What is the definition of a brand?
Frequently Asked Question

What is the definition of a brand?

There are many definitions of brand, often narrow in scope. To allow us to consider all the touchpoints of the asset, Brand Finance defines a brand as:

bundle of trademarks and associated IP(1) which can be used to take advantage of the perceptions(2) of all stakeholders(3) to provide a variety of economic benefits(4) to the entity(5).

This is our preferred definition because it appreciates the breadth of the effects a brand can bring, rather than just affecting the price premium of a product. Identifying each element:

  1. This is the accounting definition of a brand when conducting a monetary brand valuation.
  2. The effects brands have are not always directly aligned to the fact but instead to what people believe to be the case.
  3. Brands affect more than customers or consumers. Staff, financiers or external stakeholders are some of the most obvious examples that are also affected by the brand.
  4. Higher staff retention or lower recruitment costs are two benefits beyond simply a price or volume premium that a brand can provide.
  5. Brands apply to more than just companies. Not-for-profits, sports teams and locations are all examples of brands assisting other types of entities.
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