Marketing and Branding Strategies: Use of Trade

Marks, Geographical Indications, Industrial Designs

for Business Success: Case Studies

Shanghai
15 December 2004

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 Tools to promote
the business of an SME

 Tools
 Trade marks
 Industrial designs
 Geographical indications

 How do these branding tools help promote the business of an SME ?

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 What is a trade mark ?

 A mark that
 is associated with a particular product or service
 helps to distinguish it from other products and services,
 use of the mark in marketing and advertising,
 Achieves distinguishing from other products or services
 creates economic advantages to the trade mark owner or trade mark
licensee

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 What can be a trade mark

 A trade mark is not limited to a sign or words

 Can be:
 Words
 Letters
 Numerals
 Drawings
 Shapes
 Colours
 Logo
 Audible sounds

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 Economic benefits of a trade mark
Customer Recognition

 Customer recognition
 A customer will be able to recognise the SME’s product or service
and distinguish it from a competitor’s product or service
 A customer that was satisfied with the product when the customer
used it on a previous occasion, will recognise that product again,
and purchase that product again, instead of a competitors’
 If that brand recognition was not there, a customer would be unable
to recognise the product to be able to buy it again

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 Economic benefits of a trade mark
Customer Loyalty

 Customer loyalty
 Customer loyalty is more than recognition for the purpose of
buying again
 A customer that is a repeated user of the same product or service
will become a loyal customer
 Customer trust
 Customer emotional attachment
 All based on the qualities or attributes of the desired product
 A loyal customer may stick to the familiar, trusted product, even if
a technically superior product enters the market

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 Economic benefits of a trade mark
SME Image

 SME Image
 Trade mark of a product or service will enhance the reputation and
standing of the SME
 A customer that is satisfied with one product that the customer recognises,
will consider purchasing a different additional product from the same
SME

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 Economic benefits of a trade mark
SME Goodwill

 What is goodwill ?
The reputation and standing of a business
 Customer recognition
 Customer loyalty
 Customer trust
 Customer attachment
 The economic value of the expectation of loyal customers buying
again, expressed as a lump sum amount of money
 An asset on the SME’s balance sheet
 An asset against which an SME can borrow
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 Economic benefits of a trade mark
SME Goodwill and trade marks

 Goodwill is therefore almost entirely dependent upon trade marks

 It is often the difference between the total value of a business, less the
value of its physical assets, and that can produce a very high number

 How valuable can trade marks be ?

 All these are valued in excess of hundreds of millions of USD
 Coca Cola
 IBM
 Microsoft

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 What is an industrial design

 The physical characteristics that makes an article

 Recognisable
 Attractive and appealing

 Recognition
 Customers will recognise your product and buy it
 Attractive and appealing
 Customers will also want to buy it

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 Recognisable industrial designs

 Customers do not buy Coca cola because the bottle is

attractive
 They buy Coca cola because they like Coca cola
 Coca cola is recognisable
 By its trade mark
 By the unique design of the bottle that it comes in
 The design of the bottle is an industrial design that can
be protected

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