The terms brand and a company are often used interchangeably. However, there is a difference between a brand and a company. To successfully create goodwill and a legacy, understanding the difference between the two is essential. Undoubtedly, both the terms are often misunderstood to be one and the same thing, but they are not. Even in legal terms, both a brand and a company have legal differences.
Brand vs Company
While a company is a physical entity that refers to the organisation that manufactures products or provides services, on the other hand, the brand of the company is built from a customer perspective. As far as the legal differences are concerned, a company is an artificial entity that can act like a real person and file lawsuits, have an income and engage in various activities. Furthermore, a company can be called to appear before the authorities and can be held responsible for any malpractice.
A brand is created by a company’s performance, values, and sentiments attached to its customers. Once a brand is successfully completed, the name of the parent company seldom comes to the forefront. A brand is an intangible asset of a company that gives people an idea about the company’s products and services. Similarly, the brand name can have a positive connection with customers both emotionally and practically.
Today, brands play a vital role in choosing products. Having an association with a solid brand name can increase a company’s business. The brand name overpowers a company’s name in certain instances, and the former title often calls their products. We, as consumers, usually pick up products off the shelves or depend on service providers looking at their brand rather than the company name itself.
Higher the brand value, the more successful a company. For example, there are various cab providers, but due to the strong brand value Ola or Uber has created, we instantly think of Ola or Uber whenever we need to hire a ride. Similarly, Xerox has successfully completed a brand name by pioneering photocopy machines. The Xerox brand has made a great impression on users, and we often use the word Xerox in place of photocopy.
So, while a brand is referred to by a particular logo or a product name, a company is referred to as an organisation and a legal entity that manufactures and sells products or services. Equivalently, a brand name is used to identify and distinguish similar products sold by multiple companies. The company name is used to differentiate one company from another. Moreover, a single company can own various brands. One brand cannot be held by more than one company.
Creating a Brand Name
A company can and should create unique and trendy brand names for various products. Having a nice brand name that goes well with the product has a great impact. Furthermore, by means of marketing, a company can successfully create a good brand of products that are easily recognisable by customers. A company should secure its brand name by filing for a trademark which will help generate uniqueness, and no other party can use the same brand name for their products or services.
However, while naming a brand, the company should keep in mind that the name should be easy to remember and easily pronounceable. Having this kind of brand name can help generate good marketing as well as can be easily recognisable and identifiable by existing and potential customers.