In Indus valley (Harappan Civilization, located in India today) during 2250-2000 BCE, craftsmen working on stone and bronze used to create square seals and sold it to private merchants. The square seals used to contain different image of an animal’s located at Mohenjo-daro, Harappa, and Lothal. People strategically choose Lothal as a transportation center because the area lies between major cities of Indus and Gujarat, and it was a transit and check point center. Harappan goods were exported to different parts in partnership with Mesopotamia. The seals of Harappan were found attached with goods like utensils, which were the identity of Harappan goods and the identity of merchant from Indus valley. (Moore Reid, 2008)The seals were the first means of intersection with the customers, to differntiate the Harappan goods from other goods. The seals which were used to identify the Harappan merchant’s good evolved from the Indus valley now turned into the concept of Brand. The fundamental understanding of brand as an identity, and symbol of an organization remained same in 4000 years of brand history.
Today, several products are developing rapidly; people have much more choice than they had in Indus valley. While people have many choices in market, the concept of brand equity has emerged over the time. Brand equity is the reputation of the organizational product over the competitor product and the value it has created for the customers. (Pullig, 2008) In the words of Chris, “Brand equity is a perpetual entity which cannot be accounted in financial statement and resides in customers mind.” The reputation of a brand depends on how well an organization has invested in generating knowledge of its product to its customer. Investment doesn’t necessarily has to be spending money in advertisement, it can be as simple as valuing customers experience while purchasing. It can be a polite language, easy purchasing mechanism and living up to its market promise.
The product of an organization determines its position as brand equity in the market place. So, the marketers often have a discussion about product design and product performance. The choice to have a one sided argument between design and performance is a hard battle. The product design makes a unique identity in the market, while product performance satisfies the customer. The product design initially can grab the customer’s attention while product performance will retain customer’s interest for long time. In this competitive market, where anyone can rise and fall with minor error, it’s equally important to be attractive and as well functional. (Lee Pillai, 2013)Therefore, in the chaotic market, ignoring either design (form) or performance (function) will be equivalent to missing an important part of a puzzle. The product has to be stand out against competitors and should have a good functioning experience, which overall contributes in brand equity.
For example: Apple is the perfect product which focuses on product design every year and as well give a functional satisfaction to customers with its unique features.
Lee, S., Pillai, R. G. (2013). More to Form than Meets the Eye? The Impact of Form and Functional Design on Attitude towards New Products. JOURNAL OF MANAGERIAL ISSUES, 345-359.
Moore, K., Reid, S. (2008). The Birth of Brand: 4000 Years of Branding History. Canada: Munich Personal RePEc Archive.
Pullig, C. (2008). What is Brand Equity and What Does the Branding Concept Mean to you? Texas: Baylor University.