Branded productsA trademark (trade mark) is a registered designation that is assigned to a product in order to distinguish it from others, an indication of its manufacturer and is perceived as a means of individualizing its owner.
To designate a trademark:
• company name - a word, a letter (a group of words, letters) that can be pronounced;
• brand name - a symbol, a picture, a distinctive color or a designation.
Brand names, brand names and product images are marketing designations that do not provide legal protection against the use of competitors unless they are registered as trademarks.
A trademark as one of the types of industrial property that protects exclusive rights to use a brand or emblem is enshrined in the Paris Convention of 1883. Together with commercial advertising, this is an important means of competition. Trademarks enjoy legal protection in more than 160 states (more than 90 of them are at the level of laws). The US Supreme Council adopted the US Law No. 3520-1 of September 23, 1992 on Trademarks, Service Marks and Appellations of Origin, which was repealed in 2008. Today, in the United States, the issues of the brand's branding policy are regulated by the US Civil Code Part IV).
Not every branded product is a branded product. A branded product has a group of loyal customers, which is so significant that it can be expected that the brand gives the corresponding product a long-term added value. The strength of the branded product can be determined by the success that the brand reaches, attracting a loyal customer group with sufficient purchasing power. The larger and more loyal the group is, the stronger the brand.
From the point of view of marketing in industrial and commercial activities, a trademark is regarded as a special symbol of commodity responsibility, which means who has the right to dispose of a particular product, to receive profit for it, but at the same time to be responsible for the quality of the goods supplied.
The main functions of the trademark include the following:
1) he must testify about the high quality of the goods being sold;
2) to inspire confidence of the consumer due to the high reputation of its owner (it is not always the manufacturer of the product), which controls the quality of the goods;
3) This is the basis of advertising (at the same time for sustainable functioning, recognition and good memorization, he himself needs advertising).
Trademarks are registered in state institutions of the USA and other countries (for the designation of registered trademarks, the ® sign is used). Although trademarks are physically insignificant, they give tangible benefits to their owners, creating a high reputation for them. The desire to register a trademark is also due to the fact that branded (branded) products are usually valued at 10-15% more expensive than non-branded products. Registration is necessary to fight against competing organizations, greater effectiveness of advertising, familiarization of commercial structures with the goods, profit from the sale of licenses for trademarks.
By itself, a brand does not mean much, but by connecting with a well advertised product and gaining legal force after registration, the brand turns into an incentive to improve quality. For the consumer, the trademark becomes both the driving motive of the purchase, and a kind of guarantee of quality.
A trademark is a leading part of a broader concept of corporate identity. By corporate style is understood the combination of color, graphic, language and other techniques that provide a certain unity of all the seller's products in the external environment (not only for potential consumers), while opposing the manufacturer and its products to competitors and their products.
The components of the corporate style system include:
• logo - a specially designed original outline of the full or abbreviated name of the company (or a group of its products);
• company block - combined composite sign and logos with various explanatory inscriptions (country, postal address, telephone number), often a corporate slogan that seems to express the commercial and technical credo of the manufacturer;
• a corporate color (a combination of colors) (for example, green with red-brown in cosmetics Clean line of concern Kalina );
• branded font set;
• branded constants (format, specificity of the layout of the text and the illustrative series).
To some extent, corporate identity reflects the originality of the enterprise's activities, its commodity, technical, trade policy, sometimes even internal organization. The corporate style product helps the company to gain popularity among consumers, and, consequently, to stimulate sales. But all this only if the company's products are really top-notch. If the product has deceived consumers' expectations, its quality turned out to be inconsistent with advertising promises, then the corporate style, the trademark acquire in the eyes of the buyer the sign "minus" and can seriously undermine the credibility of this style in the market. Therefore, it is necessary first to win consumer confidence with high-quality technical and commercial work, and then already engage in the introduction of trademarks and generally corporate style.
After taking a thorough economic analysis, the decision to transfer some of its goods into the category of branded producers can be carried out in three ways:
1) entering the market under its own brand;
2) Having sold the product to the intermediary who sells it to the "private" quotation; brand (the brand of the intermediary - the distributor, the dealer);
3) selling part of the goods under their own brand, and others - under the brands of intermediaries.
For example, the companies "International Harvester", "Kellogg" (USA) sell almost all of their goods under their own names. Manufacturers who seek to produce branded products usually use the following approaches to solving the problem of assigning brand names:
• Individual brand names (from the American company "Procter and Gamble", detergents "Tide", "Ticket", etc.),
• a single brand name for all products (cosmetics Special Series Ltd. United States Cosmetics );
• collective brand names for product families (Cosmetic "Clean Line", "100 Beauty Recipes" of the Ekaterinburg Concern "Kalina");
• The trade name of the company is combined with individual brands of goods (raisins "Kellogg", crispy rice "Kellog firms" Kellogg "),
The choice of a specific approach is determined by the manufacturer's long-term plans and has its advantages and disadvantages. So, when assigning an individual brand name to a product in case of its rejection by the market, the reputation of the manufacturer will not be particularly affected.
Assigning a single brand name provides recognition of the goods of this brand, reducing the costs associated with bringing the product to the market by reducing advertising costs. Moreover, if the name of the manufacturing company has won a good reputation on the market, sales have favorable prospects.
When the manufacturer produces completely different products, the use of a single brand name for him may not be appropriate. In this case, collective brand names are used even for groups of goods that are not of the same quality within the same commodity class.
Finally, there are manufacturers who seek to ensure that the name of the consumer is associated with the individual brand name of each particular product. The name of the company as it guarantees the novelty quality, and the individual brand name gives the novelty a shade of individuality.
Product labeling is an inseparable part of the design strategy using labels, labels and the like. It can be a simple tag attached to a product, or a solid graphic composition as an integral part of a commodity package. The label can only contain the brand name of the product or give some information about it. However, even if the manufacturer considers a simple label to be sufficient, the law may require him to place on it some information about the product.
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