When talking about products in a business and business, it certainly cannot be separated from the name of the brand. Brands have a very important role in running a business. Brands are not just a visual identity or name attached to a product or company, but also have an important function in shaping the image and reputation of the business, as well as influencing consumer behavior. A brand serves as a differentiator of a product. In the midst of fierce competition in the market, brands can help business products stand out among the various other products available. In addition, brands can also be used as an asset which does have a very high economic value. With a brand, a product will be much easier if introduced to consumers. Therefore, as a business owner or entrepreneur, understanding the function and importance of brands is an important step in achieving business success. In this article, we will explore more about the functions and benefits of brands for businesses as well as how to build a strong brand to achieve long-term goals.
What is a Brand?
According to Law No. 20 of 2016 (Trademark and Geographical Indication Law), a trademark is a sign that can be displayed graphically in the form of an image, logo, name, word, letter, number, color arrangement, in two-dimensional and/or three-dimensional form, sound, hologram, or a combination of two or more of these elements to distinguish goods and/or services produced by a person or legal entity in the trading activities of goods and/or services. In other words, trademarks are used on goods traded by a person or several persons jointly or legal entities to distinguish with other similar goods.
Brand Function for Business
One of the functions of a brand is as an identity or ‘face’ of a company or business, so that its existence can be distinguished from other businesses. With a brand, the goods or services owned by the company also have a name as an ‘identifier’. The following are other functions of the brand in business:
As Distinguishing Power
Its main important function is as a differentiator of a product and/or service. In a crowd of similar products and services, a strong brand can help your product stand out. It allows consumers to quickly identify and differentiate your product or service from others. With a strong brand, the product does not become just another item, but a unique solution that consumers are looking for.
Helps in Building Business Image
Brands also serve to shape the image of your business. Whether your business wants to be known as innovative, trustworthy, or eco-friendly, a brand is a tool to communicate those values and business image to customers. A strong and positive business image can provide a significant competitive advantage and influence how customers perceive your business.
As a Business Promotion Tool
A well-recognized and valued brand can make your marketing and promotional efforts easier. When consumers see a brand they know and trust, they are more likely to be receptive to your marketing messages. A strong brand also makes your advertisements and promotions more effective as customers are more likely to pay attention to them.
Generate Buyer Loyalty
Brands that successfully create an emotional connection with customers can engender strong loyalty. Customers who feel emotionally connected to your brand are more likely to return and choose your products or services repeatedly. Customer loyalty is a valuable asset in business as loyal customers tend to contribute more to a company’s revenue and profits.
Increase Sales
The last function of the brand is that it can help increase sales. Consumers tend to be more trusting to buy products that come from brands they know and trust. A strong brand can also help in attracting new customers and retaining existing customers, which in turn can increase business revenue.
But remember, brands must also be registered!
That’s the explanation about the function of brands for businesses. So, have you prepared the right brand for your business products? Make sure to create a brand that has its own characteristics so that it is easier to recognize and differentiate from other business brands. What needs to be remembered is that, in addition to being owned, brands must also be officially registered with the Directorate General of Intellectual Property (DJKI) of the Ministry of Law and Human Rights of the Republic of Indonesia.
A trademark is an intangible asset and represents an exclusive right for the owner to use the mark in commerce. By registering a mark, a businessperson has the freedom to use the mark for commercial purposes, and has the right to prohibit other parties from using the mark. This trademark registration can provide legal protection for the privileges possessed by a product or service. So that if there are other parties who try to imitate or create activities on behalf of your brand, they can be sued through the courts and the state will protect your product.
READ ALSO: What is a Trademark and How to Register It?
Yes, in other words, registering a brand is a preventive measure and a precautionary attitude in doing business. Not only to protect your product, but it can also open up many opportunities for your business.
KH Contact
So, what are you waiting for? Let’s create your business brand and register it officially with Kontrak Hukum! We can help you to register a business brand easily and safely because of the brand analysis process first with a competent IPR consultant and officially registered at the DJKI. For service booking information, please visit the KH Services – Trademark page. If you have questions about other business needs, do not hesitate to consult for free at Ask KH and send a direct message (DM) to Instagram @kontrakhukum.
