MADE IN ITALY
Made in Italy
Made in Italy brand
Made in Italy is a merchandise mark indicating that a product is all planned, manufactured and packed in Italy, especially concerning the design, fashion, food, manufacturing, craftsmanship, and engineering industries.
A grill pan, with the label Made in Italy, designed by Marcel Wanders for Alessi and Esselunga
Made in Italy brand has been used since 1980 to indicate the international uniqueness of Italy in four traditional industries: fashion, food, furniture and mechanical engineering (automobiles, industrial design, machineries and shipbuilding), in Italian also known as "Four A", Abbigliamento (clothes), Agroalimentare (food), Arredamento (furniture) and Automobili (automobiles). Italian products have often been associated with quality, high specialization and differentiation, elegance, and strong links to experienced and famous Italian industrial districts often connected with the concept of luxury. Since 1999, Made in Italy has begun to be protected by associations such as Istituto per la Tutela dei Produttori Italiani (Institute for the Protection of the Italian Manufacturers) and regulated by the Gucci company to the Italian government.
In recent times the merchandise mark Made in Italy has become decisive for Italian exports and so common worldwide to be often considered as a separate product category. In January 2014, Google Cultural Institute, in collaboration with the Italian government and the Italian Chamber of Commerce, launched an online project aimed to promote Made in Italy by using virtual showrooms about several famous Italian products.
In 2009, the Italian law (Law 135, September 25th, 2009 - Chamber of Deputies, Parliament of Italy) stated that only products totally made in Italy (planning, manufacturing and packaging) are allowed to use the labels Made in Italy, 100% Made in Italy, 100% Italia, tutto italiano in every language, with or without the flag of Italy. Each abuse is punished by the Italian law.
Compared with "Made in Germany" ('all essential manufacturing steps') and "Made in the USA" ('all or virtually all'), Italian regulation is more restrictive ('totally') in determining what qualifies for the use of the "Made in Italy" label.
Tod's shop in Hong Kong.
Illy espresso machine.
Artemide Alistro Lamp designed by Ernesto Gismondi.
Ferrari F12 Berlinetta; Ferrari is one of the most well-known brands in the world closely linked to Made in Italy.
Jar of Nutella.
Economists and business analysts have identified five companies in particular whose names are closely associated with Made in Italy:
- Barilla - food company;
- Benetton - global fashion brand;
- Ferrero - manufacturer of chocolate and other confectionery products;
- Indesit - home appliances;
- Luxottica - the world's largest eyewear company.
- Alberto Fermani
- Bottega Veneta
- Brunello Cucinelli
- Cesare Attolini
- Cesare Paciotti
- Dolce & Gabbana
- E. Marinella
- Emilio Pucci
- Franklin & Marshall
- Gas Jeans
- Harmont & Blaine
- Le Village Sneakers
- Liverano & Liverano
- Loro Piana
- Max Mara
- Miu Miu
- Officine Panerai
- Pal Zileri
- Roberto Botticelli
- Roberto Cavalli
- Salvatore Ferragamo
Food and beverage
- Acqua Minerale San Benedetto
- Coppola Foods
- De Cecco
- Ferrari Trento
- F.lli Gancia
- Giovanni Rana
- La Molisana
- Martini & Rossi
- Massimo Zanetti
- Perfetti Van Melle
- Saclà Italia
- San Carlo
- San Pellegrino
Furniture and home appliances
- B&B Italia
- Cattelan Italia
- Cucine Lube
- Foppa Pedretti
- Gallotti & Radice
- Gentry Home
- Indesit Company
- Linea Italia
- Poltrona Frau
- Tonin Casa
- Alfa Romeo
- Axis Group Yacht Design
- Azimut Yachts
- Benelli Armi SpA
- Bianchi Bicycles
- Cantiere Navale Visentini
- Carraro Agritalia
- Carrozzeria Castagna
- Carrozzeria Ghia
- Carrozzeria Marazzi
- Carrozzeria Touring
- Custom Line
- De Rosa
- De Simon
- De Tomaso
- Di Blasi Industriale
- Fabio Perini S.p.A.
- Ferretti Group
- Filippi Boats
- Franco Tosi Meccanica (FTM)
- Giannini Automobili
- I.DE.A Institute
- Italdesign Giugiaro
- Maire Tecnimont
- MER MEC
- Moto Guzzi
- MV Agusta
- Officine Meccaniche Giovanni Cerutti
- PFM Group
- Riva Yachts
- Silca S.p.A.
- VM Motori
From Wikipedia, the free encyclopedia
MADE IN ITALY: SPANISH
MADE IN ITALY: INDIA
MADE IN ITALY: ASIA and CHINA
Country of Origin
"Swiss Made" label on a TAG Heuer chronograph.
Country of origin label for a product designed in the United States, but manufactured in China.
Country of origin (COO), is the country of manufacture, production, or growth where an article or product comes from. There are differing rules of origin under various national laws and international treaties.
Country of origin labelling is also known as place-based branding, the made-in image or the "nationality bias." In some regions or industries, country of origin labelling may adopt unique local terms such as terroir used to describe wine appellations based on the specific region where grapes are grown and wine manufactured.
Place-based branding has a very ancient history. Archaeological evidence points to packaging specifying the place of manufacture dating back to some 4,000 years ago. Over time, informal labels evolved into formal, often regulated labels providing consumers with information about product quality, manufacturer name and place of origin.
Country of origin of a product can have several possible definitions. It can refer to:
(a) "the place from which the merchandise was directly received; that is the last border crossed or port entered before reaching its final destination;
(b) the country of consignment (i.e. from where the goods were sold); or,
(c) the country of original growth or extraction."
History of country-of-origin labelling
The distinctive shape and markings on amphorae provided consumers with information about the manufacturer and the place of origin for goods
The inclusion of place of origin on manufactured goods has an ancient history. In antiquity, informal branding which included details such as the name of manufacturer and place of origin were used by consumers as important clues as to product quality. David Wengrow has found archaeological evidence of brands, which often included origin of manufacture, dating to around 4,000 years ago. Producers began by attaching simple stone seals to products which, over time, were transformed into clay seals bearing impressed images, often associated with the producer's personal identity thus providing information about the product and its quality. For instance, an object found in a royal burial tomb in Abydos (southern Egypt) and dating to around 3,000 B.C.E., carries brand elements that would be very familiar to modern consumers. Inscriptions on the surface denote a specific place of manufacture, "finest oil of Tjehenu," a region in modern-day Libya.
In China, place-names appear to have developed independently during the Han Dynasty (220 BC-AD 200); brand names and place names were relatively commonplace on goods. Eckhardt and Bengtsson have argued that in the absence of a capitalist system, branding was connected to social systems and cultural contexts; that brand development was a consumer-initiated activity rather than the manufacturer-push normally associated with Western brand management practices.
Diana Twede has shown that amphorae used in Mediterranean trade between 1500 and 500 BCE exhibited a wide variety of shapes and markings, which provided information for purchasers during exchange. Systematic use of stamped labels dates appears to date from around the fourth century BCE. In a largely pre-literate society, the shape of the amphora and its pictorial markings functioned as a brand, conveying information about the contents, region of origin and even the identity of the producer which were understood to function as signs of product quality.
The Romans preferred to purchase goods from specific places, such as oysters from Londinium and cinnamon from a specific mountain in Arabia, and these place-based preferences stimulated trade throughout Europe and the Middle East. In Pompeii and nearby Herculaneum, archaeological evidence also points to evidence of branding and labelling in relatively common use. Wine jars, for example, were stamped with names, such as "Lassius" and "L. Eumachius;" probably references to the name of the producer. Carbonized loaves of bread, found at Herculaneum, indicate that some bakers stamped their bread with the producer's name.
Umbricius Scauras, a manufacturer of fish sauce (also known as garum) in Pompeii c. 35 C.E., was branding his amphora which travelled across the entire Mediterranean. Mosaic patterns in the atrium of his house were decorated with images of amphora bearing his personal brand and quality claims. The mosaic comprises four different amphora, one at each corner of the atrium, and bearing labels as follows:
- G(ari) F(los) SCO[m]/ SCAURI/ EX OFFI[ci]/NA SCAU/RI Translated as "The flower of garum, made of the mackerel, a product of Scaurus, from the shop of Scaurus"
- LIQU[minis]/ FLOS Translated as: "The flower of Liquamen"
- G[ari] F[los] SCOM[bri]/ SCAURI Translated as: "The flower of garum, made of the mackerel, a product of Scaurus"
- LIQUAMEN/ OPTIMUM/ EX OFFICI[n]/A SCAURI Translated as: "The best liquamen, from the shop of Scaurus"
Scauras' fish sauce was known to be of very high quality across the Mediterranean and its reputation travelled as far away as modern France.
By the 19th century, formal labels featuring manufacturer name and place of manufacture had become relatively common. Picture Apothecary bottles, c. 1860
During the Medieval period in Europe, numerous market towns sprang up and competition between them intensified. In response to competitive pressures, towns began investing in developing a reputation for quality produce, efficient market regulation and good amenities for visitors. By the thirteenth century, English counties with important textile industries were investing in purpose built halls for the sale of cloth. London's Blackwell Hall became a centre for cloth, Bristol became associated with a particular type of cloth known as Bristol red, Stroud was known for producing fine woollen cloth, the town of Worsted became synonymous with a type of yarn; Banbury and Essex were strongly associated with cheeses. Casson and Lee have argued that the chartered markets of England and Europe in medieval times were using the regional market's reputation as a sign of produce quality and that this acted as an early form of branding.
Following the European age of expansion, goods were imported from afar. Marco Polo, for example, wrote about silk from China and spices from India. Consumers began to associate specific countries with merchandise - calico cloth from India, porcelain, silk and tea from China, spices from India and South-East Asia and tobacco, sugar, rum and coffee from the New World.
By the late 19th century, European countries began introducing country of origin labelling legislation. In the 20th century, as markets became more global and trade barriers removed, consumers had access to a broader range of goods from almost anywhere in the world. Country of origin is an important consideration in purchase decision-making
Effects on consumers
The effects of country of origin labeling on consumer purchasing have been extensively studied. The country of origin effect is also known as the "made-in image" and the "nationality bias."
Research shows that consumers' broad general perceptions of a country, including of its national characteristics, economic and political background, history, traditions, and representative products, combine to create an overall image or stereotype that is then attached to the products of that country. For example, a global survey carried out by Nielsen, reported that Country of origin image has a significant influence on consumer perceptions and behaviours, and in situations in which additional information is unavailable or difficult to get can be the sole determinant of whether or not someone buys a product. Its effect is strongest on consumers who don't know much about the product or product type, and weakest on consumers who are well-informed. Sensitivity to country of origin varies by product category. It is strongest for durable goods and luxury goods and weakest for "low involvement" product categories such as shampoo and candy. In various studies it has also been proven that the Country-of-Origin Effect also applies to services.
Several studies have shown that consumers tend to have a relative preference to products from their own country or may have a relative preference for or aversion against products that originate from certain countries (so-called affinity and animosity countries).
The requirements for Country of Origin markings are complicated by the various designations which may be required such as "Made in X", "Product of X", "Manufactured in X" etc. They also vary by country of import and export. For example:
- For imports to the United Kingdom, there is a voluntary code for Food. Other products are not subject to labelling requirements, but misleading labelling can result in prosecution under the Trade Descriptions Act 1968.
- Food exported to the United Arab Emirates must include Country of Origin
Ford automobile hubcap
Section 304 of the Tariff Act of 1930 as amended (19 U.S.C. § 1304) requires most imports,including many food items, to bear labels informing the ultimate purchaser of their country of origin. Meats, produce, and several other raw agricultural products generally were exempt. The 2002 farm bill (P.L. 107-171, Sec. 10816), however, contains a requirement that many retail establishments provide, starting on September 30, 2004, country-of-origin information on fresh fruits and vegetables, red meats, seafood, and peanuts. However, the consolidated FY2004 appropriation (P.L. 108-199) signed January 23, 2004, delayed this requirement for two years except for seafood.
The Textile Fiber Products Identification Act and Wool Products Labeling Act require a Made in USA label on clothing and other textile or wool household products if the final product is manufactured in the U.S. of fabric that is manufactured in the U.S., regardless of where materials earlier in the manufacturing process (for example, the yarn and fiber) came from. Textile products that are imported must be labeled as required by the Customs Service. A textile or wool product partially manufactured in the U.S. and partially manufactured in another country must be labeled to show both foreign and domestic processing.
On a garment with a neck, the country of origin must be disclosed on the front of a label attached to the inside center of the neck, either midway between the shoulder seams or very near another label attached to the inside center of the neck. On a garment without a neck and on other kinds of textile products, the country of origin must appear on a conspicuous and readily accessible label on the inside or outside of the product.
Catalogs and other mail order promotional materials for textile and wool products, including those disseminated on the Internet, must disclose whether a product is made in the U.S., imported, or both.
The Fur Products Labeling Act requires the country of origin of imported furs to be disclosed on all labels and in all advertising.
The American Automobile Labeling Act requires that each automobile manufactured on or after October 1, 1994, for sale in the U.S. bear a label disclosing where the car was assembled, the percentage of equipment that originated in the U.S. and Canada, and the country of origin of the engine and transmission. Any representation that a car marketer makes that is required by the AALA is exempt from the Commission’s policy. When a company makes claims in advertising or promotional materials that go beyond the AALA requirements, it will be held to the Commission’s standard.
The Buy American Act requires that a product be manufactured in the U.S. of more than 50 percent U.S. parts to be considered Made in USA for government procurement purposes. For more information, review the Buy American Act at 41 U.S.C. §§ 10a-10c, the Federal Acquisition Regulations at 48 C.F.R. Part 25, and the Trade Agreements Act at 19 U.S.C. §§ 2501-2582.
The Lanham Act gives any person (such as a competitor) who is damaged by a false designation of origin the right to sue the party making the false claim.
Companies may indicate the origin of their products with a number of different marketing strategies:
- Use of the phrase "Made in..."
- Use of quality and origin labels
- COO embedded in the company name
- Typical COO words embedded in the company name
- Use of the COO language
- Use of famous or stereotypical people from the COO
When shipping products from one country to another, the products may have to be marked with country of origin, and the country of origin will generally be required to be indicated in the export/import documents and governmental submissions. Country of origin will affect its admissibility, the rate of duty, its entitlement to special duty or trade preference programs, antidumping, and government procurement.
Today, many products are an outcome of a large number of parts and pieces that come from many different countries, and that may then be assembled together in a third country. In these cases, it's hard to know exactly what is the country of origin, and different rules apply as to how to determine their "correct" country of origin.
Generally, articles only change their country of origin if the work or material added to an article in the second country constitutes a substantial transformation, or, the article changes its name, tariff code, character or use (for instance from wheel to car). Value added in the second country may also be an issue.
In principle, the substantial transformation of a product is intended as a change in the harmonized system coding. For example, a rough commodity sold from country A to country B, than subjected of a transformation in country B, which sells the final processed commodity to a country C is considered a sufficient step to label the end product made in B.
Film and television production
The International Federation of Film Archives defines the country of origin as the "country of the principal offices of the production company or individual by whom the moving image work was made". No consistent reference or definition exists. Sources include the item itself, accompanying material (e.g. scripts, shot lists, production records, publicity material, inventory lists, synopses etc.), the container (if not an integral part of the piece), or other sources (standard and special moving image reference tools). In law, definitions of "country of origin" and related terms are defined differently in different jurisdictions. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
The European Union, Canada, and the United States have different definitions for a variety of reasons, including tax treatment, advertising regulations, distribution; even within the European Union, different member states have different legislation. As a result, an individual work can have multiple countries as its "country of origin", and may even have different countries recognized as originating places for the purpose of different legal jurisdictions. Under copyright law in the United States and other signatories of the Berne Convention, "country of origin" is defined in an inclusive way to ensure the protection of intellectual rights of writers and creators.
- 100% Cinta Indonesia
- Brand management
- CE marking
- History of marketing
- History of brand management
- Protected Geographical Status
- Guaranteed Irish
- Made in China
- Made in Croatia
- Made in France
- Made in Germany
- Made in Italy
- Made in Russia
- Made in Taiwan
- Made in USSR
- Made in USA
- Nation branding
- Swiss Made
- Terroir - The basis of the French wine labelleing (appellation d'origine contrôlée (AOC) system)
From Wikipedia, the free encyclopedia
Ferrari is the world's most powerful brand according to Brand Finance.
A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business, marketing, and advertising. Name brands are sometimes distinguished from generic or store brands.
The practice of branding is thought to have begun with the ancient Egyptians, who were known to have engaged in livestock branding as early as 2,700 BCE. Branding was used to differentiate one person's cattle from another's by means of a distinctive symbol burned into the animal's skin with a hot branding iron. If a person stole any of the cattle, anyone else who saw the symbol could deduce the actual owner. However, the term has been extended to mean a strategic personality for a product or company, so that "brand" now suggests the values and promises that a consumer may perceive and buy into. Over time, the practice of branding objects extended to a broader range of packaging and goods offered for sale including oil, wine, cosmetics and fish sauce. Branding in terms of painting a cow with symbols or colours at flea markets was considered to be one of the oldest forms of the practice.
In the modern era, the concept of branding has expanded to include the marketing and communication methods that help to distinguish a company or products from competitors, aiming to create a lasting impression in the minds of customers. The key components that form a brand's toolbox include a brand's identity, brand communication (such as by logos and trademarks), brand awareness, brand loyalty, and various branding (brand management) strategies
Many companies believe that there is often little to differentiate between several types of products in the 21st century, and therefore branding is one of a few remaining forms of product differentiation.
Brand equity is the measurable totality of a brand's worth and is validated by assessing the effectiveness of these branding components. As markets become increasingly dynamic and fluctuating, brand equity is a marketing technique to increase customer satisfaction and customer loyalty, with side effects like reduced price sensitivity. A brand is, in essence, a promise to its customers of what they can expect from products and may include emotional as well as functional benefits. When a customer is familiar with a brand, or favours it incomparably to its competitors, this is when a corporation has reached a high level of brand equity. Special accounting standards have been devised to assess brand equity. In accounting, a brand defined as an intangible asset, is often the most valuable asset on a corporation's balance sheet. Brand owners manage their brands carefully to create shareholder value, and brand valuation is an important management technique that ascribes a monetary value to a brand, and allows marketing investment to be managed (e.g.: prioritized across a portfolio of brands) to maximize shareholder value. Although only acquired brands appear on a company's balance sheet, the notion of putting a value on a brand forces marketing leaders to be focused on long term stewardship of the brand and managing for value.
The word ‘brand’ is often used as a metonym referring to the company that is strongly identified with a brand. Marque or make are often used to denote a brand of motor vehicle, which may be distinguished from a car model. A concept brand is a brand that is associated with an abstract concept, like breast cancer awareness or environmentalism, rather than a specific product, service, or business. A commodity brand is a brand associated with a commodity.
The word, brand, derives from its original and current meaning as a firebrand, a burning piece of wood.
That word comes from the Old High German, brinnan and Old English byrnan, biernan, and brinnan via Middle English as birnan and brond. Torches were used to indelibly mark items such as furniture and pottery, and to permanently burn identifying marks into the skin of slaves and livestock. Later the firebrands were replaced with branding irons. The marks themselves took on the term and came to be closely associated with craftsmen's products. Through that association, the term eventually acquired its current meaning.
In pre-literate society, the distinctive shape of amphorae provided potential consumers with information about goods and quality. Pictured: Amphorae for wine and oil, Archaeological Museum, Dion.
Branding and labelling have an ancient history. Branding probably began with the practice of branding livestock in order to deter theft. Images of the branding of cattle occur in ancient Egyptian tombs dating to around 2,700 BCE. Over time, purchasers realised that the brand provided information about origin as well as about ownership, and could serve as a guide to quality. Branding was adapted by farmers, potters and traders for use on other types of goods such as pottery and ceramics. Forms of branding or proto-branding emerged spontaneously and independently throughout Africa, Asia and Europe at different times, depending on local conditions. Seals, which acted as quasi-brands, have been found on early Chinese products of the Qin Dynasty (221-206 BCE); large numbers of seals survive from the Harappan civilization of the Indus Valley (3,300–1,300 BCE) where the local community depended heavily on trade; cylinder seals came into use in Ur in Mesopotamia in around 3,000 BCE and facilitated the labelling of goods and property; and the use of maker's marks on pottery was commonplace in both ancient Greece and Rome. Identity marks, such as stamps on ceramics, were also used in ancient Egypt.
Diana Twede has argued that the "consumer packaging functions of protection, utility and communication have been necessary whenever packages were the object of transactions". She has shown that amphorae used in Mediterranean trade between 1,500 and 500 BCE exhibited a wide variety of shapes and markings, which consumers used to glean information about the type of goods and the quality. Systematic use of stamped labels dates from around the fourth century BCE. In a largely pre-literate society, the shape of the amphora and its pictorial markings conveyed information about the contents, region of origin and even the identity of the producer, which were understood to convey information about product quality. David Wengrow has argued that branding became necessary following the urban revolution in ancient Mesopotamia in the 4th century BCE, when large-scale economies started mass-producing commodities such as alcoholic drinks, cosmetics and textiles. These ancient societies imposed strict forms of quality-control over commodities, and also needed to convey value to the consumer through branding. Producers began by attaching simple stone seals to products which, over time, gave way to clay seals bearing impressed images, often associated with the producer's personal identity thus giving the product a personality. Not all historians agree that these markings are comparable with modern brands or labels, with some suggesting that the early pictorial brands or simple thumbprints used in pottery should be termed proto-brands while other historians argue that the presence of these simple markings does not imply that mature brand management practices operated
Scholarly studies have found evidence of branding, packaging and labelling in antiquity. Archaeological evidence of potters' stamps has been found across the breadth of the Roman Empire and in ancient Greece. Stamps were used on bricks, pottery, and storage containers as well as on fine ceramics. Pottery marking had become commonplace in ancient Greece by the 6th century BCE. A vase manufactured around 490 BCE bears the inscription “Sophilos painted me”, indicating that the object was both fabricated and painted by a single potter. Branding may have been necessary to support the extensive trade in such pots. For example, 3rd-century Gaulish pots bearing the names of well-known potters and the place of manufacture (such as Attianus of Lezoux, Tetturo of Lezoux and Cinnamus of Vichy) have been found as far away as Essex and Hadrian's Wall in England. English potters based at Colchester and Chichester used stamps on their ceramic wares by the 1st century CE. The use of hallmarks, a type of brand, on precious metals dates to around the 4th century CE. A series of five marks occurs on Byzantine silver dating from this period.
Copper printing-plate including the White Rabbit trademark of Jinan Liu's Fine Needles Shop, Chinese, Song Dynasty (960- 1127 CE)
Some of the earliest use of maker's marks, dating to about 1,300 BCE, have been found in India. The oldest generic brand in continuous use, known in India since the Vedic period (ca. 1,100 BCE to 500 BCE), is the herbal paste known as Chyawanprash, consumed for its purported health benefits and attributed to a revered rishi (or seer) named Chyawan. One well-documented early example of a highly developed brand is that of White Rabbit sewing needles, dating from China's Song Dynasty (960 to 1127 CE). A copper printing-plate used to print posters contained a message which roughly translates as: “Jinan Liu’s Fine Needle Shop: We buy high-quality steel rods and make fine-quality needles, to be ready for use at home in no time.” The plate also includes a trademark in the form of a 'White Rabbit", which signified good luck and was particularly relevant to women, who were the primary purchasers. Details in the image show a white rabbit crushing herbs, and text includes advice to shoppers to look for the stone white rabbit in front of the maker's shop.
Roman oil lamp, showing underside with maker's mark. Museo Bellini
In ancient Rome, a commercial brand or inscription applied to objects offered for sale was known as a titulus pictus. The inscription typically specified information such as place of origin, destination, type of product and occasionally quality claims or the name of the manufacturer. Roman marks or inscriptions were applied to a very wide variety of goods, including, pots, ceramics, amphorae (storage/ shipping containers) and on factory-produced oil-lamps. Carbonized loaves of bread, found at Herculaneum, indicate that some bakers stamped their bread with the producer's name. Roman glassmakers branded their works, with the name of Ennion appearing most prominently.
Mosaic showing garum container, from the house of Umbricius Scaurus of Pompeii. The inscription, which reads "G(ari) F(los) SCO(mbri) SCAURI EX OFFI(CI)NA SCAURI", has been translated as: "The flower of garum, made of the mackerel, a product of Scaurus, from the shop of Scaurus"
One merchant who made good use of the titulus pictus was Umbricius Scaurus, a manufacturer of fish sauce (also known as garum) in Pompeii, circa 35 CE. Mosaic patterns in the atrium of his house feature images of amphorae bearing his personal brand and quality claims. The mosaic depicts four different amphora, one at each corner of the atrium, and bearing labels as follows:
- G(ari) F(los) SCO[m]/ SCAURI/ EX OFFI[ci]/NA SCAU/RI (translated as: "The flower of garum, made of the mackerel, a product of Scaurus, from the shop of Scaurus")
- LIQU[minis]/ FLOS (translated as: "The flower of Liquamen")
- G[ari] F[los] SCOM[bri]/ SCAURI (translated as: "The flower of garum, made of the mackerel, a product of Scaurus")
Scaurus' fish sauce was known by people across the Mediterranean to be of very high quality, and its reputation travelled as far away as modern France. In both Pompeii and nearby Herculaneum, archaeological evidence also points to evidence of branding and labelling in relatively common use across a broad range of goods. Wine jars, for example, were stamped with names, such as "Lassius" and "L. Eumachius"; probably references to the name of the producer.
Back section of a bracelet clasp with a hallmark of Hunnish craftsmanship, early 5th century
The use of identity marks on products declined following the fall of the Roman Empire. However, in the European Middle Ages, heraldry developed a language of visual symbolism which would feed into the evolution of branding, and with the rise of the merchant's guilds the use of marks resurfaced and was applied to specific types of goods. By the 13th century the use of maker's marks had become evident on a broad range of goods. In 1266 makers' marks on bread became compulsory in England. The Italians used brands in the form of watermarks on paper in the 13th century. Blind stamps, hallmarks, and silver-makers' marks – all types of brand – became widely used across Europe during this period. Hallmarks, although known from the 4th-century, especially in Byzantium, only came into general use during the Medieval period. British silversmiths introduced hallmarks for silver in 1300.
Bass Brewery's logo became the first image to be registered as a trademark in the UK, in 1876.
Some brands still in existence as of 2018 date from the 17th, 18th and 19th centuries' period of mass-production. Bass & Company, the British brewery founded in 1777, became a pioneer in international brand marketing. Many years before 1855 Bass applied a red triangle to casks of its Pale Ale. In 1876 its red-triangle brand became the first registered trademark issued by the British government. Guinness World Records recognizes Tate & Lyle (of Lyle's Golden Syrup) as Britain's, and the world's, oldest branding and packaging, with its green-and-gold packaging having remained almost unchanged since 1885. Twinings Tea has used the same logo — capitalized font beneath a lion crest — since 1787, making it the world's oldest in continuous use.
A tin of Lyle's Golden Syrup, first sold in London in 1885. Recognised by Guinness World Records as having the world's oldest branding and packaging.
A characteristic feature of 19th-century mass-marketing was the widespread use of branding, originating with the advent of packaged goods. Industrialization moved the production of many household items, such as soap, from local communities to centralized factories. When shipping their items, the factories would literally brand their logo or company insignia on the barrels used, effectively using a corporate trademark as a quasi-brand.
Factories established following the Industrial Revolution introduced mass-produced goods and needed to sell their products to a wider market – that is, to customers previously familiar only with locally produced goods. It quickly became apparent that a generic package of soap had difficulty competing with familiar, local products. Packaged-goods manufacturers needed to convince the market that the public could place just as much trust in the non-local product. Gradually, manufacturers began using personal identifiers to differentiate their goods from generic products on the market. Marketers generally began to realise that brands, to which personalities were attached, outsold rival brands. By the 1880s large manufacturers had learned to imbue their brands' identity with personality traits such as youthfulness, fun, sex appeal, luxury or the "cool" factor. This began the modern practice now known as branding, where the consumers buy the brand instead of the product and rely on the brand name instead of a retailer's recommendation.
The process of giving a brand "human" characteristics represented, at least in part, a response to consumer concerns about mass-produced goods. The Quaker Oats Company began using the image of the Quaker man in place of a trademark from the late 1870s, with great success. Pears' soap, Campbell's soup, Coca-Cola, Juicy Fruit chewing gum and Aunt Jemima pancake mix were also among the first products to be "branded" in an effort to increase the consumer's familiarity with the product's merits. Other brands which date from that era, such as Uncle Ben's rice and Kellogg's breakfast cereal, furnish illustrations of the trend.
The Quaker Company was one of the earliest to use a character on its packaging, branding and advertising. Pictured: The Quaker Man, c. 1900
By the early 1900s, trade-press publications, advertising agencies and advertising experts began producing books and pamphlets exhorting manufacturers to bypass retailers and to advertise direct to consumers with strongly branded messages. Around 1900, advertising guru James Walter Thompson published a house advertisement explaining trademark advertising. This was an early commercial explanation of what scholars now recognize as modern branding and the beginnings of brand management. This trend continued to the 1980s, and as of 2018 is quantified in concepts such as brand value and brand equity. Naomi Klein has described this development as "brand equity mania". In 1988, for example, Philip Morris purchased Kraft for six times what the company was worth on paper. Business analysts reported that what they really purchased was the brand name.
With the rise of mass media in the early 20th century, companies soon adopted techniques that would allow their messages to stand out; slogans, mascots, and jingles began to appear on radio in the 1920s and in early television broadcasting in the 1930s. Soap manufacturers sponsored many of the earliest radio-drama series, and the genre became known as soap opera.
By the 1940s manufacturers began to recognize the way in which consumers had started to develop relationships with their brands in a social/psychological/anthropological sense. Advertisers began to use motivational research and consumer research to gather insights into consumer purchasing. Strong branded campaigns for Chrysler and Exxon/Esso, using insights drawn from research into psychology and cultural anthropology, led to some of most enduring campaigns of the 20th-century. Brand advertisers began to imbue goods and services with a personality, based on the insight that consumers searched for brands with personalities that matched their own.
Effective branding can result in higher sales of not only one product, but of other products associated with that brand. If a customer loves Pillsbury biscuits and trusts the brand, he or she is more likely to try other products offered by the company – such as chocolate-chip cookies, for example. Brand development, often the task of a design team, takes time to produce.
Brand names and trademarks
Further information: Trademark and Trademark symbol
Coca-Cola is a brand name, while the distinctive Spencerian script and the contour bottle are trademarked......
A brand name is the part of a brand that can be spoken or written and identifies a product, service or company and sets it apart from other comparable products within a category. A brand name may include words, phrases, signs, symbols, designs, or any combination of these elements. For consumers, a brand name is a "memory heuristic"; a convenient way to remember preferred product choices. A brand name is not to be confused with a trademark which refers to the brand name or part of a brand that is legally protected. For example, Coca-Cola not only protects the brand name, Coca-Cola, but also protects the distinctive Spencerian script and the contoured shape of the bottle.
Corporate brand identity
Simply, the brand identity is a set of individual components, such as a name, a design, a set of images, a slogan, a vision, a design, writing style, a particular font or a symbol etc. which sets the brand aside from others. In order for a company to exude a strong sense of brand identity, it must have an in-depth understanding of its target market, competitors and the surrounding business environment. Brand identity includes both the core identity and the extended identity. The core identity reflects consistent long-term associations with the brand; whereas the extended identity involves the intricate details of the brand that help generate a constant motif.
According to Kotler et al. (2009), a brand's identity may deliver four levels of meaning:
A brand's attributes are a set of labels with which the corporation wishes to be associated. For example, a brand may showcase its primary attribute as environmental friendliness. However, a brand's attributes alone are not enough to persuade a customer into purchasing the product. These attributes must be communicated through benefits, which are more emotional translations. If a brand's attribute is being environmentally friendly, customers will receive the benefit of feeling that they are helping the environment by associating with the brand. Aside from attributes and benefits, a brand's identity may also involve branding to focus on representing its core set of values. If a company is seen to symbolise specific values, it will, in turn, attract customers who also believe in these values. For example, Nike's brand represents the value of a "just do it" attitude. Thus, this form of brand identification attracts customers who also share this same value. Even more extensive than its perceived values is a brand's personality. Quite literally, one can easily describe a successful brand identity as if it were a person. This form of brand identity has proven to be the most advantageous in maintaining long-lasting relationships with consumers, as it gives them a sense of personal interaction with the brand Collectively, all four forms of brand identification help to deliver a powerful meaning behind what a corporation hopes to accomplish, and to explain why customers should choose one brand over its competitors.
Brand personality refers to “the set of human personality traits that are both applicable to and relevant for brands.” Marketers and consumer researchers often argue that brands can be imbued with human-like characteristics which resonate with potential consumers. Such personality traits can assist marketers to create unique, brands that are differentiated from rival brands. Aaker conceptualised brand personality as consisting of five broad dimensions, namely: sincerity (down-to-earth, honest, wholesome, and cheerful), excitement (daring, spirited, imaginative, and up to date), competence (reliable, intelligent, and successful), sophistication (glamorous, upper class, charming), and ruggedness (outdoorsy and tough). Subsequent research studies have suggested that Aaker's dimensions of brand personality are relatively stable across different industries, market segments and over time. Much of the literature on branding suggests that consumers prefer brands with personalities that are congruent with their own.
Consumers may distinguish the psychological aspect (brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand) of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is termed the consumer's brand experience. The brand is often intended to create an emotional response and recognition, leading to potential loyalty and repeat purchases. The brand experience is a brand's action perceived by a person. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people, consisting of all the information and expectations associated with a product, with a service, or with the companies providing them.
Marketers or product managers responsible for branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand can therefore become one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Orientation of an entire organization towards its brand is called brand orientation. Brand orientation develops in response to market intelligence.
Careful brand management seeks to make products or services relevant and meaningful to a target audience. Marketers tend to treat brands as more than the difference between the actual cost of a product and its selling price; rather brands represent the sum of all valuable qualities of a product to the consumer and are often treated as the total investment in brand building activities including marketing communications.
Consumers may look on branding as an aspect of products or services, as it often serves to denote a certain attractive quality or characteristic (see also brand promise). From the perspective of brand owners, branded products or services can command higher prices. Where two products resemble each other, but one of the products has no associated branding (such as a generic, store-branded product), potential purchasers may often select the more expensive branded product on the basis of the perceived quality of the brand or on the basis of the reputation of the brand owner.
Brand awareness involves a customers' ability to recall and/or recognize brands, logos and branded advertising. Brands helps customers to understand which brands or products belong to which product or service category. Brands assist customers to understand the constellation of benefits offered by individual brands, and how a given brand within a category is differentiated from its competing brands, and thus the brand helps customers & potential customers understand which brand satisfies their needs. Thus, the brand offers the customer a short-cut to understanding the different product or service offerings that make up a particular category.
Brand awareness is a key step in the customer's purchase decision process, since some kind of awareness is a precondition to purchasing. That is, customers will not consider a brand if they are not aware of it. Brand awareness is a key component in understanding the effectiveness both of a brand's identity and of its communication methods.
Successful brands are those that consistently generate a high level of brand awareness, as this can often be the pivotal factor in securing customer transactions. Various forms of brand awareness can be identified. Each form reflects a different stage in a customer's cognitive ability to address the brand in a given circumstance.
Marketers typically identify two distinct types of brand awareness; namely brand recall (also known as unaided recall or occasionally spontaneous recall) and brand recognition (also known as aided brand recall). These types of awareness operate in entirely different ways with important implications for marketing strategy and advertising.
- Most companies aim for "Top-of-Mind" which occurs when a brand pops into a consumer's mind when asked to name brands in a product category. For example, when someone is asked to name a type of facial tissue, the common answer, "Kleenex", will represent a top-of-mind brand. Top-of-mind awareness is a special case of brand recall.
- Brand recall (also known as unaided brand awareness or spontaneous awareness) refers to the brand or set of brands that a consumer can elicit from memory when prompted with a product category
- Brand recognition (also known as aided brand awareness) occurs when consumers see or read a list of brands, and express familiarity with a particular brand only after they hear or see it as a type of memory aide.
- Strategic awareness occurs when a brand is not only top-of-mind to consumers, but also has distinctive qualities which consumers perceive as making it better than other brands in the particular market. The distinction(s) that set a product apart from the competition is/are also known as the unique selling point or USP.
Brand recognition is one of the initial phases of brand awareness and validates whether or not a customer remembers being pre-exposed to the brand. Brand recognition (also known as aided brand recall) refers to consumers' ability to correctly differentiate a brand when they come into contact with it. This does not necessarily require that the consumers identify or recall the brand name. When customers experience brand recognition, they are triggered by either a visual or verbal cue. For example, when looking to satisfy a category need such as toilet paper, the customer would firstly be presented with multiple brands to choose from. Once the customer is visually or verbally faced with a brand, he/she may remember being introduced to the brand before. When given some type of cue, consumers who are able to retrieve the particular memory node that referred to the brand, they exhibit brand recognition. Often, this form of brand awareness assists customers in choosing one brand over another when faced with a low-involvement purchasing decision.
Brand recognition is often the mode of brand awareness that operates in retail shopping environments. When presented with a product at the point-of-sale, or after viewing its visual packaging, consumers are able to recognize the brand and may be able to associate it with attributes or meanings acquired through exposure to promotion or word-of-mouth referrals. In contrast to brand recall, where few consumers are able to spontaneously recall brand names within a given category, when prompted with a brand name, a larger number of consumers are typically able to recognize it.
Brand recognition is most successful when people can elicit recognition without being explicitly exposed to the company's name, but rather through visual signifiers like logos, slogans, and colors. For example, Disney successfully branded its particular script font (originally created for Walt Disney's "signature" logo), which it used in the logo for go.com.
Unlike brand recognition, brand recall (also known as unaided brand recall or spontaneous brand recall) is the ability of the customer retrieving the brand correctly from memory. Rather than being given a choice of multiple brands to satisfy a need, consumers are faced with a need first, and then must recall a brand from their memory to satisfy that need. This level of brand awareness is stronger than brand recognition, as the brand must be firmly cemented in the consumer's memory to enable unassisted remembrance. This gives the company huge advantage over its competitors because the customer is already willing to buy or at least know the company offering available in the market. Thus, brand recall is a confirmation that previous branding touchpoints have successfully fermented in the minds of its consumers.
Marketing-mix modeling can help marketing leaders optimize how they spend marketing budgets to maximize the impact on brand awareness or on sales. Managing brands for value creation will often involve applying marketing-mix modeling techniques in conjunction with brand valuation.
Brands typically comprise various elements, such as:
- name: the word or words used to identify a company, product, service, or concept
- logo: the visual trademark that identifies a brand
- tagline or catchphrase: "The Quicker Picker Upper" is associated with Bounty paper towels
- graphics: the "dynamic ribbon" is a trademarked part of Coca-Cola's brand
- shapes: the distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are trademarked elements of those brands
- colors: the instant recognition consumers have when they see Tiffany & Co.’s robin's egg blue (Pantone No. 1837). Tiffany & Co.’s trademarked the color in 1998.
- sounds: a unique tune or set of notes can denote a brand. NBC's chimes provide a famous example.
- scents: the rose-jasmine-musk scent of Chanel No. 5 is trademarked
- tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and spices for fried chicken
- movements: Lamborghini has trademarked the upward motion of its car doors
Figure 2. Demonstrating touch points associated with purchase experience stages
Further information: Advertising management, Integrated marketing communications, Marketing communications, and Promotion (marketing)
Although brand identity is a fundamental asset to a brand's equity, the worth of a brand's identity would become obsolete without ongoing brand communication. Integrated marketing communications (IMC) relates to how a brand transmits a clear consistent message to its stakeholders . Five key components comprise IMC:
- sales promotions
- direct marketing
- personal selling
- public relations
The effectiveness of a brand's communication is determined by how accurately the customer perceives the brand's intended message through its IMC. Although IMC is a broad strategic concept, the most crucial brand communication elements are pinpointed to how the brand sends a message and what touch points the brand uses to connect with its customers.
One can analyse the traditional communication model into several consecutive steps:
- Firstly, a source/sender wishes to convey a message to a receiver. This source must encode the intended message in a way that the receiver will potentially understand.
- After the encoding stage, the forming of the message is complete and is portrayed through a selected channel. In IMC, channels may include media elements such as advertising, public relations, sales promotions, etc.
- It is at this point where the message can often deter from its original purpose as the message must go through the process of being decoded, which can often lead to unintended misinterpretation.
- Finally, the receiver retrieves the message and attempts to understand what the sender was aiming to render. Often, a message may be incorrectly received due to noise in the market, which is caused by "…unplanned static or distortion during the communication process".
- The final stage of this process is when the receiver responds to the message, which is received by the original sender as feedback.
When a brand communicates a brand identity to a receiver, it runs the risk of the receiver incorrectly interpreting the message. Therefore, a brand should use appropriate communication channels to positively "…affect how the psychological and physical aspects of a brand are perceived".
In order for brands to effectively communicate to customers, marketers must "…consider all touch point|s, or sources of contact, that a customer has with the brand". Touch points represent the channel stage in the traditional communication model, where a message travels from the sender to the receiver. Any point where a customer has an interaction with the brand - whether watching a television advertisement, hearing about a brand through word of mouth, or even noticing a branded license plate – defines a touch point. According to Dahlen et al. (2010), every touch point has the "…potential to add positive – or suppress negative – associations to the brand's equity"  Thus, a brand's IMC should cohesively deliver positive messages through appropriate touch points associated with its target market. One methodology involves using sensory stimuli touch points to activate customer emotion. For example, if a brand consistently uses a pleasant smell as a primary touch point, the brand has a much higher chance of creating a positive lasting effect on its customers' senses as well as memory. Another way a brand can ensure that it is utilizing the best communication channel is by focusing on touch points that suit particular areas associated with customer experience. As suggested Figure 2, certain touch points link with a specific stage in customer-brand-involvement. For example, a brand may recognize that advertising touch points are most effective during the pre-purchase experience stage therefore they may target their advertisements to new customers rather than to existing customers. Overall, a brand has the ability to strengthen brand equity by using IMC branding communications through touch points.
Brand communication is important in ensuring brand success in the business world and refers to how businesses transmit their brand messages, characteristics and attributes to their consumers. One method of brand communication which companies can exploit involves electronic word-of mouth (eWOM). EWoM is a relatively new[when?] approach identified[by whom?] to communicate with consumers. One popular method of eWOM involves social networking sites (SNSs) such as Twitter. A study found that consumers classed their relationship with a brand as closer if that brand was active on a specific social media site (Twitter). Research further found that the more consumers "retweeted" and communicated with a brand, the more they trusted the brand. This suggests that a company could look to employ a social-media campaign to gain consumer trust and loyalty as well as in the pursuit of communicating brand messages.
It is important that if a company wishes to develop a global market, the company name will also need to be suitable in different cultures and not cause offense or be misunderstood. When communicating a brand, a company needs to be aware that they must not just visually communicate their brand message and should take advantage of portraying their message through multi-sensory information. One article suggests that other senses, apart from vision, need to be targeted when trying to communicate a brand with consumers. For example, a jingle or background music can have a positive effect on brand recognition, purchasing behaviour and brand recall.
Therefore, when looking to communicate a brand with chosen consumers, companies should investigate a channel of communication which is most suitable for their short-term and long-term aims and should choose a method of communication which is most likely to be adhered to by their chosen consumers. The match-up between the product, the consumer lifestyle, and the endorser is important for effectiveness of brand communication.
Global brand variables
Relationship between trade marks and brand
The term "brand name" is quite often used interchangeably with "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of any product. In this context a "brand name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services. A brand owner may seek to protect proprietary rights in relation to a brand name through trademark registration – such trademarks are called "Registered Trademarks". Advertising spokespersons have also become part of some brands, for example: Mr. Whipple of Charmin toilet tissue and Tony the Tiger of Kellogg's Frosted Flakes. Putting a value on a brand by brand valuation or using marketing mix modeling techniques is distinct to valuing a trademark.
Types of brand names
Brand names come in many styles. A few include:
initialism: a name made of initials, such as "UPS" or "IBM"
descriptive: names that describe a product benefit or function, such as "Whole Foods" or "Toys R' Us"
alliteration and rhyme: names that are fun to say and which stick in the mind, such as "Reese's Pieces" or "Dunkin' Donuts"
evocative: names that can evoke a vivid image, such as "Amazon" or "Crest"
- neologisms: completely made-up words, such as "Wii" or "Häagen-Dazs"
- foreign word: adoption of a word from another language, such as "Volvo" or "Samsung"
- founders' names: using the names of real people, (especially a founder's surname), such as "Hewlett-Packard", "Dell", "Disney", "Stussy" or "Mars"
- geography: naming for regions and landmarks, such as "Cisco" or "Fuji Film"
The act of associating a product or service with a brand has become part of pop culture. Most products have some kind of brand identity, from common table salt to designer jeans. A brandnomer is a brand name that has colloquially become a generic term for a product or service, such as Band-Aid, Nylon, or Kleenex—which are often used to describe any brand of adhesive bandage; any type of hosiery; or any brand of facial tissue respectively. Xerox, for example, has become synonymous with the word "copy".
A brand line allows the introduction of various subtypes of a product under a common, ideally already established, brand name. Examples would be the individual Kinder Chocolates by Ferrero SA, the subtypes of Coca-Cola, or special editions of popular brands. See also brand extension.
Open Knowledge Foundation created in December 2013 the BSIN (Brand Standard Identification Number). BSIN is universal and is used by the Open Product Data Working Group  of the Open Knowledge Foundation to assign a brand to a product. The OKFN Brand repository is critical for the Open Data movement.
The expression of a brand – including its name, trademark, communications, and visual appearance – is brand identity. Because the identity is assembled by the brand owner, it reflects how the owner wants the consumer to perceive the brand – and by extension the branded company, organization, product or service. This is in contrast to the brand image, which is a customer's mental picture of a brand. The brand owner will seek to bridge the gap between the brand image and the brand identity. Brand identity is fundamental to consumer recognition and symbolizes the brand's differentiation from competitors.
Brand identity is what the owner wants to communicate to its potential consumers. However, over time, a product's brand identity may acquire (evolve), gaining new attributes from consumer perspective but not necessarily from the marketing communications an owner percolates to targeted consumers. Therefore, businesses research consumer's brand associations.
Visual brand identity
The visual brand identity manual for Mobil Oil (developed by Chermayeff & Geismar & Haviv), one of the first visual identities to integrate logotype, icon, alphabet, color palette, and station architecture.
A brand can also be used to attract customers by a company, if the brand of a company is well established and has goodwill. The recognition and perception of a brand is highly influenced by its visual presentation. A brand's visual identity is the overall look of its communications. Effective visual brand identity is achieved by the consistent use of particular visual elements to create distinction, such as specific fonts, colors, and graphic elements. At the core of every brand identity is a brand mark, or logo. In the United States, brand identity and logo design naturally grew out of the Modernist movement in the 1950s and greatly drew on the principles of that pioneers of the practice of visual brand identity design, such as Paul Rand and Saul Bass. As part of a company's brand identity, a logo should complement the company's message strategy. An effective logo is simple, memorable, and works well in any medium including both online and offline applications.
Color is a particularly important element of visual brand identity and color mapping provides an effective way of ensuring color contributes to differentiation in a visually cluttered marketplace.
Brand trust is the intrinsic 'believability' that any entity evokes. In the commercial world, the intangible aspect of brand trust impacts the behavior and performance of its business stakeholders in many intriguing ways. It creates the foundation of a strong brand connect with all stakeholders, converting simple awareness to strong commitment. This, in turn, metamorphoses normal people who have an indirect or direct stake in the organization into devoted ambassadors, leading to concomitant advantages like easier acceptability of brand extensions,, in order to entrust the brand itself. An example would be a Chinese company using a German name.
The Brand Trust Report is a syndicated primary research that has elaborated on this metric of brand trust. It is a result of action, behavior, communication and attitude of an entity, with the most trust results emerging from its action component. Action of the entity is most important in creating trust in all those audiences who directly engage with the brand, the primary experience carrying primary audiences. However, the tools of communications play a vital role in the transferring the trust experience to audiences which have never experienced the brand, the all-important secondary audience. erception of the customers that some brands are equivalent. This means that shoppers will purchase within a group of accepted brands rather than choosing one specific brand. When brand parity operates, quality is often not a major concern because consumers believe that only minor quality differences exist.
Expanding role of brands
The original aim of branding was to simplify the process of identifying and differentiating products. Over time, manufacturers began to use branded messages to give the brand a unique personality. Brands came to embrace a performance or benefit promise, for the product, certainly, but eventually also for the company behind the brand.
Today, brands play a much bigger role. The power of brands to communicate a complex message quickly, with emotional impact and with the ability of brands to attract media attention, makes them ideal tools in the hands of activists. Cultural conflict over a brand's meaning has also influences the diffusion of an innovation.
Often, especially in the industrial sector, brand engineers will promote a company's name. Exactly how the company name relates to product and services names forms part of a brand architecture. Decisions about company names and product names and their relationship depend on more than a dozen strategic considerations.
In this case, a strong brand-name (or company name) becomes the vehicle for marketing a range of products (for example, Mercedes-Benz or Black & Decker) or a range of subsidiary brands (such as Cadbury Dairy Milk, Cadbury Flake, or Cadbury Fingers in the UK).
Corporate name-changes offer particularly stark examples of branding-related decisions. A name change may signal different ownership or new product directions. Thus the name Unisys originated in 1986 when Burroughs bought and incorporated UNIVAC; and the newly-named International Business Machines represented a broadening of scope in 1924 from its original name, the Computing-Tabulating-Recording Company. A change in corporate naming may also have a role in seeking to shed an undesirable image: for example, Werner Erhard and Associates re-branded its activities as Landmark Education in 1991 at a time when publicity in a 60 Minutes investigative-report broadcast cast the est and Werner Erhard brands in a negative light, and Union Carbide India Limited became Eveready Industries India in 1994 subsequent to the Bhopal disaster of 1984
Each brand has a separate name (such as Seven-Up, Kool-Aid, or Nivea Sun (Beiersdorf)), which may compete against other brands from the same company (for example, Persil, Omo, Surf, and Lynx are all owned by Unilever).
A challenger brand is a brand in an industry where it is neither the market leader nor a niche brand. Challenger brands are categorised by a mindset which sees them have business ambitions beyond conventional resources and an intent to bring change to an industry.
Multiproduct branding strategy
Multiproduct branding strategy is when a company uses one name across all their products in a product class. When the company's trade name is used, multiproduct branding is also known as corporate branding, family branding or umbrella branding. Examples of companies that use corporate branding are Microsoft, Samsung, Apple, and Sony as the company's brand name is identical to their trade name. Other examples of multiproduct branding strategy include Virgin and Church & Dwight. Virgin, a multination conglomerate uses the punk inspired, handwritten red logo with the iconic tick for all its products ranging from airlines, hot air balloons, telecommunication to healthcare. Church & Dwight, a manufacturer of household products displays the Arm & Hammer family brand name for all its products containing baking soda as the main ingredient. Multiproduct branding strategy has many advantages. It capitalises on brand equity as consumers that have a good experience with the product will in turn pass on this positive opinion to supplementary objects in the same product class as they share the same name. Consequently, the multiproduct branding strategy makes product line extension possible.
Product line extension
Product line extension is the procedure of entering a new market segment in its product class by means of using a current brand name. An example of this is the Campbell Soup Company, primarily a producer of canned soups. They utilize a multiproduct branding strategy by way of soup line extensions. They have over 100 soup flavours putting forward varieties such as regular Campbell soup, condensed, chunky, fresh-brewed, organic, and soup on the go. This approach is seen as favourable as it can result in a lower promotion costs and advertising due to the same name being used on all products, therefore increasing the level of brand awareness. Although, line extension has potential negative outcomes with one being that other items in the company's line may be disadvantaged because of the sale of the extension. Line extensions work at their best when they deliver an increase in company revenue by enticing new buyers or by removing sales from competitors.
Subbranding is used by certain multiproduct branding companies. Subbranding merges a corporate, family or umbrella brand with the introduction of a new brand in order to differentiate part of a product line from others in the whole brand system. Subbranding assists to articulate and construct offerings. It can alter a brand's identity as subbranding can modify associations of the parent brand. Examples of successful subbranding can be seen through Gatorade and Porsche. Gatorade, a manufacturer of sport-themed food and beverages effectively introduced Gatorade G2, a low-calorie line of Gatorade drinks. Likewise, Porsche, a specialised automobile manufacturer successfully markets its lower-end line, Porsche Boxster and higher-end line, Porsche Carrera.
Brand extension is the system of employing a current brand name to enter a different product class. Having a strong brand equity allows for brand extension. Nevertheless, brand extension has its disadvantages. There is a risk that too many uses for one brand name can oversaturate the market resulting in a blurred and weak brand for consumers. Examples of brand extension can be seen through Kimberly-Clark and Honda. Kimberly-Clark is a corporation that produces personal and health care products being able to extend the Huggies brand name across a full line of toiletries for toddlers and babies. The success of this brand extension strategy is apparent in the $500 million in annual sales generated globally. Similarly, Honda using their reputable name for automobiles has spread to other products such as motorcycles, power equipment, engines, robots, aircraft, and bikes.
Co-branding is a variation of brand extension. It is where a single product is created from the combining of two brand names of two manufacturers. Co-branding has its advantages as it lets firms enter new product classes and exploit a recognized brand name in that product class. An example of a co-branding success is Whitaker's working with Lewis Road Creamery to create a co-branded beverage called Lewis Road Creamery and Whittaker's Chocolate Milk. This product was a huge success in the New Zealand market with it going viral.
Multibranding strategy is when a company gives each product a distinct name. Multibranding is best used as an approach when each brand in intended for a different market segment. Multibranding is used in an assortment of ways with selected companies grouping their brands based on price-quality segments. Procter & Gamble (P&G), a multinational consumer goods company that offers over 100 brands, each suited for different consumer needs. For instance, Head & Shoulders that helps consumers relieve dandruff in the form of a shampoo, Oral-B which offers inter-dental products, Vicks which offers cough and cold products, and Downy which offers dryer sheets and fabric softeners. Other examples include Coca-Cola, Nestlé, Kellogg's, and Mars.
This approach usually results in higher promotion costs and advertising. This is due to the company being required to generate awareness among consumers and retailers for each new brand name without the benefit of any previous impressions. Multibranding strategy has many advantages. There is no risk that a product failure will affect other products in the line as each brand is unique to each market segment. Although, certain large multiband companies have come across that the cost and difficulty of implementing a multibranding strategy can overshadow the benefits. For example, Unilever, the world's third-largest multination consumer goods company recently streamlined its brands from over 400 brands to centre their attention onto 14 brands with sales of over 1 billion euros. Unilever accomplished this through product deletion and sales to other companies. Other multibrand companies introduce new product brands as a protective measure to respond to competition called fighting brands or fighter brands.
The main purpose of fighting brands is to challenge competitor brands. For example, Qantas, Australia's largest flag carrier airline, introduced Jetstar to go head-to-head against the low-cost carrier, Virgin Australia (formerly known as Virgin Blue). Jetstar is an Australian low-cost airline for budget conscious travellers, but it receives many negative reviews due to this. The launching of Jetstar allowed Qantas to rival Virgin Australia without the criticism being affiliated with Qantas because of the distinct brand name.
Private branding strategy
Private branding (also known as reseller branding, private labelling, store brands, or own brands) have increased in popularity. Private branding is when a company manufactures products but it is sold under the brand name of a wholesaler or retailer. Private branding is popular because it typically produces high profits for manufacturers and resellers. The pricing of private brand product are usually cheaper compared to competing name brands. Consumers are commonly deterred by these prices as it sets a perception of lower quality and standard but these views are shifting.
In Australia, their leading supermarket chains, both Woolworths and Coles are saturated with store brands (or private labels). For example, in the United States, Paragon Trade Brands, Ralcorp Holdings, and Rayovac are major suppliers of diapers, grocery products, and private label alkaline batteries, correspondingly. Costco, Walmart, RadioShack, Sears, and Kroger are large retailers that have their own brand names. Similarly, Macy's, a mid-range chain of department stores offers a wide catalogue of private brands exclusive to their stores, from brands such as First Impressions which supply newborn and infant clothing, Hotel Collection which supply luxury linens and mattresses, and Tasso Elba which supply European inspired menswear. They use private branding strategy to specifically target consumer markets.
Mixed branding strategy
Mixed branding strategy is where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market. For example, Elizabeth Arden, Inc., a major American cosmetics and fragrance company, uses mixed branding strategy. The company sells its Elizabeth Arden brand through department stores and line of skin care products at Walmart with the "skin simple" brand name. Companies such as Whirlpool, Del Monte, and Dial produce private brands of home appliances, pet foods, and soap, correspondingly. Other examples of mixed branding strategy include Michelin, Epson, Microsoft, Gillette, and Toyota. Michelin, one of the largest tire manufacturers allowed Sears, an American retail chain to place their brand name on the tires. Microsoft, a multinational technology company is seriously regarded as a corporate technology brand but it sells its versatile home entertainment hub under the brand Xbox to better align with the new and crazy identity. Gillette catered to females with Gillette for Women which has now become known as Venus. The launch of Venus was conducted in order to fulfil the feminine market of the previously dominating masculine razor industry. Similarly, Toyota, an automobile manufacturer used mixed branding. In the U.S., Toyota was regarded as a valuable car brand being economical, family orientated and known as a vehicle that rarely broke down. But Toyota sought out to fulfil a higher end, expensive market segment, thus they created Lexus, the luxury vehicle division of premium cars.
Attitude branding and iconic brands
Attitude branding is the choice to represent a larger feeling, which is not necessarily connected with the product or consumption of the product at all. Marketing labeled as attitude branding include that of Nike, Starbucks, The Body Shop, Safeway, and Apple Inc.. In the 1999 book No Logo, Naomi Klein describes attitude branding as a "fetish strategy". Schaefer and Kuehlwein analyzed brands such as Apple, Ben & Jerry's or Chanel describing them as 'Ueber-Brands' - brands that are able to gain and retain "meaning beyond the material."
A great brand raises the bar – it adds a greater sense of purpose to the experience, whether it's the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you're drinking really matters. – Howard Schultz (President, CEO, and Chairman of Starbucks)
The color, letter font and style of the Coca-Cola and Diet Coca-Cola logos in English were copied into matching Hebrew logos to maintain brand identity in Israel.
Iconic brands are defined as having aspects that contribute to consumer's self-expression and personal identity. Brands whose value to consumers comes primarily from having identity value are said to be "identity brands". Some of these brands have such a strong identity that they become more or less cultural icons which makes them "iconic brands". Examples are: Apple, Nike, and Harley-Davidson. Many iconic brands include almost ritual-like behaviour in purchasing or consuming the products.
There are four key elements to creating iconic brands (Holt 2004):
- "Necessary conditions" – The performance of the product must at least be acceptable, preferably with a reputation of having good quality.
"Myth-making" – A meaningful storytelling fabricated by cultural insiders. These must be seen as legitimate and respected by consumers for stories to be accepted.
#Google #YouTube #Instagram #Facebook #Prime #Primeday #cybermonday #blackfriday
Schaefer and Kuehlwein propose the following 'Ueber-Branding' principles. They derived them from studying successful modern Prestige brands and what elevates them above mass competitors and beyond considerations of performance and price (alone) in the minds of consumers:
- "Mission Incomparable" – Having a differentiated and meaningful brand purpose beyond 'making money.' Setting rules that follow this purpose – even when it violates the mass marketing mantra of "Consumer is always Boss/right".
- "Longing versus Belonging" – Playing with the opposing desires of people for Inclusion on the one hand and Exclusivity on the other.
- "Un-Selling" – First and foremost seeking to seduce through pride and provocation, rather than to sell through arguments.
- "From Myth To Meaning" – Leveraging the power of myth – 'Ueber-Stories' that have fascinated- and guided humans forever.
- "Behold!" – Making product and associated brand rituals reflect the essence of the brand mission and myth. Making it the center of attention, while keeping it fresh.
- "Living the Dream" – Living the brand mission as an organization and through its actions. Thus radiating the brand myth from the inside out, consistently and through all brand manifestations. – For "Nothing is as volatile than a dream."
In this case the supplier of a key component, used by a number of suppliers of the end-product, may wish to guarantee its own position by promoting that component as a brand in its own right. The most frequently quoted example is Intel, which positions itself in the PC market with the slogan (and sticker) "Intel Inside".
Brand extension and brand dilution
Further information: brand extension
The existing strong brand name can be used as a vehicle for new or modified products; for example, many fashion and designer companies extended brands into fragrances, shoes and accessories, home textile, home decor, luggage, (sun-) glasses, furniture, hotels, etc.
Mars extended its brand to ice cream, Caterpillar to shoes and watches, Michelin to a restaurant guide, Adidas and Puma to personal hygiene. Dunlop extended its brand from tires to other rubber products such as shoes, golf balls, tennis racquets, and adhesives. Frequently, the product is no different from what else is on the market, except a brand name marking. Brand is product identity.
There is a difference between brand extension and line extension. A line extension is when a current brand name is used to enter a new market segment in the existing product class, with new varieties or flavors or sizes. When Coca-Cola launched "Diet Coke" and "Cherry Coke", they stayed within the originating product category: non-alcoholic carbonated beverages. Procter & Gamble (P&G) did likewise extending its strong lines (such as Fairy Soap) into neighboring products (Fairy Liquid and Fairy Automatic) within the same category, dish washing detergents.
The risk of over-extension is brand dilution where the brand loses its brand associations with a market segment, product area, or quality, price or cachet.
Social media brands
In The Better Mousetrap: Brand Invention in a Media Democracy (2012), author and brand strategist Simon Pont posits that social media brands may be the most evolved version of the brand form, because they focus not on themselves but on their users. In so doing, social media brands are arguably more charismatic, in that consumers are compelled to spend time with them, because the time spent is in the meeting of fundamental human drivers related to belonging and individualism. "We wear our physical brands like badges, to help define us – but we use our digital brands to help express who we are. They allow us to be, to hold a mirror up to ourselves, and it is clear. We like what we see."natively, in a market that is fragmented amongst a number of brands a supplier can choose deliberately to launch totally new brands in apparent competition with its own existing strong brand (and often with identical product characteristics); simply to soak up some of the share of the market which will in any case go to minor brands. The rationale is that having 3 out of 12 brands in such a market will give a greater overall share than having 1 out of 10 (even if much of the share of these new brands is taken from the existing one). In its most extreme manifestation, a supplier pioneering a new market which it believes will be particularly attractive may choose immediately to launch a second brand in competition with its first, in order to pre-empt others entering the market. This strategy is widely known as multi-brand strategy.
Individual brand names naturally allow greater flexibility by permitting a variety of different products, of differing quality, to be sold without confusing the consumer's perception of what business the company is in or diluting higher quality products.
Procter & Gamble is a leading exponent of this approach to branding, running as many as ten detergent brands in the US market. This also increases the total number of "facings" it receives on supermarket shelves. Sara Lee, on the other hand, uses the approach to keep the very different parts of the business separate—from Sara Lee cakes through Kiwi polishes to L'Eggs pantyhose. In the hotel business, Marriott uses the name Fairfield Inns for its budget chain (and Choice Hotels uses Rodeway for its own cheaper hotels).
Cannibalization is a particular challenge with a multi-brand strategy approach, in which the new brand takes business away from an established one which the organization also owns. This may be acceptable (indeed to be expected) if there is a net gain overall. Alternatively, it may be the price the organization is willing to pay for shifting its position in the market; the new product being one stage in this process.
Private label brands, also called own brands, or store brands have become popular. Where the retailer has a particularly strong identity (such as Marks & Spencer in the UK clothing sector) this "own brand" may be able to compete against even the strongest brand leaders, and may outperform those products that are not otherwise strongly branded.
Designer Private Labels
A relatively recent innovation in retailing is the introduction of designer private labels. Designer-private labels involve a collaborative contract between a well-known fashion designer and a retailer. Both retailer and designer collaborate to design goods with popular appeal pitched at price points that fit the consumer's budget. For retail outlets, these types of collaborations give them greater control over the design process as well as access to exclusive store brands that can potentially drive store traffic.
In Australia, for example, the department store, Myer, now offers a range of exclusive designer private labels including Jayson Brundson, Karen Walker, Leona Edmiston, Wayne Cooper, Fleur Wood and ‘L’ for Lisa Ho. Another up-market department store, David Jones, currently offers ‘Collette’ for leading Australian designer, Collette Dinnigan, and has recently announced its intention to extend the number of exclusive designer brands. Target has teamed up with Danii Minogue to produce her “Petites’ range. Specsavers has joined up with Sydney designer, Alex Perry to create an exclusive range of spectacle frames while Big W stocks frames designed by Peter Morrissey.
Individual and organizational brands
With the development of brand, Branding is no longer limited to a product or service. There are kinds of branding that treat individuals and organizations as the products to be branded. Most NGOs and non-profit organizations carry their brand as a fundraising tool. The purpose of most NGOs is leave social impact so their brand become associated with specific social life matters. Amnesty International, Habitat for Humanity, World Wildlife Fund and AIESEC are among the most recognized brands around the world. NGOs and non-profit organizations moved beyond using their brands for fundraising to express their internal identity and to clarify their social goals and long-term aims. Organizational brands have well determined brand guidelines and logo variables.
Crowd sourced branding
These are brands that are created by "the public" for the business, which is opposite to the traditional method where the business create a brand.
Many businesses have started to use elements of personalisation in their branding strategies, offering the client or consumer the ability to choose from various brand options or have direct control over the brand. Examples of this include the #ShareACoke campaign by Coca-Cola which printed people's names and place names on their bottles encouraging people. AirBNB has created the facility for users to create their own symbol for the software to replace the brand's mark known as The Bélo.
Nation branding (place branding and public diplomacy)
Nation branding is a field of theory and practice which aims to measure, build and manage the reputation of countries (closely related to place branding). Some approaches applied, such as an increasing importance on the symbolic value of products, have led countries to emphasise their distinctive characteristics. The branding and image of a nation-state "and the successful transference of this image to its exports – is just as important as what they actually produce and sell."
Destination branding is the work of cities, states, and other localities to promote the location to tourists and drive additional revenues into a tax base. These activities are often undertaken by governments, but can also result from the work of community associations. The Destination Marketing Association International is the industry leading organization.
Doppelgänger brand image (DBI)
A doppelgänger brand image or "DBI" is a disparaging image or story about a brand that it circulated in popular culture. DBI targets tend to be widely known and recognizable brands. The purpose of DBIs is to undermine the positive brand meanings the brand owners are trying to instill through their marketing activities.
The term stems from the combination of the German words doppel (double) and gänger (walker).
Doppelgänger brands are typically created by individuals or groups to express criticism of a brand and its perceived values, through a form of parody, and are typically unflattering in nature.
Due to the ability of Doppelgänger brands to rapidly propagate virally through digital media channels, they can represent a real threat to the equity of the target brand. Sometimes the target organization is forced to address the root concern or to re-position the brand in a way that defuses the criticism.
- Joe Chemo campaign organized to criticize the marketing of tobacco products to children and their harmful effects.
- Version of the Coca-Cola logo crafted to protest their sponsorship of the 2022 FIFA World Cup in Qatar and associated human rights abuses (see citation for original Reddit thread featuring the image).
- Parody of the Pepsi logo as an obese man to highlight the relationship between soft drink consumption and obesity.
.In the 2006 article "Emotional Branding and the Strategic Value of the Doppelgänger Brand Image", Thompson, Rindfleisch, and Arsel suggest that a doppelgänger brand image can be a benefit to a brand if taken as an early warning sign that the brand is losing emotional authenticity with its market.
Consider Points of Interest related to BRANDS:
- Brand ambassador
- Brand architecture
- Brand engagement
- Brand equity
- Brand extension
- Brand licensing
- Brand loyalty
- Brand management
- Brand valuation
- Employer branding
- Green brands
- Legal name
- Lifestyle brand
- List of defunct consumer brands
- Nation branding
- Trade name
- Umbrella brand
- Visual brand language
In trade, barter is a system of exchange where participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money. Economists distinguish barter from gift economies in many ways; barter, for example, features immediate reciprocal exchange, not delayed in time. Barter usually takes place on a bilateral basis, but may be multilateral(i.e., mediated through a trade exchange). In most developed countries, barter usually only exists parallel to monetary systems to a very limited extent. Market actors use barter as a replacement for money as the method of exchange in times of monetary crisis, such as when currency becomes unstable (e.g., hyperinflation or a deflationary spiral) or simply unavailable for conducting commerce.
Economists since the times of Adam Smith (1723-1790), looking at non-specific pre-modern societies as examples, have used the inefficiency of barter to explain the emergence of money, of “the” economy, and hence of the discipline of economics itself. However, ethnographic studies have shown that no present or past society has used barter without any other medium of exchange or measurement, nor have anthropologists found evidence that money emerged from barter, instead finding that gift-giving (credit extended on a personal basis with an inter-personal balance maintained over the long term) was the most usual means of exchange of goods and services.
Adam Smith on the origin of money
Adam Smith, the father of modern economics, sought to demonstrate that markets (and economies) pre-existed the state, and hence should be free of government regulation. He argued (against conventional wisdom) that money was not the creation of governments. Markets emerged, in his view, out of the division of labour, by which individuals began to specialize in specific crafts and hence had to depend on others for subsistence goods. These goods were first exchanged by barter. Specialization depended on trade, but was hindered by the “double coincidence of wants” which barter requires, i.e., for the exchange to occur, each participant must want what the other has. To complete this hypothetical history, craftsmen would stockpile one particular good, be it salt or metal, that they thought no one would refuse. This is the origin of money according to Smith. Money, as a universally desired medium of exchange, allows each half of the transaction to be separated.
Barter is characterized in Adam Smith’s “The Wealth of Nations” by a disparaging vocabulary: “higgling, haggling, swapping, dickering.” It has also been characterized as negative reciprocity, or “selfish profiteering.”[
Anthropologists have argued, in contrast, “that when something resembling barter does occur in stateless societies it is almost always between strangers.”
Barter occurred between strangers, not fellow villagers, and hence cannot be used to naturalistically explain the origin of money without the state. Since most people engaged in trade knew each other, exchange was fostered through the extension of credit. Marcel Mauss, author of ‘The Gift’, argued that the first economic contracts were to not act in one’s economic self-interest, and that before money, exchange was fostered through the processes of reciprocity and redistribution, not barter. Everyday exchange relations in such societies are characterized by generalized reciprocity, or a non-calculative familial “communism” where each takes according to their needs, and gives as they have.[
Since direct barter does not require payment in money, it can be utilized when money is in short supply, when there is little information about the credit worthiness of trade partners, or when there is a lack of trust between those trading.
Barter is an option to those who cannot afford to store their small supply of wealth in money, especially in hyperinflation situations where money devalues quickly.
The limitations of barter are often explained in terms of its inefficiencies in facilitating exchange in comparison to money.
It is said that barter is ‘inefficient’ because:
- There needs to be a ‘double coincidence of wants’
- For barter to occur between two parties, both parties need to have what the other wants.
- There is no common measure of value
- In a monetary economy, money plays the role of a measure of value of all goods, so their values can be assessed against each other; this role may be absent in a barter economy.
- Indivisibility of certain goods
- If a person wants to buy a certain amount of another’s goods, but only has for payment one indivisible unit of another good which is worth more than what the person wants to obtain, a barter transaction cannot occur.
- Lack of standards for deferred payments
- This is related to the absence of a common measure of value, although if the debt is denominated in units of the good that will eventually be used in payment, it is not a problem.
Other anthropologists have questioned whether barter is typically between “total” strangers, a form of barter known as “silent trade”. Silent trade, also called silent barter, dumb barter (“dumb” here used in its old meaning of “mute”), or depot trade, is a method by which traders who cannot speak each other’s language can trade without talking. However, Benjamin Orlove has shown that while barter occurs through “silent trade” (between strangers), it also occurs in commercial markets as well. “Because barter is a difficult way of conducting trade, it will occur only where there are strong institutional constraints on the use of money or where the barter symbolically denotes a special social relationship and is used in well-defined conditions. To sum up, multipurpose money.
In his analysis of barter between coastal and inland villages in the Trobriand Islands, Keith Hart highlighted the difference between highly ceremonial gift exchange between community leaders, and the barter that occurs between individual households. The haggling that takes place between strangers is possible because of the larger temporary political order established by the gift exchanges of leaders. From this he concludes that barter is “an atomized interaction predicated upon the presence of society” (i.e. that social order established by gift exchange), and not typical between complete strangers.
Times of monetary crisis
As Orlove noted, barter may occur in commercial economies, usually during periods of monetary crisis. During such a crisis, currency may be in short supply, or highly devalued through hyperinflation. In such cases, money ceases to be the universal medium of exchange or standard of value. Money may be in such short supply that it becomes an item of barter itself rather than the means of exchange. Barter may also occur when people cannot afford to keep money (as when hyperinflation quickly devalues it).
An example of this would be during the Crisis in Bolivarian Venezuela, when Venezuelans resorted to bartering as a result of hyperinflation.
Exchanges Economic historian Karl Polanyi has argued that where barter is widespread, and cash supplies limited, barter is aided by the use of credit, brokerage, and money as a unit of account (i.e. used to price items). All of these strategies are found in ancient economies including Ptolemaic Egypt. They are also the basis for more recent barter exchange systems.
While one-to-one bartering is practiced between individuals and businesses on an informal basis, organized barter exchanges have developed to conduct third party bartering which helps overcome some of the limitations of barter. A barter exchange operates as a broker and bank in which each participating member has an account that is debited when purchases are made, and credited when sales are made.
Modern barter and trade has evolved considerably to become an effective method of increasing sales, conserving cash, moving inventory, and making use of excess production capacity for businesses around the world. Businesses in a barter earn trade credits (instead of cash) that are deposited into their account. They then have the ability to purchase goods and services from other members utilizing their trade credits – they are not obligated to purchase from those whom they sold to, and vice versa. The exchange plays an important role because they provide the record-keeping, brokering expertise and monthly statements to each member. Commercial exchanges make money by charging a commission on each transaction either all on the buy side, all on the sell side, or a combination of both. Transaction fees typically run between 8 and 15%.
Throughout the 18th century, retailers began to abandon the prevailing system of bartering. Retailers operating out of the Palais complex in Paris, France were among the first in Europe to abandon the bartering, and adopt fixed-prices thereby sparing their clientele the hassle of bartering. The Palais retailers stocked luxury goods that appealed to the wealthy elite and upper middle classes. Stores were fitted with long glass exterior windows which allowed the emerging middle-classes to window shop and indulge in fantasies, even when they may not have been able to afford the high retail prices. Thus, the Palais-Royal became one of the first examples of a new style of shopping arcade, which adopted the trappings of a sophisticated, modern shopping complex and also changed pricing structures, for both the aristocracy and the middle clas
The Owenite socialists in Britain and the United States in the 1830s were the first to attempt to organize barter exchanges. Owenism developed a “theory of equitable exchange” as a critique of the exploitative wage relationship between capitalist and labourer, by which all profit accrued to the capitalist. To counteract the uneven playing field between employers and employed, they proposed “schemes of labour notes based on labour time, thus institutionalizing Owen’s demand that human labour, not money, be made the standard of value.” This alternate currency eliminated price variability between markets, as well as the role of merchants who bought low and sold high. The system arose in a period where paper currency was an innovation. Paper currency was an I.O.U. circulated by a bank (a promise to pay, not a payment in itself). Both merchants and an unstable paper currency created difficulties for direct producers.
An alternate currency, denominated in labour time, would prevent profit taking by middlemen; all goods exchanged would be priced only in terms of the amount of labour that went into them as expressed in the maxim ‘Cost the limit of price’. It became the basis of exchanges in London, and in America, where the idea was implemented at the New Harmony communal settlement by Josiah Warren in 1826, and in his Cincinnati ‘Time store’ in 1827. Warren ideas were adopted by other Owenites and currency reformers, even though the labour exchanges were relatively short lived.
Iese efforts became the basis of the British cooperative movement of the 1840s. In 1848, the socialist and first self-designated anarchist Pierre-Joseph Proudhon postulated a system of time chits. In 1875, Karl Marx wrote of “Labor Certificates” (Arbeitszertifikaten) in his Critique of the Gotha Program of a “certificate from society that [the labourer] has furnished such and such an amount of labour”, which can be used to draw “from the social stock of means of consumption as much as costs the same amount of labour.”
Twentieth century experiments
The first exchange system was the Swiss WIR Bank. It was founded in 1934 as a result of currency shortages after the stock market crash of 1929. “WIR” is both an abbreviation of Wirtschaftsring (economic circle) and the word for “we” in German, reminding participants that the economic circle is also a community.
In Spain (particularly the Catalonia region) there is a growing number of exchange markets. These barter markets or swap meets work without money. Participants bring things they do not need and exchange them for the unwanted goods of another participant. Swapping among three parties often helps satisfy tastes when trying to get around the rule that money is not allowed.
Michael Linton originated the term “local exchange trading system” (LETS) in 1983 and for a time ran the Comox Valley LETSystems in Courtenay, British Columbia. LETS networks use interest-free local credit so direct swaps do not need to be made. For instance, a member may earn credit by doing childcare for one person and spend it later on carpentry with another person in the same network. In LETS, unlike other local currencies, no scrip is issued, but rather transactions are recorded in a central location open to all members. As credit is issued by the network members, for the benefit of the members themselves, LETS are considered mutual credit systems.
According to the International Reciprocal Trade Association, the industry trade body, more than 450,000 businesses transacted $10 billion globally in 2008 – and officials expect trade volume to grow by 15% in 2009.
It is estimated that over 450,000 businesses in the United States were involved in barter exchange activities in 2010. There are approximately 400 commercial and corporate barter companies serving all parts of the world. There are many opportunities for entrepreneurs to start a barter exchange. Several major cities in the U.S. and Canada do not currently have a local barter exchange. There are two industry groups in the United States, the National Association of Trade Exchanges (NATE) and the International Reciprocal Trade Association (IRTA). Both offer training and promote high ethical standards among their members. Moreover, each has created its own currency through which its member barter companies can trade. NATE’s currency is the known as the BANC and IRTA’s currency is called Universal Currency (UC).
In Canada, barter continues to thrive. The largest b2b barter exchange is Tradebank, founded in 1987. P2P bartering has seen a renaissance in major Canadian cities through Bunz – built as a network of Facebook groups that went on to become a stand-alone bartering based app in January 2016. Within the first year, Bunz accumulated over 75,000 users in over 200 cities worldwide.
In the United States, the largest barter exchange and corporate trade group is International Monetary Systems, founded in 1985, now with representation in various countries.
In Australia and New Zealand the largest barter exchange is Bartercard, founded in 1991, with offices in the United Kingdom, United States, Cyprus, UAE and Thailand.
Corporate barter focuses on larger transactions, which is different from a traditional, retail oriented barter exchange. Corporate barter exchanges typically use media and advertising as leverage for their larger transactions. It entails the use of a currency unit called a “trade-credit”. The trade-credit must not only be known and guaranteed, but also be valued in an amount the media and advertising could have been purchased for had the “client” bought it themselves (contract to eliminate ambiguity and risk).
Soviet bilateral trade is occasionally called “barter trade”, because although the purchases were denominated in U.S. dollars, the transactions were credited to an international clearing account, avoiding the use of hard cash.
In the United States, Karl Hess used bartering to make it harder for the IRS to seize his wages and as a form of tax resistance. Hess explained how he turned to barter in an op-edfor The New York Times in 1975. However the IRS now requires barter exchanges to be reported as per the Tax Equity and Fiscal Responsibility Act of 1982. Barter exchanges are considered taxable revenue by the IRS and must be reported on a 1099-B form. According to the IRS, “The fair market value of goods and services exchanged must be included in the income of both parties.
Other countries, though, do not have the reporting requirement that the U.S. does concerning proceeds from barter transactions, but taxation is handled the same way as a cash transaction. If one barters for a profit, one pays the appropriate tax; if one generates a loss in the transaction, they have a loss. Bartering for business is also taxed accordingly as business income or business expense. Many barter exchanges require that one register as a business. Barter of America.com ‘s policies of trading are found here http://barterofamerica.com/go/go/laws.asp
From Wikipedia, the free encyclopedia
- List of international trade topics
- Local Exchange Trading System
- Natural economy
- Private currency
A private currency is a currency issued by a private entity, be it an individual, a commercial business, a nonprofit or decentralized common enterprise. It is often contrasted with fiat currency issued by governments or central banks. In many countries, the issuance of private paper currencies and new cryptocurrency is severely restricted by law, while the minting of metal coins intended to be used as currency may even be a criminal act such as in the USA (18 U.S. Code § 486).
Today, there are over four thousand privately issued currencies in more than 35 countries. These include commercial trade exchanges that use barter credits as units of exchange, private gold and silver exchanges, local paper money, computerized systems of credits and debits, and digital currencies in circulation, such as digital gold currency.
In the United States, the Free Banking Era lasted between 1837 and 1866, when almost anyone could issue paper money. States, municipalities, private banks, railroad and construction companies, stores, restaurants, churches and individuals printed an estimated 8,000 different types of money by 1860. If an issuer went bankrupt, closed, left town, or otherwise went out of business, the note would be worthless. Such organizations earned the nickname of “wildcat banks” for a reputation of unreliability; they were often situated in remote, unpopulated locales said to be inhabited more by wildcats than by people. The National Bank Act of 1863 ended the “wildcat bank” period. See also: History of free banking.
Now, s. 44(1) of the Australian Reserve Bank Act 1959, prohibits this practice. In 1976, Wickrema Weerasooria published an article which suggested that the issuing of bank cheques violated this section, though some banks responded that since bank cheques were printed with the words “not negotiable” on them, the cheques were not intended for circulation and thus did not violate the statute.
In Hong Kong, although the government issues currency, bank-issued private currency is the dominant medium of exchange. Most automated teller machines dispense private Hong Kong bank notes.
In Scotland, the Bank of Scotland, Clydesdale Bank, and the Royal Bank of Scotland, and in Northern Ireland, the Bank of Ireland, Danske Bank, First Trust Bank, and Ulster Bank, are authorised by Parliament to issue Pound sterling bank notes. They are subject to central bank(the Bank of England) regulations concerning “ring-fenced backing assets” and are backed in part by deposits at the Bank of England. They are exchangeable with other pound notes on a one-to-one basis, and circulate freely within the United Kingdom, though not legal tender, not even in Scotland and Northern Ireland. In fact, technically, no banknote (including Bank of England notes) qualifies as legal tender in Scotland or Northern Ireland.
England has had the Totnes pound since it was launched by Transition Towns Totnes Economics and Livelihoods Group in March 2007; A Totnes Pound is equal to one pound sterling and is backed by sterling held in a bank account. As at September 2008, about 70 businesses in Totnes were accepting the Totnes Pound. Other local currencies launched
Austria had the Wörgl Experiment from July 1932 to September 1933.
Bavaria, Germany, has had the Chiemgauer since 2003. As of 2011 there were over 550,000 in circulation.
Since starting in 2006, the “City Initiative Karlsruhe” has issued the Karlsruher which has no nominal value. Every coin has the value of 50 Eurocents and is primarily used in parking garages. As of 2009, 120 companies in Karlsruhe accept the Karlsruher and usually grant a discount when paid with it.
In Canada, numerous complementary currencies are in use, such as the Calgary Dollar and Toronto dollar. However private currencies in Canada cannot be referred to as being legal tender and many private currencies (as well as loyalty programs) avoid the word “dollar”, using names like “coupons” or “bucks”, to avoid confusion. Examples include: Canadian Tire money and Pioneer Energy’s Bonus Bucks.
Customer reward and loyalty programs operated by businesses are sometimes counted as private currencies. However, though “points” or “miles” may be exchangeable for merchandise or travel from the program sponsor, most of them lack the key element for currency of being a medium of exchange transferable to other individuals and usable as payment for items from other vendors. A few programs do have “partnerships” allowing this to some extent, and permit the transfer of points or miles. Some startups, such as the Canadian website Points.com, have sought to make loyalty “points” more currency-like by creating an exchange where points from one loyalty program can be traded for points in other such programs.
Cryptocurrencies and digital currencies
A cryptocurrency is a form of digital or virtual
currency where cryptography secures the transactions and controls the creation of additional units of the currency.
A cryptocurrency wallet can be used to store the public and private keys which can be used to receive or spend the cryptocurrency. The cryptographic systems used allow for decentralisation; a decentralised cryptocurrency is fiat money but one without a central banking system. In terms of total market value, Bitcoin is the largest cryptocurrency, but there are over 700 ]digital currencies in existence.
On 6 August 2013, Federal Judge Amos Mazzant of the Eastern District of Texas of the Fifth Circuit ruled that bitcoins are “a currency or a form of money” (specifically securities as defined by Federal Securities Laws), and as such were subject to the court’s jurisdiction.In August 2013, the German Finance Ministry characterized Bitcoin as a unit of account] usable in multilateral clearing circles and subject to capital gains tax if held less than one year.
In Thailand, lack of existing law leads many to believe Bitcoin is banned.
Private currency crimes
As national currencies can be counterfeited, so too can private currencies, and private currencies are subject to other criminal issues, including fraud.
The Liberty Dollar was a commodity-backed private currency created by Bernard von NotHaus and issued between 1998 and 2009. In 2011, von NotHaus was arrested and subsequently convicted on charges of money laundering, mail fraud, wire fraud, counterfeiting, and conspiracy. The charges stemmed from the government view that the Liberty silver coins too closely resembled official coinage.
In 2007, Angel Cruz, founder of The United Cities Corporation (TUC), announced he was establishing an alternative “asset based” currency named “United States Private Dollars”.[ claimed United States Private Dollars were “backed by the total net worth of the assets of its members” and had printed six billion dollars’ worth of the private currency, The backing assets In 2008, Cruz was indicted by a Federal grand jury in Florida on one count of conspiracy to defraud the United States under 18 U.S.C. § 1344 and 18 U.S.C. § 371 and six counts of bank fraud under 18 U.S.C. § 1344 and 18 U.S.C. § 2 in connection with his dealings with Bank of America, while attempting to get United Cities bank drafts cashed. As of late October 2010, Cruz was still a fugitive,
From Wikipedia, the free encyclopedia
Collaborative consumption encompasses the sharing economy. Collaborative consumption can be defined as the set of resourcecirculation systems, which enable consumers to both “obtain” and “provide”, temporarily or permanently, valuable resources or servicesthrough direct interaction with other consumers or through a mediator. Collaborative consumption is not new; it has always existed (e.g. in the form of flea markets, swap meets, garage sales, car boot sales, and second-hand shops).
The first detailed explanation of collaborative consumption in the modern era was contained in a paper from Marcus Felson and Joe L. Spaeth in 1978 . It has regained a new impetus through information technology, especially Web 2.0, mobile technology and social media.
Collaborative consumption stands in sharp contrast with the notion of conventional consumption. Conventional consumption involves passive consumers who cannot or are not given the capacity to provide any resource or service. In contrast, collaborative consumption involves not mere “consumers” but “obtainers”, who do not only “obtain” but also “provide” resources to others (e.g. consumers, organizations, governments). Overall, consumers’ capacity to switch roles from “provider” to “obtainer” and from “obtainer” to “provider”, in a given resource distribution system, constitutes the key distinguishing criteria between conventional consumption and collaborative consumption.
The sharing economy is built on the sharing of underused assets, both tangible and intangible. If people start sharing these underused resources or services, this will decrease not only our physical waste, but also our waste of resources.
There are broadly two forms of collaborative consumption: Mutualization or access systems: resource distribution systems in which individuals may provide and obtain temporary access to resources, either free or for a fee. Marketer-managed access schemes (e.g. Car2Go, Zipcar, Bixi) do not allow individuals to source resourcessystems: resource distribution systems in which individuals may provide and obtain resources permanently, either free or for a fee. Focusing on redistribution systems only, the Canadian-based Kijiji Secondhand Economy Index of 2016, estimated that about 85% of consumers acquired or disposed of pre-owned goods through second-hand marketplaces (secondhand purchase and resale), donation, or barter, through either online or offline exchange channels. According to the Kijiji Secondhand Economy Index of 2015, the Canadian second-hand market, alone, was estimated at 230 billion dollars. Besides, for-profit mutualization platforms, commonly referred to as “Commercial Peer-to-peer Mutualization Systems” (CPMS) or, more colloquially, the sharing economy, represented a global market worth 15 billion dollars, in 2014; 29 billion dollars, in 2015; and are expected to reach 335 billion dollars by 2025.
Rachel Botsman, author of “What’s Mine Is Yours: The Rise of Collaborative Consumption”, and researcher of collaborative consumption defines collaborative consumption-also known as shared consumption-as “traditional sharing, bartering, lending, trading, renting, gifting, and swapping redefined through technology and peer communities.” She states that we are reinventing “not just what we consume – but how we consume.”re goods such as these. Cars cost at least 8000 dollars per year to run, even though they sit parked roughly 96 percent of the time.
Botsman defines the three systems that make up collaborative consumption. The first is distribution markets where services are used to match haves and wants so that personal unused assets can be redistributed to places where they will be put to better use. Collaborative lifestyles allow people to share resources like money, skills, and time, this is best explained as the sharing of intangible resources.
Consumer two-sided role
Collaborative consumption is challenging to business scholars and practitioners alike because, as a concept, it induces a two-sided consumer role which goes beyond the classic notion of a buyer/consumer, who typically has no input in the production or distribution process. Companies have traditionally sold products and services to consumers, they now start pulling on their resources too through co-creation or prosumption. According to Scaraboto, this means that individuals are able to “switch roles, engage in embedded entrepreneurship and collaborate to produce and access resources”. Collaborative consumption is characterized by consumers’ capacity of being both “providers” and “obtainers” of resources, in a given “resource circulation system”. A collaborative consumption systems means therefore a resource circulation system in which the individual is not only a mere “consumer” but also an obtainer who has the opportunity to endorse, if wanted or needed, a “provider” role (e.g. Kijiji, Craigslist, eBay), as follows:
- Obtainer – The individual who seeks to obtain a resource or service that is provided directly by another consumer (i.e. the provider), or indirectly through the mediation of an organization known as the “mediator”, which may be for-profit (e.g. IKEA’s used furniture sales) or not-for-profit (e.g. The Salvation Army);
- Provider – The individual who provides a resource or service either directly, to a consumer (i.e. the obtainer), or indirectly, through a “mediator” (for-profit or not-for-profit).
Through CC, consumers invite themselves in the value creation process, not as formal workers, employees or suppliers, but as informal suppliers (i.e. providers), in order to successfully reconcile their personal interests. In the meantime, organizations tap into the sphere of private assets and skills, as formal organizations and not as family, friends, or acquaintances, to make profits or reach other objectives. The practices in which obtainers and providers may engage are therefore classified into:
- Obtainment – entails second-hand purchase, reception of donation, barter, temporary access to resources free or for a compensation (excluding conventional consumption rentals), reconditioned/refurbished consumption, and to a lesser extent, recycled consumption;
Consumers may exchange resources and services directly with or without the support of an “intermediary”, which is an entity that facilitates the exchange between obtainer and providere.g. Kijiji, Freecycle, Yerdle). Consumers set the terms and conditions of the exchange, and this refers to pure collaboration. There are also other types of third-parties which are more heavily involved in the consumer-to-consumer relationship. These are called “mediators”. They determine the terms and conditions of the exchange between consumers and may typically take a predetermined proportion of the amount of value being exchanged. that are then subsequently resold to other consumers. Some platforms such as Uber, Airbnb, TaskRabbit or Lending Club are also included. The intervention of mediators in a peer-to-peer relationship signals sourcing collaboration and its corollary trading collaboration.
Collaborative consumption can be best conceived in a perspective of “resource circulation system” incurring different levels of collaborative intensity, namely: (1) pure collaboration (C2C, or Consumer-to-Consumer); (2) sourcing collaboration (C2O, or Consumer-to-Organization); and (3) trading collaboration (O2C, or Organization-to-Consumer). The organization may be a for-profit or a not-for-profit:
|CHARACTERISTICS||PURE COLLABORATION||SOURCING COLLABORATION||TRADING COLLABORATION|
|Process||Both the obtainer and the provider are consumers who exchange a resource||The provider provides a resource or service to the obtainer through a mediator||The obtainer obtains a resource or service from the provider through a mediator|
|Process example||The secondhand purchase/sale of a television set at a flea market||Resale of a television set to a secondhand electronics shop||A consumer purchases the television set from the secondhand electronics shop|
|Consumer role||Obtainer and provider||Provider||Obtainer|
|Presence of facilitators (e.g. Web platform)||Yes||Yes||Yes|
|Presence of mediator||No||Yes||Yes|
- Pure collaboration involves direct P2P exchanges, in which consumers directly exchange a specific resource or service. For example, on online platforms such as classified ads or auctions websites, consumers directly provide and obtain resources or services. Although these online platforms are intermediates they are not “mediators”, because consumers are free to devise the terms and conditions of distribution and consumption of the resource or service together, whereas mediators interfere in the devising. In sum, mediators are intermediates but not all intermediates are necessarily mediators. For example, the Canadian-based ridesharing website Amigo Express does not allow obtainers (carpooling obtainers) and providers (carpooling providers) to get into contact to arrange the terms of the ride. Rather, each agent needs to separately contact and pay a fee to the website in order to, respectively, obtain and provide the service. Amigo Express is therefore an intermediate that is a mediator. Conversely, using TheCarpoolingNetwork enables consumers to arrange themselves the terms and conditions of the exchange and the website acts as a facilitator, not as a mediator. Most C2C websites are online platforms and operate on the freemium model, where the use of the website is free, but premium features must be paid for (e.g. Craigslist). Others have a donationware mode of exchange, whereby website use is free but financial donations are requested or accepted to offset production and maintenance costs (e.g. The Khan Academy).
- Sourcing collaboration[ New technologies have sparked entrepreneurial creativity to develop new breeds of intermediates. They claim to challenge conventional business, and they do so, because they operate business differently, without delivering or producing anything by themselves, but by capitalizing on the logics of crowdsourcing to do so. Sourcing collaboration therefore means that organizations do not provide a resource or deliver a service to consumers by themselves, but rely on providers (i.e. consumers) to perform any of both. They benefit from the Internet to mediate, at a cost and more efficiently, exchanges that would otherwise be authentically C2C exchanges. As an example, sourcing collaboration may refer to refurbished or reconditioned products, sold by conventional organizations, but provided by consumers (i.e. providers) who were, for some reason, dissatisfied with the products in question. Other examples include consumer provision of resources to antique dealers, consignment shops or Amazon’s Fulfillment By Amazon (FBA) program. Similarly, online platforms which take a percentage off the transaction cost in supposedly C2C exchanges (e.g. Uber, Instacart, TaskRabbit, Airbnb), actually outsource the fulfillment of specific tasks or jobs to consumer A in order to efficiently redistribute those to consumer B. Also, a tangible resource may circulate across multiple organizations (intermediates) from the provider to the obtainer. For example, a car sold by a consumer to a professional car dealer may then be sold and resold by several other car dealers, before being eventually resold to a consumer.
- Trading collaboration is the symmetrical opposite of “sourcing collaboration”, in that it refers to the obtainer who enjoys a resource mediated by an organization but originally provided by another consumer (i.e. provider) via sourcing collaboration. The obtainer thus benefits from a resource that has been originally sourced by a provider to a mediator. The mediator, in turn, offers the providers’ resource to the obtainer, usually-but not exclusively- at a cost, which will be fully, partially or not at all returned to the original provider. In contrast to conventional consumption where the resource being enjoyed, even temporarily, originates from a company, trading collaboration presupposes that the resource enjoyed by the obtainer has originally been sourced by another consumer. For example, trading collaboration occurs when consumer B obtains a cheaper refurbished iPhone that has been traded in to Best Buy by consumer A. Or it occurs when consumer B enjoys the delivery of her groceries by consumer A, through the Instacart crowdsourcingapplication.
- 9flats – social travel in private houses & serviced apartments
- Airbnb – room sharing within private houses, which has been analyzed through the prism of collaborative consumption .
- CouchSurfing – hospitality service and social networking service without monetary exchange between members
- Craigslist – online marketplace
- Kijiji – online marketplace
- Airtasker – service marketplace (i.e. skilled professions)
- Taskrabbit – service marketplace (i.e. woodworking, fix a kitchen sink, …)
- Takl – home services and household chores
- Upwork – service marketplace (i.e. graphic design, writing, …)
- BlaBlaCar – single trip car sharing
- Easy Taxi
- Lyft – ride sharing service
- Mondo Ride
- Uber – ride sharing service
- Zipcar – hourly car rental service
- Yerdle Recommerce – brand resale service
From Wikipedia, the free encyclopedia