People value brands because brands have many meanings and functions. They are a kind of credibility, a kind of widespread affirmation, a kind of commitment and a kind of responsibility.

(1) The role of brand in enterprises

1. Storage function. Brands can help companies store goodwill and image. "Brand is a business process of creation, storage, re-creation, and re-storage."

2. Rights protection function. By registering patents and trademarks, brands can be protected by law to prevent others from damaging the brand's reputation or illegally misappropriating the brand.

3. Value-added functions. Brand is an intangible asset of an enterprise. The value, personality, quality and other characteristics it contains can bring important value to products. Even if the same product is labeled with different brand logos, there will be a huge price disparity.

4. Image shaping function. Brand is the cornerstone of a company's image, visibility and reputation. In today's era of homogenized products, it gives companies and products many special meanings such as personality and culture.

5. Cost reduction function. On average, the cost of winning a new customer is 6 times that of retaining an existing customer, and brands can effectively reduce the cost of publicity and new product development by establishing brand preference with customers.

(2) The role of brand on consumers

1. Identification function. Brands can help consumers identify the manufacturer, origin and other basic elements of the brand, thereby distinguishing it from similar products.

2. Shopping guide function. Brands can help consumers find the products they need quickly, thereby reducing the time and energy consumers spend in the search process.

3. Reduce purchase risk function. Consumers all hope to buy products that satisfy them, and they also hope to be recognized by those around them. Choosing a reputable brand can help reduce mental and financial risks.

4. Contract function. The brand is a guarantee to provide consumers with stable and high-quality products and services, and consumers repay the manufacturer with long-term and loyal purchases. The two parties ultimately form a contractual relationship of mutual trust through the brand.

5. Personality display function. After years of development, brands can accumulate unique personalities and rich connotations, and consumers can express themselves by purchasing brands that match their own personality and temperament.

(3) Famous brand effect

A famous brand is a well-known brand or a strong brand, and its huge role lies in its famous brand effect.

1. Aggregation effect. Famous brand enterprises or products will be recognized by society in terms of resources. Social capital, talents, management experience and even policies will be inclined towards famous brand enterprises or products, allowing enterprises to gather human, financial, material and other resources to form and make good use of famous brands. aggregation effect.

2. Magnetic field effect. When a company or product becomes a famous brand and has a high reputation, especially a high reputation, it will establish a high prestige in the minds of consumers and show extreme loyalty to quality. A company or product will attract consumers like a magnet. Consumers will form brand loyalty under this attraction, buy and use it repeatedly, and continue to promote it. Users of other brand products will also be attracted by famous brand products. Under the influence of the magnetic field, people start using this product and may also become loyal consumers of this brand. This further consolidates the brand's strength and forms a virtuous cycle of the brand.

3. Derivative effects. When a famous brand accumulates and aggregates enough resources, it will continue to derive new products and services. The derivative effect of the famous brand enables the enterprise to develop rapidly, continuously explore the market, occupy the market, and form a new famous brand. For example, Haier Group first achieved great results in the field of refrigerators and became a well-known enterprise and brand, and then gradually extended its accumulated capital, technology, management experience, etc. to air conditioners, washing machines, color TVs and other business fields.

4. Introverted effect. Famous brands will enhance the cohesion of the company. For example, China's Lenovo Group, Sichuan Changhong, which calls itself a national brand, and Haier Group, which says "tomorrow will be better", have good images that make employees who live and work in such companies feel proud and honorable, and can Form a corporate culture and working atmosphere, give every employee morale and ambition, and stimulate their spiritual strength to work harder and more seriously.

The restrained effect of famous brands gathers employees' energy, talent, intelligence, physical strength and even financial resources to improve the company.

5. Publicity effect. After a famous brand is formed, the popularity and reputation of the famous brand can be used to spread the reputation of the company, promote the image of the region, and even promote the image of the country. For example, Procter & Gamble's well-known products such as Rejoice and Head & Shoulders have made people know P&G or deepen their understanding of P&G because of their understanding of these products; Sichuan Changhong Group's fame in the color TV industry not only promoted Changhong Enterprises, but also made people More mentions of Sichuan Province make people understand Mianyang City and make people pay more attention to this area; Haier Home Appliances has created a famous brand in the world. This brand not only promotes Haier Enterprises, but also makes people around the world see it. "Hair China".

6. Drive effect. The driving effect of famous brands refers to the driving effect of famous brand products on the development of enterprises, and the driving effect of famous brand enterprises on the urban economy, regional economy, and even the national economy. The driving effect of famous brands can also be called the leading effect. Famous brand products or companies drive the development of enterprises and the growth of regional economies like leaders. In addition, brands have a driving effect on product sales, business operations, and corporate expansion. This is also the so-called "brand driving theory" in the world.

7. Stabilizing effect. When the economy of a region fluctuates, the stable development of famous brands can, on the one hand, boost the regional economy, and on the other hand, it can stabilize military morale and prevent social resources such as people, talents, and materials from being drained away. While we see the positive effects of famous brands, we must also see the negative effects of brands. One is that famous brands will attract many counterfeiters, causing great trouble to enterprises and even discrediting famous brands. Second, after a brand becomes famous, it attracts more attention and becomes more difficult to maintain its image. Once it is improperly maintained and negative reviews appear, it will have a great impact on the reputation of the brand.