Pete Martin: How a good name adds value

THE fundamental thing about brands is they add value to the product, over and above the functional benefit.

It is often described as emotional equity, which connects customers to the brand. It is what helps brands compete.

At a functional level, many brands are almost identical, and even if they are not, consumers often lack the time and expertise to distinguish between them.

The brand becomes a very valuable shorthand for intangible benefits such as perceived quality, trustworthiness, value for money, service and ethics. Some of these work at a subconscious level. It can be very effective because the sign is often an accurate representation of the store.

There is a quote from a famous ad man called James Webb Young. He was creative chairman of multinational ad agency J Walter Thompson in the 1940s. He said: "What you are has a way of shining through no matter what you say or do." I think that is true for many brands. However much companies try to position themselves, they end up revealing what is fundamentally true of their brand.

• Pete Martin is creative director of advertising agency The Gate Worldwide