A brand has the following basic functions:

1. Identification function

The recognition function is the most basic and original function of the brand. It means that brands can help consumers find the products they need as soon as possible, and reduce the time and energy that consumers spend buying goods. When consumers buy goods with certain use value, it is difficult to make a choice because of the variety of goods. It is precisely because the brand is the symbol of the product and represents the quality, characteristics and commitment of the product that consumers will choose purposefully. Brand (trademark) has been registered by the relevant state departments and has become the code of corporate image, representing the business philosophy, quality management requirements, corporate culture, product characteristics and so on. If the brand has formed a good impression in consumers' minds, it will be easier for consumers to make a quick choice among many products.

2. Value-added function

As an intangible asset, brand itself can be bought and sold as a commodity, which can bring huge economic benefits to enterprises in the process of market exchange. Moreover, with the expansion of enterprise scale and the improvement of brand awareness, reputation and loyalty, the value of the brand itself will continue to grow. For example, the brand value of Marlboro in194 was $330150,000, and it rose to $446140,000 in196; Haier's brand value was 426 1 100 million yuan in 1995, and reached 53 billion yuan in 2003, an increase of more than ten times, surpassing Hongtashan, which ranked first for seven consecutive years, and becoming the first brand in China. In the evaluation of Beijing Famous Brand Assets Appraisal Co., Ltd., the average value of the most valuable brands in China in 2003 increased by 14.7% compared with that in 2002. It can be seen that the brand is the "cornucopia" of the enterprise.

3. Promotion function

Brand is a powerful weapon for enterprises to win market competitive advantage and a passport for enterprise financial management market. Because the brand is the symbol of product quality, characteristics and grade, it is the brand of the product, which is easy to attract consumers and achieve the purpose of expanding product sales. In the early 1980s, Japanese household appliances entered China, relying on big brands such as Panasonic, Hitachi and Toshiba to quickly occupy the China market. In addition, a good brand name is easy to remember and identify, beautiful and pleasant, and it is also easy to help enterprises open the market as soon as possible. Kong Yiji brand fennel beans, Confucius family wine and Boss brand electrical appliances are all famous examples. According to 1997 10.02 "public relations" report, before using Kong Yiji brand, the manufacturer only sold more than a dozen packs of fennel beans every day, but after using it, it suddenly broke through the 1000-pack mark. At present, the market share exceeds 90%, and the sales volume has soared nearly 100 times.

4. The function of protecting the rights and interests of enterprises and consumers

After a brand (trademark) is registered, it is protected by law. If someone illegally uses it, then enterprises can protect their legitimate rights and interests from others through legal channels. If consumers buy goods with insecure quality, they can also protect their rights and interests through appropriate channels and means according to the brand.