The brands of a company are those elements of marketing which provide instant recognition of the company or the company's product. For example in the UK the word 'Virgin' is a powerful brand name for which most people know which company it refers to, as well as the name of the founder of the company.

Although 'brands' are an intangible asset (i.e. you can't touch them) they undoubtedly have a value to an enterprise when they become well known enough. Another example is to imagine a company which was founded as a supplier of fizzy drinks. There are many companies around the world who perform this service, but the one which is allowed to call itself Pepsi can command a much higher loyalty from its customers, because of it's instantly recognisable brand name.

In Pepsi's case the brand is so well known that they have moved into many other areas of marketing, using their brand name to such an extent that the revenue gained from selling their fizzy drinks is now only a portion of what they earn in total.

What to do if you need more help

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We hope you found this information useful.

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