What, exactly, is a Brand?

One comes across various definitions of what a brand exactly is. Some would want to describe it in terms of it being the name, logo, jingle etc. that together help to differentiate one offering vis-à-vis the other. This I believe, though true, does not capture the entire essence of what a brand is. Others tend do describe it in more obscure terms of it being something mystical, the power of which needs to be experienced to be able to believe, that it resides in the hearts and minds of its consumers …..

My understanding is:

A brand is an intangible asset that creates value for all its stakeholders

* The company that owns it by aiming to ensure future cash flows
* The customers that buy and use it through functional, emotional, sensory and ownership related benefits it provides
* For the trade / retailers that distribute and sell it through the cash flows and footfalls it creates to be able to sell more stuff to more people
* Marketers & Agencies that help create and nurture it, through the value it creates for them at both personal and professional level.

I beg to differ with marketers who say that a brand belongs to its customers and not the companies. Customers are definitely the most important stakeholders but they are not the owners. They certainly have a big hand in the financial value created by a brand as they are the ones who decide and pay the premium for it over other similar products/services. However, this economic value is ultimately reaped by the legal owners who at times fetch more value for their brands than any of their physical assets.

Here is a take by Christopher Kenton in Business Week Online on the meaning of brand.

I believe that though the fundamental attribute of a strong brand is consistency, increasingly, it is the ability to creatively challenge customers and be seen innovative that is driving growth for brands like Apple, Nike, Sony, Toyota, Samsung etc.