Aaker, 1997). For instance, products targeted at teenager audiences will use different themes in their adverts to similar products targeted at their parents.

Moreover, a successful brand personality clearly communicates a company message to consumers. For instance, some of the world’s most successful brands are very simple designs but they are strong because they have been used consistently messages to consumers. Good marketing strategy is equally important to good design when building the brand. The globally successful brands, such as Coca Cola and Heineken did not become successful by accident (IE, Singapore, 2006). They have been strengthened over time by consistent use of their logo and corporate identity and by building a targeted and creative brand personality. Innovative design, a simple message and consistent use of your brand can ensure that even the smallest company stands out from the crowd.

d. Menciptakan consumer merasa percaya diri

According to the Maslow’s Hierarchy of needs, self-actualization is the need for self-fulfillment and a desire to realise one’s own potential (Belch & Belch 2007, p.109). Moreover, self-actualization is what people align their needs with certain brands and more likely to purchase brands that reflect their needs and personality. People often perceive brands subconsciously without conscious assessment. For example, Coca-Cola represents its brand as happy young, vibrant, comfortable and sporty through its advertisements and sponsorship. Therefore, when people feel that they are happy or comfortable, they might to drink a can of Coca-cola. When people drink a can of Coca-cola, they feel that they are fully of energy. All of the above are people’s feeling, which can be said to be confident because they can meet their self-actualization needs. Another example of brands bringing self-actualization to consumers is Nike. Nike has a slogan “Just do it!” When people are wearing a pair of shoes which are Nike product, the people can have a self-actualization of freedom, energy and enthusiasm.

4. Strategi pemasaran untuk organisasi

a. Menciptakan suasana yang nyaman bagi karyawan

A brand’s position must appeal to customers, meet customers' needs, and fit with the culture of the industry. A good internal relationship in the company can create good brand in the public. This must be integrated on variety of dimensions to create a good image. Schultz and Kitchen (2002) pointed out that communication throughout an organisation can allow the firm to develop strong relationships with stakeholder, particularly by employees, if strategically managed. In addition, positive relationships are becoming a necessity in increasing a firm’s competitiveness where stakeholder groups can impact on organisational performance. This will help the organisation communicate one voice to the customers and publics.

Furthermore, the concept of integrated internal communication is developed to improve organisations’ service. It is believed that the quality of service is a reflection of organisational culture. If organisations are able to communicate to deliver consistent quality service to their internal stakeholder, it may achieve synergy within the organisation. In addition, to enhance good relationships amongst employees, organisations should not only serve by “lip service” to employees but should aim to producing high standards by providing programs, resources and rewards to enable and encourage employee to deliver good service. According to Walker and Mullins (2008, p.233), “an employee must be provided with training, equipment, and time necessary to deliver good service”. This means that service should be evaluated and measured to ensure good performance. Moreover, employees must be rewarded by giving incentives or bonuses and promotions in order to motivate employees.

Today, many companies encourage the employers to be aware of valuing customers in their service (Barrow & Mosley, 2005, p.2). Moreover, to enhance the organisation’s reputation, it is important that employees have good communication skills to communicate well. Word of mouth communication from employee can impact decision about purchasing and investing.

b. Membuat strategi baru untuk mengekspansi produk

Brand extension is an evident when organisation uses a well-known brand in a different business category. Brand extension can increase the awareness of the organisation or the brand and then ultimately raise the profits of the organisation and the value of the brand. For example, the Real Madrid Football Club, one of the soccer participant team to the Spanish Professional Football League, is a world famous brand in the world. The Real Madrid Football Club’s core business is to take part in the matches in the Spanish Profession Football League in order to become the champion (BBDO Germany, 2007). However, because of its famous brand, the Real Madrid Football Club can do many sport related businesses outside becoming a champion of the Spanish Profession Football League. Real Madrid Football Club also sells sports equipment, such as its club uniform. Because of Real Madrid Football Club’s famous brand, these peripheral businesses can also bring many profits to the Real Madrid Football Club.

Another example of brand extension is the Virgin Group. The Virgin Group was founded by Sir Richard Branson, a British businessman (Virgin website, 2009). Because of its famous brand name, Virgin Group has ventured into many different areas of business. In addition, to be an airline business with ownerships of Virgin Atlantic Airways and Virgin Blue Airlines. It has also ventured into the mobile telephone service business, operating Virgin Mobile across many countries including Australia, the United Kingdom, the United States, Canada, France and India (Virgin website, 2009). However, Virgin Mobile does not own the necessary infrastructure to provide mobile telephone service. In other words, Virgin Mobile does not have its own mobile network, and has instead signed contracts the existing mobile telephone service providers which enable it to use these networks to provide service to its customers. For example in Australia, Virgin Mobile has a contract with Optus, and uses the Optus mobile telephone network to provide services to its customers (Optus, 2000). Virgin Group provides a brand name “Virgin” to gain profit; with the mobile telephone service business is actually run by other network providers. Virgin Group also runs financial services through Virgin Money. In addition, Virgin Group is a book publisher, retailer, and distributor under the name of Virgin Books. Therefore, Virgin Group uses its famous brand name across many businesses, which include travel, tourism, leisure, shopping, media, communication, finance, health, social and environment. All of them are run under a famous brand “Virgin”.

The most important Strategi

1. Giving brand equity

The most first important function in branding is that giving a brand equity. Brand equity can raise the importance of a brand in marketing strategy and provide focus for managerial interest and research activity (Keller 2003, p. 42). Therefore, brand equity is, in terms of marketing, effects that are uniquely attributable to a brand. It relates to the fact that different outcomes result from the marketing of a product or service because of its brand as apposed to those outcomes achieved if that same product or service had not been identified by the brand.

Moreover, brand equity has brand loyalty to the organisation to increase its profit. Keller (2007, p.11) has pointed out, “brand loyalty provides predictability and security of demand for the firm and creates barriers of entry that make it difficult for other firms to enter the market”. For example, there are many cola producers in the world. The most famous cola producers are Coca-cola and Pepsi-cola. Both of them are well-known and illustrious. However, in comparing these two cola brands, Coca-cola gains more profit than Pepsi-cola, although the ingredients of Pepsi-cola are almost the same to Cola-cola. This is because of brand loyalty. The brand equity groups will seek to understand users' and consumers' reasons for purchase, determine their hierarchy of needs and what “a brand currently delivers, understand usage occasions and patters, and showcase brand-equity dimensions” (Pollack, 2008). In addition, one of the most important functions of brand equity groups is to identify similar affinity groups and lifestyle and behaviour patterns among consumers and loyal customers which can translate into better understanding customers’ profiles.

2. Giving confidence

Another function that brands perform is that providing consumer’s confidence. A brand can give confidence to its consumers. Keller (2003, p.11) has pointed out that “Brands can signal a certain level of quality so that satisfied buyers can easily choose the product again”. When consumers have confidence in a particular brand, they don’t have to consider it too much prior to purchasing. When they need the product or the service, they just buy or purchase it; they don’t have to consider the quality of the product or service, because they trust in the brand. In the consumer’s mind, the brand is equivalent to the quality of the product or the service. In addition consumer confidence in brands varies with the type of products (William,1993). After all, standards can be defined and controlled strictly when the product is produced entirely in one central location and can be inspected before being presented to consumers. These brand names deliver the highest level of consumer confidence. The consumer may accept or reject the product; in either case, the decision is made with a clear expectation about the performance or level of quality of the goods.

Confidence in a product is composed of a combination of both goods and service. For example in the McDonald’s company, ingredients of products must be inspected before they arrive at particular franchise. Moreover, other factors such as the cooking and preparation, the attitude of workers and the cleanliness of the facility are important in the presented of a good image to consumers. However, it still happens that there are many restaurants or lodging chains whose quality is not consistent over time, as a result, the brand name in consumers’ eyes represents a range rather than a fixed point.

Conclusion

In conclusion, brands have several major functions. Firstly, the functions of brand for consumers can be used as an identifier as a logo as a means of communication. In addition, it can help consumers to decide the level of important to purchase product or is call decision-making process. The function of brand is also to create brand personally of consumers relates their personality and their self-actualization that reflect their needs.

Moreover, the other functions of brands within organizations namely, to develop strong relationships between employees and companies that can impact on organisation performance. Moreover, the functions of brands can allow organisation to extent their products such as Virgin Group and Real Madrid Football Club.

Finally, the most important functions of brand can provide brand equity to organizations because it can build brand loyalty from its customers. Brand equity is intangible; this intangible value can be greater than the value of the organisation’s tangible assets. Moreover, because of brands, consumers have confidence in buying a product or purchasing a service .Thus, brands do not only provide advantages to organisations but also give advantages to consumers as well.

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