Branding

❖ What is Branding?
• Branding can be defined as name, term, sign, symbol or design or a combination of them which
is intended to Identify and distinguish the product of one firm with other. It is the means that
differentiates products of one produce with competitors. Business firms generally use three
types of branding: Symbols and marks like Rath vanaspati, special names such as Lux soap and
LG watch and names of the product, and the manufacturer Like Sony television, Tata steel,
Godrej refrigerator, etc. A brand is not a name, term, sign, symbol, or any combination of these.
A brand is an assurance or guarantee that the product will perform as the customer thinks it
should, which means that the brand has already shaped the expectations of the customer about
it.
• Branding is the process by which companies distinguish their product offerings from
competition. Marketers develop their products into brands which help to create a unique
position in the minds of customers. A brand is created by developing a distinctive name,
packaging and design, and arousing customer expectations about the offering.
• The brand embodies some values that remain consistent over a period of time. The customer
expects these values to be delivered to him during each encounter he has with the brand.
Therefore, the company must realize that building a brand is not a short term activity.
Consistency is the most valued quality of a brand.
• It takes a long time to build a consistent brand image and it is extremely hard to sustain this
image. After a period of consistent performance, the brand is in the customer’s memory as an
accumulation of associations. These associations are summations of the customer’s interactions
with the brand over a period of time.
• Branding should be an indispensable activity of any organization. However, it is imperative for
organizations to remember that branding is only an outcome of various other activities in an
organization. A brand is an external manifestation of what happens inside the organization.
• It is important to align all activities in an organization, and behavior of all employees towards the
values embodied in the brand. Many companies believe that branding only comprises the
product and communication. Hence, it is also believed that branding is the responsibility of the
marketing department only.
• It is the duty of every department and each individual to shape the perception of the customers
in sync with the desired brand values. Every department and individual of the company has to
identify as to how he will contribute to shaping the perceptions of the customers. Branding is
too important to be the sole prerogative of marketing department.
• The sole purpose of branding is to create differentiation, and the brand name by itself cannot act
as a differentiator. The brand as a label merely acts as a distinguished name to convey this
differentiation. Therefore, the brand is the culmination of all activities of an organization.
• The brand name conveys the set of values and attributes embodied in the brand. As soon as a
customer hears the brand name, the attributes and values of the brand should conjure before
his eyes like a motion picture.

• Brand name:
It is part of the brand which can be vocalized. For example, Maruti, Colgate, Sony, Nikon,etc.A
brand name consists of words, letters, and numbers that can be vocalized.

• Brand mark:
It is that part of a brand that can be identified and recognized but cannot be vocalized or
uttered such as symbol, design, coloring or lettering. A brand mark is the part of the brand that
appears in the form of a symbol, design or distinctive coloring or lettering.

• Importance of Branding:
The importance of Branding can be briefly shown below:

1. Importance to customer

The importance of branding to the customers can be described from the following points:

• Product identification:

A brand helps the customers to identify the product easily. They can easily select the goods
among the goods produced by different producer. It helps the customer to get the information
about the products easily.

• Price stability:

Price stability is also the importances of branding to the customer.The price of the branded
goods are determined by producer itself. There will be no up-down in the price of such goods.
Stability in the price of branded goods provides the goods to consumers in the same price for a
long time.
• Quality stability:

Quality stability is also the importance of branding. Consumers will not accept the goods if the
goods are of less quality. The producers of the branded goods are always about the quality of
their goods. Then after, the consumers will always get the quality goods.

• Prestige:

Branded goods help to increase the prestige of the customers. The customers buy the branded
goods which help in the increment of prestige of the customers. For example, Apple mobile and
computer, etc.

• Customers’ satisfaction:

Customers’ satisfaction is very important in marketing. Branded products ensure advantage to the
consumer, assuring them better quality, stability in prices and easy availability of the goods. It helps the
consumers to get satisfaction by providing such branded goods.

❖ Importance to organization:
The importance of branding to the organization can be briefly shown below:
• Promotion:
Promotion is very important for the organization. It helps the organization to get promoted
because of the information about the features, prize, style, advantage etc.
• Legal protection:
A brand name provides legal protection to the special feature of the products. The inclusion of
brand name helps the goods to be totally protected.
• Save from competition:
A business organization can easily advertise the branded goods. They can attract consumers
towards their products. Due to branding, a business organization can be saved from competition.
• Build corporate image:
Branding also helps to build a corporate image in the products. Strong brands i.e. brands known
for quality and performance standards build a corporate image that has long term advantage.
3. Importance to society
The importance of branding to the society can be described from the following points:
• Consumer’s welfare:
Branded goods conserve the consumer’s right. The consumers will not found any defect in the
branded goods. If any defect is found in the products, the customers can take any action for that.
But the goods are for the consumer's welfare.
• Social activities:
The producers of branded goods also do some social activities. For example, Ncell football
competition. Such activities facilitate both the producer as well as society
• Environmental protection:
Producer of the branded goods are conscious towards the environment. They help to protect the
environment from air pollution, water pollution, noise pollution and in turn protect the health
condition of society.

❖ Types of brand:
• On the basis of ownership:
A. Manufacturer’s brand
B. Middlemen’s brand

• On the basis of Market area:

C. National brand
D. Regional brand
E. Provincial brand
F. Local brand

• On the basis of product line:

A. Family brand
B. Individual brand
C. Separate family brand
D. Mixed brand

❖ Reasons for not branding products:

• Problem of product differentiation:
Those products which are difficult to differentiate are not branded. For example, raw materials,
coal, iron, wheat, maize, etc. are not branded. Those products which are differentiating only can
be branded.
• Nature of the product:
The nature of the product does not require branding because it is not easy to differentiate from
others nor suitable. Vegetable and fruits are not branded because they cannot be standardized.
• Different in quality level:
That product which is different in quality level cannot be branded. There should be similarity
among the products produced by different producer having similar nature. For example, rice,
wheat, mustard paddy etc.
• Problem of brand promotion:
The problem in brand promotion also affects in the brand. Brand helps in sales promotion and
also increases the demand for the product. It is better to use brand by those manufacturing
companies who can fulfill the increasing demand.
• Perishable product:
Perishable products are not branded because of its shortest life and risk factor. Highly perishable
products like meat, egg, fruits and vegetables are also marketed without brand.
• Legal procedure:
Without legal procedure, the products cannot be branded. The legal procedure should be fulfilled
before using a branded product. The producer should consider all the legal formalities. Fulfilling
all the legal formalities needs some cost and time. To be away from such legal producer, it is
better not to use the brand.

• Easy to pronounce:
A brand should have the words that can be easily pronounced. A good brand name should be
simple so that consumer can say and spell the name of the product. The selected brand name
should be simple and easy to pronounce for all level people. If the name of the product is
complex, people will have difficulties to spell.
• Short and Sweet:
The name of the brand must be short and sweet. It should not be long and difficult to spell. The
brand name must be short so that the consumers can easily find it.For example, Tata, Bata, Rara,
etc.
• Memorable:
The good brand name should be memorable to the consumers if they see and hear it once in the
market. The long brand name is difficult to memorize. For example, Rara, Bata, Lux, OK, etc.
 Trademark

❖ What Is a Trademark?
• A trademark is a recognizable insignia, phrase or symbol that denotes a specific product or
service and legally differentiates it from all other products. A trademark serves to exclusively
identify a product or service with a specific company, and is recognition of that company's
ownership of the brand. Trademarked products are generally considered a form of property.
• Trademark protection is available for certain names, symbols, devices, or words that will be used
in connection with a good or service. Technically, if a certain mark is associated with a service, it
is called a "service mark," but trademark is commonly used to refer to both marks associated
with services and goods. The purpose behind trademarks is to allow companies and individuals
to indicate the source of their goods or services and to distinguish them from others in the
industry.
• Unlike patents, which are granted for a period of 20 years, trademarks never end. Companies do
need to apply for them and receive ownership confirmation with the U.S. Patent and Trademark
Office in order to claim protection from copycats, however.
• Over time, trademarks become synonymous with a company name, so that you don’t even need
to see the name to recognize a particular business. Think of the apple shape with the bite taken
out that Apple uses as its logo, the swoosh logo that Nike features on all of its products, or the
golden arches McDonald’s registered decades ago.
• The fact that we so easily associate symbols and words with companies and their brands is one
of the biggest advantages of their use. When a customer sees a familiar logo or phrase, they
have instant recognition, which can drive preference and, ultimately, sales.

❖ Trademark History:
• Trademark, as the word implies, is a mark that shows the trade of the maker. In 1266, King Henry
III of England passed a law requiring all bakers to make a distinctive mark for all the bread they
sold. The Löwenbraü brewery in Munich, Germany claims it has used a lion (Löwenbraü means
"lion's brew") as its trademark since 1383. The logo of Bass Brewery, which was trademarked in
1876, is the first image to be registered as a trademark in the United Kingdom.
• The first modern trademark law was promulgated in France in 1857, and Britain first issued its
trademark law, the Merchandise Marks Act, in 1862. The British act made it a criminal offense to
try and sell a product under the auspices of another manufacturer.
 In the U.S., Congress tried to pass a trademark law in 1870, but it was struck down by the
Supreme Court that year. Congress tried again in 1881, which was revised into the Trademark
Act in 1905.

❖ What Do Trademarks Do?

• A trademark not only gives the trademark owner the exclusive right to use the mark, but also
allows the owner to prevent others from using a similar mark that can be confusing for the
general public. A trademark cannot, however, prevent another person or company from making
or selling the same goods or service under a clearly different mark. Rights to a mark can be
established through the legitimate use of the mark in a commercial or business setting.
Registration with the U.S. Patent and Trademark Office (USPTO) is not required, but offers
additional protections.
• When a person claims the rights to a particular mark, he or she is allowed to use "TM" (for a
trademark) and "SM" (for a service mark) to designate that the mark is trademarked. The

symbol "®" designates federal registration and can therefore only be used after the USPTO
registers the mark, meaning the symbol cannot be used when an application is pending. In

addition, the ® symbol may only be used with goods and/or services that were listed in the
federal trademark application.

Signs of a Trademark:
To indicate that a trademark has been claimed companies use one of three symbols:

• ™ - Using the trademark symbol after a logo or phrase alerts competitors that you have
claimed this symbol or phrase as your own, but you don’t have to have even formally apply for
it.

• ® - Only trademarks that have been officially granted by the Trademark office can use the ®
symbol, which stands for registered trademark.

• ℠ - Companies that sell services, not products, have the option to use the service mark logo,
but most use the ™ instead for simplicity.
❖ Registering a Trademark:
➢ As previously stated, a person can hold rights to a mark without registering it with the USPTO,
but registration does have certain advantages. For example, federal registration of a mark gives
rise to the legal presumption that the registrant is in fact the trademark owner. Federal
registration also allows a trademark owner/registrant the ability to file a lawsuit related to the
mark in the federal court system.
➢ If you are interested in registering your trademark, you can easily do so online with the
USPTO's Trademark Electronic Application System (TEAS). Generally speaking, an application for
a trademark will need to include:
• The applicant's name;
• A name and address for correspondence between the applicant and the USPTO;
• A depiction or drawing of the mark;
• A list of the goods and/or services that will be associated with the mark; and
• Filing fee(s).
Some applicants also may be required to submit a specimen of use, which is basically a real-
world example of the mark. Any application that fails to include all of the required elements will
be returned to the applicant, along with a refund of the filing fee.

❖ Trademarks & Patents:

• To register a patent in the United States, a business must submit a patent application to the
Patent Office, which will be reviewed by an attorney to determine that the patent has been
registered in accordance with federal regulations and that it is a distinct product and does not
infringe on the trademark rights of an existing patent. After the application has been reviewed,
the patent is "published for opposition" for 30 days, during which time other companies can
oppose the registration of the new patent.

• Trademarks can be bought and sold. Famously, Nike purchased the instantly recognizable
Swoosh logo for only $35. Trademarks can also be licensed to other companies for an agreed-
upon period of time or under certain conditions, which can result in crossover brands. Lego, a
distinct company, has licensed many famous brands like Star Wars and DC Comics to produce
Lego versions of popular products. These are also examples of the importance of branding
products from a marketing perspective. Trademarks help distinguish products not only within
the legal system, but to the consumer.
❖ Getting Legal Help:
If you have any questions about whether your ideas qualify for trademark protection, or would
like help filing a federal trademark application, you may want to contact an
experienced trademarks attorney in your area.
For more information regarding trademarks, and other forms of intellectual property such as
copyrights and patents, you can visit FindLaw's section on Intellectual Property.

❖ Benefits of Registration:
Once a trademark has been granted, the owner receives three key benefits:
• A notice of claim to any other businesses thinking of using the same symbol or word as its
trademark
• A legal presumption of ownership, which can help fend off would-be users
• The exclusive right to use the claimed trademark