Meaning of brand
The word brand originated from the Norwegian word “brandr” which means to burn. In the early days, the owner of animals put some identification mark on the body of the animals by hot iron to distinguish their possession. Similarly now a days companies also start using branding to distinguish their product in the market.
According to Philip Kotler, “a brand name is a name, term, sign, or a design that identifies the seller of the product or service”
Brand equity means the value of brand in the market. A strong brand has high brand equity. It is a positive differential effect. For example, nike shoes has brand value in the whole world, but tracer shoes only known by local market. Thus, brand equity is the worth of a brand. High brand equity has many advantages.
Ø A strong brand has a competitive edge.
Ø The firm can easily extend the product line.
Ø It enjoys high level of consumer loyalty.