🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 62 (from laksa185)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa062.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.britannica.com/money/Nike-Inc\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.britannica.com/money/Nike-Inc\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.britannica.com\/money\/Nike-Inc","crawl_time":1776269248,"first_indexed_time":1712246643,"http_code":200,"src_unparsed":"com,britannica!www,\/money\/Nike-Inc s443","src_root_hash":"5455945239613777662","history_drop_reason":null,"meta_title":"Nike, Inc. | History, Logo, Headquarters, & Facts | Britannica Money","meta_descriptions":["Nike, Inc., is one of the largest and best-recognized global sports and athleticwear brands. Its extensive..."],"attrs_boilerpipe_text":"Open full sized image\nBreakfast cereals on the shelves of a grocery store.\n© Kenishirotie\/Dreamstime.com\nbrand (marketing)\n,  a set of words, images, and associations that represent and distinguish a product or service in the marketplace. Strong brands elicit an emotional response from consumers and add value to the products and services they represent. Manufacturers have identified their products with names or symbols for thousands of years, and in the 20th century brands became not only critical to the promotion of goods and services but valuable assets in themselves. With the shift toward digital commerce in the 21st century, brands continue to be valuable but face new challenges because of the greater accessibility of information about products and services, the companies that produce or offer them, and the performance history of the branded offerings. \nHistory of brands and brand marketing\nThe term\nbrand\noriginates from the Middle\nEnglish\nword\nfor torch and the Old English verb meaning “to burn,” as well as from the historic practice of identifying goods with the mark of a\nfirebrand\n(a burning piece of wood) and, later, a hot or cold iron. The branded “goods” might be the assets themselves (as with the hot-iron\nbranding\nof\ncattle\n, a practice common as far back as ancient Egypt) or the barrels and boxes containing the products. Even\nenslaved\npeople and criminals, for purposes of identification and punishment, have been branded throughout history.\nProducers have been marking their goods for millennia—there are stones, for example, from\nancient Egypt\nmarked with a symbol of the quarry they hail from that are 6,000 years old and\nChinese pottery\nmarked to indicate the potter who made it that are from 4,000 to 5,000 years old. The use of brand names to denote manufacturers became widespread in Europe in the late Middle Ages. Such branding soon became legally mandated. In 1266 the English Parliament enacted a law requiring bakers to mark loaves of bread made for sale, and, in the centuries that followed, European courts developed a body of law protecting the rights of producers to own their names and marks. \nWith the rise of industrial-scale manufacturing and the widespread geographical distribution of products, reliable identification of goods became increasingly important, as consumers no longer purchased directly from local producers. By the late 19th century, manufacturers of all kinds were using stylized text, logos, and color schemes not just to identify their goods but to distinguish them in a crowded marketplace through promises of superior quality or value. Advertising agencies also emerged, notably\nJ. Walter Thompson Co.\n, which pioneered early techniques of using magazine advertisements to connect products with generalized associations such as the longing for luxury, security, or love.\nCoca-Cola\n, Ivory Soap, and\nColgate\nall emerged as brands during this period with the support of extensive\nadvertising\ncampaigns. \nOpen full sized image\nAdvertisement for Tabasco sauce, 1905.\nMcIlhenny Company Archives, Avery Island, La.\nThe reach and evocative power of\nmass media\n, such as\nradio\nand especially\ntelevision\n, facilitated the modern era of branding. Manufacturers, led by American consumer packaged goods companies, began investing heavily in advertising, not just to raise awareness of their brands but to build specific emotional associations with their products.\nBrand management\nthus became an organizational concept.\nProcter & Gamble Company\nwas a pioneer in such brand management, rejecting the notion of a single corporate\nmarketing\ndepartment and instead putting each of its branded products (e.g., Ivory, Tide, Crest, Crisco) under a separate management team, responsible for identifying a specific consumer segment and building a brand to appeal to that specific kind of buyer. By the 1950s, this strategy had become the standard marketing model in consumer-goods companies.\nThe overall strategy for success at that time was rather simple: drive down costs using\nmass production\n, invest the savings in mass media ad campaigns that imbued the brands with emotional resonance, and then make a profit by charging prices for the branded product that were higher than those charged by generic producers or those with weaker brands—prices that consumers would gladly pay because they valued the emotional connection they had with the stronger brand. The latter half of the 20th century was a period of increased sophistication, investment, and profitability in brand-based marketing. Marketers refined their message based on focus groups, consumer surveys, and data collected through retailers, and they expanded their reach through event sponsorships (such as the\nSuper Bowl\n) and film and television product placement. Additionally, they owned and operated brand-specific retail stores.\nThe rise of the\nInternet\n, however, profoundly challenged the branding models of the 20th century. The controlled one-way messaging strategy so effective in mass media did not always translate well to the interactive online environment. Leading brands spent millions of dollars on “brochureware” websites (websites that simply listed their products and services online, akin to listing their products in a static brochure) that sparked limited consumer interest. Meanwhile, the disruptive effect of the new marketing channel allowed new brands to emerge as well as new types of intermediaries between product manufacturers and consumers, including review websites, pricing agents, and search engines. Consumers grew less reliant on the brands themselves to signal quality or value.\nBrand strategy\nDefining the product\nIn a crowded, competitive marketplace, a brand and its associations convey the unique selling proposition of a product. This includes both rational attributes, such as price and quality, and emotional attributes, such as prestige, freedom, or reliability. Retailers often position themselves squarely on the rational benefit of price.\nWalmart\n, for example, has relied on a variety of slogans to communicate low prices, such as “Every Day Low Prices” and “Save Money. Live Better.” Luxury retailer\nNeiman Marcus\n, on the other hand, flaunts its high prices, featuring outrageously expensive “fantasy gifts” in its holiday catalogs. Recent offerings from the latter included a $6.1 million diamond ring and a $285,000 electric pickup truck.\nAmerican Express\nis a classic example of a brand that combines rational associations (conveying itself as a reliable, secure partner for expensive transactions) with aspirational, emotional ones (prestige, upward mobility, luxury). For years, the company spent heavily on advertising that featured familiar celebrities (including actor\nKarl Malden\n, director\nMartin Scorsese\n, singer\nSheryl Crow\n, and athlete\nShaun White\n) who relied on the American Express card. The advertising was combined with a product strategy that supplemented the\ncredit card\nwith a suite of complimentary travel rewards and perks. Advertisements promised American Express cardholders unique, luxury experiences that differentiated the brand from its competition, such as\nVisa\nand\nMastercard\n.\nDefining the consumer\nBrands offer consumers a means of expressing themselves privately and publicly. Whereas early advertisements simply promoted the product, sophisticated marketers realized they could build stronger emotional connections if they focused on what their brands said about\nusers\nof their product. During the peak of the\nfeminist movement\nin the 1960s and early ʾ70s, cigarette brand Virginia Slims built a business on this strategy by touting the progress women had made in recent years, using its famous tagline: “You’ve come a long way, baby.”\nNike\n, with the slogan “Just Do It,” became the global leader in athletic footwear by focusing its brand on the efforts and achievements of Nike-wearers instead of on the shoes themselves. As smart brand marketers discovered, humans are social animals who are constantly on the lookout for ways to signal their success and value to others.\nSome product categories are inherently well suited to “self-expressive benefits” and branding that helps consumers signal aspects of their status or personality. Outdoor gear, for instance, is often worn or used not just for utility in the wilderness but to signal the owner’s affinity for adventure. The cooler brand YETI surged to a leadership position in a previously sleepy category with prominent labeling—offering a strong, consistent visual identity across its products and advertising and a promise of rugged, even overbuilt quality.\nOne of the greatest brand-building successes in history has been\nApple\n. Although the company’s category, computer hardware, was long associated with office drudgery and introverted users, Apple’s branding made its customers feel creative and unique. The company’s\n1984 Super Bowl commercial\n, announcing the then new Macintosh computer, was perhaps the single most influential advertisement ever aired. Yet the commercial never showed a computer or explained what it could be used for or how it could be purchased. It did not even mention the brand name in the multimillion-dollar commercial until the final five seconds. Instead, it did something more powerful: it defined the brand’s customer as revolutionary and creative.\nOperating within a brand architecture\nBrand architecture is the organizing structure of a\nbrand portfolio\n. Brand managers often use more than one brand for a product and may span a single brand across many products. For example,\nCoca-Cola\noriginated as a single-product brand, associated for more than a century with a specific carbonated\nsoft drink\n. But in recent years it spawned several sub-brands, which are distinguished with additional terminology (“Diet,” “Cherry,” “Zero”) and visual cues, such as the silver associated with Diet Coke and the black associated with Coke Zero. Coca-Cola is also not just a consumer brand but a strong corporate brand, used to communicate the company’s track record of financial success to investors and business partners. These multiple uses of the brand help increase the return Coca-Cola gets from investing in a single brand, but they come at a cost to flexibility. The brand manager for Coke Zero, for example, has to consider the potential impact of a new promotion or partnership not just on the Coke Zero brand but on the other products under the Coca-Cola brand umbrella as well as the Coca-Cola corporate brand. By contrast, the brand manager for Sprite (a brand owned by Coca-Cola) has more freedom, since consumers are unlikely to associate advertising messages from Sprite with the Coca-Cola brand.\n0 seconds of 1 minute, 48 seconds\nVolume 90%\nPress shift question mark to access a list of keyboard shortcuts\n00:00\n00:00\n01:48\nExplore the history of the Coca-Cola Company and brand.\nEncyclopædia Britannica, Inc.\nBrand managers use an array of tactics to organize complex brand architectures, but, broadly speaking, companies follow either a “branded house” or a “house of brands’’ approach.\nApple\noperates mainly as a branded house, with nearly all of its products prominently identified with the “Apple” brand. Individual Apple products are distinguished through product brands (e.g.,\niPhone\n, AirPods) but the Apple name, visual style, and language are present in all communications. Consumer packaged-goods companies, on the other hand, typically prefer the house of brands, multiple-branding strategy, as seen with\nProcter & Gamble\n(Crest, Gillette, Tide) and Colgate-Palmolive (Softsoap, Tom’s of Maine, Ajax). Variations are common, although companies typically keep brands separate when they convey distinct and even conflicting associations (such as brands for toothpaste and dishwasher detergent) but link them together when their various products benefit from common values (as with digital products like mobile phones and laptops).\nFor each individual brand within the marketing architecture, brand managers decide how closely to connect them with one another and with the larger corporate brand. Various terms are sometimes used, not necessarily consistently across companies, to denote these relationships. Managers might refer to a brand that is closely linked to its parent as a “sub-brand” (for example, FedEx Ground and FedEx Office), whereas a brand with a more subtle connection might be termed an “endorsed brand” (Courtyard by Marriott). “Ingredient” brands can even operate within another company’s architecture.\nIntel\n’s “Intel Inside” campaign helped the company maintain dominance in\npersonal computer\nchips for decades by adding their product and the Intel branding to goods produced by other companies, such as\nDell\n, Acer, and Lenovo. These marketing approaches are fluid and situational, and most multibrand companies today employ a range of tactics.\nTools, uses, and dangers of branding\nAt its core, a brand is a name, but nearly all brands are associated with other symbols, including logos, colors, taglines, and music. Over time, these symbols can acquire substantial monetary value and are generally protected through\ntrademark\nlaw. Brand managers must be careful to keep control over their brand elements, or trademark protection can be lost. Large brands typically have detailed internal rules about the use of brand imagery, precise colors, and design elements. Ironically, great success in brand marketing can be fatal, leading to\ngenericide\n: when a brand, due to market saturation, becomes the generic term for the product itself and loses its legal protection. Aspirin, for example, was once a trademark of the\nBayer\ncompany, and cellophane was formerly a\nDuPont\ntrademark. Consequently, companies that have built popular brands such as\nGoogle\n,\nPhotoshop\n, and Kleenex must be careful in communications and with partners to prevent their brands from becoming generic, legally useable terms. \nPepsi-Cola Company\nThere are also assorted powerful branding tools. The use of sound, for example, has evolved from classic advertising “jingles” (e.g., “The best part of waking up is Folgers in your cup” for Folgers Coffee) to signature sounds, such as\nHBO\n’s “static angel” intro,\nNetflix\n’s “ta-dum,” or Intel’s five-note “bong.” A signature colour can also be powerful, because of how widely it can be used—at the point of sale, for product extensions, and in advertising—once the colour is established in the minds of consumers. Examples include\nTiffany\n’s turquoise blue, T-Mobile’s pink, and\nHome Depot\n’s orange.\nOpen full sized image\nTiffany & Co.'s signature robin's egg blue bag and box.\n© Jeff Whyte\/Dreamstime.com\nFor most brands, though, the primary means of building awareness and associations are through advertising, still a multibillion-dollar industry. In this classic marketing approach, the brand is advertised in a scene or narrative intended to evoke the desired associations.\nAT&T\n, for example, has for decades promoted the power of a phone call to bridge the geographical divide, keeping families and loved ones connected. But advertising has progressed beyond obvious commercials, as companies seek to reach consumers in more subtle ways, such as through product placement in films and television programs, affiliation with celebrities and “influencers” (either by using them as spokespersons or by sponsoring their events), and association with admired causes (such as\nenvironmentalism\nor disaster relief). These tactics can generate much greater returns than traditional advertising—in 1982, for example,\nHershey\npaid $1 million to feature a new candy, Reese’s Pieces, in the film\nE.T. the Extra-Terrestrial\nand enjoyed a 65 percent increase in sales and a lasting association with a beloved movie character. Today, there are entire advertising agencies devoted to linking brands with movies,\nsocial media\npersonalities, and special events.\nOpen full sized image\nActress Drew Barrymore offers the alien some Reese's Pieces candy, a prominent example of product placement in the film\nE.T. the Extra-Terrestrial\n (1982). \n© Universal Studios\/Amblin Entertainment\nSponsorship branding, where a brand is tied to an athlete or entertainer or special occasion or cause, is another popular means of building associations, though this marketing method is fraught with risk.\nMichael Jordan\n’s longtime partnership with\nNike\n, for example, has made both parties billions of dollars. On the other hand,\nAdidas\n’s lucrative partnership with entertainer\nKanye West\nbackfired after he made a series of\nanti-Semitic\nremarks, leading the company to cut ties with him in 2022 at an immediate cost to the corporation of some $250 million and the risk of much greater long-term damage to the brand. Social or political associations can similarly be treacherous for brands. In 2023, both \nBud Light\n and \nTarget\n received backlash and calls for\nboycotts\nof their brands after the former engaged a \ntransgender\n influencer for a promotion of its beer and the latter marketed trans-friendly merchandise during\nPride Month\n. \nBrand-building is not limited to external promotional communications. Brand managers seek to align all aspects of the company and the product with the brand and vice versa. Nike, for example, encourages its employees to pursue athletic hobbies, while Walmart promotes frugality with spartan corporate offices. Branding can even mean deliberately selling less of the product, a classic supply-and-demand tactic known as “scarcity marketing.” Clothing retailer Supreme built its brand on the back of its retail “drops,” new products introduced in limited supply at its own retail locations, which attract long lines in highly visible urban neighborhoods, building associations of exclusivity for the company.\nAlthough brands and branding evolved as a tool for marketing consumer products, brands are relevant in a variety of contexts. Brands can be valuable in business-to-business transactions, where managers often prefer to do business with established brands as a way of protecting themselves and limiting risk. For decades, “nobody ever got fired for buying\nIBM\n” was a widely used expression, reflecting the associations of reliability and quality that the IBM brand, known as “Big Blue,” had earned in corporate boardrooms. Similarly, consulting firms like\nMcKinsey & Company\nand Boston Consulting Group implicitly promise their clients, as part of their brand appeal, a “seal of approval.” Managers advocating for a risky corporate venture frequently hire one of these firms to develop the strategy and add their brand strength to the proposal so that it carries more weight with corporate leadership.\nLess commercial organizations also rely on and invest in their brands. Young people spend years studying to be accepted at universities and then spend years paying off related debt, all for the lifelong right to associate themselves with brands like\nHarvard\n,\nYale\n,\nPrinceton\n,\nCambridge\n, and Oxford. Modern universities employ many of the same tactics as shoe manufacturers and hamburger chains to enhance and protect their brands. Governments, political parties, artists, and charitable organizations are all active stewards of their brands, and some have developed sophisticated brand systems.\nDonald Trump\n’s bright red “Make America Great Again” hats, Livestrong’s yellow bracelets, and the\nSalvation Army\n’s red kettle are all iconic brand symbols intended to spur a host of non-commercial associations, from patriotism and political engagement to philanthropy and compassion.\nBenefits of strong brands\nThe foundational virtue of a strong brand is pricing power. A well-branded product will sell for more than an otherwise identical generic one. But strong brands have other virtues. They give companies a head start into new product areas and opportunities through brand extensions. Apple’s iPhones, iPods, and AirPods headphones all benefited from the tailwind of the Apple brand.\nGmail\nis trusted by millions of users in part because it comes from\nGoogle\n, a company that was already their main portal to the\nInternet\n.\nStrong brands are also moats against incursions by competitors. Dominant brands often “own” the most valuable associations in a category, and challenger brands must either spend prodigious amounts on marketing to compete head-to-head with them or adopt niche positions to carve out a smaller market share. In the U.S., for example, T-Mobile is the second largest wireless carrier, but it came into the market with lesser brand awareness than the leaders, Verizon and\nAT&T\n, so it built the T-Mobile brand in express contrast with them, calling itself the “Un-carrier.” Trusted brands are also better suited to survive difficult times. The\nTylenol\nbrand survived a terrifying poison scare in 1982 in part because it had been part of consumer’s lives for nearly 30 years. Coca-Cola emerged from a failed attempt to reformulate its core product (“\nNew Coke\n”) stronger than ever when the controversial change reinvigorated consumers’ lifelong associations with Coca-Cola. Brands without those years of established associations, however, can be more fragile. Soon after\nFord\nintroduced the Pinto, the model suffered a series of highly publicized fiery crashes. Lacking the ballast of other associations, the brand became known for those crashes, even though the car (which Ford knew was potentially dangerous) was no more dangerous than many other cars of its era. Ford abandoned the brand name.\nOpen full sized image\nTesting bottles of Extra Strength Tylenol with a chemically treated paper that turns blue in the presence of cyanide, Chicago, 1982. Such testing followed in the wake of the Tylenol poisoning tragedy that killed seven people in the Chicago area and led to a mass recall of the over-the-counter drug.\nJohn Swart—AP\/Shutterstock.com\nStrong brands can even turn consumers into brand ambassadors. A popular metric for measuring brand strength is the Net Promoter Score (NPS), which relies on a single question: “How likely are you to recommend this product to someone else?” A brand that people are proud to be associated with is one that people are more likely to recommend and promote, for example, through social media.\nControversy over branding\nBranding has its critics. Some argue that the increased price charged for branded products is exploitative, a means of using the power of mass media to manipulate people into wasteful spending. Specific brands, products, and advertising campaigns have also been charged with promoting harmful stereotypes, unhealthy pastimes, and unattainable ideals. Products such as\nAunt Jemima\npancake mix, Uncle Ben’s rice, and Cream of Wheat have all discontinued their historic brands or logos depicting\nAfrican Americans\nbecause they have been charged with racial stereotyping; the\nfashion industry\nhas frequently been singled out for promoting unhealthy body types; and advertising tied to smoking, especially when apparently aimed at children (as the manufacturers of\nvaping\nproducts are widely accused of doing), has long been criticized for encouraging a dangerous addiction. Additionally, because advertising is often the primary source of funding for news and entertainment content, critics warn that advertisers may actually be purchasing biased treatment and reviews of their products. “\nGreenwashing\n” refers to companies using advertising and brand associations to counter the environmental and human harms their products or services may have caused. Major international\noil\ncompanies, for example, have all faced controversies over using advertising to change consumer perceptions. In 2001\nBP\nbegan promoting itself as “Beyond Petroleum” (the firm’s initials historically stood for “British Petroleum”) despite the fact that it produced billions of barrels of oil and gas per year. Less than a decade later, it abandoned the campaign after it sold its solar and wind divisions in order to cover losses stemming from the\nDeepwater Horizon oil spill\n.\nChallenges in the digital age\nThe worldwide use of the Internet has spurred the most profound change to brand strategy since the rise of mass media in the 20th century. At their core, brands are a means of communication, one historically controlled by the manufacturer and owner of the brand. In a digital marketplace, however, consumers have great access to information and a global audience as well as novel means and tools for publishing their thoughts. As a consequence, brand owners have much less control over the ways their brands are used, viewed, and critiqued. A traditional television commercial or magazine advertisement, for example, is a self-contained, unalterable experience. Online, however, consumers or critics can use brand assets in unexpected ways, often subverting the brand owner’s mission and message. Parody accounts on social media, for instance, can associate unflattering messages with apparently legitimate brand imagery. Even a brand’s own website or social media channel can become a forum for criticism and competitive voices. In 2022, after\nTwitter\nrelaxed the requirements to obtain a “blue check” that indicates a legitimate account, pranksters made accounts in the name of various corporations and tweeted messages associating, for example,\nEli Lilly\nwith price gouging for insulin,\nChiquita\nwith Latin American dictatorships, and\nTesla\nwith automobile crashes.\nBecause the Internet delivers news and data directly to consumers, buyers are also less reliant now on brands to convey information about a particular product or service. Before the Internet, for instance, a business traveler headed to a new city likely would have booked a room at a familiar branded hotel, such as the\nHilton\nor\nRitz-Carlton\n. Now, in just a few minutes, travelers can identify boutique options more akin to their likes, closer to their destination, and otherwise more valuable to them in distinct ways. The value of a brand as a signifier of quality has lessened in the online age.\nWhile traditional product brands have often stumbled in adapting to the digital age, those surviving have conformed nonetheless and incorporated online messaging into their strategies. Native digital brands, meanwhile, have become some of the most popular, valuable, and admired ones in the world: Google,\nAmazon\n, and\nPayPal\n, for example, all rely on their strong brands to garner consumer trust and attention in the online marketplace.\nScott Galloway","attrs_markdown":"[History & Society](https:\/\/www.britannica.com\/History-Society)[Science & Tech](https:\/\/www.britannica.com\/Science-Tech)[Biographies](https:\/\/www.britannica.com\/Biographies)[Animals & Nature](https:\/\/www.britannica.com\/Animals-Nature)[Geography & Travel](https:\/\/www.britannica.com\/Geography-Travel)[Arts & Culture](https:\/\/www.britannica.com\/Arts-Culture)[ProCon](https:\/\/www.britannica.com\/procon)[Games & Quizzes](https:\/\/www.britannica.com\/quiz\/browse)[Videos](https:\/\/www.britannica.com\/videos)[On This Day](https:\/\/www.britannica.com\/on-this-day)[One Good Fact](https:\/\/www.britannica.com\/one-good-fact)[Dictionary](https:\/\/www.britannica.com\/dictionary)\n\n- 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Finance](https:\/\/www.britannica.com\/money\/browse\/household-finance)\n\n[Investing](https:\/\/www.britannica.com\/money\/browse\/investing)\n\n[Trading](https:\/\/www.britannica.com\/money\/browse\/Trading)\n\n[Retirement](https:\/\/www.britannica.com\/money\/browse\/retirement)\n\n[Companies](https:\/\/www.britannica.com\/money\/browse\/Companies)\n\n[Biographies](https:\/\/www.britannica.com\/money\/browse\/Biographies)\n\n[Finance & the Economy](https:\/\/www.britannica.com\/money\/browse\/history-and-theory)\n\nTable of Contents\n***\n- [Introduction](https:\/\/www.britannica.com\/money\/Nike-Inc#ref415193-1)\n- [Strategic and competitive advantages](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371285)\n- [Founding and early history](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371286)\n- [Nike’s defining moment: Signing Michael Jordan in 1984](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371287)\n- [Thinking beyond shoes](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371288)\n- [Controversies are part of Nike’s history, both unwanted and embraced](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371289)\n- [Staying relevant over the decades](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371290)\n\nRead More\n\n[![Amazon U.K. Services warehouse](https:\/\/cdn.britannica.com\/77\/253877-050-3BB22BE2\/Amazon-logo-Warehouse-Warrington-England-2022.jpg?c=crop&h=40&w=50) Amazon.com](https:\/\/www.britannica.com\/money\/Amazoncom)\n\n[![A famous business organization](https:\/\/cdn.britannica.com\/35\/191935-050-B76CEA77\/sign-Microsoft-office-building-housing-computer-giant-May-7-2016.jpg?c=crop&h=40&w=50) business organization](https:\/\/www.britannica.com\/money\/business-organization)\n\n[![A photo of the Target red-and-white bullseye logo on the side of the company's corporate headquarters at Target Plaza in Minneapolis.](https:\/\/cdn.britannica.com\/00\/259700-050-0275BED4\/Target-logo-and-banner-on-its-corporate-headquarters-at-Target-Plaza-Minneapolis-Minnesota-May-2023.jpg?c=crop&h=40&w=50) Target Corporation](https:\/\/www.britannica.com\/money\/Target-Corporation)\n\nTable Of Contents\n\n[Companies](https:\/\/www.britannica.com\/money\/browse\/Companies)\n\n[Consumer Discretionary](https:\/\/www.britannica.com\/money\/browse\/Consumer-Discretionary)\n\n# Nike, Inc.\nAmerican company\n\nPrint\n\nCite\n\nShare\n\nLinks\n\nAlso known as: Blue Ribbon Sports\n\n**Written by**Debbie Carlson\n\n[Debbie Carlson](https:\/\/www.britannica.com\/money\/author\/debbie-carlson\/12818145)\n\nDebbie Carlson is a veteran financial journalist who writes about many personal finance and financial industry topics such as retirement, consumer spending, sustainable and ESG investing, commodity markets, exchanged-traded funds, mutual funds and much more, in an easy-to-understand way. Debbie writes for many high-level and top-tier media organizations and has contributed to Barron's, Chicago Tribune, The Guardian, MarketWatch, The Wall Street Journal, and U.S. News & World Report, among other publications. She holds a BA in Journalism from Eastern Illinois University.\n\n**Fact-checked by**The Editors of Encyclopaedia Britannica\n\n[The Editors of Encyclopaedia Britannica](https:\/\/www.britannica.com\/money\/author\/The-Editors-of-Encyclopaedia-Britannica\/4419)\n\nEncyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. They write new content and verify and edit content received from contributors.\n\nArticle History\n\nTable of Contents\n***\n- [Introduction](https:\/\/www.britannica.com\/money\/Nike-Inc#ref415193-1)\n- [Strategic and competitive advantages](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371285)\n- [Founding and early history](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371286)\n- [Nike’s defining moment: Signing Michael Jordan in 1984](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371287)\n- [Thinking beyond shoes](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371288)\n- [Controversies are part of Nike’s history, both unwanted and embraced](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371289)\n- [Staying relevant over the decades](https:\/\/www.britannica.com\/money\/Nike-Inc#ref371290)\n\nRead More\n\n[![Amazon U.K. Services warehouse](https:\/\/cdn.britannica.com\/77\/253877-050-3BB22BE2\/Amazon-logo-Warehouse-Warrington-England-2022.jpg?c=crop&h=40&w=50) Amazon.com](https:\/\/www.britannica.com\/money\/Amazoncom)\n\n[![A famous business organization](https:\/\/cdn.britannica.com\/35\/191935-050-B76CEA77\/sign-Microsoft-office-building-housing-computer-giant-May-7-2016.jpg?c=crop&h=40&w=50) business organization](https:\/\/www.britannica.com\/money\/business-organization)\n\n[![A photo of the Target red-and-white bullseye logo on the side of the company's corporate headquarters at Target Plaza in Minneapolis.](https:\/\/cdn.britannica.com\/00\/259700-050-0275BED4\/Target-logo-and-banner-on-its-corporate-headquarters-at-Target-Plaza-Minneapolis-Minnesota-May-2023.jpg?c=crop&h=40&w=50) Target Corporation](https:\/\/www.britannica.com\/money\/Target-Corporation)\n\nTable Of Contents\n\n![Nike logo](https:\/\/cdn.britannica.com\/50\/213250-050-02322AA8\/Nike-logo.jpg?w=385)\n\nOpen full sized image\n\nLogo of Nike.\n\n© pixfly\/Shutterstock.com\n\nformerly (1964–71):\n\nBlue Ribbon Sports\n\nDate:\n\n1964 - present\n\nTicker:\n\nNKE\n\nShare price:\n\n\\$44.2 (mkt close, Apr. 14, 2026)\n\nMarket cap:\n\n\\$65.46 bil.\n\nAnnual revenue:\n\n\\$46.52 bil.\n\nEarnings per share (prev. year):\n\n\\$1.52\n\nSector:\n\nConsumer Discretionary\n\nIndustry:\n\nTextiles, Apparel & Luxury Goods\n\nCEO:\n\nMr. Elliott J. Hill\n\nHeadquarters:\n\n[Beaverton](https:\/\/www.britannica.com\/place\/Beaverton)\n\nNews\n\n•\n\n[Wall Street flirts with a record after its big rally the last 2 weeks](https:\/\/www.britannica.com\/news\/415193\/7659569791b1f5e108489360d18e50f1)\n\n•\n\nApr. 15, 2026, 10:22 AM ET\n\n(AP)\n\n...(Show more)\n\nNike, Inc., is one of the largest and best-recognized global sports and athleticwear brands. Its extensive lineup includes its long-running [Air Jordan](https:\/\/www.britannica.com\/biography\/Michael-Jordan), Air Force 1, and other “Air” models. Converse shoes and [apparel](https:\/\/www.britannica.com\/topic\/dress-clothing) (including those bearing the iconic Chuck Taylor All Stars logo) have also been a part of Nike since its 2003 acquisition.\n\nNike is known for its celebrity endorsement deals with top athletes, including [Tiger Woods](https:\/\/www.britannica.com\/biography\/Tiger-Woods), [LeBron James](https:\/\/www.britannica.com\/biography\/LeBron-James), and [Serena Williams](https:\/\/www.britannica.com\/biography\/Serena-Williams). The company has stayed relevant with consumers over the years through its savvy marketing, which includes embracing controversial topics. Since 2020, Nike has been led by president and CEO John Donahoe, but cofounder and long-time CEO [Phil Knight](https:\/\/www.britannica.com\/biography\/Phil-Knight) remains active in the company, serving as chair emeritus.\n\n## Strategic and competitive advantages\nNike’s success has been tied to its ability to blend product innovation and marketing savvy to develop deep ties between its products and its customers.\n\n[![cotton plants (cotton bolls; natural fiber)](https:\/\/cdn.britannica.com\/18\/156618-131-7C3D51D3\/cotton-harvesting.jpg)Britannica Quiz Pop Quiz](https:\/\/www.britannica.com\/quiz\/pop-quiz)\n\n- **Innovative marketing.** The “Just Do It” slogan focuses not on the glory of winning, but the hard work and daily struggle of putting in the effort no matter what. That philosophy is psychological and applies beyond the world of sports to any goal. Nike’s imagery enhances the slogan, focusing on everyday people overcoming obstacles and embracing positions that are seemingly at odds with the status quo.\n- **Quality and style.** Nike backs up its marketing with quality products and continuous design experimentation, seeking to strike a balance between what consumers want and the functional needs of athletes. Each product division is positioned as a unique offering to build loyalty within a particular sport. Nike’s marketing and product offerings give credence to each other. For example, a marketing focus on struggles that women athletes face helps promote its products designed specifically for women’s bodies.\n- **Audience focus.** Nike has an expansive, insight-driven, customer-centric strategy centered in sport and youth culture. It focuses on the shopping experience and personalization to build brand loyalty. Nike was early to adopt online sales and invested in digital technology that provides even more insight into its customers’ changing needs.\n- **Strategic expansion.** Nike’s acquisitions focused on products core to its mission and allowed it to expand from footwear to include apparel and fitness with apps and equipment that help the company reach not just athletes, but anyone looking to lead a healthier lifestyle.\n## Founding and early history\nThe global sportswear giant traces its origins to 1962, when former [University of Oregon](https:\/\/www.britannica.com\/topic\/University-of-Oregon) [track-and-field](https:\/\/www.britannica.com\/sports\/athletics) athlete Phil Knight toured the Onitsuka (now Asics) factory in Japan and was impressed by the firm’s quality and speedy production. The trip led to a deal to distribute the Onitsuka Tiger, the company’s signature [shoe](https:\/\/www.britannica.com\/topic\/shoe), in the [United States](https:\/\/www.britannica.com\/place\/United-States). By 1964, Knight and his former University of Oregon coach, Bill Bowerman, formed **Blue Ribbon Sports**; they created the iconic Tiger Cortez in 1967, their version of the Onitsuka Tiger.\n\nIn 1971, Blue Ribbon split with Onitsuka; and the duo changed the firm’s name to [Nike, after the Greek goddess of victory](https:\/\/www.britannica.com\/topic\/Nike-Greek-goddess). Its “swoosh” logo—which became one of the world’s most recognized brand logos—was also introduced that year. Carolyn David, a [Portland State University](https:\/\/www.britannica.com\/topic\/Portland-State-University) design student, charged \\$35 for the logo, although Knight eventually gave her 500 [shares of stock](https:\/\/www.britannica.com\/money\/stock-market-basics) in 1983.\n\n## Nike’s defining moment: Signing Michael Jordan in 1984\nNike went public in 1980, but struggled until, in 1984, the company spent its entire marketing budget to sign NBA rookie Michael Jordan in an attempt to breathe life into its [basketball](https:\/\/www.britannica.com\/sports\/basketball) shoe division. Jordan signed a five-year, \\$2.5 million contract to promote the Air Jordan, a black-and-red basketball shoe that initially sold for \\$65 a pair (equal to \\$192 in 2023 dollars).\n\n![Sneakers take flight](https:\/\/cdn.britannica.com\/96\/195196-050-3909D5BD\/Michael-Jordan-1988.jpg?w=385)\n\nOpen full sized image\n\nNBA legend Michael Jordan, pictured in 1988, entered into a partnership with Nike that helped launch sneaker culture.\n\n© John Swart\/AP\/REX\/Shutterstock.com\n\nThe Nike\/Michael Jordan contract changed how brands sign athletes and other celebrities to marketing deals, as well as how brands market themselves. The [National Basketball Association](https:\/\/www.britannica.com\/topic\/National-Basketball-Association) (NBA) banned Jordan’s shoes, and issued a \\$5,000 fine each time he wore them.\n\nNike embraced the ban and the controversy surrounding the shoes. The company paid the fines on Jordan’s behalf and created ad campaigns around the ban, saying, “The NBA can’t stop you from wearing them.” Within the first two months of the shoe’s release, Nike sold \\$70 million worth of Air Jordans. By the end of 1985, the firm reported revenue in excess of \\$100 million.\n\nIn 1997, Nike spun the Jordan brand into its own division. Instead of the Nike swoosh, Jordan-branded shoes, apparel, and accessories feature the “Jumpman” logo, a silhouette of Jordan in midair, holding a basketball.\n\n## [Nike and sneaker culture](https:\/\/www.britannica.com\/topic\/history-of-sneakers)\nThe original Nike Air Jordans are considered a foundation of “[sneaker culture](https:\/\/www.britannica.com\/topic\/history-of-sneakers#ref377516),” which came to represent many things: style, history, community, and for some, [collectibles](https:\/\/www.britannica.com\/money\/alternative-investment-types).\n\nThe popularity of Air Jordans coincided with the rise of [hip-hop artists](https:\/\/www.britannica.com\/art\/hip-hop) in the 1980s, who were known for both their music and their clothing. With a deep bench of classic sneakers and its broad newer offerings and collaborations with athletes and designers, Nike was able to expand its reach. By the mid-2000s, competitors took notice, and brands such as **[Adidas](https:\/\/www.britannica.com\/money\/Adidas-AG)**, **Puma**, and **Reebok** began working with celebrities such as [Kanye West](https:\/\/www.britannica.com\/biography\/Kanye-West), Big Sean, and [Cardi B](https:\/\/www.britannica.com\/biography\/Cardi-B), ultimately creating a new footwear subculture.\n\nDemand for rare sneakers has spilled to auction houses. An original pair of Air Jordans sold for \\$1.8 million in 2023, while eight pairs of late fashion designer [Virgil Abloh’s](https:\/\/www.britannica.com\/biography\/Virgil-Abloh) 2020 limited edition Nike Dunk Low basketball sneakers sold for more than \\$565,000 in 2023.\n\n## Thinking beyond shoes\nThe success of using controversy and continued creative marketing helped to cement Nike’s status with one foot in the serious sports world and another that spoke to the non-athlete to challenge the status quo. In 1987, Nike used the [Beatles](https:\/\/www.britannica.com\/topic\/the-Beatles) song “Revolution” to promote its Air-branded shoes, the first time the band’s music was used in advertising. In 1988, Nike created its enduring slogan “Just Do It.”\n\nBeginning in the late 1980s, Nike began actively expanding its business and [diversifying](https:\/\/www.britannica.com\/money\/portfolio-diversification-benefits) its product line beyond just athletic footwear.\n\n- **1988:** Acquired shoe company **Cole Haan** (sold in 2012).\n- **1990:** NikeTown store chain debuted to enhance the shopping experience and expose consumers to buy Nike’s full range of products. NikeTown would later be used to showcase its endorsed athletes, such as [Mia Hamm](https:\/\/www.britannica.com\/biography\/Mia-Hamm), [Roger Federer](https:\/\/www.britannica.com\/biography\/Roger-Federer), [Serena Williams](https:\/\/www.britannica.com\/biography\/Serena-Williams), [Tiger Woods](https:\/\/www.britannica.com\/biography\/Tiger-Woods), [LeBron James](https:\/\/www.britannica.com\/biography\/LeBron-James), and [Cristiano Ronaldo](https:\/\/www.britannica.com\/biography\/Cristiano-Ronaldo).\n- **1994:** Acquired **Canstar Sports**, parent company of skate and hockey equipment maker Bauer (sold in 2008).\n- **1996:** Created Nike ACG (“all conditions gear”), which markets products for [extreme sports](https:\/\/www.britannica.com\/sports\/extreme-sports) such as snowboarding and mountain biking.\n- **Early 2000s:** Moved into sports technology accessories including portable [heart rate](https:\/\/www.britannica.com\/science\/heart-rate) monitors, high-altitude wrist compasses, fitness apps, and its fitness studio.\n- **2003:** Acquired **Converse**.\n- **2008:** Acquired athletic apparel and equipment company **Umbro** (sold in 2012).\n- **2014:** Launched NikeLab, online and physical stores to showcase its product innovation and highlight where sports and fashion meet.\n## Controversies are part of Nike’s history, both unwanted and embraced\nThe company’s growth also introduced controversies about poor working conditions and low pay for workers in its Indonesian factories in the 1990s; the company responded by creating factory codes of conduct. In response to a wave of protests, Nike raised worker minimum ages and adopted U.S. clean-air standards in non-U.S. factories. The company continued to address concerns about labor issues through the 2000s in its overseas factories. In the 2020s, Nike faced a gender pay [discrimination](https:\/\/www.britannica.com\/science\/discrimination-psychology) lawsuit.\n\nNike willingly stepped into controversy in 2018 when it unveiled an ad campaign tied to the 30th anniversary of its “Just Do It” logo. The company featured former [San Francisco 49ers](https:\/\/www.britannica.com\/topic\/San-Francisco-49ers) quarterback [Colin Kaepernick](https:\/\/www.britannica.com\/biography\/Colin-Kaepernick), a [civil rights](https:\/\/www.britannica.com\/topic\/civil-rights) activist, best known for protesting [social injustice](https:\/\/www.britannica.com\/topic\/historical-injustice) and [police brutality](https:\/\/www.britannica.com\/topic\/police-brutality-in-the-United-States-2064580) by kneeling during the playing of the [national anthem](https:\/\/www.britannica.com\/topic\/national-anthem) at a [National Football League](https:\/\/www.britannica.com\/topic\/National-Football-League) game. The ad used Kaepernick’s image and a quote saying “Believe in something. Even if it means sacrificing everything.” Although the ad sparked backlash—primarily among those aged 65 and older—the campaign proved to be popular with Nike’s customer base, particularly those between ages 18 and 34.\n\nNike has a mixed record when it comes to supporting its spokespeople when they run into trouble, standing by Tiger Woods, [Kobe Bryant](https:\/\/www.britannica.com\/biography\/Kobe-Bryant), and Cristiano Ronaldo, but dropping [Maria Sharapova](https:\/\/www.britannica.com\/biography\/Maria-Sharapova), [Lance Armstrong](https:\/\/www.britannica.com\/biography\/Lance-Armstrong), and former NFL player Ray Rice when they were involved in scandals.\n\n## Staying relevant over the decades\nNike has a diverse product lineup, from shoes to apparel to health products, and it has managed to maintain its “coolness” since it first signed Michael Jordan to promote its shoes. The brand has retained this status throughout the decades by positioning itself—and acting as a connection—between the top athletes in the world and everyday consumers.\n\nNike has come a long way from its beginning as a shoe used by track-and-field athletes. Thanks to its innovative marketing, the brand is also an emblem of style, taste, and the competitive spirit that lives within amateurs and professionals alike.\n\n[Debbie Carlson](https:\/\/www.britannica.com\/money\/author\/debbie-carlson\/12818145)\n\nTable of Contents\n***\n- [Introduction](https:\/\/www.britannica.com\/money\/brand#ref2218495-1)\n- [History of brands and brand marketing](https:\/\/www.britannica.com\/money\/brand#ref354776)\n- [Brand strategy](https:\/\/www.britannica.com\/money\/brand#ref354777)\n  - [Defining the product](https:\/\/www.britannica.com\/money\/brand#ref354778)\n  - [Defining the consumer](https:\/\/www.britannica.com\/money\/brand#ref354779)\n  - [Operating within a brand architecture](https:\/\/www.britannica.com\/money\/brand#ref354780)\n- [Tools, uses, and dangers of branding](https:\/\/www.britannica.com\/money\/brand#ref354781)\n- [Benefits of strong brands](https:\/\/www.britannica.com\/money\/brand#ref354782)\n- [Controversy over branding](https:\/\/www.britannica.com\/money\/brand#ref354783)\n- [Challenges in the digital age](https:\/\/www.britannica.com\/money\/brand#ref354784)\n\nRead More\n\n[![Nike logo](https:\/\/cdn.britannica.com\/50\/213250-050-02322AA8\/Nike-logo.jpg?c=crop&h=40&w=50) trademark](https:\/\/www.britannica.com\/money\/trademark)\n\n[![marketing advertisement for hair dressing](https:\/\/cdn.britannica.com\/48\/99748-050-E6E2E1EF\/advertisement-taste-suggestion-appeal.jpg?c=crop&h=40&w=50) marketing](https:\/\/www.britannica.com\/money\/marketing)\n\n[![2022 World Cup in Qatar](https:\/\/cdn.britannica.com\/56\/244156-050-CF374EB7\/Lionel-Messi-FIFA-World-Cup-Qatar-2022.jpg?c=crop&h=40&w=50) sportswashing](https:\/\/www.britannica.com\/money\/sportwashing)\n\nTable Of Contents\n\n[Finance & the Economy](https:\/\/www.britannica.com\/money\/browse\/history-and-theory)\n\n[Business & Marketing](https:\/\/www.britannica.com\/money\/browse\/Business-Marketing)\n\n# brand (marketing)\nmarketing\n\nPrint\n\nCite\n\nShare\n\n**Written by**Scott Galloway\n\n[Scott Galloway](https:\/\/www.britannica.com\/money\/author\/scott-galloway\/12911181)\n\nScott Galloway is Professor of Marketing at NYU’s Stern School of Business, a serial entrepreneur, and a *New York Times*–bestselling author.\n\n**Fact-checked by**The Editors of Encyclopaedia Britannica\n\n[The Editors of Encyclopaedia Britannica](https:\/\/www.britannica.com\/money\/author\/The-Editors-of-Encyclopaedia-Britannica\/4419)\n\nEncyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. They write new content and verify and edit content received from contributors.\n\nArticle History\n\nTable of Contents\n***\n- [Introduction](https:\/\/www.britannica.com\/money\/brand#ref2218495-1)\n- [History of brands and brand marketing](https:\/\/www.britannica.com\/money\/brand#ref354776)\n- [Brand strategy](https:\/\/www.britannica.com\/money\/brand#ref354777)\n  - [Defining the product](https:\/\/www.britannica.com\/money\/brand#ref354778)\n  - [Defining the consumer](https:\/\/www.britannica.com\/money\/brand#ref354779)\n  - [Operating within a brand architecture](https:\/\/www.britannica.com\/money\/brand#ref354780)\n- [Tools, uses, and dangers of branding](https:\/\/www.britannica.com\/money\/brand#ref354781)\n- [Benefits of strong brands](https:\/\/www.britannica.com\/money\/brand#ref354782)\n- [Controversy over branding](https:\/\/www.britannica.com\/money\/brand#ref354783)\n- [Challenges in the digital age](https:\/\/www.britannica.com\/money\/brand#ref354784)\n\nRead More\n\n[![Nike logo](https:\/\/cdn.britannica.com\/50\/213250-050-02322AA8\/Nike-logo.jpg?c=crop&h=40&w=50) trademark](https:\/\/www.britannica.com\/money\/trademark)\n\n[![marketing advertisement for hair dressing](https:\/\/cdn.britannica.com\/48\/99748-050-E6E2E1EF\/advertisement-taste-suggestion-appeal.jpg?c=crop&h=40&w=50) marketing](https:\/\/www.britannica.com\/money\/marketing)\n\n[![2022 World Cup in Qatar](https:\/\/cdn.britannica.com\/56\/244156-050-CF374EB7\/Lionel-Messi-FIFA-World-Cup-Qatar-2022.jpg?c=crop&h=40&w=50) sportswashing](https:\/\/www.britannica.com\/money\/sportwashing)\n\nTable Of Contents\n\n![Cereal brands](https:\/\/cdn.britannica.com\/42\/240242-050-ACD88997\/Breakfast-cereals-grocery-store.jpg?w=385)\n\nOpen full sized image\n\nBreakfast cereals on the shelves of a grocery store.\n\n© Kenishirotie\/Dreamstime.com\n\n**brand (marketing)**, a set of words, images, and associations that represent and distinguish a product or service in the marketplace. Strong brands elicit an emotional response from consumers and add value to the products and services they represent. Manufacturers have identified their products with names or symbols for thousands of years, and in the 20th century brands became not only critical to the promotion of goods and services but valuable assets in themselves. With the shift toward digital commerce in the 21st century, brands continue to be valuable but face new challenges because of the greater accessibility of information about products and services, the companies that produce or offer them, and the performance history of the branded offerings.\n\n## History of brands and brand marketing\nThe term *brand* originates from the Middle [English](https:\/\/www.britannica.com\/topic\/English-language\/Historical-background#ref74809) [word](https:\/\/www.merriam-webster.com\/dictionary\/brand#word-history) for torch and the Old English verb meaning “to burn,” as well as from the historic practice of identifying goods with the mark of a *firebrand* (a burning piece of wood) and, later, a hot or cold iron. The branded “goods” might be the assets themselves (as with the hot-iron [branding](https:\/\/www.britannica.com\/topic\/branding-identification) of [cattle](https:\/\/www.britannica.com\/animal\/cattle-livestock), a practice common as far back as ancient Egypt) or the barrels and boxes containing the products. Even [enslaved](https:\/\/www.britannica.com\/topic\/slavery-sociology) people and criminals, for purposes of identification and punishment, have been branded throughout history.\n\n![Cattle branding](https:\/\/cdn.britannica.com\/43\/240243-050-9D8E4E40\/Holstein-dairy-cow-freeze-brand.jpg?w=800)\n\nOpen full sized image\n\nA Holstein-Friesian dairy cow with an identification number freeze-branded on her flank. Lancashire, England.\n\nWayne Hutchinson\/Alamy\n\n![The branding of John Leclerc](https:\/\/cdn.britannica.com\/44\/240244-050-47A3C8EA\/Branding-of-John-Leclerc-French-Reformation.jpg?w=800)\n\nOpen full sized image\n\nThe branding punishment of French Huguenot John Leclerc in 1525, 19th-century illustration.\n\nFrom: \"History of the Great Reformation in Europe, in the Times of Luther and Calvin\" by J. H. Merle d'Aubigné, 1870\n\nProducers have been marking their goods for millennia—there are stones, for example, from [ancient Egypt](https:\/\/www.britannica.com\/place\/ancient-Egypt) marked with a symbol of the quarry they hail from that are 6,000 years old and [Chinese pottery](https:\/\/www.britannica.com\/art\/Chinese-pottery) marked to indicate the potter who made it that are from 4,000 to 5,000 years old. The use of brand names to denote manufacturers became widespread in Europe in the late Middle Ages. Such branding soon became legally mandated. In 1266 the English Parliament enacted a law requiring bakers to mark loaves of bread made for sale, and, in the centuries that followed, European courts developed a body of law protecting the rights of producers to own their names and marks.\n\nWith the rise of industrial-scale manufacturing and the widespread geographical distribution of products, reliable identification of goods became increasingly important, as consumers no longer purchased directly from local producers. By the late 19th century, manufacturers of all kinds were using stylized text, logos, and color schemes not just to identify their goods but to distinguish them in a crowded marketplace through promises of superior quality or value. Advertising agencies also emerged, notably [J. Walter Thompson Co.](https:\/\/www.britannica.com\/money\/J-Walter-Thompson-Co), which pioneered early techniques of using magazine advertisements to connect products with generalized associations such as the longing for luxury, security, or love. [Coca-Cola](https:\/\/www.britannica.com\/money\/The-Coca-Cola-Company), Ivory Soap, and [Colgate](https:\/\/www.britannica.com\/money\/Colgate-Palmolive-Company) all emerged as brands during this period with the support of extensive [advertising](https:\/\/www.britannica.com\/money\/advertising) campaigns.\n\n![Tabasco sauce ad, 1905](https:\/\/cdn.britannica.com\/09\/237809-050-5DE87D7E\/1905-adverstisement-for-TABASCO-Brand-Pepper-Sauce.jpg?w=385)\n\nOpen full sized image\n\nAdvertisement for Tabasco sauce, 1905.\n\nMcIlhenny Company Archives, Avery Island, La.\n\nThe reach and evocative power of [mass media](https:\/\/www.britannica.com\/topic\/mass-media), such as [radio](https:\/\/www.britannica.com\/topic\/radio) and especially [television](https:\/\/www.britannica.com\/technology\/television-technology), facilitated the modern era of branding. Manufacturers, led by American consumer packaged goods companies, began investing heavily in advertising, not just to raise awareness of their brands but to build specific emotional associations with their products. *Brand management* thus became an organizational concept. [Procter & Gamble Company](https:\/\/www.britannica.com\/money\/Procter-and-Gamble-Company) was a pioneer in such brand management, rejecting the notion of a single corporate [marketing](https:\/\/www.britannica.com\/money\/marketing) department and instead putting each of its branded products (e.g., Ivory, Tide, Crest, Crisco) under a separate management team, responsible for identifying a specific consumer segment and building a brand to appeal to that specific kind of buyer. By the 1950s, this strategy had become the standard marketing model in consumer-goods companies.\n\nThe overall strategy for success at that time was rather simple: drive down costs using [mass production](https:\/\/www.britannica.com\/technology\/mass-production), invest the savings in mass media ad campaigns that imbued the brands with emotional resonance, and then make a profit by charging prices for the branded product that were higher than those charged by generic producers or those with weaker brands—prices that consumers would gladly pay because they valued the emotional connection they had with the stronger brand. The latter half of the 20th century was a period of increased sophistication, investment, and profitability in brand-based marketing. Marketers refined their message based on focus groups, consumer surveys, and data collected through retailers, and they expanded their reach through event sponsorships (such as the [Super Bowl](https:\/\/www.britannica.com\/sports\/Super-Bowl)) and film and television product placement. Additionally, they owned and operated brand-specific retail stores.\n\nThe rise of the [Internet](https:\/\/www.britannica.com\/technology\/Internet), however, profoundly challenged the branding models of the 20th century. The controlled one-way messaging strategy so effective in mass media did not always translate well to the interactive online environment. Leading brands spent millions of dollars on “brochureware” websites (websites that simply listed their products and services online, akin to listing their products in a static brochure) that sparked limited consumer interest. Meanwhile, the disruptive effect of the new marketing channel allowed new brands to emerge as well as new types of intermediaries between product manufacturers and consumers, including review websites, pricing agents, and search engines. Consumers grew less reliant on the brands themselves to signal quality or value.\n\n## Brand strategy\n## Defining the product\nIn a crowded, competitive marketplace, a brand and its associations convey the unique selling proposition of a product. This includes both rational attributes, such as price and quality, and emotional attributes, such as prestige, freedom, or reliability. Retailers often position themselves squarely on the rational benefit of price. [Walmart](https:\/\/www.britannica.com\/money\/Walmart), for example, has relied on a variety of slogans to communicate low prices, such as “Every Day Low Prices” and “Save Money. Live Better.” Luxury retailer [Neiman Marcus](https:\/\/www.britannica.com\/money\/Neiman-Marcus), on the other hand, flaunts its high prices, featuring outrageously expensive “fantasy gifts” in its holiday catalogs. Recent offerings from the latter included a \\$6.1 million diamond ring and a \\$285,000 electric pickup truck.\n\n[American Express](https:\/\/www.britannica.com\/money\/American-Express-Company) is a classic example of a brand that combines rational associations (conveying itself as a reliable, secure partner for expensive transactions) with aspirational, emotional ones (prestige, upward mobility, luxury). For years, the company spent heavily on advertising that featured familiar celebrities (including actor [Karl Malden](https:\/\/www.britannica.com\/biography\/Karl-Malden), director [Martin Scorsese](https:\/\/www.britannica.com\/biography\/Martin-Scorsese), singer [Sheryl Crow](https:\/\/www.britannica.com\/biography\/Sheryl-Crow), and athlete [Shaun White](https:\/\/www.britannica.com\/biography\/Shaun-White)) who relied on the American Express card. The advertising was combined with a product strategy that supplemented the [credit card](https:\/\/www.britannica.com\/money\/credit-card) with a suite of complimentary travel rewards and perks. Advertisements promised American Express cardholders unique, luxury experiences that differentiated the brand from its competition, such as [Visa](https:\/\/www.britannica.com\/money\/Visa-Inc) and [Mastercard](https:\/\/www.britannica.com\/money\/Mastercard-Inc).\n\n## Defining the consumer\nBrands offer consumers a means of expressing themselves privately and publicly. Whereas early advertisements simply promoted the product, sophisticated marketers realized they could build stronger emotional connections if they focused on what their brands said about *users* of their product. During the peak of the [feminist movement](https:\/\/www.britannica.com\/topic\/feminism) in the 1960s and early ʾ70s, cigarette brand Virginia Slims built a business on this strategy by touting the progress women had made in recent years, using its famous tagline: “You’ve come a long way, baby.” [Nike](https:\/\/www.britannica.com\/money\/Nike-Inc), with the slogan “Just Do It,” became the global leader in athletic footwear by focusing its brand on the efforts and achievements of Nike-wearers instead of on the shoes themselves. As smart brand marketers discovered, humans are social animals who are constantly on the lookout for ways to signal their success and value to others.\n\nSome product categories are inherently well suited to “self-expressive benefits” and branding that helps consumers signal aspects of their status or personality. Outdoor gear, for instance, is often worn or used not just for utility in the wilderness but to signal the owner’s affinity for adventure. The cooler brand YETI surged to a leadership position in a previously sleepy category with prominent labeling—offering a strong, consistent visual identity across its products and advertising and a promise of rugged, even overbuilt quality.\n\nOne of the greatest brand-building successes in history has been [Apple](https:\/\/www.britannica.com\/money\/Apple-Inc). Although the company’s category, computer hardware, was long associated with office drudgery and introverted users, Apple’s branding made its customers feel creative and unique. The company’s [1984 Super Bowl commercial](https:\/\/www.britannica.com\/story\/what-was-the-super-bowls-first-blockbuster-commercial), announcing the then new Macintosh computer, was perhaps the single most influential advertisement ever aired. Yet the commercial never showed a computer or explained what it could be used for or how it could be purchased. It did not even mention the brand name in the multimillion-dollar commercial until the final five seconds. Instead, it did something more powerful: it defined the brand’s customer as revolutionary and creative.\n\n## Operating within a brand architecture\nBrand architecture is the organizing structure of a *brand portfolio*. Brand managers often use more than one brand for a product and may span a single brand across many products. For example, [Coca-Cola](https:\/\/www.britannica.com\/money\/The-Coca-Cola-Company) originated as a single-product brand, associated for more than a century with a specific carbonated [soft drink](https:\/\/www.britannica.com\/topic\/soft-drink). But in recent years it spawned several sub-brands, which are distinguished with additional terminology (“Diet,” “Cherry,” “Zero”) and visual cues, such as the silver associated with Diet Coke and the black associated with Coke Zero. Coca-Cola is also not just a consumer brand but a strong corporate brand, used to communicate the company’s track record of financial success to investors and business partners. These multiple uses of the brand help increase the return Coca-Cola gets from investing in a single brand, but they come at a cost to flexibility. The brand manager for Coke Zero, for example, has to consider the potential impact of a new promotion or partnership not just on the Coke Zero brand but on the other products under the Coca-Cola brand umbrella as well as the Coca-Cola corporate brand. By contrast, the brand manager for Sprite (a brand owned by Coca-Cola) has more freedom, since consumers are unlikely to associate advertising messages from Sprite with the Coca-Cola brand.\n\n0 seconds of 1 minute, 48 secondsVolume 90%\n\nPress shift question mark to access a list of keyboard shortcuts\n\nKeyboard Shortcuts\n\nEnabledDisabled\n\nShortcuts Open\/Close\/ or ?\n\nPlay\/PauseSPACE\n\nIncrease Volume↑\n\nDecrease Volume↓\n\nSeek Forward→\n\nSeek Backward←\n\nCaptions On\/Offc\n\nFullscreen\/Exit Fullscreenf\n\nMute\/Unmutem\n\nDecrease Caption Size\\-\n\nIncrease Caption Size\\+ or =\n\nSeek %0-9\n\nSubtitle Settings\n\nOff\n\nEnglish\n\nFont Color\n\nWhite\n\nFont Opacity\n\n100%\n\nFont Size\n\n100%\n\nFont Family\n\nsans-serif\n\nCharacter Edge\n\nNone\n\nEdge Color\n\nBlack\n\nBackground Color\n\nBlack\n\nBackground Opacity\n\n75%\n\nWindow Color\n\nBlack\n\nWindow Opacity\n\n0%\n\nReset\n\nWhite\n\nBlack\n\nRed\n\nGreen\n\nBlue\n\nYellow\n\nMagenta\n\nCyan\n\n100%\n\n75%\n\n50%\n\n25%\n\n200%\n\n175%\n\n150%\n\n125%\n\n100%\n\n75%\n\n50%\n\nArial\n\nCourier\n\nGeorgia\n\nImpact\n\nLucida Console\n\nTahoma\n\nTimes New Roman\n\nTrebuchet MS\n\nVerdana\n\nNone\n\nRaised\n\nDepressed\n\nUniform\n\nDrop Shadow\n\nWhite\n\nBlack\n\nRed\n\nGreen\n\nBlue\n\nYellow\n\nMagenta\n\nCyan\n\nWhite\n\nBlack\n\nRed\n\nGreen\n\nBlue\n\nYellow\n\nMagenta\n\nCyan\n\n100%\n\n75%\n\n50%\n\n25%\n\n0%\n\nWhite\n\nBlack\n\nRed\n\nGreen\n\nBlue\n\nYellow\n\nMagenta\n\nCyan\n\n100%\n\n75%\n\n50%\n\n25%\n\n0%\n\nAuto360p\n\n1080p\n\n720p\n\n360p\n\n180p\n\nLive\n\n00:00\n\n00:00\n\n01:48\n\nExplore the history of the Coca-Cola Company and brand.\n\nEncyclopædia Britannica, Inc.\n\nBrand managers use an array of tactics to organize complex brand architectures, but, broadly speaking, companies follow either a “branded house” or a “house of brands’’ approach. [Apple](https:\/\/www.britannica.com\/money\/Apple-Inc) operates mainly as a branded house, with nearly all of its products prominently identified with the “Apple” brand. Individual Apple products are distinguished through product brands (e.g., [iPhone](https:\/\/www.britannica.com\/technology\/iPhone), AirPods) but the Apple name, visual style, and language are present in all communications. Consumer packaged-goods companies, on the other hand, typically prefer the house of brands, multiple-branding strategy, as seen with [Procter & Gamble](https:\/\/www.britannica.com\/money\/Procter-and-Gamble-Company) (Crest, Gillette, Tide) and Colgate-Palmolive (Softsoap, Tom’s of Maine, Ajax). Variations are common, although companies typically keep brands separate when they convey distinct and even conflicting associations (such as brands for toothpaste and dishwasher detergent) but link them together when their various products benefit from common values (as with digital products like mobile phones and laptops).\n\nFor each individual brand within the marketing architecture, brand managers decide how closely to connect them with one another and with the larger corporate brand. Various terms are sometimes used, not necessarily consistently across companies, to denote these relationships. Managers might refer to a brand that is closely linked to its parent as a “sub-brand” (for example, FedEx Ground and FedEx Office), whereas a brand with a more subtle connection might be termed an “endorsed brand” (Courtyard by Marriott). “Ingredient” brands can even operate within another company’s architecture. [Intel](https:\/\/www.britannica.com\/money\/Intel)’s “Intel Inside” campaign helped the company maintain dominance in [personal computer](https:\/\/www.britannica.com\/technology\/personal-computer) chips for decades by adding their product and the Intel branding to goods produced by other companies, such as [Dell](https:\/\/www.britannica.com\/money\/Dell-Inc), Acer, and Lenovo. These marketing approaches are fluid and situational, and most multibrand companies today employ a range of tactics.\n\n## Tools, uses, and dangers of branding\nAt its core, a brand is a name, but nearly all brands are associated with other symbols, including logos, colors, taglines, and music. Over time, these symbols can acquire substantial monetary value and are generally protected through [trademark](https:\/\/www.britannica.com\/money\/trademark) law. Brand managers must be careful to keep control over their brand elements, or trademark protection can be lost. Large brands typically have detailed internal rules about the use of brand imagery, precise colors, and design elements. Ironically, great success in brand marketing can be fatal, leading to *genericide*: when a brand, due to market saturation, becomes the generic term for the product itself and loses its legal protection. Aspirin, for example, was once a trademark of the [Bayer](https:\/\/www.britannica.com\/money\/Bayer) company, and cellophane was formerly a [DuPont](https:\/\/www.britannica.com\/money\/DuPont-Company) trademark. Consequently, companies that have built popular brands such as [Google](https:\/\/www.britannica.com\/money\/Google-Inc), [Photoshop](https:\/\/www.britannica.com\/technology\/Adobe-Photoshop), and Kleenex must be careful in communications and with partners to prevent their brands from becoming generic, legally useable terms.\n\nPepsi-Cola Company\n\nThere are also assorted powerful branding tools. The use of sound, for example, has evolved from classic advertising “jingles” (e.g., “The best part of waking up is Folgers in your cup” for Folgers Coffee) to signature sounds, such as [HBO](https:\/\/www.britannica.com\/money\/HBO)’s “static angel” intro, [Netflix](https:\/\/www.britannica.com\/money\/Netflix-Inc)’s “ta-dum,” or Intel’s five-note “bong.” A signature colour can also be powerful, because of how widely it can be used—at the point of sale, for product extensions, and in advertising—once the colour is established in the minds of consumers. Examples include [Tiffany](https:\/\/www.britannica.com\/biography\/Charles-Lewis-Tiffany)’s turquoise blue, T-Mobile’s pink, and [Home Depot](https:\/\/www.britannica.com\/money\/Home-Depot)’s orange.\n\n![Tiffany & Co.](https:\/\/cdn.britannica.com\/45\/240245-050-96140AB9\/Tiffany-blue-bags-boxes-luxury-shopping.jpg?w=385)\n\nOpen full sized image\n\nTiffany & Co.'s signature robin's egg blue bag and box.\n\n© Jeff Whyte\/Dreamstime.com\n\nFor most brands, though, the primary means of building awareness and associations are through advertising, still a multibillion-dollar industry. In this classic marketing approach, the brand is advertised in a scene or narrative intended to evoke the desired associations. [AT\\&T](https:\/\/www.britannica.com\/money\/ATandT-Corporation), for example, has for decades promoted the power of a phone call to bridge the geographical divide, keeping families and loved ones connected. But advertising has progressed beyond obvious commercials, as companies seek to reach consumers in more subtle ways, such as through product placement in films and television programs, affiliation with celebrities and “influencers” (either by using them as spokespersons or by sponsoring their events), and association with admired causes (such as [environmentalism](https:\/\/www.britannica.com\/topic\/environmentalism) or disaster relief). These tactics can generate much greater returns than traditional advertising—in 1982, for example, [Hershey](https:\/\/www.britannica.com\/money\/Hershey-Chocolate-Corporation) paid \\$1 million to feature a new candy, Reese’s Pieces, in the film *[E.T. the Extra-Terrestrial](https:\/\/www.britannica.com\/biography\/Steven-Spielberg)* and enjoyed a 65 percent increase in sales and a lasting association with a beloved movie character. Today, there are entire advertising agencies devoted to linking brands with movies, [social media](https:\/\/www.britannica.com\/topic\/social-media) personalities, and special events.\n\n![Drew Barrymore offers Reese's candy to E.T.](https:\/\/cdn.britannica.com\/46\/240246-050-2F484940\/ET-the-Extra-Terrestrial-promotional-photo-drew-barrymore-Reeses-Pieces-candy.jpg?w=385)\n\nOpen full sized image\n\nActress Drew Barrymore offers the alien some Reese's Pieces candy, a prominent example of product placement in the film *E.T. the Extra-Terrestrial* (1982).\n\n© Universal Studios\/Amblin Entertainment\n\nSponsorship branding, where a brand is tied to an athlete or entertainer or special occasion or cause, is another popular means of building associations, though this marketing method is fraught with risk. [Michael Jordan](https:\/\/www.britannica.com\/biography\/Michael-Jordan)’s longtime partnership with [Nike](https:\/\/www.britannica.com\/money\/Nike-Inc), for example, has made both parties billions of dollars. On the other hand, [Adidas](https:\/\/www.britannica.com\/money\/Adidas-AG)’s lucrative partnership with entertainer [Kanye West](https:\/\/www.britannica.com\/biography\/Kanye-West) backfired after he made a series of [anti-Semitic](https:\/\/www.britannica.com\/topic\/antisemitism) remarks, leading the company to cut ties with him in 2022 at an immediate cost to the corporation of some \\$250 million and the risk of much greater long-term damage to the brand. Social or political associations can similarly be treacherous for brands. In 2023, both [Bud Light](https:\/\/www.britannica.com\/money\/Anheuser-Busch-Companies-Inc) and [Target](https:\/\/www.britannica.com\/money\/Target-Corporation) received backlash and calls for [boycotts](https:\/\/www.britannica.com\/topic\/boycott) of their brands after the former engaged a [transgender](https:\/\/www.britannica.com\/topic\/transgender) influencer for a promotion of its beer and the latter marketed trans-friendly merchandise during [Pride Month](https:\/\/www.britannica.com\/story\/why-is-pride-month-celebrated-in-june).\n\nBrand-building is not limited to external promotional communications. Brand managers seek to align all aspects of the company and the product with the brand and vice versa. Nike, for example, encourages its employees to pursue athletic hobbies, while Walmart promotes frugality with spartan corporate offices. Branding can even mean deliberately selling less of the product, a classic supply-and-demand tactic known as “scarcity marketing.” Clothing retailer Supreme built its brand on the back of its retail “drops,” new products introduced in limited supply at its own retail locations, which attract long lines in highly visible urban neighborhoods, building associations of exclusivity for the company.\n\nAlthough brands and branding evolved as a tool for marketing consumer products, brands are relevant in a variety of contexts. Brands can be valuable in business-to-business transactions, where managers often prefer to do business with established brands as a way of protecting themselves and limiting risk. For decades, “nobody ever got fired for buying [IBM](https:\/\/www.britannica.com\/money\/International-Business-Machines-Corporation)” was a widely used expression, reflecting the associations of reliability and quality that the IBM brand, known as “Big Blue,” had earned in corporate boardrooms. Similarly, consulting firms like [McKinsey & Company](https:\/\/www.britannica.com\/topic\/McKinsey-and-Company) and Boston Consulting Group implicitly promise their clients, as part of their brand appeal, a “seal of approval.” Managers advocating for a risky corporate venture frequently hire one of these firms to develop the strategy and add their brand strength to the proposal so that it carries more weight with corporate leadership.\n\nLess commercial organizations also rely on and invest in their brands. Young people spend years studying to be accepted at universities and then spend years paying off related debt, all for the lifelong right to associate themselves with brands like [Harvard](https:\/\/www.britannica.com\/topic\/Harvard-University), [Yale](https:\/\/www.britannica.com\/topic\/Yale-University), [Princeton](https:\/\/www.britannica.com\/topic\/Princeton-University), [Cambridge](https:\/\/www.britannica.com\/topic\/University-of-Cambridge), and Oxford. Modern universities employ many of the same tactics as shoe manufacturers and hamburger chains to enhance and protect their brands. Governments, political parties, artists, and charitable organizations are all active stewards of their brands, and some have developed sophisticated brand systems. [Donald Trump](https:\/\/www.britannica.com\/biography\/Donald-Trump)’s bright red “Make America Great Again” hats, Livestrong’s yellow bracelets, and the [Salvation Army](https:\/\/www.britannica.com\/topic\/Salvation-Army)’s red kettle are all iconic brand symbols intended to spur a host of non-commercial associations, from patriotism and political engagement to philanthropy and compassion.\n\n![Donald Trump](https:\/\/cdn.britannica.com\/41\/189141-050-591D6D00\/Donald-Trump-campaign-rally-Fountain-Hills-Arizona-March-2016.jpg?w=800)\n\nOpen full sized image\n\nWearing a MAGA (Make America Great Again) red hat, Donald Trump speaks to supporters at a campaign rally in Fountain Hills, Arizona, March 2016.\n\nGage Skidmore\n\n![Donating to a Salvation Army red kettle](https:\/\/cdn.britannica.com\/47\/240247-050-5AB44F0C\/Salvation-Army-bell-ringer.jpg?w=800)\n\nOpen full sized image\n\nA passerby dropping a donation into the red kettle of Delores Wright, a Salvation Army bell ringer in Chicago, during the 2004 Christmas season.\n\n© Tim Boyle\/Getty Images\n\n## Benefits of strong brands\nThe foundational virtue of a strong brand is pricing power. A well-branded product will sell for more than an otherwise identical generic one. But strong brands have other virtues. They give companies a head start into new product areas and opportunities through brand extensions. Apple’s iPhones, iPods, and AirPods headphones all benefited from the tailwind of the Apple brand. [Gmail](https:\/\/www.britannica.com\/topic\/Gmail) is trusted by millions of users in part because it comes from [Google](https:\/\/www.britannica.com\/money\/Google-Inc), a company that was already their main portal to the [Internet](https:\/\/www.britannica.com\/technology\/Internet).\n\nStrong brands are also moats against incursions by competitors. Dominant brands often “own” the most valuable associations in a category, and challenger brands must either spend prodigious amounts on marketing to compete head-to-head with them or adopt niche positions to carve out a smaller market share. In the U.S., for example, T-Mobile is the second largest wireless carrier, but it came into the market with lesser brand awareness than the leaders, Verizon and [AT\\&T](https:\/\/www.britannica.com\/money\/ATandT-Corporation), so it built the T-Mobile brand in express contrast with them, calling itself the “Un-carrier.” Trusted brands are also better suited to survive difficult times. The [Tylenol](https:\/\/www.britannica.com\/science\/Tylenol) brand survived a terrifying poison scare in 1982 in part because it had been part of consumer’s lives for nearly 30 years. Coca-Cola emerged from a failed attempt to reformulate its core product (“[New Coke](https:\/\/www.britannica.com\/topic\/New-Coke)”) stronger than ever when the controversial change reinvigorated consumers’ lifelong associations with Coca-Cola. Brands without those years of established associations, however, can be more fragile. Soon after [Ford](https:\/\/www.britannica.com\/money\/Ford-Motor-Company) introduced the Pinto, the model suffered a series of highly publicized fiery crashes. Lacking the ballast of other associations, the brand became known for those crashes, even though the car (which Ford knew was potentially dangerous) was no more dangerous than many other cars of its era. Ford abandoned the brand name.\n\n![testing bottles of Tylenol for poison, 1982](https:\/\/cdn.britannica.com\/48\/240248-050-2C5EC6B1\/Extra-strenght-tylenol-bottles-tested-for-cyanide-tylenol-murders-1982.jpg?w=385)\n\nOpen full sized image\n\nTesting bottles of Extra Strength Tylenol with a chemically treated paper that turns blue in the presence of cyanide, Chicago, 1982. Such testing followed in the wake of the Tylenol poisoning tragedy that killed seven people in the Chicago area and led to a mass recall of the over-the-counter drug.\n\nJohn Swart—AP\/Shutterstock.com\n\nStrong brands can even turn consumers into brand ambassadors. A popular metric for measuring brand strength is the Net Promoter Score (NPS), which relies on a single question: “How likely are you to recommend this product to someone else?” A brand that people are proud to be associated with is one that people are more likely to recommend and promote, for example, through social media.\n\n## Controversy over branding\nBranding has its critics. Some argue that the increased price charged for branded products is exploitative, a means of using the power of mass media to manipulate people into wasteful spending. Specific brands, products, and advertising campaigns have also been charged with promoting harmful stereotypes, unhealthy pastimes, and unattainable ideals. Products such as [Aunt Jemima](https:\/\/www.britannica.com\/topic\/Aunt-Jemima-Pearl-Milling-Company) pancake mix, Uncle Ben’s rice, and Cream of Wheat have all discontinued their historic brands or logos depicting [African Americans](https:\/\/www.britannica.com\/topic\/African-Americans) because they have been charged with racial stereotyping; the [fashion industry](https:\/\/www.britannica.com\/art\/fashion-industry) has frequently been singled out for promoting unhealthy body types; and advertising tied to smoking, especially when apparently aimed at children (as the manufacturers of [vaping](https:\/\/www.britannica.com\/topic\/e-cigarette) products are widely accused of doing), has long been criticized for encouraging a dangerous addiction. Additionally, because advertising is often the primary source of funding for news and entertainment content, critics warn that advertisers may actually be purchasing biased treatment and reviews of their products. “[Greenwashing](https:\/\/www.britannica.com\/money\/greenwashing)” refers to companies using advertising and brand associations to counter the environmental and human harms their products or services may have caused. Major international [oil](https:\/\/www.britannica.com\/science\/oil-chemical-compound) companies, for example, have all faced controversies over using advertising to change consumer perceptions. In 2001 [BP](https:\/\/www.britannica.com\/money\/BP-PLC) began promoting itself as “Beyond Petroleum” (the firm’s initials historically stood for “British Petroleum”) despite the fact that it produced billions of barrels of oil and gas per year. Less than a decade later, it abandoned the campaign after it sold its solar and wind divisions in order to cover losses stemming from the [Deepwater Horizon oil spill](https:\/\/www.britannica.com\/event\/Deepwater-Horizon-oil-spill).\n\n![Store display of Aunt Jemima pancake mix](https:\/\/cdn.britannica.com\/35\/234535-050-69EC04C5\/Quaker-Oats-To-Change-Name-Remove-Image-Of-Aunt-Jemima-Brand-2020.jpg?w=800)\n\nOpen full sized image\n\nGrocery store boxes of Aunt Jemima pancake mix in June 2020, shortly before the brand was discontinued because of charges of racial stereotyping in the wake of the murder that summer of George Floyd, a 46-year-old Black man in Minneapolis, Minnesota.\n\nJustin Sullivan\/Getty Images\n\n![extremely thin fashion model](https:\/\/cdn.britannica.com\/77\/197277-050-FF3D5312\/model-wearing-dress-Jamaican-designer-Damien-Yee-2006.jpg?w=800)\n\nOpen full sized image\n\nA runway model for the Guy Laroche fashion house in Paris, France, in 2006, whose extremely thin physique in the opinion of many promoted an unhealthy body image.\n\nKhayat-Nebinger-Orban-Taamallah\/ABACAUSA.com\/Newscom\n\n## Challenges in the digital age\nThe worldwide use of the Internet has spurred the most profound change to brand strategy since the rise of mass media in the 20th century. At their core, brands are a means of communication, one historically controlled by the manufacturer and owner of the brand. In a digital marketplace, however, consumers have great access to information and a global audience as well as novel means and tools for publishing their thoughts. As a consequence, brand owners have much less control over the ways their brands are used, viewed, and critiqued. A traditional television commercial or magazine advertisement, for example, is a self-contained, unalterable experience. Online, however, consumers or critics can use brand assets in unexpected ways, often subverting the brand owner’s mission and message. Parody accounts on social media, for instance, can associate unflattering messages with apparently legitimate brand imagery. Even a brand’s own website or social media channel can become a forum for criticism and competitive voices. In 2022, after [Twitter](https:\/\/www.britannica.com\/money\/Twitter) relaxed the requirements to obtain a “blue check” that indicates a legitimate account, pranksters made accounts in the name of various corporations and tweeted messages associating, for example, [Eli Lilly](https:\/\/www.britannica.com\/money\/Eli-Lilly-and-Company) with price gouging for insulin, [Chiquita](https:\/\/www.britannica.com\/money\/Chiquita-Brands-International-Inc) with Latin American dictatorships, and [Tesla](https:\/\/www.britannica.com\/science\/tesla) with automobile crashes.\n\nBecause the Internet delivers news and data directly to consumers, buyers are also less reliant now on brands to convey information about a particular product or service. Before the Internet, for instance, a business traveler headed to a new city likely would have booked a room at a familiar branded hotel, such as the [Hilton](https:\/\/www.britannica.com\/money\/Conrad-Hilton) or [Ritz-Carlton](https:\/\/www.britannica.com\/money\/Cesar-Ritz). Now, in just a few minutes, travelers can identify boutique options more akin to their likes, closer to their destination, and otherwise more valuable to them in distinct ways. The value of a brand as a signifier of quality has lessened in the online age.\n\nWhile traditional product brands have often stumbled in adapting to the digital age, those surviving have conformed nonetheless and incorporated online messaging into their strategies. Native digital brands, meanwhile, have become some of the most popular, valuable, and admired ones in the world: Google, [Amazon](https:\/\/www.britannica.com\/money\/Amazoncom), and [PayPal](https:\/\/www.britannica.com\/money\/PayPal), for example, all rely on their strong brands to garner consumer trust and attention in the online marketplace.\n\n[Scott Galloway](https:\/\/www.britannica.com\/money\/author\/scott-galloway\/12911181)\n\n[![Britannica Money Logo](https:\/\/cdn.britannica.com\/money\/assets\/Money-475x60-footer-2x.png?h=47&w=390)](https:\/\/www.britannica.com\/money)\n\n[About Us](https:\/\/www.britannica.com\/money\/about)[Privacy Policy](https:\/\/corporate.britannica.com\/privacy-policy-2)[Terms & Conditions](https:\/\/corporate.britannica.com\/termsofuse.html)\n\n© 2026 Encyclopædia Britannica, Inc.","attrs_readable_markdown":"![Cereal brands](https:\/\/cdn.britannica.com\/42\/240242-050-ACD88997\/Breakfast-cereals-grocery-store.jpg?w=385)\n\nOpen full sized image\n\nBreakfast cereals on the shelves of a grocery store.\n\n© Kenishirotie\/Dreamstime.com\n\n**brand (marketing)**, a set of words, images, and associations that represent and distinguish a product or service in the marketplace. Strong brands elicit an emotional response from consumers and add value to the products and services they represent. Manufacturers have identified their products with names or symbols for thousands of years, and in the 20th century brands became not only critical to the promotion of goods and services but valuable assets in themselves. With the shift toward digital commerce in the 21st century, brands continue to be valuable but face new challenges because of the greater accessibility of information about products and services, the companies that produce or offer them, and the performance history of the branded offerings.\n\n## History of brands and brand marketing\nThe term *brand* originates from the Middle [English](https:\/\/www.britannica.com\/topic\/English-language\/Historical-background#ref74809) [word](https:\/\/www.merriam-webster.com\/dictionary\/brand#word-history) for torch and the Old English verb meaning “to burn,” as well as from the historic practice of identifying goods with the mark of a *firebrand* (a burning piece of wood) and, later, a hot or cold iron. The branded “goods” might be the assets themselves (as with the hot-iron [branding](https:\/\/www.britannica.com\/topic\/branding-identification) of [cattle](https:\/\/www.britannica.com\/animal\/cattle-livestock), a practice common as far back as ancient Egypt) or the barrels and boxes containing the products. Even [enslaved](https:\/\/www.britannica.com\/topic\/slavery-sociology) people and criminals, for purposes of identification and punishment, have been branded throughout history.\n\nProducers have been marking their goods for millennia—there are stones, for example, from [ancient Egypt](https:\/\/www.britannica.com\/place\/ancient-Egypt) marked with a symbol of the quarry they hail from that are 6,000 years old and [Chinese pottery](https:\/\/www.britannica.com\/art\/Chinese-pottery) marked to indicate the potter who made it that are from 4,000 to 5,000 years old. The use of brand names to denote manufacturers became widespread in Europe in the late Middle Ages. Such branding soon became legally mandated. In 1266 the English Parliament enacted a law requiring bakers to mark loaves of bread made for sale, and, in the centuries that followed, European courts developed a body of law protecting the rights of producers to own their names and marks.\n\nWith the rise of industrial-scale manufacturing and the widespread geographical distribution of products, reliable identification of goods became increasingly important, as consumers no longer purchased directly from local producers. By the late 19th century, manufacturers of all kinds were using stylized text, logos, and color schemes not just to identify their goods but to distinguish them in a crowded marketplace through promises of superior quality or value. Advertising agencies also emerged, notably [J. Walter Thompson Co.](https:\/\/www.britannica.com\/money\/J-Walter-Thompson-Co), which pioneered early techniques of using magazine advertisements to connect products with generalized associations such as the longing for luxury, security, or love. [Coca-Cola](https:\/\/www.britannica.com\/money\/The-Coca-Cola-Company), Ivory Soap, and [Colgate](https:\/\/www.britannica.com\/money\/Colgate-Palmolive-Company) all emerged as brands during this period with the support of extensive [advertising](https:\/\/www.britannica.com\/money\/advertising) campaigns.\n\n![Tabasco sauce ad, 1905](https:\/\/cdn.britannica.com\/09\/237809-050-5DE87D7E\/1905-adverstisement-for-TABASCO-Brand-Pepper-Sauce.jpg?w=385)\n\nOpen full sized image\n\nAdvertisement for Tabasco sauce, 1905.\n\nMcIlhenny Company Archives, Avery Island, La.\n\nThe reach and evocative power of [mass media](https:\/\/www.britannica.com\/topic\/mass-media), such as [radio](https:\/\/www.britannica.com\/topic\/radio) and especially [television](https:\/\/www.britannica.com\/technology\/television-technology), facilitated the modern era of branding. Manufacturers, led by American consumer packaged goods companies, began investing heavily in advertising, not just to raise awareness of their brands but to build specific emotional associations with their products. *Brand management* thus became an organizational concept. [Procter & Gamble Company](https:\/\/www.britannica.com\/money\/Procter-and-Gamble-Company) was a pioneer in such brand management, rejecting the notion of a single corporate [marketing](https:\/\/www.britannica.com\/money\/marketing) department and instead putting each of its branded products (e.g., Ivory, Tide, Crest, Crisco) under a separate management team, responsible for identifying a specific consumer segment and building a brand to appeal to that specific kind of buyer. By the 1950s, this strategy had become the standard marketing model in consumer-goods companies.\n\nThe overall strategy for success at that time was rather simple: drive down costs using [mass production](https:\/\/www.britannica.com\/technology\/mass-production), invest the savings in mass media ad campaigns that imbued the brands with emotional resonance, and then make a profit by charging prices for the branded product that were higher than those charged by generic producers or those with weaker brands—prices that consumers would gladly pay because they valued the emotional connection they had with the stronger brand. The latter half of the 20th century was a period of increased sophistication, investment, and profitability in brand-based marketing. Marketers refined their message based on focus groups, consumer surveys, and data collected through retailers, and they expanded their reach through event sponsorships (such as the [Super Bowl](https:\/\/www.britannica.com\/sports\/Super-Bowl)) and film and television product placement. Additionally, they owned and operated brand-specific retail stores.\n\nThe rise of the [Internet](https:\/\/www.britannica.com\/technology\/Internet), however, profoundly challenged the branding models of the 20th century. The controlled one-way messaging strategy so effective in mass media did not always translate well to the interactive online environment. Leading brands spent millions of dollars on “brochureware” websites (websites that simply listed their products and services online, akin to listing their products in a static brochure) that sparked limited consumer interest. Meanwhile, the disruptive effect of the new marketing channel allowed new brands to emerge as well as new types of intermediaries between product manufacturers and consumers, including review websites, pricing agents, and search engines. Consumers grew less reliant on the brands themselves to signal quality or value.\n\n## Brand strategy\n## Defining the product\nIn a crowded, competitive marketplace, a brand and its associations convey the unique selling proposition of a product. This includes both rational attributes, such as price and quality, and emotional attributes, such as prestige, freedom, or reliability. Retailers often position themselves squarely on the rational benefit of price. [Walmart](https:\/\/www.britannica.com\/money\/Walmart), for example, has relied on a variety of slogans to communicate low prices, such as “Every Day Low Prices” and “Save Money. Live Better.” Luxury retailer [Neiman Marcus](https:\/\/www.britannica.com\/money\/Neiman-Marcus), on the other hand, flaunts its high prices, featuring outrageously expensive “fantasy gifts” in its holiday catalogs. Recent offerings from the latter included a \\$6.1 million diamond ring and a \\$285,000 electric pickup truck.\n\n[American Express](https:\/\/www.britannica.com\/money\/American-Express-Company) is a classic example of a brand that combines rational associations (conveying itself as a reliable, secure partner for expensive transactions) with aspirational, emotional ones (prestige, upward mobility, luxury). For years, the company spent heavily on advertising that featured familiar celebrities (including actor [Karl Malden](https:\/\/www.britannica.com\/biography\/Karl-Malden), director [Martin Scorsese](https:\/\/www.britannica.com\/biography\/Martin-Scorsese), singer [Sheryl Crow](https:\/\/www.britannica.com\/biography\/Sheryl-Crow), and athlete [Shaun White](https:\/\/www.britannica.com\/biography\/Shaun-White)) who relied on the American Express card. The advertising was combined with a product strategy that supplemented the [credit card](https:\/\/www.britannica.com\/money\/credit-card) with a suite of complimentary travel rewards and perks. Advertisements promised American Express cardholders unique, luxury experiences that differentiated the brand from its competition, such as [Visa](https:\/\/www.britannica.com\/money\/Visa-Inc) and [Mastercard](https:\/\/www.britannica.com\/money\/Mastercard-Inc).\n\n## Defining the consumer\nBrands offer consumers a means of expressing themselves privately and publicly. Whereas early advertisements simply promoted the product, sophisticated marketers realized they could build stronger emotional connections if they focused on what their brands said about *users* of their product. During the peak of the [feminist movement](https:\/\/www.britannica.com\/topic\/feminism) in the 1960s and early ʾ70s, cigarette brand Virginia Slims built a business on this strategy by touting the progress women had made in recent years, using its famous tagline: “You’ve come a long way, baby.” [Nike](https:\/\/www.britannica.com\/money\/Nike-Inc), with the slogan “Just Do It,” became the global leader in athletic footwear by focusing its brand on the efforts and achievements of Nike-wearers instead of on the shoes themselves. As smart brand marketers discovered, humans are social animals who are constantly on the lookout for ways to signal their success and value to others.\n\nSome product categories are inherently well suited to “self-expressive benefits” and branding that helps consumers signal aspects of their status or personality. Outdoor gear, for instance, is often worn or used not just for utility in the wilderness but to signal the owner’s affinity for adventure. The cooler brand YETI surged to a leadership position in a previously sleepy category with prominent labeling—offering a strong, consistent visual identity across its products and advertising and a promise of rugged, even overbuilt quality.\n\nOne of the greatest brand-building successes in history has been [Apple](https:\/\/www.britannica.com\/money\/Apple-Inc). Although the company’s category, computer hardware, was long associated with office drudgery and introverted users, Apple’s branding made its customers feel creative and unique. The company’s [1984 Super Bowl commercial](https:\/\/www.britannica.com\/story\/what-was-the-super-bowls-first-blockbuster-commercial), announcing the then new Macintosh computer, was perhaps the single most influential advertisement ever aired. Yet the commercial never showed a computer or explained what it could be used for or how it could be purchased. It did not even mention the brand name in the multimillion-dollar commercial until the final five seconds. Instead, it did something more powerful: it defined the brand’s customer as revolutionary and creative.\n\n## Operating within a brand architecture\nBrand architecture is the organizing structure of a *brand portfolio*. Brand managers often use more than one brand for a product and may span a single brand across many products. For example, [Coca-Cola](https:\/\/www.britannica.com\/money\/The-Coca-Cola-Company) originated as a single-product brand, associated for more than a century with a specific carbonated [soft drink](https:\/\/www.britannica.com\/topic\/soft-drink). But in recent years it spawned several sub-brands, which are distinguished with additional terminology (“Diet,” “Cherry,” “Zero”) and visual cues, such as the silver associated with Diet Coke and the black associated with Coke Zero. Coca-Cola is also not just a consumer brand but a strong corporate brand, used to communicate the company’s track record of financial success to investors and business partners. These multiple uses of the brand help increase the return Coca-Cola gets from investing in a single brand, but they come at a cost to flexibility. The brand manager for Coke Zero, for example, has to consider the potential impact of a new promotion or partnership not just on the Coke Zero brand but on the other products under the Coca-Cola brand umbrella as well as the Coca-Cola corporate brand. By contrast, the brand manager for Sprite (a brand owned by Coca-Cola) has more freedom, since consumers are unlikely to associate advertising messages from Sprite with the Coca-Cola brand.\n\n0 seconds of 1 minute, 48 secondsVolume 90%\n\nPress shift question mark to access a list of keyboard shortcuts\n\n00:00\n\n00:00\n\n01:48\n\nExplore the history of the Coca-Cola Company and brand.\n\nEncyclopædia Britannica, Inc.\n\nBrand managers use an array of tactics to organize complex brand architectures, but, broadly speaking, companies follow either a “branded house” or a “house of brands’’ approach. [Apple](https:\/\/www.britannica.com\/money\/Apple-Inc) operates mainly as a branded house, with nearly all of its products prominently identified with the “Apple” brand. Individual Apple products are distinguished through product brands (e.g., [iPhone](https:\/\/www.britannica.com\/technology\/iPhone), AirPods) but the Apple name, visual style, and language are present in all communications. Consumer packaged-goods companies, on the other hand, typically prefer the house of brands, multiple-branding strategy, as seen with [Procter & Gamble](https:\/\/www.britannica.com\/money\/Procter-and-Gamble-Company) (Crest, Gillette, Tide) and Colgate-Palmolive (Softsoap, Tom’s of Maine, Ajax). Variations are common, although companies typically keep brands separate when they convey distinct and even conflicting associations (such as brands for toothpaste and dishwasher detergent) but link them together when their various products benefit from common values (as with digital products like mobile phones and laptops).\n\nFor each individual brand within the marketing architecture, brand managers decide how closely to connect them with one another and with the larger corporate brand. Various terms are sometimes used, not necessarily consistently across companies, to denote these relationships. Managers might refer to a brand that is closely linked to its parent as a “sub-brand” (for example, FedEx Ground and FedEx Office), whereas a brand with a more subtle connection might be termed an “endorsed brand” (Courtyard by Marriott). “Ingredient” brands can even operate within another company’s architecture. [Intel](https:\/\/www.britannica.com\/money\/Intel)’s “Intel Inside” campaign helped the company maintain dominance in [personal computer](https:\/\/www.britannica.com\/technology\/personal-computer) chips for decades by adding their product and the Intel branding to goods produced by other companies, such as [Dell](https:\/\/www.britannica.com\/money\/Dell-Inc), Acer, and Lenovo. These marketing approaches are fluid and situational, and most multibrand companies today employ a range of tactics.\n\n## Tools, uses, and dangers of branding\nAt its core, a brand is a name, but nearly all brands are associated with other symbols, including logos, colors, taglines, and music. Over time, these symbols can acquire substantial monetary value and are generally protected through [trademark](https:\/\/www.britannica.com\/money\/trademark) law. Brand managers must be careful to keep control over their brand elements, or trademark protection can be lost. Large brands typically have detailed internal rules about the use of brand imagery, precise colors, and design elements. Ironically, great success in brand marketing can be fatal, leading to *genericide*: when a brand, due to market saturation, becomes the generic term for the product itself and loses its legal protection. Aspirin, for example, was once a trademark of the [Bayer](https:\/\/www.britannica.com\/money\/Bayer) company, and cellophane was formerly a [DuPont](https:\/\/www.britannica.com\/money\/DuPont-Company) trademark. Consequently, companies that have built popular brands such as [Google](https:\/\/www.britannica.com\/money\/Google-Inc), [Photoshop](https:\/\/www.britannica.com\/technology\/Adobe-Photoshop), and Kleenex must be careful in communications and with partners to prevent their brands from becoming generic, legally useable terms.\n\nPepsi-Cola Company\n\nThere are also assorted powerful branding tools. The use of sound, for example, has evolved from classic advertising “jingles” (e.g., “The best part of waking up is Folgers in your cup” for Folgers Coffee) to signature sounds, such as [HBO](https:\/\/www.britannica.com\/money\/HBO)’s “static angel” intro, [Netflix](https:\/\/www.britannica.com\/money\/Netflix-Inc)’s “ta-dum,” or Intel’s five-note “bong.” A signature colour can also be powerful, because of how widely it can be used—at the point of sale, for product extensions, and in advertising—once the colour is established in the minds of consumers. Examples include [Tiffany](https:\/\/www.britannica.com\/biography\/Charles-Lewis-Tiffany)’s turquoise blue, T-Mobile’s pink, and [Home Depot](https:\/\/www.britannica.com\/money\/Home-Depot)’s orange.\n\n![Tiffany & Co.](https:\/\/cdn.britannica.com\/45\/240245-050-96140AB9\/Tiffany-blue-bags-boxes-luxury-shopping.jpg?w=385)\n\nOpen full sized image\n\nTiffany & Co.'s signature robin's egg blue bag and box.\n\n© Jeff Whyte\/Dreamstime.com\n\nFor most brands, though, the primary means of building awareness and associations are through advertising, still a multibillion-dollar industry. In this classic marketing approach, the brand is advertised in a scene or narrative intended to evoke the desired associations. [AT\\&T](https:\/\/www.britannica.com\/money\/ATandT-Corporation), for example, has for decades promoted the power of a phone call to bridge the geographical divide, keeping families and loved ones connected. But advertising has progressed beyond obvious commercials, as companies seek to reach consumers in more subtle ways, such as through product placement in films and television programs, affiliation with celebrities and “influencers” (either by using them as spokespersons or by sponsoring their events), and association with admired causes (such as [environmentalism](https:\/\/www.britannica.com\/topic\/environmentalism) or disaster relief). These tactics can generate much greater returns than traditional advertising—in 1982, for example, [Hershey](https:\/\/www.britannica.com\/money\/Hershey-Chocolate-Corporation) paid \\$1 million to feature a new candy, Reese’s Pieces, in the film *[E.T. the Extra-Terrestrial](https:\/\/www.britannica.com\/biography\/Steven-Spielberg)* and enjoyed a 65 percent increase in sales and a lasting association with a beloved movie character. Today, there are entire advertising agencies devoted to linking brands with movies, [social media](https:\/\/www.britannica.com\/topic\/social-media) personalities, and special events.\n\n![Drew Barrymore offers Reese's candy to E.T.](https:\/\/cdn.britannica.com\/46\/240246-050-2F484940\/ET-the-Extra-Terrestrial-promotional-photo-drew-barrymore-Reeses-Pieces-candy.jpg?w=385)\n\nOpen full sized image\n\nActress Drew Barrymore offers the alien some Reese's Pieces candy, a prominent example of product placement in the film *E.T. the Extra-Terrestrial* (1982).\n\n© Universal Studios\/Amblin Entertainment\n\nSponsorship branding, where a brand is tied to an athlete or entertainer or special occasion or cause, is another popular means of building associations, though this marketing method is fraught with risk. [Michael Jordan](https:\/\/www.britannica.com\/biography\/Michael-Jordan)’s longtime partnership with [Nike](https:\/\/www.britannica.com\/money\/Nike-Inc), for example, has made both parties billions of dollars. On the other hand, [Adidas](https:\/\/www.britannica.com\/money\/Adidas-AG)’s lucrative partnership with entertainer [Kanye West](https:\/\/www.britannica.com\/biography\/Kanye-West) backfired after he made a series of [anti-Semitic](https:\/\/www.britannica.com\/topic\/antisemitism) remarks, leading the company to cut ties with him in 2022 at an immediate cost to the corporation of some \\$250 million and the risk of much greater long-term damage to the brand. Social or political associations can similarly be treacherous for brands. In 2023, both [Bud Light](https:\/\/www.britannica.com\/money\/Anheuser-Busch-Companies-Inc) and [Target](https:\/\/www.britannica.com\/money\/Target-Corporation) received backlash and calls for [boycotts](https:\/\/www.britannica.com\/topic\/boycott) of their brands after the former engaged a [transgender](https:\/\/www.britannica.com\/topic\/transgender) influencer for a promotion of its beer and the latter marketed trans-friendly merchandise during [Pride Month](https:\/\/www.britannica.com\/story\/why-is-pride-month-celebrated-in-june).\n\nBrand-building is not limited to external promotional communications. Brand managers seek to align all aspects of the company and the product with the brand and vice versa. Nike, for example, encourages its employees to pursue athletic hobbies, while Walmart promotes frugality with spartan corporate offices. Branding can even mean deliberately selling less of the product, a classic supply-and-demand tactic known as “scarcity marketing.” Clothing retailer Supreme built its brand on the back of its retail “drops,” new products introduced in limited supply at its own retail locations, which attract long lines in highly visible urban neighborhoods, building associations of exclusivity for the company.\n\nAlthough brands and branding evolved as a tool for marketing consumer products, brands are relevant in a variety of contexts. Brands can be valuable in business-to-business transactions, where managers often prefer to do business with established brands as a way of protecting themselves and limiting risk. For decades, “nobody ever got fired for buying [IBM](https:\/\/www.britannica.com\/money\/International-Business-Machines-Corporation)” was a widely used expression, reflecting the associations of reliability and quality that the IBM brand, known as “Big Blue,” had earned in corporate boardrooms. Similarly, consulting firms like [McKinsey & Company](https:\/\/www.britannica.com\/topic\/McKinsey-and-Company) and Boston Consulting Group implicitly promise their clients, as part of their brand appeal, a “seal of approval.” Managers advocating for a risky corporate venture frequently hire one of these firms to develop the strategy and add their brand strength to the proposal so that it carries more weight with corporate leadership.\n\nLess commercial organizations also rely on and invest in their brands. Young people spend years studying to be accepted at universities and then spend years paying off related debt, all for the lifelong right to associate themselves with brands like [Harvard](https:\/\/www.britannica.com\/topic\/Harvard-University), [Yale](https:\/\/www.britannica.com\/topic\/Yale-University), [Princeton](https:\/\/www.britannica.com\/topic\/Princeton-University), [Cambridge](https:\/\/www.britannica.com\/topic\/University-of-Cambridge), and Oxford. Modern universities employ many of the same tactics as shoe manufacturers and hamburger chains to enhance and protect their brands. Governments, political parties, artists, and charitable organizations are all active stewards of their brands, and some have developed sophisticated brand systems. [Donald Trump](https:\/\/www.britannica.com\/biography\/Donald-Trump)’s bright red “Make America Great Again” hats, Livestrong’s yellow bracelets, and the [Salvation Army](https:\/\/www.britannica.com\/topic\/Salvation-Army)’s red kettle are all iconic brand symbols intended to spur a host of non-commercial associations, from patriotism and political engagement to philanthropy and compassion.\n\n## Benefits of strong brands\nThe foundational virtue of a strong brand is pricing power. A well-branded product will sell for more than an otherwise identical generic one. But strong brands have other virtues. They give companies a head start into new product areas and opportunities through brand extensions. Apple’s iPhones, iPods, and AirPods headphones all benefited from the tailwind of the Apple brand. [Gmail](https:\/\/www.britannica.com\/topic\/Gmail) is trusted by millions of users in part because it comes from [Google](https:\/\/www.britannica.com\/money\/Google-Inc), a company that was already their main portal to the [Internet](https:\/\/www.britannica.com\/technology\/Internet).\n\nStrong brands are also moats against incursions by competitors. Dominant brands often “own” the most valuable associations in a category, and challenger brands must either spend prodigious amounts on marketing to compete head-to-head with them or adopt niche positions to carve out a smaller market share. In the U.S., for example, T-Mobile is the second largest wireless carrier, but it came into the market with lesser brand awareness than the leaders, Verizon and [AT\\&T](https:\/\/www.britannica.com\/money\/ATandT-Corporation), so it built the T-Mobile brand in express contrast with them, calling itself the “Un-carrier.” Trusted brands are also better suited to survive difficult times. The [Tylenol](https:\/\/www.britannica.com\/science\/Tylenol) brand survived a terrifying poison scare in 1982 in part because it had been part of consumer’s lives for nearly 30 years. Coca-Cola emerged from a failed attempt to reformulate its core product (“[New Coke](https:\/\/www.britannica.com\/topic\/New-Coke)”) stronger than ever when the controversial change reinvigorated consumers’ lifelong associations with Coca-Cola. Brands without those years of established associations, however, can be more fragile. Soon after [Ford](https:\/\/www.britannica.com\/money\/Ford-Motor-Company) introduced the Pinto, the model suffered a series of highly publicized fiery crashes. Lacking the ballast of other associations, the brand became known for those crashes, even though the car (which Ford knew was potentially dangerous) was no more dangerous than many other cars of its era. Ford abandoned the brand name.\n\n![testing bottles of Tylenol for poison, 1982](https:\/\/cdn.britannica.com\/48\/240248-050-2C5EC6B1\/Extra-strenght-tylenol-bottles-tested-for-cyanide-tylenol-murders-1982.jpg?w=385)\n\nOpen full sized image\n\nTesting bottles of Extra Strength Tylenol with a chemically treated paper that turns blue in the presence of cyanide, Chicago, 1982. Such testing followed in the wake of the Tylenol poisoning tragedy that killed seven people in the Chicago area and led to a mass recall of the over-the-counter drug.\n\nJohn Swart—AP\/Shutterstock.com\n\nStrong brands can even turn consumers into brand ambassadors. A popular metric for measuring brand strength is the Net Promoter Score (NPS), which relies on a single question: “How likely are you to recommend this product to someone else?” A brand that people are proud to be associated with is one that people are more likely to recommend and promote, for example, through social media.\n\n## Controversy over branding\nBranding has its critics. Some argue that the increased price charged for branded products is exploitative, a means of using the power of mass media to manipulate people into wasteful spending. Specific brands, products, and advertising campaigns have also been charged with promoting harmful stereotypes, unhealthy pastimes, and unattainable ideals. Products such as [Aunt Jemima](https:\/\/www.britannica.com\/topic\/Aunt-Jemima-Pearl-Milling-Company) pancake mix, Uncle Ben’s rice, and Cream of Wheat have all discontinued their historic brands or logos depicting [African Americans](https:\/\/www.britannica.com\/topic\/African-Americans) because they have been charged with racial stereotyping; the [fashion industry](https:\/\/www.britannica.com\/art\/fashion-industry) has frequently been singled out for promoting unhealthy body types; and advertising tied to smoking, especially when apparently aimed at children (as the manufacturers of [vaping](https:\/\/www.britannica.com\/topic\/e-cigarette) products are widely accused of doing), has long been criticized for encouraging a dangerous addiction. Additionally, because advertising is often the primary source of funding for news and entertainment content, critics warn that advertisers may actually be purchasing biased treatment and reviews of their products. “[Greenwashing](https:\/\/www.britannica.com\/money\/greenwashing)” refers to companies using advertising and brand associations to counter the environmental and human harms their products or services may have caused. Major international [oil](https:\/\/www.britannica.com\/science\/oil-chemical-compound) companies, for example, have all faced controversies over using advertising to change consumer perceptions. In 2001 [BP](https:\/\/www.britannica.com\/money\/BP-PLC) began promoting itself as “Beyond Petroleum” (the firm’s initials historically stood for “British Petroleum”) despite the fact that it produced billions of barrels of oil and gas per year. Less than a decade later, it abandoned the campaign after it sold its solar and wind divisions in order to cover losses stemming from the [Deepwater Horizon oil spill](https:\/\/www.britannica.com\/event\/Deepwater-Horizon-oil-spill).\n\n## Challenges in the digital age\nThe worldwide use of the Internet has spurred the most profound change to brand strategy since the rise of mass media in the 20th century. At their core, brands are a means of communication, one historically controlled by the manufacturer and owner of the brand. In a digital marketplace, however, consumers have great access to information and a global audience as well as novel means and tools for publishing their thoughts. As a consequence, brand owners have much less control over the ways their brands are used, viewed, and critiqued. A traditional television commercial or magazine advertisement, for example, is a self-contained, unalterable experience. Online, however, consumers or critics can use brand assets in unexpected ways, often subverting the brand owner’s mission and message. Parody accounts on social media, for instance, can associate unflattering messages with apparently legitimate brand imagery. Even a brand’s own website or social media channel can become a forum for criticism and competitive voices. In 2022, after [Twitter](https:\/\/www.britannica.com\/money\/Twitter) relaxed the requirements to obtain a “blue check” that indicates a legitimate account, pranksters made accounts in the name of various corporations and tweeted messages associating, for example, [Eli Lilly](https:\/\/www.britannica.com\/money\/Eli-Lilly-and-Company) with price gouging for insulin, [Chiquita](https:\/\/www.britannica.com\/money\/Chiquita-Brands-International-Inc) with Latin American dictatorships, and [Tesla](https:\/\/www.britannica.com\/science\/tesla) with automobile crashes.\n\nBecause the Internet delivers news and data directly to consumers, buyers are also less reliant now on brands to convey information about a particular product or service. Before the Internet, for instance, a business traveler headed to a new city likely would have booked a room at a familiar branded hotel, such as the [Hilton](https:\/\/www.britannica.com\/money\/Conrad-Hilton) or [Ritz-Carlton](https:\/\/www.britannica.com\/money\/Cesar-Ritz). Now, in just a few minutes, travelers can identify boutique options more akin to their likes, closer to their destination, and otherwise more valuable to them in distinct ways. The value of a brand as a signifier of quality has lessened in the online age.\n\nWhile traditional product brands have often stumbled in adapting to the digital age, those surviving have conformed nonetheless and incorporated online messaging into their strategies. Native digital brands, meanwhile, have become some of the most popular, valuable, and admired ones in the world: Google, [Amazon](https:\/\/www.britannica.com\/money\/Amazoncom), and [PayPal](https:\/\/www.britannica.com\/money\/PayPal), for example, all rely on their strong brands to garner consumer trust and attention in the online marketplace.\n\n[Scott Galloway](https:\/\/www.britannica.com\/money\/author\/scott-galloway\/12911181)","meta_canonical":null}

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Boilerpipe Text	Open full sized image Breakfast cereals on the shelves of a grocery store. © Kenishirotie/Dreamstime.com brand (marketing) , a set of words, images, and associations that represent and distinguish a product or service in the marketplace. Strong brands elicit an emotional response from consumers and add value to the products and services they represent. Manufacturers have identified their products with names or symbols for thousands of years, and in the 20th century brands became not only critical to the promotion of goods and services but valuable assets in themselves. With the shift toward digital commerce in the 21st century, brands continue to be valuable but face new challenges because of the greater accessibility of information about products and services, the companies that produce or offer them, and the performance history of the branded offerings. History of brands and brand marketing The term brand originates from the Middle English word for torch and the Old English verb meaning “to burn,” as well as from the historic practice of identifying goods with the mark of a firebrand (a burning piece of wood) and, later, a hot or cold iron. The branded “goods” might be the assets themselves (as with the hot-iron branding of cattle , a practice common as far back as ancient Egypt) or the barrels and boxes containing the products. Even enslaved people and criminals, for purposes of identification and punishment, have been branded throughout history. Producers have been marking their goods for millennia—there are stones, for example, from ancient Egypt marked with a symbol of the quarry they hail from that are 6,000 years old and Chinese pottery marked to indicate the potter who made it that are from 4,000 to 5,000 years old. The use of brand names to denote manufacturers became widespread in Europe in the late Middle Ages. Such branding soon became legally mandated. In 1266 the English Parliament enacted a law requiring bakers to mark loaves of bread made for sale, and, in the centuries that followed, European courts developed a body of law protecting the rights of producers to own their names and marks. With the rise of industrial-scale manufacturing and the widespread geographical distribution of products, reliable identification of goods became increasingly important, as consumers no longer purchased directly from local producers. By the late 19th century, manufacturers of all kinds were using stylized text, logos, and color schemes not just to identify their goods but to distinguish them in a crowded marketplace through promises of superior quality or value. Advertising agencies also emerged, notably J. Walter Thompson Co. , which pioneered early techniques of using magazine advertisements to connect products with generalized associations such as the longing for luxury, security, or love. Coca-Cola , Ivory Soap, and Colgate all emerged as brands during this period with the support of extensive advertising campaigns. Open full sized image Advertisement for Tabasco sauce, 1905. McIlhenny Company Archives, Avery Island, La. The reach and evocative power of mass media , such as radio and especially television , facilitated the modern era of branding. Manufacturers, led by American consumer packaged goods companies, began investing heavily in advertising, not just to raise awareness of their brands but to build specific emotional associations with their products. Brand management thus became an organizational concept. Procter & Gamble Company was a pioneer in such brand management, rejecting the notion of a single corporate marketing department and instead putting each of its branded products (e.g., Ivory, Tide, Crest, Crisco) under a separate management team, responsible for identifying a specific consumer segment and building a brand to appeal to that specific kind of buyer. By the 1950s, this strategy had become the standard marketing model in consumer-goods companies. The overall strategy for success at that time was rather simple: drive down costs using mass production , invest the savings in mass media ad campaigns that imbued the brands with emotional resonance, and then make a profit by charging prices for the branded product that were higher than those charged by generic producers or those with weaker brands—prices that consumers would gladly pay because they valued the emotional connection they had with the stronger brand. The latter half of the 20th century was a period of increased sophistication, investment, and profitability in brand-based marketing. Marketers refined their message based on focus groups, consumer surveys, and data collected through retailers, and they expanded their reach through event sponsorships (such as the Super Bowl ) and film and television product placement. Additionally, they owned and operated brand-specific retail stores. The rise of the Internet , however, profoundly challenged the branding models of the 20th century. The controlled one-way messaging strategy so effective in mass media did not always translate well to the interactive online environment. Leading brands spent millions of dollars on “brochureware” websites (websites that simply listed their products and services online, akin to listing their products in a static brochure) that sparked limited consumer interest. Meanwhile, the disruptive effect of the new marketing channel allowed new brands to emerge as well as new types of intermediaries between product manufacturers and consumers, including review websites, pricing agents, and search engines. Consumers grew less reliant on the brands themselves to signal quality or value. Brand strategy Defining the product In a crowded, competitive marketplace, a brand and its associations convey the unique selling proposition of a product. This includes both rational attributes, such as price and quality, and emotional attributes, such as prestige, freedom, or reliability. Retailers often position themselves squarely on the rational benefit of price. Walmart , for example, has relied on a variety of slogans to communicate low prices, such as “Every Day Low Prices” and “Save Money. Live Better.” Luxury retailer Neiman Marcus , on the other hand, flaunts its high prices, featuring outrageously expensive “fantasy gifts” in its holiday catalogs. Recent offerings from the latter included a $6.1 million diamond ring and a $285,000 electric pickup truck. American Express is a classic example of a brand that combines rational associations (conveying itself as a reliable, secure partner for expensive transactions) with aspirational, emotional ones (prestige, upward mobility, luxury). For years, the company spent heavily on advertising that featured familiar celebrities (including actor Karl Malden , director Martin Scorsese , singer Sheryl Crow , and athlete Shaun White ) who relied on the American Express card. The advertising was combined with a product strategy that supplemented the credit card with a suite of complimentary travel rewards and perks. Advertisements promised American Express cardholders unique, luxury experiences that differentiated the brand from its competition, such as Visa and Mastercard . Defining the consumer Brands offer consumers a means of expressing themselves privately and publicly. Whereas early advertisements simply promoted the product, sophisticated marketers realized they could build stronger emotional connections if they focused on what their brands said about users of their product. During the peak of the feminist movement in the 1960s and early ʾ70s, cigarette brand Virginia Slims built a business on this strategy by touting the progress women had made in recent years, using its famous tagline: “You’ve come a long way, baby.” Nike , with the slogan “Just Do It,” became the global leader in athletic footwear by focusing its brand on the efforts and achievements of Nike-wearers instead of on the shoes themselves. As smart brand marketers discovered, humans are social animals who are constantly on the lookout for ways to signal their success and value to others. Some product categories are inherently well suited to “self-expressive benefits” and branding that helps consumers signal aspects of their status or personality. Outdoor gear, for instance, is often worn or used not just for utility in the wilderness but to signal the owner’s affinity for adventure. The cooler brand YETI surged to a leadership position in a previously sleepy category with prominent labeling—offering a strong, consistent visual identity across its products and advertising and a promise of rugged, even overbuilt quality. One of the greatest brand-building successes in history has been Apple . Although the company’s category, computer hardware, was long associated with office drudgery and introverted users, Apple’s branding made its customers feel creative and unique. The company’s 1984 Super Bowl commercial , announcing the then new Macintosh computer, was perhaps the single most influential advertisement ever aired. Yet the commercial never showed a computer or explained what it could be used for or how it could be purchased. It did not even mention the brand name in the multimillion-dollar commercial until the final five seconds. Instead, it did something more powerful: it defined the brand’s customer as revolutionary and creative. Operating within a brand architecture Brand architecture is the organizing structure of a brand portfolio . Brand managers often use more than one brand for a product and may span a single brand across many products. For example, Coca-Cola originated as a single-product brand, associated for more than a century with a specific carbonated soft drink . But in recent years it spawned several sub-brands, which are distinguished with additional terminology (“Diet,” “Cherry,” “Zero”) and visual cues, such as the silver associated with Diet Coke and the black associated with Coke Zero. Coca-Cola is also not just a consumer brand but a strong corporate brand, used to communicate the company’s track record of financial success to investors and business partners. These multiple uses of the brand help increase the return Coca-Cola gets from investing in a single brand, but they come at a cost to flexibility. The brand manager for Coke Zero, for example, has to consider the potential impact of a new promotion or partnership not just on the Coke Zero brand but on the other products under the Coca-Cola brand umbrella as well as the Coca-Cola corporate brand. By contrast, the brand manager for Sprite (a brand owned by Coca-Cola) has more freedom, since consumers are unlikely to associate advertising messages from Sprite with the Coca-Cola brand. 0 seconds of 1 minute, 48 seconds Volume 90% Press shift question mark to access a list of keyboard shortcuts 00:00 00:00 01:48 Explore the history of the Coca-Cola Company and brand. Encyclopædia Britannica, Inc. Brand managers use an array of tactics to organize complex brand architectures, but, broadly speaking, companies follow either a “branded house” or a “house of brands’’ approach. Apple operates mainly as a branded house, with nearly all of its products prominently identified with the “Apple” brand. Individual Apple products are distinguished through product brands (e.g., iPhone , AirPods) but the Apple name, visual style, and language are present in all communications. Consumer packaged-goods companies, on the other hand, typically prefer the house of brands, multiple-branding strategy, as seen with Procter & Gamble (Crest, Gillette, Tide) and Colgate-Palmolive (Softsoap, Tom’s of Maine, Ajax). Variations are common, although companies typically keep brands separate when they convey distinct and even conflicting associations (such as brands for toothpaste and dishwasher detergent) but link them together when their various products benefit from common values (as with digital products like mobile phones and laptops). For each individual brand within the marketing architecture, brand managers decide how closely to connect them with one another and with the larger corporate brand. Various terms are sometimes used, not necessarily consistently across companies, to denote these relationships. Managers might refer to a brand that is closely linked to its parent as a “sub-brand” (for example, FedEx Ground and FedEx Office), whereas a brand with a more subtle connection might be termed an “endorsed brand” (Courtyard by Marriott). “Ingredient” brands can even operate within another company’s architecture. Intel ’s “Intel Inside” campaign helped the company maintain dominance in personal computer chips for decades by adding their product and the Intel branding to goods produced by other companies, such as Dell , Acer, and Lenovo. These marketing approaches are fluid and situational, and most multibrand companies today employ a range of tactics. Tools, uses, and dangers of branding At its core, a brand is a name, but nearly all brands are associated with other symbols, including logos, colors, taglines, and music. Over time, these symbols can acquire substantial monetary value and are generally protected through trademark law. Brand managers must be careful to keep control over their brand elements, or trademark protection can be lost. Large brands typically have detailed internal rules about the use of brand imagery, precise colors, and design elements. Ironically, great success in brand marketing can be fatal, leading to genericide : when a brand, due to market saturation, becomes the generic term for the product itself and loses its legal protection. Aspirin, for example, was once a trademark of the Bayer company, and cellophane was formerly a DuPont trademark. Consequently, companies that have built popular brands such as Google , Photoshop , and Kleenex must be careful in communications and with partners to prevent their brands from becoming generic, legally useable terms. Pepsi-Cola Company There are also assorted powerful branding tools. The use of sound, for example, has evolved from classic advertising “jingles” (e.g., “The best part of waking up is Folgers in your cup” for Folgers Coffee) to signature sounds, such as HBO ’s “static angel” intro, Netflix ’s “ta-dum,” or Intel’s five-note “bong.” A signature colour can also be powerful, because of how widely it can be used—at the point of sale, for product extensions, and in advertising—once the colour is established in the minds of consumers. Examples include Tiffany ’s turquoise blue, T-Mobile’s pink, and Home Depot ’s orange. Open full sized image Tiffany & Co.'s signature robin's egg blue bag and box. © Jeff Whyte/Dreamstime.com For most brands, though, the primary means of building awareness and associations are through advertising, still a multibillion-dollar industry. In this classic marketing approach, the brand is advertised in a scene or narrative intended to evoke the desired associations. AT&T , for example, has for decades promoted the power of a phone call to bridge the geographical divide, keeping families and loved ones connected. But advertising has progressed beyond obvious commercials, as companies seek to reach consumers in more subtle ways, such as through product placement in films and television programs, affiliation with celebrities and “influencers” (either by using them as spokespersons or by sponsoring their events), and association with admired causes (such as environmentalism or disaster relief). These tactics can generate much greater returns than traditional advertising—in 1982, for example, Hershey paid $1 million to feature a new candy, Reese’s Pieces, in the film E.T. the Extra-Terrestrial and enjoyed a 65 percent increase in sales and a lasting association with a beloved movie character. Today, there are entire advertising agencies devoted to linking brands with movies, social media personalities, and special events. Open full sized image Actress Drew Barrymore offers the alien some Reese's Pieces candy, a prominent example of product placement in the film E.T. the Extra-Terrestrial (1982). © Universal Studios/Amblin Entertainment Sponsorship branding, where a brand is tied to an athlete or entertainer or special occasion or cause, is another popular means of building associations, though this marketing method is fraught with risk. Michael Jordan ’s longtime partnership with Nike , for example, has made both parties billions of dollars. On the other hand, Adidas ’s lucrative partnership with entertainer Kanye West backfired after he made a series of anti-Semitic remarks, leading the company to cut ties with him in 2022 at an immediate cost to the corporation of some $250 million and the risk of much greater long-term damage to the brand. Social or political associations can similarly be treacherous for brands. In 2023, both Bud Light and Target received backlash and calls for boycotts of their brands after the former engaged a transgender influencer for a promotion of its beer and the latter marketed trans-friendly merchandise during Pride Month . Brand-building is not limited to external promotional communications. Brand managers seek to align all aspects of the company and the product with the brand and vice versa. Nike, for example, encourages its employees to pursue athletic hobbies, while Walmart promotes frugality with spartan corporate offices. Branding can even mean deliberately selling less of the product, a classic supply-and-demand tactic known as “scarcity marketing.” Clothing retailer Supreme built its brand on the back of its retail “drops,” new products introduced in limited supply at its own retail locations, which attract long lines in highly visible urban neighborhoods, building associations of exclusivity for the company. Although brands and branding evolved as a tool for marketing consumer products, brands are relevant in a variety of contexts. Brands can be valuable in business-to-business transactions, where managers often prefer to do business with established brands as a way of protecting themselves and limiting risk. For decades, “nobody ever got fired for buying IBM ” was a widely used expression, reflecting the associations of reliability and quality that the IBM brand, known as “Big Blue,” had earned in corporate boardrooms. Similarly, consulting firms like McKinsey & Company and Boston Consulting Group implicitly promise their clients, as part of their brand appeal, a “seal of approval.” Managers advocating for a risky corporate venture frequently hire one of these firms to develop the strategy and add their brand strength to the proposal so that it carries more weight with corporate leadership. Less commercial organizations also rely on and invest in their brands. Young people spend years studying to be accepted at universities and then spend years paying off related debt, all for the lifelong right to associate themselves with brands like Harvard , Yale , Princeton , Cambridge , and Oxford. Modern universities employ many of the same tactics as shoe manufacturers and hamburger chains to enhance and protect their brands. Governments, political parties, artists, and charitable organizations are all active stewards of their brands, and some have developed sophisticated brand systems. Donald Trump ’s bright red “Make America Great Again” hats, Livestrong’s yellow bracelets, and the Salvation Army ’s red kettle are all iconic brand symbols intended to spur a host of non-commercial associations, from patriotism and political engagement to philanthropy and compassion. Benefits of strong brands The foundational virtue of a strong brand is pricing power. A well-branded product will sell for more than an otherwise identical generic one. But strong brands have other virtues. They give companies a head start into new product areas and opportunities through brand extensions. Apple’s iPhones, iPods, and AirPods headphones all benefited from the tailwind of the Apple brand. Gmail is trusted by millions of users in part because it comes from Google , a company that was already their main portal to the Internet . Strong brands are also moats against incursions by competitors. Dominant brands often “own” the most valuable associations in a category, and challenger brands must either spend prodigious amounts on marketing to compete head-to-head with them or adopt niche positions to carve out a smaller market share. In the U.S., for example, T-Mobile is the second largest wireless carrier, but it came into the market with lesser brand awareness than the leaders, Verizon and AT&T , so it built the T-Mobile brand in express contrast with them, calling itself the “Un-carrier.” Trusted brands are also better suited to survive difficult times. The Tylenol brand survived a terrifying poison scare in 1982 in part because it had been part of consumer’s lives for nearly 30 years. Coca-Cola emerged from a failed attempt to reformulate its core product (“ New Coke ”) stronger than ever when the controversial change reinvigorated consumers’ lifelong associations with Coca-Cola. Brands without those years of established associations, however, can be more fragile. Soon after Ford introduced the Pinto, the model suffered a series of highly publicized fiery crashes. Lacking the ballast of other associations, the brand became known for those crashes, even though the car (which Ford knew was potentially dangerous) was no more dangerous than many other cars of its era. Ford abandoned the brand name. Open full sized image Testing bottles of Extra Strength Tylenol with a chemically treated paper that turns blue in the presence of cyanide, Chicago, 1982. Such testing followed in the wake of the Tylenol poisoning tragedy that killed seven people in the Chicago area and led to a mass recall of the over-the-counter drug. John Swart—AP/Shutterstock.com Strong brands can even turn consumers into brand ambassadors. A popular metric for measuring brand strength is the Net Promoter Score (NPS), which relies on a single question: “How likely are you to recommend this product to someone else?” A brand that people are proud to be associated with is one that people are more likely to recommend and promote, for example, through social media. Controversy over branding Branding has its critics. Some argue that the increased price charged for branded products is exploitative, a means of using the power of mass media to manipulate people into wasteful spending. Specific brands, products, and advertising campaigns have also been charged with promoting harmful stereotypes, unhealthy pastimes, and unattainable ideals. Products such as Aunt Jemima pancake mix, Uncle Ben’s rice, and Cream of Wheat have all discontinued their historic brands or logos depicting African Americans because they have been charged with racial stereotyping; the fashion industry has frequently been singled out for promoting unhealthy body types; and advertising tied to smoking, especially when apparently aimed at children (as the manufacturers of vaping products are widely accused of doing), has long been criticized for encouraging a dangerous addiction. Additionally, because advertising is often the primary source of funding for news and entertainment content, critics warn that advertisers may actually be purchasing biased treatment and reviews of their products. “ Greenwashing ” refers to companies using advertising and brand associations to counter the environmental and human harms their products or services may have caused. Major international oil companies, for example, have all faced controversies over using advertising to change consumer perceptions. In 2001 BP began promoting itself as “Beyond Petroleum” (the firm’s initials historically stood for “British Petroleum”) despite the fact that it produced billions of barrels of oil and gas per year. Less than a decade later, it abandoned the campaign after it sold its solar and wind divisions in order to cover losses stemming from the Deepwater Horizon oil spill . Challenges in the digital age The worldwide use of the Internet has spurred the most profound change to brand strategy since the rise of mass media in the 20th century. At their core, brands are a means of communication, one historically controlled by the manufacturer and owner of the brand. In a digital marketplace, however, consumers have great access to information and a global audience as well as novel means and tools for publishing their thoughts. As a consequence, brand owners have much less control over the ways their brands are used, viewed, and critiqued. A traditional television commercial or magazine advertisement, for example, is a self-contained, unalterable experience. Online, however, consumers or critics can use brand assets in unexpected ways, often subverting the brand owner’s mission and message. Parody accounts on social media, for instance, can associate unflattering messages with apparently legitimate brand imagery. Even a brand’s own website or social media channel can become a forum for criticism and competitive voices. In 2022, after Twitter relaxed the requirements to obtain a “blue check” that indicates a legitimate account, pranksters made accounts in the name of various corporations and tweeted messages associating, for example, Eli Lilly with price gouging for insulin, Chiquita with Latin American dictatorships, and Tesla with automobile crashes. Because the Internet delivers news and data directly to consumers, buyers are also less reliant now on brands to convey information about a particular product or service. Before the Internet, for instance, a business traveler headed to a new city likely would have booked a room at a familiar branded hotel, such as the Hilton or Ritz-Carlton . Now, in just a few minutes, travelers can identify boutique options more akin to their likes, closer to their destination, and otherwise more valuable to them in distinct ways. The value of a brand as a signifier of quality has lessened in the online age. While traditional product brands have often stumbled in adapting to the digital age, those surviving have conformed nonetheless and incorporated online messaging into their strategies. Native digital brands, meanwhile, have become some of the most popular, valuable, and admired ones in the world: Google, Amazon , and PayPal , for example, all rely on their strong brands to garner consumer trust and attention in the online marketplace. Scott Galloway
Markdown	[History & Society](https://www.britannica.com/History-Society)[Science & Tech](https://www.britannica.com/Science-Tech)[Biographies](https://www.britannica.com/Biographies)[Animals & Nature](https://www.britannica.com/Animals-Nature)[Geography & Travel](https://www.britannica.com/Geography-Travel)[Arts & Culture](https://www.britannica.com/Arts-Culture)[ProCon](https://www.britannica.com/procon)[Games & Quizzes](https://www.britannica.com/quiz/browse)[Videos](https://www.britannica.com/videos)[On This Day](https://www.britannica.com/on-this-day)[One Good Fact](https://www.britannica.com/one-good-fact)[Dictionary](https://www.britannica.com/dictionary) - [Lifestyles & Social Issues](https://www.britannica.com/browse/Lifestyles-Social-Issues) - [Philosophy & Religion](https://www.britannica.com/browse/Philosophy-Religion) - [Politics, Law & Government](https://www.britannica.com/browse/Politics-Law-Government) - [World History](https://www.britannica.com/browse/World-History) - [Health & Medicine](https://www.britannica.com/browse/Health-Medicine) - [Science](https://www.britannica.com/browse/Science) - [Technology](https://www.britannica.com/browse/Technology) - [Browse Biographies](https://www.britannica.com/browse/biographies) - [Birds, Reptiles & Other Vertebrates](https://www.britannica.com/browse/Birds-Reptiles-Vertebrates) - [Environment](https://www.britannica.com/browse/Environment) - [Fossils & Geologic Time](https://www.britannica.com/browse/Fossil-Geologic-Time) - [Insects & Other Invertebrates](https://www.britannica.com/browse/Bugs-Mollusks-Invertebrates) - [Mammals](https://www.britannica.com/browse/Mammals) - [Plants](https://www.britannica.com/browse/Plants) - [Geography & Travel](https://www.britannica.com/browse/Geography-Travel) - [Entertainment & Pop Culture](https://www.britannica.com/browse/Entertainment-Pop-Culture) - [Literature](https://www.britannica.com/browse/Literature) - [Sports & Recreation](https://www.britannica.com/browse/Sports-Recreation) - [Visual Arts](https://www.britannica.com/browse/Visual-Arts) [Image Galleries](https://www.britannica.com/gallery/browse)[Podcasts](https://www.britannica.com/podcasts)[Summaries](https://www.britannica.com/summary)[Top Questions](https://www.britannica.com/question)[Britannica Kids](https://kids.britannica.com/) [![Britannica Money](https://cdn.britannica.com/money/assets/MoneyLogo-30x236-2x.png)](https://www.britannica.com/money) [Household Finance](https://www.britannica.com/money/browse/household-finance) [Investing](https://www.britannica.com/money/browse/investing) [Trading](https://www.britannica.com/money/browse/Trading) [Retirement](https://www.britannica.com/money/browse/retirement) [Companies](https://www.britannica.com/money/browse/Companies) [Biographies](https://www.britannica.com/money/browse/Biographies) [Finance & the Economy](https://www.britannica.com/money/browse/history-and-theory) Table of Contents * - [Introduction](https://www.britannica.com/money/Nike-Inc#ref415193-1) - [Strategic and competitive advantages](https://www.britannica.com/money/Nike-Inc#ref371285) - [Founding and early history](https://www.britannica.com/money/Nike-Inc#ref371286) - [Nike’s defining moment: Signing Michael Jordan in 1984](https://www.britannica.com/money/Nike-Inc#ref371287) - [Thinking beyond shoes](https://www.britannica.com/money/Nike-Inc#ref371288) - [Controversies are part of Nike’s history, both unwanted and embraced](https://www.britannica.com/money/Nike-Inc#ref371289) - [Staying relevant over the decades](https://www.britannica.com/money/Nike-Inc#ref371290) Read More [![Amazon U.K. Services warehouse](https://cdn.britannica.com/77/253877-050-3BB22BE2/Amazon-logo-Warehouse-Warrington-England-2022.jpg?c=crop&h=40&w=50) Amazon.com](https://www.britannica.com/money/Amazoncom) [![A famous business organization](https://cdn.britannica.com/35/191935-050-B76CEA77/sign-Microsoft-office-building-housing-computer-giant-May-7-2016.jpg?c=crop&h=40&w=50) business organization](https://www.britannica.com/money/business-organization) [![A photo of the Target red-and-white bullseye logo on the side of the company's corporate headquarters at Target Plaza in Minneapolis.](https://cdn.britannica.com/00/259700-050-0275BED4/Target-logo-and-banner-on-its-corporate-headquarters-at-Target-Plaza-Minneapolis-Minnesota-May-2023.jpg?c=crop&h=40&w=50) Target Corporation](https://www.britannica.com/money/Target-Corporation) Table Of Contents [Companies](https://www.britannica.com/money/browse/Companies) [Consumer Discretionary](https://www.britannica.com/money/browse/Consumer-Discretionary) # Nike, Inc. American company Print Cite Share Links Also known as: Blue Ribbon Sports Written byDebbie Carlson [Debbie Carlson](https://www.britannica.com/money/author/debbie-carlson/12818145) Debbie Carlson is a veteran financial journalist who writes about many personal finance and financial industry topics such as retirement, consumer spending, sustainable and ESG investing, commodity markets, exchanged-traded funds, mutual funds and much more, in an easy-to-understand way. Debbie writes for many high-level and top-tier media organizations and has contributed to Barron's, Chicago Tribune, The Guardian, MarketWatch, The Wall Street Journal, and U.S. News & World Report, among other publications. She holds a BA in Journalism from Eastern Illinois University. Fact-checked byThe Editors of Encyclopaedia Britannica [The Editors of Encyclopaedia Britannica](https://www.britannica.com/money/author/The-Editors-of-Encyclopaedia-Britannica/4419) Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. They write new content and verify and edit content received from contributors. Article History Table of Contents * - [Introduction](https://www.britannica.com/money/Nike-Inc#ref415193-1) - [Strategic and competitive advantages](https://www.britannica.com/money/Nike-Inc#ref371285) - [Founding and early history](https://www.britannica.com/money/Nike-Inc#ref371286) - [Nike’s defining moment: Signing Michael Jordan in 1984](https://www.britannica.com/money/Nike-Inc#ref371287) - [Thinking beyond shoes](https://www.britannica.com/money/Nike-Inc#ref371288) - [Controversies are part of Nike’s history, both unwanted and embraced](https://www.britannica.com/money/Nike-Inc#ref371289) - [Staying relevant over the decades](https://www.britannica.com/money/Nike-Inc#ref371290) Read More [![Amazon U.K. Services warehouse](https://cdn.britannica.com/77/253877-050-3BB22BE2/Amazon-logo-Warehouse-Warrington-England-2022.jpg?c=crop&h=40&w=50) Amazon.com](https://www.britannica.com/money/Amazoncom) [![A famous business organization](https://cdn.britannica.com/35/191935-050-B76CEA77/sign-Microsoft-office-building-housing-computer-giant-May-7-2016.jpg?c=crop&h=40&w=50) business organization](https://www.britannica.com/money/business-organization) [![A photo of the Target red-and-white bullseye logo on the side of the company's corporate headquarters at Target Plaza in Minneapolis.](https://cdn.britannica.com/00/259700-050-0275BED4/Target-logo-and-banner-on-its-corporate-headquarters-at-Target-Plaza-Minneapolis-Minnesota-May-2023.jpg?c=crop&h=40&w=50) Target Corporation](https://www.britannica.com/money/Target-Corporation) Table Of Contents ![Nike logo](https://cdn.britannica.com/50/213250-050-02322AA8/Nike-logo.jpg?w=385) Open full sized image Logo of Nike. © pixfly/Shutterstock.com formerly (1964–71): Blue Ribbon Sports Date: 1964 - present Ticker: NKE Share price: \$44.2 (mkt close, Apr. 14, 2026) Market cap: \$65.46 bil. Annual revenue: \$46.52 bil. Earnings per share (prev. year): \$1.52 Sector: Consumer Discretionary Industry: Textiles, Apparel & Luxury Goods CEO: Mr. Elliott J. Hill Headquarters: [Beaverton](https://www.britannica.com/place/Beaverton) News • [Wall Street flirts with a record after its big rally the last 2 weeks](https://www.britannica.com/news/415193/7659569791b1f5e108489360d18e50f1) • Apr. 15, 2026, 10:22 AM ET (AP) ...(Show more) Nike, Inc., is one of the largest and best-recognized global sports and athleticwear brands. Its extensive lineup includes its long-running [Air Jordan](https://www.britannica.com/biography/Michael-Jordan), Air Force 1, and other “Air” models. Converse shoes and [apparel](https://www.britannica.com/topic/dress-clothing) (including those bearing the iconic Chuck Taylor All Stars logo) have also been a part of Nike since its 2003 acquisition. Nike is known for its celebrity endorsement deals with top athletes, including [Tiger Woods](https://www.britannica.com/biography/Tiger-Woods), [LeBron James](https://www.britannica.com/biography/LeBron-James), and [Serena Williams](https://www.britannica.com/biography/Serena-Williams). The company has stayed relevant with consumers over the years through its savvy marketing, which includes embracing controversial topics. Since 2020, Nike has been led by president and CEO John Donahoe, but cofounder and long-time CEO [Phil Knight](https://www.britannica.com/biography/Phil-Knight) remains active in the company, serving as chair emeritus. ## Strategic and competitive advantages Nike’s success has been tied to its ability to blend product innovation and marketing savvy to develop deep ties between its products and its customers. [![cotton plants (cotton bolls; natural fiber)](https://cdn.britannica.com/18/156618-131-7C3D51D3/cotton-harvesting.jpg)Britannica Quiz Pop Quiz](https://www.britannica.com/quiz/pop-quiz) - Innovative marketing. The “Just Do It” slogan focuses not on the glory of winning, but the hard work and daily struggle of putting in the effort no matter what. That philosophy is psychological and applies beyond the world of sports to any goal. Nike’s imagery enhances the slogan, focusing on everyday people overcoming obstacles and embracing positions that are seemingly at odds with the status quo. - Quality and style. Nike backs up its marketing with quality products and continuous design experimentation, seeking to strike a balance between what consumers want and the functional needs of athletes. Each product division is positioned as a unique offering to build loyalty within a particular sport. Nike’s marketing and product offerings give credence to each other. For example, a marketing focus on struggles that women athletes face helps promote its products designed specifically for women’s bodies. - Audience focus. Nike has an expansive, insight-driven, customer-centric strategy centered in sport and youth culture. It focuses on the shopping experience and personalization to build brand loyalty. Nike was early to adopt online sales and invested in digital technology that provides even more insight into its customers’ changing needs. - Strategic expansion. Nike’s acquisitions focused on products core to its mission and allowed it to expand from footwear to include apparel and fitness with apps and equipment that help the company reach not just athletes, but anyone looking to lead a healthier lifestyle. ## Founding and early history The global sportswear giant traces its origins to 1962, when former [University of Oregon](https://www.britannica.com/topic/University-of-Oregon) [track-and-field](https://www.britannica.com/sports/athletics) athlete Phil Knight toured the Onitsuka (now Asics) factory in Japan and was impressed by the firm’s quality and speedy production. The trip led to a deal to distribute the Onitsuka Tiger, the company’s signature [shoe](https://www.britannica.com/topic/shoe), in the [United States](https://www.britannica.com/place/United-States). By 1964, Knight and his former University of Oregon coach, Bill Bowerman, formed Blue Ribbon Sports; they created the iconic Tiger Cortez in 1967, their version of the Onitsuka Tiger. In 1971, Blue Ribbon split with Onitsuka; and the duo changed the firm’s name to [Nike, after the Greek goddess of victory](https://www.britannica.com/topic/Nike-Greek-goddess). Its “swoosh” logo—which became one of the world’s most recognized brand logos—was also introduced that year. Carolyn David, a [Portland State University](https://www.britannica.com/topic/Portland-State-University) design student, charged \$35 for the logo, although Knight eventually gave her 500 [shares of stock](https://www.britannica.com/money/stock-market-basics) in 1983. ## Nike’s defining moment: Signing Michael Jordan in 1984 Nike went public in 1980, but struggled until, in 1984, the company spent its entire marketing budget to sign NBA rookie Michael Jordan in an attempt to breathe life into its [basketball](https://www.britannica.com/sports/basketball) shoe division. Jordan signed a five-year, \$2.5 million contract to promote the Air Jordan, a black-and-red basketball shoe that initially sold for \$65 a pair (equal to \$192 in 2023 dollars). ![Sneakers take flight](https://cdn.britannica.com/96/195196-050-3909D5BD/Michael-Jordan-1988.jpg?w=385) Open full sized image NBA legend Michael Jordan, pictured in 1988, entered into a partnership with Nike that helped launch sneaker culture. © John Swart/AP/REX/Shutterstock.com The Nike/Michael Jordan contract changed how brands sign athletes and other celebrities to marketing deals, as well as how brands market themselves. The [National Basketball Association](https://www.britannica.com/topic/National-Basketball-Association) (NBA) banned Jordan’s shoes, and issued a \$5,000 fine each time he wore them. Nike embraced the ban and the controversy surrounding the shoes. The company paid the fines on Jordan’s behalf and created ad campaigns around the ban, saying, “The NBA can’t stop you from wearing them.” Within the first two months of the shoe’s release, Nike sold \$70 million worth of Air Jordans. By the end of 1985, the firm reported revenue in excess of \$100 million. In 1997, Nike spun the Jordan brand into its own division. Instead of the Nike swoosh, Jordan-branded shoes, apparel, and accessories feature the “Jumpman” logo, a silhouette of Jordan in midair, holding a basketball. ## [Nike and sneaker culture](https://www.britannica.com/topic/history-of-sneakers) The original Nike Air Jordans are considered a foundation of “[sneaker culture](https://www.britannica.com/topic/history-of-sneakers#ref377516),” which came to represent many things: style, history, community, and for some, [collectibles](https://www.britannica.com/money/alternative-investment-types). The popularity of Air Jordans coincided with the rise of [hip-hop artists](https://www.britannica.com/art/hip-hop) in the 1980s, who were known for both their music and their clothing. With a deep bench of classic sneakers and its broad newer offerings and collaborations with athletes and designers, Nike was able to expand its reach. By the mid-2000s, competitors took notice, and brands such as [Adidas](https://www.britannica.com/money/Adidas-AG), Puma, and Reebok began working with celebrities such as [Kanye West](https://www.britannica.com/biography/Kanye-West), Big Sean, and [Cardi B](https://www.britannica.com/biography/Cardi-B), ultimately creating a new footwear subculture. Demand for rare sneakers has spilled to auction houses. An original pair of Air Jordans sold for \$1.8 million in 2023, while eight pairs of late fashion designer [Virgil Abloh’s](https://www.britannica.com/biography/Virgil-Abloh) 2020 limited edition Nike Dunk Low basketball sneakers sold for more than \$565,000 in 2023. ## Thinking beyond shoes The success of using controversy and continued creative marketing helped to cement Nike’s status with one foot in the serious sports world and another that spoke to the non-athlete to challenge the status quo. In 1987, Nike used the [Beatles](https://www.britannica.com/topic/the-Beatles) song “Revolution” to promote its Air-branded shoes, the first time the band’s music was used in advertising. In 1988, Nike created its enduring slogan “Just Do It.” Beginning in the late 1980s, Nike began actively expanding its business and [diversifying](https://www.britannica.com/money/portfolio-diversification-benefits) its product line beyond just athletic footwear. - 1988: Acquired shoe company Cole Haan (sold in 2012). - 1990: NikeTown store chain debuted to enhance the shopping experience and expose consumers to buy Nike’s full range of products. NikeTown would later be used to showcase its endorsed athletes, such as [Mia Hamm](https://www.britannica.com/biography/Mia-Hamm), [Roger Federer](https://www.britannica.com/biography/Roger-Federer), [Serena Williams](https://www.britannica.com/biography/Serena-Williams), [Tiger Woods](https://www.britannica.com/biography/Tiger-Woods), [LeBron James](https://www.britannica.com/biography/LeBron-James), and [Cristiano Ronaldo](https://www.britannica.com/biography/Cristiano-Ronaldo). - 1994: Acquired Canstar Sports, parent company of skate and hockey equipment maker Bauer (sold in 2008). - 1996: Created Nike ACG (“all conditions gear”), which markets products for [extreme sports](https://www.britannica.com/sports/extreme-sports) such as snowboarding and mountain biking. - Early 2000s: Moved into sports technology accessories including portable [heart rate](https://www.britannica.com/science/heart-rate) monitors, high-altitude wrist compasses, fitness apps, and its fitness studio. - 2003: Acquired Converse. - 2008: Acquired athletic apparel and equipment company Umbro (sold in 2012). - 2014: Launched NikeLab, online and physical stores to showcase its product innovation and highlight where sports and fashion meet. ## Controversies are part of Nike’s history, both unwanted and embraced The company’s growth also introduced controversies about poor working conditions and low pay for workers in its Indonesian factories in the 1990s; the company responded by creating factory codes of conduct. In response to a wave of protests, Nike raised worker minimum ages and adopted U.S. clean-air standards in non-U.S. factories. The company continued to address concerns about labor issues through the 2000s in its overseas factories. In the 2020s, Nike faced a gender pay [discrimination](https://www.britannica.com/science/discrimination-psychology) lawsuit. Nike willingly stepped into controversy in 2018 when it unveiled an ad campaign tied to the 30th anniversary of its “Just Do It” logo. The company featured former [San Francisco 49ers](https://www.britannica.com/topic/San-Francisco-49ers) quarterback [Colin Kaepernick](https://www.britannica.com/biography/Colin-Kaepernick), a [civil rights](https://www.britannica.com/topic/civil-rights) activist, best known for protesting [social injustice](https://www.britannica.com/topic/historical-injustice) and [police brutality](https://www.britannica.com/topic/police-brutality-in-the-United-States-2064580) by kneeling during the playing of the [national anthem](https://www.britannica.com/topic/national-anthem) at a [National Football League](https://www.britannica.com/topic/National-Football-League) game. The ad used Kaepernick’s image and a quote saying “Believe in something. Even if it means sacrificing everything.” Although the ad sparked backlash—primarily among those aged 65 and older—the campaign proved to be popular with Nike’s customer base, particularly those between ages 18 and 34. Nike has a mixed record when it comes to supporting its spokespeople when they run into trouble, standing by Tiger Woods, [Kobe Bryant](https://www.britannica.com/biography/Kobe-Bryant), and Cristiano Ronaldo, but dropping [Maria Sharapova](https://www.britannica.com/biography/Maria-Sharapova), [Lance Armstrong](https://www.britannica.com/biography/Lance-Armstrong), and former NFL player Ray Rice when they were involved in scandals. ## Staying relevant over the decades Nike has a diverse product lineup, from shoes to apparel to health products, and it has managed to maintain its “coolness” since it first signed Michael Jordan to promote its shoes. The brand has retained this status throughout the decades by positioning itself—and acting as a connection—between the top athletes in the world and everyday consumers. Nike has come a long way from its beginning as a shoe used by track-and-field athletes. Thanks to its innovative marketing, the brand is also an emblem of style, taste, and the competitive spirit that lives within amateurs and professionals alike. [Debbie Carlson](https://www.britannica.com/money/author/debbie-carlson/12818145) Table of Contents * - [Introduction](https://www.britannica.com/money/brand#ref2218495-1) - [History of brands and brand marketing](https://www.britannica.com/money/brand#ref354776) - [Brand strategy](https://www.britannica.com/money/brand#ref354777) - [Defining the product](https://www.britannica.com/money/brand#ref354778) - [Defining the consumer](https://www.britannica.com/money/brand#ref354779) - [Operating within a brand architecture](https://www.britannica.com/money/brand#ref354780) - [Tools, uses, and dangers of branding](https://www.britannica.com/money/brand#ref354781) - [Benefits of strong brands](https://www.britannica.com/money/brand#ref354782) - [Controversy over branding](https://www.britannica.com/money/brand#ref354783) - [Challenges in the digital age](https://www.britannica.com/money/brand#ref354784) Read More [![Nike logo](https://cdn.britannica.com/50/213250-050-02322AA8/Nike-logo.jpg?c=crop&h=40&w=50) trademark](https://www.britannica.com/money/trademark) [![marketing advertisement for hair dressing](https://cdn.britannica.com/48/99748-050-E6E2E1EF/advertisement-taste-suggestion-appeal.jpg?c=crop&h=40&w=50) marketing](https://www.britannica.com/money/marketing) [![2022 World Cup in Qatar](https://cdn.britannica.com/56/244156-050-CF374EB7/Lionel-Messi-FIFA-World-Cup-Qatar-2022.jpg?c=crop&h=40&w=50) sportswashing](https://www.britannica.com/money/sportwashing) Table Of Contents [Finance & the Economy](https://www.britannica.com/money/browse/history-and-theory) [Business & Marketing](https://www.britannica.com/money/browse/Business-Marketing) # brand (marketing) marketing Print Cite Share Written by*Scott Galloway [Scott Galloway](https://www.britannica.com/money/author/scott-galloway/12911181) Scott Galloway is Professor of Marketing at NYU’s Stern School of Business, a serial entrepreneur, and a New York Times–bestselling author. Fact-checked byThe Editors of Encyclopaedia Britannica [The Editors of Encyclopaedia Britannica](https://www.britannica.com/money/author/The-Editors-of-Encyclopaedia-Britannica/4419) Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. They write new content and verify and edit content received from contributors. Article History Table of Contents - [Introduction](https://www.britannica.com/money/brand#ref2218495-1) - [History of brands and brand marketing](https://www.britannica.com/money/brand#ref354776) - [Brand strategy](https://www.britannica.com/money/brand#ref354777) - [Defining the product](https://www.britannica.com/money/brand#ref354778) - [Defining the consumer](https://www.britannica.com/money/brand#ref354779) - [Operating within a brand architecture](https://www.britannica.com/money/brand#ref354780) - [Tools, uses, and dangers of branding](https://www.britannica.com/money/brand#ref354781) - [Benefits of strong brands](https://www.britannica.com/money/brand#ref354782) - [Controversy over branding](https://www.britannica.com/money/brand#ref354783) - [Challenges in the digital age](https://www.britannica.com/money/brand#ref354784) Read More [![Nike logo](https://cdn.britannica.com/50/213250-050-02322AA8/Nike-logo.jpg?c=crop&h=40&w=50) trademark](https://www.britannica.com/money/trademark) [![marketing advertisement for hair dressing](https://cdn.britannica.com/48/99748-050-E6E2E1EF/advertisement-taste-suggestion-appeal.jpg?c=crop&h=40&w=50) marketing](https://www.britannica.com/money/marketing) [![2022 World Cup in Qatar](https://cdn.britannica.com/56/244156-050-CF374EB7/Lionel-Messi-FIFA-World-Cup-Qatar-2022.jpg?c=crop&h=40&w=50) sportswashing](https://www.britannica.com/money/sportwashing) Table Of Contents ![Cereal brands](https://cdn.britannica.com/42/240242-050-ACD88997/Breakfast-cereals-grocery-store.jpg?w=385) Open full sized image Breakfast cereals on the shelves of a grocery store. © Kenishirotie/Dreamstime.com brand (marketing)*, a set of words, images, and associations that represent and distinguish a product or service in the marketplace. Strong brands elicit an emotional response from consumers and add value to the products and services they represent. Manufacturers have identified their products with names or symbols for thousands of years, and in the 20th century brands became not only critical to the promotion of goods and services but valuable assets in themselves. With the shift toward digital commerce in the 21st century, brands continue to be valuable but face new challenges because of the greater accessibility of information about products and services, the companies that produce or offer them, and the performance history of the branded offerings. ## History of brands and brand marketing The term brand* originates from the Middle [English](https://www.britannica.com/topic/English-language/Historical-background#ref74809) [word](https://www.merriam-webster.com/dictionary/brand#word-history) for torch and the Old English verb meaning “to burn,” as well as from the historic practice of identifying goods with the mark of a firebrand (a burning piece of wood) and, later, a hot or cold iron. The branded “goods” might be the assets themselves (as with the hot-iron [branding](https://www.britannica.com/topic/branding-identification) of [cattle](https://www.britannica.com/animal/cattle-livestock), a practice common as far back as ancient Egypt) or the barrels and boxes containing the products. Even [enslaved](https://www.britannica.com/topic/slavery-sociology) people and criminals, for purposes of identification and punishment, have been branded throughout history. ![Cattle branding](https://cdn.britannica.com/43/240243-050-9D8E4E40/Holstein-dairy-cow-freeze-brand.jpg?w=800) Open full sized image A Holstein-Friesian dairy cow with an identification number freeze-branded on her flank. Lancashire, England. Wayne Hutchinson/Alamy ![The branding of John Leclerc](https://cdn.britannica.com/44/240244-050-47A3C8EA/Branding-of-John-Leclerc-French-Reformation.jpg?w=800) Open full sized image The branding punishment of French Huguenot John Leclerc in 1525, 19th-century illustration. From: "History of the Great Reformation in Europe, in the Times of Luther and Calvin" by J. H. Merle d'Aubigné, 1870 Producers have been marking their goods for millennia—there are stones, for example, from [ancient Egypt](https://www.britannica.com/place/ancient-Egypt) marked with a symbol of the quarry they hail from that are 6,000 years old and [Chinese pottery](https://www.britannica.com/art/Chinese-pottery) marked to indicate the potter who made it that are from 4,000 to 5,000 years old. The use of brand names to denote manufacturers became widespread in Europe in the late Middle Ages. Such branding soon became legally mandated. In 1266 the English Parliament enacted a law requiring bakers to mark loaves of bread made for sale, and, in the centuries that followed, European courts developed a body of law protecting the rights of producers to own their names and marks. With the rise of industrial-scale manufacturing and the widespread geographical distribution of products, reliable identification of goods became increasingly important, as consumers no longer purchased directly from local producers. By the late 19th century, manufacturers of all kinds were using stylized text, logos, and color schemes not just to identify their goods but to distinguish them in a crowded marketplace through promises of superior quality or value. Advertising agencies also emerged, notably [J. Walter Thompson Co.](https://www.britannica.com/money/J-Walter-Thompson-Co), which pioneered early techniques of using magazine advertisements to connect products with generalized associations such as the longing for luxury, security, or love. [Coca-Cola](https://www.britannica.com/money/The-Coca-Cola-Company), Ivory Soap, and [Colgate](https://www.britannica.com/money/Colgate-Palmolive-Company) all emerged as brands during this period with the support of extensive [advertising](https://www.britannica.com/money/advertising) campaigns. ![Tabasco sauce ad, 1905](https://cdn.britannica.com/09/237809-050-5DE87D7E/1905-adverstisement-for-TABASCO-Brand-Pepper-Sauce.jpg?w=385) Open full sized image Advertisement for Tabasco sauce, 1905. McIlhenny Company Archives, Avery Island, La. The reach and evocative power of [mass media](https://www.britannica.com/topic/mass-media), such as [radio](https://www.britannica.com/topic/radio) and especially [television](https://www.britannica.com/technology/television-technology), facilitated the modern era of branding. Manufacturers, led by American consumer packaged goods companies, began investing heavily in advertising, not just to raise awareness of their brands but to build specific emotional associations with their products. Brand management thus became an organizational concept. [Procter & Gamble Company](https://www.britannica.com/money/Procter-and-Gamble-Company) was a pioneer in such brand management, rejecting the notion of a single corporate [marketing](https://www.britannica.com/money/marketing) department and instead putting each of its branded products (e.g., Ivory, Tide, Crest, Crisco) under a separate management team, responsible for identifying a specific consumer segment and building a brand to appeal to that specific kind of buyer. By the 1950s, this strategy had become the standard marketing model in consumer-goods companies. The overall strategy for success at that time was rather simple: drive down costs using [mass production](https://www.britannica.com/technology/mass-production), invest the savings in mass media ad campaigns that imbued the brands with emotional resonance, and then make a profit by charging prices for the branded product that were higher than those charged by generic producers or those with weaker brands—prices that consumers would gladly pay because they valued the emotional connection they had with the stronger brand. The latter half of the 20th century was a period of increased sophistication, investment, and profitability in brand-based marketing. Marketers refined their message based on focus groups, consumer surveys, and data collected through retailers, and they expanded their reach through event sponsorships (such as the [Super Bowl](https://www.britannica.com/sports/Super-Bowl)) and film and television product placement. Additionally, they owned and operated brand-specific retail stores. The rise of the [Internet](https://www.britannica.com/technology/Internet), however, profoundly challenged the branding models of the 20th century. The controlled one-way messaging strategy so effective in mass media did not always translate well to the interactive online environment. Leading brands spent millions of dollars on “brochureware” websites (websites that simply listed their products and services online, akin to listing their products in a static brochure) that sparked limited consumer interest. Meanwhile, the disruptive effect of the new marketing channel allowed new brands to emerge as well as new types of intermediaries between product manufacturers and consumers, including review websites, pricing agents, and search engines. Consumers grew less reliant on the brands themselves to signal quality or value. ## Brand strategy ## Defining the product In a crowded, competitive marketplace, a brand and its associations convey the unique selling proposition of a product. This includes both rational attributes, such as price and quality, and emotional attributes, such as prestige, freedom, or reliability. Retailers often position themselves squarely on the rational benefit of price. [Walmart](https://www.britannica.com/money/Walmart), for example, has relied on a variety of slogans to communicate low prices, such as “Every Day Low Prices” and “Save Money. Live Better.” Luxury retailer [Neiman Marcus](https://www.britannica.com/money/Neiman-Marcus), on the other hand, flaunts its high prices, featuring outrageously expensive “fantasy gifts” in its holiday catalogs. Recent offerings from the latter included a \$6.1 million diamond ring and a \$285,000 electric pickup truck. [American Express](https://www.britannica.com/money/American-Express-Company) is a classic example of a brand that combines rational associations (conveying itself as a reliable, secure partner for expensive transactions) with aspirational, emotional ones (prestige, upward mobility, luxury). For years, the company spent heavily on advertising that featured familiar celebrities (including actor [Karl Malden](https://www.britannica.com/biography/Karl-Malden), director [Martin Scorsese](https://www.britannica.com/biography/Martin-Scorsese), singer [Sheryl Crow](https://www.britannica.com/biography/Sheryl-Crow), and athlete [Shaun White](https://www.britannica.com/biography/Shaun-White)) who relied on the American Express card. The advertising was combined with a product strategy that supplemented the [credit card](https://www.britannica.com/money/credit-card) with a suite of complimentary travel rewards and perks. Advertisements promised American Express cardholders unique, luxury experiences that differentiated the brand from its competition, such as [Visa](https://www.britannica.com/money/Visa-Inc) and [Mastercard](https://www.britannica.com/money/Mastercard-Inc). ## Defining the consumer Brands offer consumers a means of expressing themselves privately and publicly. Whereas early advertisements simply promoted the product, sophisticated marketers realized they could build stronger emotional connections if they focused on what their brands said about users of their product. During the peak of the [feminist movement](https://www.britannica.com/topic/feminism) in the 1960s and early ʾ70s, cigarette brand Virginia Slims built a business on this strategy by touting the progress women had made in recent years, using its famous tagline: “You’ve come a long way, baby.” [Nike](https://www.britannica.com/money/Nike-Inc), with the slogan “Just Do It,” became the global leader in athletic footwear by focusing its brand on the efforts and achievements of Nike-wearers instead of on the shoes themselves. As smart brand marketers discovered, humans are social animals who are constantly on the lookout for ways to signal their success and value to others. Some product categories are inherently well suited to “self-expressive benefits” and branding that helps consumers signal aspects of their status or personality. Outdoor gear, for instance, is often worn or used not just for utility in the wilderness but to signal the owner’s affinity for adventure. The cooler brand YETI surged to a leadership position in a previously sleepy category with prominent labeling—offering a strong, consistent visual identity across its products and advertising and a promise of rugged, even overbuilt quality. One of the greatest brand-building successes in history has been [Apple](https://www.britannica.com/money/Apple-Inc). Although the company’s category, computer hardware, was long associated with office drudgery and introverted users, Apple’s branding made its customers feel creative and unique. The company’s [1984 Super Bowl commercial](https://www.britannica.com/story/what-was-the-super-bowls-first-blockbuster-commercial), announcing the then new Macintosh computer, was perhaps the single most influential advertisement ever aired. Yet the commercial never showed a computer or explained what it could be used for or how it could be purchased. It did not even mention the brand name in the multimillion-dollar commercial until the final five seconds. Instead, it did something more powerful: it defined the brand’s customer as revolutionary and creative. ## Operating within a brand architecture Brand architecture is the organizing structure of a brand portfolio. Brand managers often use more than one brand for a product and may span a single brand across many products. For example, [Coca-Cola](https://www.britannica.com/money/The-Coca-Cola-Company) originated as a single-product brand, associated for more than a century with a specific carbonated [soft drink](https://www.britannica.com/topic/soft-drink). But in recent years it spawned several sub-brands, which are distinguished with additional terminology (“Diet,” “Cherry,” “Zero”) and visual cues, such as the silver associated with Diet Coke and the black associated with Coke Zero. Coca-Cola is also not just a consumer brand but a strong corporate brand, used to communicate the company’s track record of financial success to investors and business partners. These multiple uses of the brand help increase the return Coca-Cola gets from investing in a single brand, but they come at a cost to flexibility. The brand manager for Coke Zero, for example, has to consider the potential impact of a new promotion or partnership not just on the Coke Zero brand but on the other products under the Coca-Cola brand umbrella as well as the Coca-Cola corporate brand. By contrast, the brand manager for Sprite (a brand owned by Coca-Cola) has more freedom, since consumers are unlikely to associate advertising messages from Sprite with the Coca-Cola brand. 0 seconds of 1 minute, 48 secondsVolume 90% Press shift question mark to access a list of keyboard shortcuts Keyboard Shortcuts EnabledDisabled Shortcuts Open/Close/ or ? Play/PauseSPACE Increase Volume↑ Decrease Volume↓ Seek Forward→ Seek Backward← Captions On/Offc Fullscreen/Exit Fullscreenf Mute/Unmutem Decrease Caption Size\- Increase Caption Size\+ or = Seek %0-9 Subtitle Settings Off English Font Color White Font Opacity 100% Font Size 100% Font Family sans-serif Character Edge None Edge Color Black Background Color Black Background Opacity 75% Window Color Black Window Opacity 0% Reset White Black Red Green Blue Yellow Magenta Cyan 100% 75% 50% 25% 200% 175% 150% 125% 100% 75% 50% Arial Courier Georgia Impact Lucida Console Tahoma Times New Roman Trebuchet MS Verdana None Raised Depressed Uniform Drop Shadow White Black Red Green Blue Yellow Magenta Cyan White Black Red Green Blue Yellow Magenta Cyan 100% 75% 50% 25% 0% White Black Red Green Blue Yellow Magenta Cyan 100% 75% 50% 25% 0% Auto360p 1080p 720p 360p 180p Live 00:00 00:00 01:48 Explore the history of the Coca-Cola Company and brand. Encyclopædia Britannica, Inc. Brand managers use an array of tactics to organize complex brand architectures, but, broadly speaking, companies follow either a “branded house” or a “house of brands’’ approach. [Apple](https://www.britannica.com/money/Apple-Inc) operates mainly as a branded house, with nearly all of its products prominently identified with the “Apple” brand. Individual Apple products are distinguished through product brands (e.g., [iPhone](https://www.britannica.com/technology/iPhone), AirPods) but the Apple name, visual style, and language are present in all communications. Consumer packaged-goods companies, on the other hand, typically prefer the house of brands, multiple-branding strategy, as seen with [Procter & Gamble](https://www.britannica.com/money/Procter-and-Gamble-Company) (Crest, Gillette, Tide) and Colgate-Palmolive (Softsoap, Tom’s of Maine, Ajax). Variations are common, although companies typically keep brands separate when they convey distinct and even conflicting associations (such as brands for toothpaste and dishwasher detergent) but link them together when their various products benefit from common values (as with digital products like mobile phones and laptops). For each individual brand within the marketing architecture, brand managers decide how closely to connect them with one another and with the larger corporate brand. Various terms are sometimes used, not necessarily consistently across companies, to denote these relationships. Managers might refer to a brand that is closely linked to its parent as a “sub-brand” (for example, FedEx Ground and FedEx Office), whereas a brand with a more subtle connection might be termed an “endorsed brand” (Courtyard by Marriott). “Ingredient” brands can even operate within another company’s architecture. [Intel](https://www.britannica.com/money/Intel)’s “Intel Inside” campaign helped the company maintain dominance in [personal computer](https://www.britannica.com/technology/personal-computer) chips for decades by adding their product and the Intel branding to goods produced by other companies, such as [Dell](https://www.britannica.com/money/Dell-Inc), Acer, and Lenovo. These marketing approaches are fluid and situational, and most multibrand companies today employ a range of tactics. ## Tools, uses, and dangers of branding At its core, a brand is a name, but nearly all brands are associated with other symbols, including logos, colors, taglines, and music. Over time, these symbols can acquire substantial monetary value and are generally protected through [trademark](https://www.britannica.com/money/trademark) law. Brand managers must be careful to keep control over their brand elements, or trademark protection can be lost. Large brands typically have detailed internal rules about the use of brand imagery, precise colors, and design elements. Ironically, great success in brand marketing can be fatal, leading to genericide: when a brand, due to market saturation, becomes the generic term for the product itself and loses its legal protection. Aspirin, for example, was once a trademark of the [Bayer](https://www.britannica.com/money/Bayer) company, and cellophane was formerly a [DuPont](https://www.britannica.com/money/DuPont-Company) trademark. Consequently, companies that have built popular brands such as [Google](https://www.britannica.com/money/Google-Inc), [Photoshop](https://www.britannica.com/technology/Adobe-Photoshop), and Kleenex must be careful in communications and with partners to prevent their brands from becoming generic, legally useable terms. Pepsi-Cola Company There are also assorted powerful branding tools. The use of sound, for example, has evolved from classic advertising “jingles” (e.g., “The best part of waking up is Folgers in your cup” for Folgers Coffee) to signature sounds, such as [HBO](https://www.britannica.com/money/HBO)’s “static angel” intro, [Netflix](https://www.britannica.com/money/Netflix-Inc)’s “ta-dum,” or Intel’s five-note “bong.” A signature colour can also be powerful, because of how widely it can be used—at the point of sale, for product extensions, and in advertising—once the colour is established in the minds of consumers. Examples include [Tiffany](https://www.britannica.com/biography/Charles-Lewis-Tiffany)’s turquoise blue, T-Mobile’s pink, and [Home Depot](https://www.britannica.com/money/Home-Depot)’s orange. ![Tiffany & Co.](https://cdn.britannica.com/45/240245-050-96140AB9/Tiffany-blue-bags-boxes-luxury-shopping.jpg?w=385) Open full sized image Tiffany & Co.'s signature robin's egg blue bag and box. © Jeff Whyte/Dreamstime.com For most brands, though, the primary means of building awareness and associations are through advertising, still a multibillion-dollar industry. In this classic marketing approach, the brand is advertised in a scene or narrative intended to evoke the desired associations. [AT\&T](https://www.britannica.com/money/ATandT-Corporation), for example, has for decades promoted the power of a phone call to bridge the geographical divide, keeping families and loved ones connected. But advertising has progressed beyond obvious commercials, as companies seek to reach consumers in more subtle ways, such as through product placement in films and television programs, affiliation with celebrities and “influencers” (either by using them as spokespersons or by sponsoring their events), and association with admired causes (such as [environmentalism](https://www.britannica.com/topic/environmentalism) or disaster relief). These tactics can generate much greater returns than traditional advertising—in 1982, for example, [Hershey](https://www.britannica.com/money/Hershey-Chocolate-Corporation) paid \$1 million to feature a new candy, Reese’s Pieces, in the film [E.T. the Extra-Terrestrial](https://www.britannica.com/biography/Steven-Spielberg) and enjoyed a 65 percent increase in sales and a lasting association with a beloved movie character. Today, there are entire advertising agencies devoted to linking brands with movies, [social media](https://www.britannica.com/topic/social-media) personalities, and special events. ![Drew Barrymore offers Reese's candy to E.T.](https://cdn.britannica.com/46/240246-050-2F484940/ET-the-Extra-Terrestrial-promotional-photo-drew-barrymore-Reeses-Pieces-candy.jpg?w=385) Open full sized image Actress Drew Barrymore offers the alien some Reese's Pieces candy, a prominent example of product placement in the film E.T. the Extra-Terrestrial (1982). © Universal Studios/Amblin Entertainment Sponsorship branding, where a brand is tied to an athlete or entertainer or special occasion or cause, is another popular means of building associations, though this marketing method is fraught with risk. [Michael Jordan](https://www.britannica.com/biography/Michael-Jordan)’s longtime partnership with [Nike](https://www.britannica.com/money/Nike-Inc), for example, has made both parties billions of dollars. On the other hand, [Adidas](https://www.britannica.com/money/Adidas-AG)’s lucrative partnership with entertainer [Kanye West](https://www.britannica.com/biography/Kanye-West) backfired after he made a series of [anti-Semitic](https://www.britannica.com/topic/antisemitism) remarks, leading the company to cut ties with him in 2022 at an immediate cost to the corporation of some \$250 million and the risk of much greater long-term damage to the brand. Social or political associations can similarly be treacherous for brands. In 2023, both [Bud Light](https://www.britannica.com/money/Anheuser-Busch-Companies-Inc) and [Target](https://www.britannica.com/money/Target-Corporation) received backlash and calls for [boycotts](https://www.britannica.com/topic/boycott) of their brands after the former engaged a [transgender](https://www.britannica.com/topic/transgender) influencer for a promotion of its beer and the latter marketed trans-friendly merchandise during [Pride Month](https://www.britannica.com/story/why-is-pride-month-celebrated-in-june). Brand-building is not limited to external promotional communications. Brand managers seek to align all aspects of the company and the product with the brand and vice versa. Nike, for example, encourages its employees to pursue athletic hobbies, while Walmart promotes frugality with spartan corporate offices. Branding can even mean deliberately selling less of the product, a classic supply-and-demand tactic known as “scarcity marketing.” Clothing retailer Supreme built its brand on the back of its retail “drops,” new products introduced in limited supply at its own retail locations, which attract long lines in highly visible urban neighborhoods, building associations of exclusivity for the company. Although brands and branding evolved as a tool for marketing consumer products, brands are relevant in a variety of contexts. Brands can be valuable in business-to-business transactions, where managers often prefer to do business with established brands as a way of protecting themselves and limiting risk. For decades, “nobody ever got fired for buying [IBM](https://www.britannica.com/money/International-Business-Machines-Corporation)” was a widely used expression, reflecting the associations of reliability and quality that the IBM brand, known as “Big Blue,” had earned in corporate boardrooms. Similarly, consulting firms like [McKinsey & Company](https://www.britannica.com/topic/McKinsey-and-Company) and Boston Consulting Group implicitly promise their clients, as part of their brand appeal, a “seal of approval.” Managers advocating for a risky corporate venture frequently hire one of these firms to develop the strategy and add their brand strength to the proposal so that it carries more weight with corporate leadership. Less commercial organizations also rely on and invest in their brands. Young people spend years studying to be accepted at universities and then spend years paying off related debt, all for the lifelong right to associate themselves with brands like [Harvard](https://www.britannica.com/topic/Harvard-University), [Yale](https://www.britannica.com/topic/Yale-University), [Princeton](https://www.britannica.com/topic/Princeton-University), [Cambridge](https://www.britannica.com/topic/University-of-Cambridge), and Oxford. Modern universities employ many of the same tactics as shoe manufacturers and hamburger chains to enhance and protect their brands. Governments, political parties, artists, and charitable organizations are all active stewards of their brands, and some have developed sophisticated brand systems. [Donald Trump](https://www.britannica.com/biography/Donald-Trump)’s bright red “Make America Great Again” hats, Livestrong’s yellow bracelets, and the [Salvation Army](https://www.britannica.com/topic/Salvation-Army)’s red kettle are all iconic brand symbols intended to spur a host of non-commercial associations, from patriotism and political engagement to philanthropy and compassion. ![Donald Trump](https://cdn.britannica.com/41/189141-050-591D6D00/Donald-Trump-campaign-rally-Fountain-Hills-Arizona-March-2016.jpg?w=800) Open full sized image Wearing a MAGA (Make America Great Again) red hat, Donald Trump speaks to supporters at a campaign rally in Fountain Hills, Arizona, March 2016. Gage Skidmore ![Donating to a Salvation Army red kettle](https://cdn.britannica.com/47/240247-050-5AB44F0C/Salvation-Army-bell-ringer.jpg?w=800) Open full sized image A passerby dropping a donation into the red kettle of Delores Wright, a Salvation Army bell ringer in Chicago, during the 2004 Christmas season. © Tim Boyle/Getty Images ## Benefits of strong brands The foundational virtue of a strong brand is pricing power. A well-branded product will sell for more than an otherwise identical generic one. But strong brands have other virtues. They give companies a head start into new product areas and opportunities through brand extensions. Apple’s iPhones, iPods, and AirPods headphones all benefited from the tailwind of the Apple brand. [Gmail](https://www.britannica.com/topic/Gmail) is trusted by millions of users in part because it comes from [Google](https://www.britannica.com/money/Google-Inc), a company that was already their main portal to the [Internet](https://www.britannica.com/technology/Internet). Strong brands are also moats against incursions by competitors. Dominant brands often “own” the most valuable associations in a category, and challenger brands must either spend prodigious amounts on marketing to compete head-to-head with them or adopt niche positions to carve out a smaller market share. In the U.S., for example, T-Mobile is the second largest wireless carrier, but it came into the market with lesser brand awareness than the leaders, Verizon and [AT\&T](https://www.britannica.com/money/ATandT-Corporation), so it built the T-Mobile brand in express contrast with them, calling itself the “Un-carrier.” Trusted brands are also better suited to survive difficult times. The [Tylenol](https://www.britannica.com/science/Tylenol) brand survived a terrifying poison scare in 1982 in part because it had been part of consumer’s lives for nearly 30 years. Coca-Cola emerged from a failed attempt to reformulate its core product (“[New Coke](https://www.britannica.com/topic/New-Coke)”) stronger than ever when the controversial change reinvigorated consumers’ lifelong associations with Coca-Cola. Brands without those years of established associations, however, can be more fragile. Soon after [Ford](https://www.britannica.com/money/Ford-Motor-Company) introduced the Pinto, the model suffered a series of highly publicized fiery crashes. Lacking the ballast of other associations, the brand became known for those crashes, even though the car (which Ford knew was potentially dangerous) was no more dangerous than many other cars of its era. Ford abandoned the brand name. ![testing bottles of Tylenol for poison, 1982](https://cdn.britannica.com/48/240248-050-2C5EC6B1/Extra-strenght-tylenol-bottles-tested-for-cyanide-tylenol-murders-1982.jpg?w=385) Open full sized image Testing bottles of Extra Strength Tylenol with a chemically treated paper that turns blue in the presence of cyanide, Chicago, 1982. Such testing followed in the wake of the Tylenol poisoning tragedy that killed seven people in the Chicago area and led to a mass recall of the over-the-counter drug. John Swart—AP/Shutterstock.com Strong brands can even turn consumers into brand ambassadors. A popular metric for measuring brand strength is the Net Promoter Score (NPS), which relies on a single question: “How likely are you to recommend this product to someone else?” A brand that people are proud to be associated with is one that people are more likely to recommend and promote, for example, through social media. ## Controversy over branding Branding has its critics. Some argue that the increased price charged for branded products is exploitative, a means of using the power of mass media to manipulate people into wasteful spending. Specific brands, products, and advertising campaigns have also been charged with promoting harmful stereotypes, unhealthy pastimes, and unattainable ideals. Products such as [Aunt Jemima](https://www.britannica.com/topic/Aunt-Jemima-Pearl-Milling-Company) pancake mix, Uncle Ben’s rice, and Cream of Wheat have all discontinued their historic brands or logos depicting [African Americans](https://www.britannica.com/topic/African-Americans) because they have been charged with racial stereotyping; the [fashion industry](https://www.britannica.com/art/fashion-industry) has frequently been singled out for promoting unhealthy body types; and advertising tied to smoking, especially when apparently aimed at children (as the manufacturers of [vaping](https://www.britannica.com/topic/e-cigarette) products are widely accused of doing), has long been criticized for encouraging a dangerous addiction. Additionally, because advertising is often the primary source of funding for news and entertainment content, critics warn that advertisers may actually be purchasing biased treatment and reviews of their products. “[Greenwashing](https://www.britannica.com/money/greenwashing)” refers to companies using advertising and brand associations to counter the environmental and human harms their products or services may have caused. Major international [oil](https://www.britannica.com/science/oil-chemical-compound) companies, for example, have all faced controversies over using advertising to change consumer perceptions. In 2001 [BP](https://www.britannica.com/money/BP-PLC) began promoting itself as “Beyond Petroleum” (the firm’s initials historically stood for “British Petroleum”) despite the fact that it produced billions of barrels of oil and gas per year. Less than a decade later, it abandoned the campaign after it sold its solar and wind divisions in order to cover losses stemming from the [Deepwater Horizon oil spill](https://www.britannica.com/event/Deepwater-Horizon-oil-spill). ![Store display of Aunt Jemima pancake mix](https://cdn.britannica.com/35/234535-050-69EC04C5/Quaker-Oats-To-Change-Name-Remove-Image-Of-Aunt-Jemima-Brand-2020.jpg?w=800) Open full sized image Grocery store boxes of Aunt Jemima pancake mix in June 2020, shortly before the brand was discontinued because of charges of racial stereotyping in the wake of the murder that summer of George Floyd, a 46-year-old Black man in Minneapolis, Minnesota. Justin Sullivan/Getty Images ![extremely thin fashion model](https://cdn.britannica.com/77/197277-050-FF3D5312/model-wearing-dress-Jamaican-designer-Damien-Yee-2006.jpg?w=800) Open full sized image A runway model for the Guy Laroche fashion house in Paris, France, in 2006, whose extremely thin physique in the opinion of many promoted an unhealthy body image. Khayat-Nebinger-Orban-Taamallah/ABACAUSA.com/Newscom ## Challenges in the digital age The worldwide use of the Internet has spurred the most profound change to brand strategy since the rise of mass media in the 20th century. At their core, brands are a means of communication, one historically controlled by the manufacturer and owner of the brand. In a digital marketplace, however, consumers have great access to information and a global audience as well as novel means and tools for publishing their thoughts. As a consequence, brand owners have much less control over the ways their brands are used, viewed, and critiqued. A traditional television commercial or magazine advertisement, for example, is a self-contained, unalterable experience. Online, however, consumers or critics can use brand assets in unexpected ways, often subverting the brand owner’s mission and message. Parody accounts on social media, for instance, can associate unflattering messages with apparently legitimate brand imagery. Even a brand’s own website or social media channel can become a forum for criticism and competitive voices. In 2022, after [Twitter](https://www.britannica.com/money/Twitter) relaxed the requirements to obtain a “blue check” that indicates a legitimate account, pranksters made accounts in the name of various corporations and tweeted messages associating, for example, [Eli Lilly](https://www.britannica.com/money/Eli-Lilly-and-Company) with price gouging for insulin, [Chiquita](https://www.britannica.com/money/Chiquita-Brands-International-Inc) with Latin American dictatorships, and [Tesla](https://www.britannica.com/science/tesla) with automobile crashes. Because the Internet delivers news and data directly to consumers, buyers are also less reliant now on brands to convey information about a particular product or service. Before the Internet, for instance, a business traveler headed to a new city likely would have booked a room at a familiar branded hotel, such as the [Hilton](https://www.britannica.com/money/Conrad-Hilton) or [Ritz-Carlton](https://www.britannica.com/money/Cesar-Ritz). Now, in just a few minutes, travelers can identify boutique options more akin to their likes, closer to their destination, and otherwise more valuable to them in distinct ways. The value of a brand as a signifier of quality has lessened in the online age. While traditional product brands have often stumbled in adapting to the digital age, those surviving have conformed nonetheless and incorporated online messaging into their strategies. Native digital brands, meanwhile, have become some of the most popular, valuable, and admired ones in the world: Google, [Amazon](https://www.britannica.com/money/Amazoncom), and [PayPal](https://www.britannica.com/money/PayPal), for example, all rely on their strong brands to garner consumer trust and attention in the online marketplace. [Scott Galloway](https://www.britannica.com/money/author/scott-galloway/12911181) [![Britannica Money Logo](https://cdn.britannica.com/money/assets/Money-475x60-footer-2x.png?h=47&w=390)](https://www.britannica.com/money) [About Us](https://www.britannica.com/money/about)[Privacy Policy](https://corporate.britannica.com/privacy-policy-2)[Terms & Conditions](https://corporate.britannica.com/termsofuse.html) © 2026 Encyclopædia Britannica, Inc.
Readable Markdown	![Cereal brands](https://cdn.britannica.com/42/240242-050-ACD88997/Breakfast-cereals-grocery-store.jpg?w=385) Open full sized image Breakfast cereals on the shelves of a grocery store. © Kenishirotie/Dreamstime.com brand (marketing), a set of words, images, and associations that represent and distinguish a product or service in the marketplace. Strong brands elicit an emotional response from consumers and add value to the products and services they represent. Manufacturers have identified their products with names or symbols for thousands of years, and in the 20th century brands became not only critical to the promotion of goods and services but valuable assets in themselves. With the shift toward digital commerce in the 21st century, brands continue to be valuable but face new challenges because of the greater accessibility of information about products and services, the companies that produce or offer them, and the performance history of the branded offerings. ## History of brands and brand marketing The term brand originates from the Middle [English](https://www.britannica.com/topic/English-language/Historical-background#ref74809) [word](https://www.merriam-webster.com/dictionary/brand#word-history) for torch and the Old English verb meaning “to burn,” as well as from the historic practice of identifying goods with the mark of a firebrand (a burning piece of wood) and, later, a hot or cold iron. The branded “goods” might be the assets themselves (as with the hot-iron [branding](https://www.britannica.com/topic/branding-identification) of [cattle](https://www.britannica.com/animal/cattle-livestock), a practice common as far back as ancient Egypt) or the barrels and boxes containing the products. Even [enslaved](https://www.britannica.com/topic/slavery-sociology) people and criminals, for purposes of identification and punishment, have been branded throughout history. Producers have been marking their goods for millennia—there are stones, for example, from [ancient Egypt](https://www.britannica.com/place/ancient-Egypt) marked with a symbol of the quarry they hail from that are 6,000 years old and [Chinese pottery](https://www.britannica.com/art/Chinese-pottery) marked to indicate the potter who made it that are from 4,000 to 5,000 years old. The use of brand names to denote manufacturers became widespread in Europe in the late Middle Ages. Such branding soon became legally mandated. In 1266 the English Parliament enacted a law requiring bakers to mark loaves of bread made for sale, and, in the centuries that followed, European courts developed a body of law protecting the rights of producers to own their names and marks. With the rise of industrial-scale manufacturing and the widespread geographical distribution of products, reliable identification of goods became increasingly important, as consumers no longer purchased directly from local producers. By the late 19th century, manufacturers of all kinds were using stylized text, logos, and color schemes not just to identify their goods but to distinguish them in a crowded marketplace through promises of superior quality or value. Advertising agencies also emerged, notably [J. Walter Thompson Co.](https://www.britannica.com/money/J-Walter-Thompson-Co), which pioneered early techniques of using magazine advertisements to connect products with generalized associations such as the longing for luxury, security, or love. [Coca-Cola](https://www.britannica.com/money/The-Coca-Cola-Company), Ivory Soap, and [Colgate](https://www.britannica.com/money/Colgate-Palmolive-Company) all emerged as brands during this period with the support of extensive [advertising](https://www.britannica.com/money/advertising) campaigns. ![Tabasco sauce ad, 1905](https://cdn.britannica.com/09/237809-050-5DE87D7E/1905-adverstisement-for-TABASCO-Brand-Pepper-Sauce.jpg?w=385) Open full sized image Advertisement for Tabasco sauce, 1905. McIlhenny Company Archives, Avery Island, La. The reach and evocative power of [mass media](https://www.britannica.com/topic/mass-media), such as [radio](https://www.britannica.com/topic/radio) and especially [television](https://www.britannica.com/technology/television-technology), facilitated the modern era of branding. Manufacturers, led by American consumer packaged goods companies, began investing heavily in advertising, not just to raise awareness of their brands but to build specific emotional associations with their products. Brand management thus became an organizational concept. [Procter & Gamble Company](https://www.britannica.com/money/Procter-and-Gamble-Company) was a pioneer in such brand management, rejecting the notion of a single corporate [marketing](https://www.britannica.com/money/marketing) department and instead putting each of its branded products (e.g., Ivory, Tide, Crest, Crisco) under a separate management team, responsible for identifying a specific consumer segment and building a brand to appeal to that specific kind of buyer. By the 1950s, this strategy had become the standard marketing model in consumer-goods companies. The overall strategy for success at that time was rather simple: drive down costs using [mass production](https://www.britannica.com/technology/mass-production), invest the savings in mass media ad campaigns that imbued the brands with emotional resonance, and then make a profit by charging prices for the branded product that were higher than those charged by generic producers or those with weaker brands—prices that consumers would gladly pay because they valued the emotional connection they had with the stronger brand. The latter half of the 20th century was a period of increased sophistication, investment, and profitability in brand-based marketing. Marketers refined their message based on focus groups, consumer surveys, and data collected through retailers, and they expanded their reach through event sponsorships (such as the [Super Bowl](https://www.britannica.com/sports/Super-Bowl)) and film and television product placement. Additionally, they owned and operated brand-specific retail stores. The rise of the [Internet](https://www.britannica.com/technology/Internet), however, profoundly challenged the branding models of the 20th century. The controlled one-way messaging strategy so effective in mass media did not always translate well to the interactive online environment. Leading brands spent millions of dollars on “brochureware” websites (websites that simply listed their products and services online, akin to listing their products in a static brochure) that sparked limited consumer interest. Meanwhile, the disruptive effect of the new marketing channel allowed new brands to emerge as well as new types of intermediaries between product manufacturers and consumers, including review websites, pricing agents, and search engines. Consumers grew less reliant on the brands themselves to signal quality or value. ## Brand strategy ## Defining the product In a crowded, competitive marketplace, a brand and its associations convey the unique selling proposition of a product. This includes both rational attributes, such as price and quality, and emotional attributes, such as prestige, freedom, or reliability. Retailers often position themselves squarely on the rational benefit of price. [Walmart](https://www.britannica.com/money/Walmart), for example, has relied on a variety of slogans to communicate low prices, such as “Every Day Low Prices” and “Save Money. Live Better.” Luxury retailer [Neiman Marcus](https://www.britannica.com/money/Neiman-Marcus), on the other hand, flaunts its high prices, featuring outrageously expensive “fantasy gifts” in its holiday catalogs. Recent offerings from the latter included a \$6.1 million diamond ring and a \$285,000 electric pickup truck. [American Express](https://www.britannica.com/money/American-Express-Company) is a classic example of a brand that combines rational associations (conveying itself as a reliable, secure partner for expensive transactions) with aspirational, emotional ones (prestige, upward mobility, luxury). For years, the company spent heavily on advertising that featured familiar celebrities (including actor [Karl Malden](https://www.britannica.com/biography/Karl-Malden), director [Martin Scorsese](https://www.britannica.com/biography/Martin-Scorsese), singer [Sheryl Crow](https://www.britannica.com/biography/Sheryl-Crow), and athlete [Shaun White](https://www.britannica.com/biography/Shaun-White)) who relied on the American Express card. The advertising was combined with a product strategy that supplemented the [credit card](https://www.britannica.com/money/credit-card) with a suite of complimentary travel rewards and perks. Advertisements promised American Express cardholders unique, luxury experiences that differentiated the brand from its competition, such as [Visa](https://www.britannica.com/money/Visa-Inc) and [Mastercard](https://www.britannica.com/money/Mastercard-Inc). ## Defining the consumer Brands offer consumers a means of expressing themselves privately and publicly. Whereas early advertisements simply promoted the product, sophisticated marketers realized they could build stronger emotional connections if they focused on what their brands said about users of their product. During the peak of the [feminist movement](https://www.britannica.com/topic/feminism) in the 1960s and early ʾ70s, cigarette brand Virginia Slims built a business on this strategy by touting the progress women had made in recent years, using its famous tagline: “You’ve come a long way, baby.” [Nike](https://www.britannica.com/money/Nike-Inc), with the slogan “Just Do It,” became the global leader in athletic footwear by focusing its brand on the efforts and achievements of Nike-wearers instead of on the shoes themselves. As smart brand marketers discovered, humans are social animals who are constantly on the lookout for ways to signal their success and value to others. Some product categories are inherently well suited to “self-expressive benefits” and branding that helps consumers signal aspects of their status or personality. Outdoor gear, for instance, is often worn or used not just for utility in the wilderness but to signal the owner’s affinity for adventure. The cooler brand YETI surged to a leadership position in a previously sleepy category with prominent labeling—offering a strong, consistent visual identity across its products and advertising and a promise of rugged, even overbuilt quality. One of the greatest brand-building successes in history has been [Apple](https://www.britannica.com/money/Apple-Inc). Although the company’s category, computer hardware, was long associated with office drudgery and introverted users, Apple’s branding made its customers feel creative and unique. The company’s [1984 Super Bowl commercial](https://www.britannica.com/story/what-was-the-super-bowls-first-blockbuster-commercial), announcing the then new Macintosh computer, was perhaps the single most influential advertisement ever aired. Yet the commercial never showed a computer or explained what it could be used for or how it could be purchased. It did not even mention the brand name in the multimillion-dollar commercial until the final five seconds. Instead, it did something more powerful: it defined the brand’s customer as revolutionary and creative. ## Operating within a brand architecture Brand architecture is the organizing structure of a brand portfolio. Brand managers often use more than one brand for a product and may span a single brand across many products. For example, [Coca-Cola](https://www.britannica.com/money/The-Coca-Cola-Company) originated as a single-product brand, associated for more than a century with a specific carbonated [soft drink](https://www.britannica.com/topic/soft-drink). But in recent years it spawned several sub-brands, which are distinguished with additional terminology (“Diet,” “Cherry,” “Zero”) and visual cues, such as the silver associated with Diet Coke and the black associated with Coke Zero. Coca-Cola is also not just a consumer brand but a strong corporate brand, used to communicate the company’s track record of financial success to investors and business partners. These multiple uses of the brand help increase the return Coca-Cola gets from investing in a single brand, but they come at a cost to flexibility. The brand manager for Coke Zero, for example, has to consider the potential impact of a new promotion or partnership not just on the Coke Zero brand but on the other products under the Coca-Cola brand umbrella as well as the Coca-Cola corporate brand. By contrast, the brand manager for Sprite (a brand owned by Coca-Cola) has more freedom, since consumers are unlikely to associate advertising messages from Sprite with the Coca-Cola brand. 0 seconds of 1 minute, 48 secondsVolume 90% Press shift question mark to access a list of keyboard shortcuts 00:00 00:00 01:48 Explore the history of the Coca-Cola Company and brand. Encyclopædia Britannica, Inc. Brand managers use an array of tactics to organize complex brand architectures, but, broadly speaking, companies follow either a “branded house” or a “house of brands’’ approach. [Apple](https://www.britannica.com/money/Apple-Inc) operates mainly as a branded house, with nearly all of its products prominently identified with the “Apple” brand. Individual Apple products are distinguished through product brands (e.g., [iPhone](https://www.britannica.com/technology/iPhone), AirPods) but the Apple name, visual style, and language are present in all communications. Consumer packaged-goods companies, on the other hand, typically prefer the house of brands, multiple-branding strategy, as seen with [Procter & Gamble](https://www.britannica.com/money/Procter-and-Gamble-Company) (Crest, Gillette, Tide) and Colgate-Palmolive (Softsoap, Tom’s of Maine, Ajax). Variations are common, although companies typically keep brands separate when they convey distinct and even conflicting associations (such as brands for toothpaste and dishwasher detergent) but link them together when their various products benefit from common values (as with digital products like mobile phones and laptops). For each individual brand within the marketing architecture, brand managers decide how closely to connect them with one another and with the larger corporate brand. Various terms are sometimes used, not necessarily consistently across companies, to denote these relationships. Managers might refer to a brand that is closely linked to its parent as a “sub-brand” (for example, FedEx Ground and FedEx Office), whereas a brand with a more subtle connection might be termed an “endorsed brand” (Courtyard by Marriott). “Ingredient” brands can even operate within another company’s architecture. [Intel](https://www.britannica.com/money/Intel)’s “Intel Inside” campaign helped the company maintain dominance in [personal computer](https://www.britannica.com/technology/personal-computer) chips for decades by adding their product and the Intel branding to goods produced by other companies, such as [Dell](https://www.britannica.com/money/Dell-Inc), Acer, and Lenovo. These marketing approaches are fluid and situational, and most multibrand companies today employ a range of tactics. ## Tools, uses, and dangers of branding At its core, a brand is a name, but nearly all brands are associated with other symbols, including logos, colors, taglines, and music. Over time, these symbols can acquire substantial monetary value and are generally protected through [trademark](https://www.britannica.com/money/trademark) law. Brand managers must be careful to keep control over their brand elements, or trademark protection can be lost. Large brands typically have detailed internal rules about the use of brand imagery, precise colors, and design elements. Ironically, great success in brand marketing can be fatal, leading to genericide: when a brand, due to market saturation, becomes the generic term for the product itself and loses its legal protection. Aspirin, for example, was once a trademark of the [Bayer](https://www.britannica.com/money/Bayer) company, and cellophane was formerly a [DuPont](https://www.britannica.com/money/DuPont-Company) trademark. Consequently, companies that have built popular brands such as [Google](https://www.britannica.com/money/Google-Inc), [Photoshop](https://www.britannica.com/technology/Adobe-Photoshop), and Kleenex must be careful in communications and with partners to prevent their brands from becoming generic, legally useable terms. Pepsi-Cola Company There are also assorted powerful branding tools. The use of sound, for example, has evolved from classic advertising “jingles” (e.g., “The best part of waking up is Folgers in your cup” for Folgers Coffee) to signature sounds, such as [HBO](https://www.britannica.com/money/HBO)’s “static angel” intro, [Netflix](https://www.britannica.com/money/Netflix-Inc)’s “ta-dum,” or Intel’s five-note “bong.” A signature colour can also be powerful, because of how widely it can be used—at the point of sale, for product extensions, and in advertising—once the colour is established in the minds of consumers. Examples include [Tiffany](https://www.britannica.com/biography/Charles-Lewis-Tiffany)’s turquoise blue, T-Mobile’s pink, and [Home Depot](https://www.britannica.com/money/Home-Depot)’s orange. ![Tiffany & Co.](https://cdn.britannica.com/45/240245-050-96140AB9/Tiffany-blue-bags-boxes-luxury-shopping.jpg?w=385) Open full sized image Tiffany & Co.'s signature robin's egg blue bag and box. © Jeff Whyte/Dreamstime.com For most brands, though, the primary means of building awareness and associations are through advertising, still a multibillion-dollar industry. In this classic marketing approach, the brand is advertised in a scene or narrative intended to evoke the desired associations. [AT\&T](https://www.britannica.com/money/ATandT-Corporation), for example, has for decades promoted the power of a phone call to bridge the geographical divide, keeping families and loved ones connected. But advertising has progressed beyond obvious commercials, as companies seek to reach consumers in more subtle ways, such as through product placement in films and television programs, affiliation with celebrities and “influencers” (either by using them as spokespersons or by sponsoring their events), and association with admired causes (such as [environmentalism](https://www.britannica.com/topic/environmentalism) or disaster relief). These tactics can generate much greater returns than traditional advertising—in 1982, for example, [Hershey](https://www.britannica.com/money/Hershey-Chocolate-Corporation) paid \$1 million to feature a new candy, Reese’s Pieces, in the film [E.T. the Extra-Terrestrial](https://www.britannica.com/biography/Steven-Spielberg) and enjoyed a 65 percent increase in sales and a lasting association with a beloved movie character. Today, there are entire advertising agencies devoted to linking brands with movies, [social media](https://www.britannica.com/topic/social-media) personalities, and special events. ![Drew Barrymore offers Reese's candy to E.T.](https://cdn.britannica.com/46/240246-050-2F484940/ET-the-Extra-Terrestrial-promotional-photo-drew-barrymore-Reeses-Pieces-candy.jpg?w=385) Open full sized image Actress Drew Barrymore offers the alien some Reese's Pieces candy, a prominent example of product placement in the film E.T. the Extra-Terrestrial (1982). © Universal Studios/Amblin Entertainment Sponsorship branding, where a brand is tied to an athlete or entertainer or special occasion or cause, is another popular means of building associations, though this marketing method is fraught with risk. [Michael Jordan](https://www.britannica.com/biography/Michael-Jordan)’s longtime partnership with [Nike](https://www.britannica.com/money/Nike-Inc), for example, has made both parties billions of dollars. On the other hand, [Adidas](https://www.britannica.com/money/Adidas-AG)’s lucrative partnership with entertainer [Kanye West](https://www.britannica.com/biography/Kanye-West) backfired after he made a series of [anti-Semitic](https://www.britannica.com/topic/antisemitism) remarks, leading the company to cut ties with him in 2022 at an immediate cost to the corporation of some \$250 million and the risk of much greater long-term damage to the brand. Social or political associations can similarly be treacherous for brands. In 2023, both [Bud Light](https://www.britannica.com/money/Anheuser-Busch-Companies-Inc) and [Target](https://www.britannica.com/money/Target-Corporation) received backlash and calls for [boycotts](https://www.britannica.com/topic/boycott) of their brands after the former engaged a [transgender](https://www.britannica.com/topic/transgender) influencer for a promotion of its beer and the latter marketed trans-friendly merchandise during [Pride Month](https://www.britannica.com/story/why-is-pride-month-celebrated-in-june). Brand-building is not limited to external promotional communications. Brand managers seek to align all aspects of the company and the product with the brand and vice versa. Nike, for example, encourages its employees to pursue athletic hobbies, while Walmart promotes frugality with spartan corporate offices. Branding can even mean deliberately selling less of the product, a classic supply-and-demand tactic known as “scarcity marketing.” Clothing retailer Supreme built its brand on the back of its retail “drops,” new products introduced in limited supply at its own retail locations, which attract long lines in highly visible urban neighborhoods, building associations of exclusivity for the company. Although brands and branding evolved as a tool for marketing consumer products, brands are relevant in a variety of contexts. Brands can be valuable in business-to-business transactions, where managers often prefer to do business with established brands as a way of protecting themselves and limiting risk. For decades, “nobody ever got fired for buying [IBM](https://www.britannica.com/money/International-Business-Machines-Corporation)” was a widely used expression, reflecting the associations of reliability and quality that the IBM brand, known as “Big Blue,” had earned in corporate boardrooms. Similarly, consulting firms like [McKinsey & Company](https://www.britannica.com/topic/McKinsey-and-Company) and Boston Consulting Group implicitly promise their clients, as part of their brand appeal, a “seal of approval.” Managers advocating for a risky corporate venture frequently hire one of these firms to develop the strategy and add their brand strength to the proposal so that it carries more weight with corporate leadership. Less commercial organizations also rely on and invest in their brands. Young people spend years studying to be accepted at universities and then spend years paying off related debt, all for the lifelong right to associate themselves with brands like [Harvard](https://www.britannica.com/topic/Harvard-University), [Yale](https://www.britannica.com/topic/Yale-University), [Princeton](https://www.britannica.com/topic/Princeton-University), [Cambridge](https://www.britannica.com/topic/University-of-Cambridge), and Oxford. Modern universities employ many of the same tactics as shoe manufacturers and hamburger chains to enhance and protect their brands. Governments, political parties, artists, and charitable organizations are all active stewards of their brands, and some have developed sophisticated brand systems. [Donald Trump](https://www.britannica.com/biography/Donald-Trump)’s bright red “Make America Great Again” hats, Livestrong’s yellow bracelets, and the [Salvation Army](https://www.britannica.com/topic/Salvation-Army)’s red kettle are all iconic brand symbols intended to spur a host of non-commercial associations, from patriotism and political engagement to philanthropy and compassion. ## Benefits of strong brands The foundational virtue of a strong brand is pricing power. A well-branded product will sell for more than an otherwise identical generic one. But strong brands have other virtues. They give companies a head start into new product areas and opportunities through brand extensions. Apple’s iPhones, iPods, and AirPods headphones all benefited from the tailwind of the Apple brand. [Gmail](https://www.britannica.com/topic/Gmail) is trusted by millions of users in part because it comes from [Google](https://www.britannica.com/money/Google-Inc), a company that was already their main portal to the [Internet](https://www.britannica.com/technology/Internet). Strong brands are also moats against incursions by competitors. Dominant brands often “own” the most valuable associations in a category, and challenger brands must either spend prodigious amounts on marketing to compete head-to-head with them or adopt niche positions to carve out a smaller market share. In the U.S., for example, T-Mobile is the second largest wireless carrier, but it came into the market with lesser brand awareness than the leaders, Verizon and [AT\&T](https://www.britannica.com/money/ATandT-Corporation), so it built the T-Mobile brand in express contrast with them, calling itself the “Un-carrier.” Trusted brands are also better suited to survive difficult times. The [Tylenol](https://www.britannica.com/science/Tylenol) brand survived a terrifying poison scare in 1982 in part because it had been part of consumer’s lives for nearly 30 years. Coca-Cola emerged from a failed attempt to reformulate its core product (“[New Coke](https://www.britannica.com/topic/New-Coke)”) stronger than ever when the controversial change reinvigorated consumers’ lifelong associations with Coca-Cola. Brands without those years of established associations, however, can be more fragile. Soon after [Ford](https://www.britannica.com/money/Ford-Motor-Company) introduced the Pinto, the model suffered a series of highly publicized fiery crashes. Lacking the ballast of other associations, the brand became known for those crashes, even though the car (which Ford knew was potentially dangerous) was no more dangerous than many other cars of its era. Ford abandoned the brand name. ![testing bottles of Tylenol for poison, 1982](https://cdn.britannica.com/48/240248-050-2C5EC6B1/Extra-strenght-tylenol-bottles-tested-for-cyanide-tylenol-murders-1982.jpg?w=385) Open full sized image Testing bottles of Extra Strength Tylenol with a chemically treated paper that turns blue in the presence of cyanide, Chicago, 1982. Such testing followed in the wake of the Tylenol poisoning tragedy that killed seven people in the Chicago area and led to a mass recall of the over-the-counter drug. John Swart—AP/Shutterstock.com Strong brands can even turn consumers into brand ambassadors. A popular metric for measuring brand strength is the Net Promoter Score (NPS), which relies on a single question: “How likely are you to recommend this product to someone else?” A brand that people are proud to be associated with is one that people are more likely to recommend and promote, for example, through social media. ## Controversy over branding Branding has its critics. Some argue that the increased price charged for branded products is exploitative, a means of using the power of mass media to manipulate people into wasteful spending. Specific brands, products, and advertising campaigns have also been charged with promoting harmful stereotypes, unhealthy pastimes, and unattainable ideals. Products such as [Aunt Jemima](https://www.britannica.com/topic/Aunt-Jemima-Pearl-Milling-Company) pancake mix, Uncle Ben’s rice, and Cream of Wheat have all discontinued their historic brands or logos depicting [African Americans](https://www.britannica.com/topic/African-Americans) because they have been charged with racial stereotyping; the [fashion industry](https://www.britannica.com/art/fashion-industry) has frequently been singled out for promoting unhealthy body types; and advertising tied to smoking, especially when apparently aimed at children (as the manufacturers of [vaping](https://www.britannica.com/topic/e-cigarette) products are widely accused of doing), has long been criticized for encouraging a dangerous addiction. Additionally, because advertising is often the primary source of funding for news and entertainment content, critics warn that advertisers may actually be purchasing biased treatment and reviews of their products. “[Greenwashing](https://www.britannica.com/money/greenwashing)” refers to companies using advertising and brand associations to counter the environmental and human harms their products or services may have caused. Major international [oil](https://www.britannica.com/science/oil-chemical-compound) companies, for example, have all faced controversies over using advertising to change consumer perceptions. In 2001 [BP](https://www.britannica.com/money/BP-PLC) began promoting itself as “Beyond Petroleum” (the firm’s initials historically stood for “British Petroleum”) despite the fact that it produced billions of barrels of oil and gas per year. Less than a decade later, it abandoned the campaign after it sold its solar and wind divisions in order to cover losses stemming from the [Deepwater Horizon oil spill](https://www.britannica.com/event/Deepwater-Horizon-oil-spill). ## Challenges in the digital age The worldwide use of the Internet has spurred the most profound change to brand strategy since the rise of mass media in the 20th century. At their core, brands are a means of communication, one historically controlled by the manufacturer and owner of the brand. In a digital marketplace, however, consumers have great access to information and a global audience as well as novel means and tools for publishing their thoughts. As a consequence, brand owners have much less control over the ways their brands are used, viewed, and critiqued. A traditional television commercial or magazine advertisement, for example, is a self-contained, unalterable experience. Online, however, consumers or critics can use brand assets in unexpected ways, often subverting the brand owner’s mission and message. Parody accounts on social media, for instance, can associate unflattering messages with apparently legitimate brand imagery. Even a brand’s own website or social media channel can become a forum for criticism and competitive voices. In 2022, after [Twitter](https://www.britannica.com/money/Twitter) relaxed the requirements to obtain a “blue check” that indicates a legitimate account, pranksters made accounts in the name of various corporations and tweeted messages associating, for example, [Eli Lilly](https://www.britannica.com/money/Eli-Lilly-and-Company) with price gouging for insulin, [Chiquita](https://www.britannica.com/money/Chiquita-Brands-International-Inc) with Latin American dictatorships, and [Tesla](https://www.britannica.com/science/tesla) with automobile crashes. Because the Internet delivers news and data directly to consumers, buyers are also less reliant now on brands to convey information about a particular product or service. Before the Internet, for instance, a business traveler headed to a new city likely would have booked a room at a familiar branded hotel, such as the [Hilton](https://www.britannica.com/money/Conrad-Hilton) or [Ritz-Carlton](https://www.britannica.com/money/Cesar-Ritz). Now, in just a few minutes, travelers can identify boutique options more akin to their likes, closer to their destination, and otherwise more valuable to them in distinct ways. The value of a brand as a signifier of quality has lessened in the online age. While traditional product brands have often stumbled in adapting to the digital age, those surviving have conformed nonetheless and incorporated online messaging into their strategies. Native digital brands, meanwhile, have become some of the most popular, valuable, and admired ones in the world: Google, [Amazon](https://www.britannica.com/money/Amazoncom), and [PayPal](https://www.britannica.com/money/PayPal), for example, all rely on their strong brands to garner consumer trust and attention in the online marketplace. [Scott Galloway](https://www.britannica.com/money/author/scott-galloway/12911181)
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