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Advertising

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Lecture 19

Basic Marketing ManagementBus M 341

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Stimulating Demand

• Primary

• Selective

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Message Appeals

• Humor• Sex

– Overt– Romantic

• Fear• Ego/Prestige• Moral• Rational

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Strategies

• Brand Image• Positioning• USP (Unique Selling Proposition)• Resonance (Projective)• Affective (emotional)

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Do you know these logos?

1.

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Definitions

• Logo

• Symbol

• Trademark

• Service Mark

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The importance of trademark law continues to grow domestically and internationally

Use of trademarks:

• can build brand loyalty

• enhance recognition of your product

• enhance reputation and make repeat sales

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A trademark is a distinctive :

»word»symbol

»sound

»smell

»logo

»or other graphic

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Background

• First federal trademark law - 1870• Declared unconstitutional - 1878• International Trademark Assoc. - 1878• Trademark Act of 1881 - 1881• Trademark Act of 1905 - 1905• Trademark Act of 1920 - 1920• Lantham Act of 1946 - 1946• Trademark Law Revision Act - 1988

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Function of Trademarks

The primary function of trademarks is to indicate origin

Serve to guarantee quality of goods and services

Serve to create and maintain demand

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Choosing a Trademark

The goal is to find a word, symbol or design or a combination of these which is not purely descriptive

• Must be sufficiently distinctive • Must not be deceptive• Should be established before

resources are spent developing promotion materials

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Trademark Searches

A search is an investigation to discover potential conflicts

• Internet

• Many professional services available

• Attorneys

• U.S. Patent and Trademark Office publications

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Proper Use of Trademarks

Must be used properly to maintain rights

A mark that becomes the generic name is no longer treated as a trademark

Examples:• aspirin• nylon• cellophane• refrigerator

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Proper Use of Marks

• Use the generic name with the trademark• Always use the trademark as an adjective,

not as a noun• Give the trademark distinctive treatment• Label your trademark (TM® or SM)• Consider using the trademark on a

number of products

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Trademark Registration

• A trademark must be in use in interstate commerce

• Can file for registration with an intent to use but the mark cannot be registered until actual use has occurred

• Registered with the U.S. Patent and Trademark Office

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Foreign Registration

• If significant foreign marketing is anticipated, register in the applicable countries

• Trademark law differs considerably in other countries

• In most countries, trademark rights are granted to the first person that files for registration

• In some countries “warehousing” is practiced

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Examples of Application of the Law

Abercrombie & Fitch vs. Hunting World Inc.

1970• A&F sued Hunting World for infringement

of its registered trademark “Safari”• A&F had ten federal registrations

Result: “Safari” is merely descriptive

Cancellation of all ten federal registrations

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AMF Inc. vs Sleekcraft Boats 1979

• AMF marketed boats under the name “Slickcraft”

• In 1968, Nescher Boats adopted “Sleekcraft” for its high performance boats

Result: The court found that Nescher boats had not infringed. Different markets was a primary factor

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Hormel Foods vs. Jim Henson Productions - 1995

• Hormel Foods sued Henson production for trademark infringement with the introduction of a character in a Muppet Movie - “Spa’am” - a wild boar

Result: Henson production found not infringing. No chance for confusion of products

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Recovery For Violation of Rights

If a violation is established, the plaintiff shall be entitled to recover:

• Defendants profits

• Any damages sustained by the plaintiff

• The costs of the legal action

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Considerations in Marketing

• Designing products and services– Customers are loyal to brands

• Marketing information systems– Intelligence

• Marketing Research– Information needs

• Global Marketing– The countries laws

• Marketing ethics

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Conclusions

• Incorporate considerations of trademarks in the marketing process

• Conduct thorough searches for conflicting trademarks early

• File for registration of trademarks early• Maintain a good system for records• Avoid infringement - It can be costly