2.2.1. Definition of Brand
According to the American Marketing Association, a brand is referred as a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition” (Keller 2008, p.2). Kotler (1994) describes brand as a name, logo, symbol, design, or combination of these components used for distinguishing a product or service from other providers’ products. These characteristic components
２０ of a brand that enable the brand to be identified and differentiated are called brand elements (Keller 2008).
Keller (2008) notes that in practice the meaning of a brand is referred more broadly as “something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace” (p.2) and describes it as “something that resides in the minds of consumers” (p.10). With this broader concept of brands, the role of brands is not only restricted to the identification and distinction of a product from other products in the same category but also inclusive of signalling the product’s characteristics more efficiently and delivering various meanings related to the product such as attributes and values.
The benefits of branding can be viewed from both consumers’ and manufacturers’ standpoints. Firstly, from consumers’ point of view, brands enable customers to identify particular products that the buyers already have opinions on. By recognising specific products that consumers like or dislike, they are able to facilitate the process of purchasing and reduce the time required for the process (Dibb et al. 2006, Keller 2008). Secondly, consumers are able to evaluate the quality of product by considering brands. If a customer perceives a brand with a certain level of quality, this perception of quality can be transferred to the products which are presented by the brand. As a result, customers are able to reduce their perceived risk of purchase. This benefit of branding as a risk reducer is especially useful when customers’
knowledge about a product is not sufficient for judging the product, because they can estimate the known item based on their existing knowledge about the brand such as its quality, characteristics, and so on (Dibb et al. 2006, Keller 2008). Thirdly, brands can satisfy the psychological needs of customers. Consumers choose brands not only
２１ because of the brands satisfy their functional needs but also as the brands may serve their symbolic needs (Dibb et al. 2006, Keller 2008, Kotler 1994). For example, consumers can express their self-image by possessing a brand which signals a particular status or user image.
Branding is also beneficial to manufacturers (Dibb et al. 2006, Keller 2008). Firstly, as mentioned in the previous paragraph, brands provide an identification function of a company’s products. A company is able to make its product distinguishable from the other competitors’ products by using a brand. Consequently, the firm’s brand makes its customers identify its products easily, and induces the customers’ repeat purchasing (Dibb et al. 2006). Secondly, branding is useful for companies in extending their business (brand extension) and introducing new products (product extension). If consumers are familiar with a firm’s existing brands and favourable to the brands, they will likely be favourable to the products that are newly introduced by the firm and carry the brands they already know (Dibb et al. 2006). Thirdly, branding helps companies to promote their product and build competitiveness. Branding allows firms to endow their products with unique meanings and associations. By delivering unique associations, brands influence customers’ perception and user imagery of the branded products. As this consumers’ perception of a particular brand is difficult to be copied by the others, brands can be a source of competitive advantage (Keller 2008). Lastly, manufacturers are able to foster brand loyalty through branding. Successful branding ultimately leads customers to be brand loyal and enables companies to have on-going support from customers. Thus, firms with successful brands can enjoy the positive consequences of brand loyalty such as charging premium price for their products, maintaining constant market
２２ share, having sustainable revenue (particularly during a turbulent economic situation), and so forth (Dibb et al. 2006, Keller 2008).
2.2.2. Professional Sport Teams as Brands
Branding is applicable universally to various industrial contexts. For example, physical goods (e.g. BMW, Apple), services (e.g. Easy Jet, HSBC), retail stores (e.g. Tesco, Best Buy), online product and services (e.g. Google, Amazon), persons or organisations (e.g. UNICEF, Green Peace) , place (e.g. Las Vegas), entertainment (e.g. Disney) all can be the subjects of branding (Keller 2008). Sport is not an exception to the subjects of branding. Especially, professional sport is widely recognised as a brand. The reasons professional sport can be regarded as a brand is as follows.
Firstly, there is increasing recognition of image of professional sport teams (Bauer et al. 2008, Braunstein and Ross 2010, Ferrand and Pages 1999). Sport entities are getting growingly preoccupied with their image and the behaviour of the people who are engaged with sporting organisations is significantly influenced by the image of those organisations (Ferrand and Pages 1999). In line with Aaker’s (1991) emphasis on the potential effect of image on consumer behaviour and consequent change in brand equity, Ferrand and Pages (1999) suggest that it is worth to regard sport entities as brands.
Secondly, sport consumers show behavioural characteristics as brand loyal customers (Bridgewater 2010). A number of studies about the relationships between professional sport clubs and their customers (fans) discuss these consumers’ high
２３ level of loyalty towards the professional sport teams they support (e.g. Calrson, Donovan, and Cumiskey 2007, Funk and James 2001, Pritchard and Funk 2008, Mahoney, Madrigal and Howard 2000).
Thirdly, rapid commercialisation has been occurring in professional sport (Beech 2004). As there has been a large amount of research about sport consumers’ behaviour, there is a growing consensus of opinion amongst academic researchers and practitioners on viewing a professional sport as a business. Commercialisation itself is not a requirement for being recognised as brands, because non-commercial entities such as non-profit organisations, places, and so on can also be branded. However, commercialisation is a satisfactory condition for being the subject of branding. Therefore, it is reasonable that a professional sport club as a business should be considered as a brand.