Understanding Brands: History, Functions, and Types

Meaning of brand – Reader, this time we will discuss the meaning of brand, history, up to the stage of brand development. We need to know first, the meaning of brand is related to a symbol consisting of a name, term, image, logo, icon, design, or a combination of all of them, which is intended to identify, define, or provide a product or service.

That all serves to distinguish one seller’s identity from another seller.

Brand Meaning

According to Law Number 20 of 2016 on Trademarks and Geographical Indications, a trademark is a sign with special characteristics in the form of a picture, name, word, letter, number, color pattern, or a combination of these elements. that there is That is in goods or services used for commercial activities.

A brand is a distinguishing mark of trading activities with similar goods or services, as well as a guarantee of quality when compared with similar goods or services belonging to other parties.

Thus, the brand includes the company’s commitment to consistently provide special features, benefits, and services to buyers.

Brands or trademarks are included in intellectual property rights, because this is what distinguishes a product/service that is unique and different from other products that may be of the same type. These branding elements include expressions, designs, and symbols that can be recognized.

In order for a brand to be legally protected, the brand must be registered. The purpose is to prevent the parties from using the brand that has been created. It turns out that not all brands can be registered.

So, for Reader who are developing a brand , it is best to first understand the meaning of brand and avoid the following points when creating and registering a brand.

  1. The brand does not conflict with ideology, standards, and national laws.
  2. Does not contain misleading information about the type, size, origin, type and purpose of registration.
  3. It is not allowed to use the name of protected plant varieties.
  4. Avoid writing information that does not match the quality or benefits of the goods/services produced.
  5. Labels without characters also cannot be registered.
    Avoid using generic names or symbols

Brand Development History

Branding has basically been going on for centuries. The word ” brand ” in English comes from the linguistic word ” brand ” which means “to burn” and refers to livestock identification.

At that time, breeders used a special stamp to mark or mark their livestock and distinguish them from other livestock. With the stamp, it will be easier for consumers to identify quality cows provided by leading livestock companies.

Some historical evidence also shows that signs/symbols have been used for thousands of years. For example, writing and making pictures on the walls of ancient Egyptian tombs that show pets have existed since 2000 years before Christ.

In ancient Roman times, shops had pictures, such as shoes or beef to identify their products. Other examples include identity marks on ancient Chinese porcelain and ancient Greek and Greek antiquities.

In the Middle Ages, some enterprises, such as bread producers, and silversmiths were run by trade unions that provided some kind of quality certification mark.

The signs were then used as legal entities in several countries, such as England and Germany in the 15th century.

The growth of new retail enterprises, such as department stores and grocery stores, has triggered an increase in consumer spending. The increase in industrialization and urbanization was accompanied by the increase in the standard of living in America, which then changed the lifestyle from self-producing to consuming most goods. Until the beginning of the 20th century, trademark law appeared .

The role of the brand is of course to identify a specific designer or manufacturer, for example Mercedes Benz, Singer, Heinze, and Ford. In the late 19th and early 20th centuries manufacturers used brands to identify specific products.

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The Meaning of Brands According to Some Figures

1. According to Kotler and Armstrong

A brand is a name, term, sign, symbol or design, or a combination of all of them, which is intended to identify the goods or services of one seller or group of sellers and to distinguish them from competing products.

2. According to Tjiptono

A brand is a symbol, legal instrument (property), company, abbreviation, risk mitigation, positioning , personality, value chain, vision, added value, identity, image, relationship, and evolving entity.

3. According to Simamora

A brand is a name, sign, symbol, design, or combination of all that is intended to identify the goods or services of one seller among the goods and services of other sellers.

4. According to Rangkuti

A brand is a specific name and symbol (such as a logo, stamp, or packaging) intended to identify goods and services from a particular seller or group of sellers.

5. According to Alma

A brand is a sign or symbol that gives the identity of a certain item or service, which can be in the form of words, pictures, or a combination of both.

Brand Parts

According to Kotler and Keller (2009), a brand usually consists of several parts, namely:

  1. The brand name is part of the brand and is pronounced.
  2. Part of the brand that can be recognized but not pronounced, such as symbols, designs, fonts , or distinctive colors.
  3. A trademark is a part of a brand that is protected by law because of its ability to create something special.
  4. Copyright is a legally protected privilege to produce, publish, and sell written works, musical works, or works of art.

Brand Functions and Benefits

A brand serves to provide an identity for goods or services and functions to ensure the quality of articles and combinations for consumers.

A brand also acts as a recruitment of goods or combined products produced by a person or legal entity with products or services performed by a person or other moral entity.

Here are some brand functions.

1. Power Indicator Function

Signs are used to show that a product is legal from a business unit and also serves to give a sign that this product is done professionally.

2. Quality Indicator Function

A brand is a guarantee of quality, especially for products that have a good reputation.

3. Suggestion Function

The brand gives the impression that it will become a product collector.

According to Tjiptono the benefits of a brand are as follows.

  • Identification is intended to facilitate the processing or tracking of products for companies, especially in the organization of inventory and accounting records.
  • A form of legal protection for the unique features or aspects of a product. Trademarks can be protected by registered trademarks, manufacturing processes can be protected by patents, and packaging can be protected by copyright and design. These intellectual property rights ensure that companies can safely invest in the brands they develop to reap the benefits of this valuable research.
  • Signal quality levels for satisfied customers, so they can easily choose and buy again later.
    Brand loyalty translates into the company’s ability to predict and secure demand and create entry barriers that make it difficult for other companies to enter the market.
  • How to create unique associations and meanings that differentiate a product from its competitors.
  • A source of competitive advantage, especially through legal protection, customer loyalty and a unique image formed in the minds of consumers.
  • A source of financial gain, especially for future income.

Brand Type

According to Law No. 15 of 2001 regarding brands, in general, brands are divided into three categories, namely:

  1. A brand is a brand used on goods sold by one or more people or legal entities to distinguish them from other similar goods.
  2. A service brand is a brand used for services marketed by one or more people with or by a legal entity to distinguish them from other similar services.
  3. Collective Brands are Brands used on goods and/or services with the same characteristics that are marketed together by more than one person or legal entity to distinguish them from other similar goods and/or services.

Based on their form, trademarks are divided into several categories, specifically as follows:

  1. Brand Painting. This form is able to distinguish the design form or image of goods or services from other similar goods or services. For example, the Flying Horse brand image, is a drawing or picture of a horse with flying wings.
  2. Kata Brand. This mark is able to distinguish with the sound of words a product or service from other similar products or services. Examples: Pepsodent for toothpaste, Ultraflu for colds, Toyota for cars.
  3. Brand letters or numbers. This form has the power to distinguish in the form of letters or numbers between a good or service with other similar goods or services. For example, ABC for ketchup and syrup, 555 for books.
  4. Brand Name. This form has the power to distinguish the form of a name of goods or services from other similar goods or services. For example: Louis Vuitton for bags, Vinesia for wallets.
  5. Brand Combination of signs. This form is capable of distinguishing in the form of images/pictures and words between goods or services with other goods or services of the same nature. Example: Jamu Bu Meneer is a combination of the image of a woman and the words of Mrs. Meneer.
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According to Harahap (1996), based on its level, brands are divided into three levels, as follows.

A. Normal Brand

Normal brands are brands that do not have a high reputation. This casual brand is considered to have no symbolic influence from the art of living, both in terms of use and technology. Companies or consumers consider the brand to be of poor quality.

Brands are seen as lacking in charisma that is capable of creating a sense of intimacy and mystical power that is suggestive to the public and consumers and is not capable of forming a market and consumer class.

B. Famous Brands

This type of brand is very famous because its logo has the power to attract attention. Such a brand has an extraordinary and enchanting power, so that all types of products under this brand immediately create familiarity and a psychological bond with consumers.

C. Most Popular Brands

The highest level of branding is the most popular brand. The level of the most popular brands is higher than the common brands, so all kinds of products under this brand immediately create a legendary touch.

Because of this definition, for those who try it, it is likely to get stuck with the overlapping formulas of popular brands.

Stages of Brand Development

According to Rangkuti, a brand usually goes through several stages or stages of development, particularly as follows.

1. Unbranded Products

At this stage the product is managed as a commodity so branding is not required. This condition is very beneficial if demand is greater than supply , which often happens in monopoly economic situations. For example, cheap rice, fuel, generic drugs, etc.

2. Brand As Reference

At this level, there is some competition, although the level is not too tight. This competition encourages manufacturers to differentiate their products.

The purpose is that the products produced by the company are different from the products of other companies. For example, sneakers, work shoes, notebooks, sketchbooks, etc.

3. Brand as Personality

At this point, distinguishing brands based on functional attributes becomes increasingly difficult, and increasingly difficult to do. Because most companies do the same activities.

To differentiate manufactured products from competing products, companies add personality value to each brand. For example, health bath soap, baby soap, etc.

4. Brands as Icons

At this stage, the brand belongs to the customer. Customers have a deeper knowledge of the brands they use.

In general, brands that enter this level are already international and customers who use this brand can express themselves or express their identity, for example Marlboro Cigarettes.

5. Brands as Enterprises

Advertising at this level has a very complex identity and is more interactive, so customers can easily contact the brand.

Because the company brand is a representation of the company so the brand is the same as the company. All managers and employees have the same perception of their brand.

Communication outside the company has been integrated into the entire operational line, so that information flows smoothly from management to customers and vice versa, from customers to management.

An example is Microsoft software, where customers can communicate directly at any time via the internet with the company, and in turn, the company can inform customers about its products at any time.

6. Brand as Moral Policy

Currently, there are only a few companies that are at this stage, namely companies that have run their business transparently, starting from the raw materials used, the production process and transportation, to the products, services, and after-sales.

Customer service Information is communicated in a transparent, unambiguous manner, and nothing is hidden from a business, social or political moral point of view. The Body Shop and Benetton ads are examples.

That’s a comment on the meaning of brand and matters related to brand.