The Interbrand focuses in branding services to small and large businesses or companies around the world? So what exactly is branding that we do as a business?
This is the simplest definition of branding: Brand refers to the visual elements or symbols of products and services. This includes the logo, trademark and package design of a certain company’s products or services that is distinct from other competitors. This is the identity of businesses. But the wider definition of brand refers to the domain names, trade dress, copyrights, written copy, logotypes, product designs, packaging, and advertising visuals are called the intangible assets of the company. Why intangible assets? The branding strategy is not just giving the names and symbols to products and services. The hidden secret is that the products and services should be high quality that creates an intact relationship between a customer and a business. This is why branded businesses or product and services means that these have high standard with high quality products and services.
Business also has its tangible assets like its land and building, large machineries, fixed assets and income. This can also go with the brand of any business institution.
Why then businesses create brands? Branding is an effective strategy to increase market value of a business. 60% of the market value may be contributed by the brand of any business or service. Brand is a competitive sign of a business though there may be thousands of businesses competing with the same product and services. In this case, brand makes the difference of competitors. Example: Samsung Smartphone vs an Apple Iphone- Since these are both branded phones, There is a strong competition between these two. What about Cherrymobile phone vs Iphone? Which of the two has greater market value? This is the reason why brand valuation is necessary for companies.