How does branding work?

The American Marketing Association defines a brand as

“a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.”

A brand is thus a product or service whose dimensions differentiate it in some way from other offerings designed to satisfy the same need. These differences may be functional, rational, or tangible—related to product performance of the brand. They may also be more symbolic, emotional, or intangible—related to what the brand represents in a more abstract sense.