Content area
Full Text
Abstract
This paper discusses the concepts of brand identity and brand image from a communications perspective. Brand identity originates from the company, ie a company is responsible for creating a differentiated product with unique features. Brand image refers to consumer perceptions and encompasses a set of beliefs that consumers have about the brand. Brand identity and brand image are related but distinct concepts. Both are essential ingredients of strong brands. A firm can enhance brand loyalty by ensuring that there is congruence between brand identity and brand image. Key changes taking place in today's communications environment have been identified and suggestions are offered on how to strengthen the identity-image linkage.
INTRODUCTION
Brands are intangible assets that can build shareholder value.1 seetharaman cf al.2 define a brand as 'an asset that does not have physical existence and the value of which cannot be determined exactly unless it becomes the subject of a specific business transaction of sale and acquisition' (p. 243). Fombrun'1 maintains that intangible assets such as brands closely reflect a firm's true value, and are a source of sustained competitive advantage. Brands provide added value, both to the firm and the consumer. This added value can be conceptualised in terms of brand equity. Farquhar4 defines brand equity as the added value with which a brand endows a product. From a firm's perspective, a successful brand enables it to maintain a high level of consumer acceptance, often in the face of considerable competition. For instance, Coca-Cola, the world leader in cola drinks, has been able to maintain its strong presence in the soft drinks market because the trademarks Coca-Cola and Coke denote values that go beyond mere physical attributes and product labelling. In addition, brand equity can:
* provide a solid foundation for new product launch and for licensing5
* offset a decline in market share during price and promotional wars6
* help provide resistance to competitive attacks.7
From the consumer's perspective, a brand provides a visible representation of difference between products. Brands allow consumers to shop with confidence in an increasingly complex world. A brand can signify product quality as well as aid consumers in differentiating the product from competitive offerings.8 A brand that consumers trust will also serve to reduce perceived risk...