How to differentiate a trademark by its perceptions and the quality?
Trademark and tradenames are very essential to sustain our brand value and reputation. With that importance, let’s take a closer look at the differentiation, perception and the quality of the trademark.
Trademarks, Trade names and service marks:
A trademark is any sign that individualizes the goods or services of a given enterprise and distinguishes them from the goods or services of its competitors. The Service mark is an extension of the concept of trademark in the service industry. Service marks are signs used by enterprises to identify their services, such as travel agencies, hotels, telephone companies and airlines. An extension of the concept of trademarks, is made to the service industry.
Functions of Trademark:
There are two functions of the trademark presumes here. First, indicating the source or origin of the product, and second, economically more important, giving a product a distinct personality of its own. In the market-driven economies of today, trademarks are an important source of product differentiation and non-price competition, particularly in the consumer goods sector. A consumer associates certain qualities with products available in the market under different trademarks. A trademark helps them attach such characteristics as durability, performance, efficiency and after sales service to a particular product sold at a value under that brand.
Consider the soft-drinks market in the country. The brand names ‘Pepsi’ and ‘coke’ differentiate the two beverages on the shelf. A consumer attaches certain qualities to the drinks. Pepsi is a trifle sweeter than coke or coke has that extra zing and this helps him choose the next time he wants a drink depending on his taste. The perception needs to analyse. A consumer, in making such a choice, makes certain assumptions about the quality of the product. He expects the same taste or constancy of quality from each Pepsi bottle or product, because he expects the manufacturer to maintain certain standards, irrespective of who makes the product or where it is made. Hence, a trademark creates a phantom manufacturer who through assembly line production and modern technology ensures that goods or services of uniform quality are made available to the consumer time and again, unfailingly.
Notion of quality:
The trouble with this perception is that it is only notional throughout the world; trademark laws do not require the proprietor to maintain any particular or declared quality. The question is rather of a firm’s own interest. If the proprietor feels that benefits from lowering the quality of trademarked product outweigh the loss in market share, it may suffer, there is no stopping it from selling an inferior quality product.
If anything, he may have to look to unfair competition or the consumer protection laws to seek redress. To put it differently, what is at stake for the proprietor of the trademark is the goodwill. He has been able to create for the particular brand. This consumer goodwill is the measure of the success of a trademark and, hence, the source of its economic value. Building goodwill requires large investments and marketing. For, the actual domain of goodwill is partly in the sphere of consumer psychology; and partly in the mundane world of quality, consistency and other such concrete notion.
“Solubilis Corporate Services“, the one who provides reliable and an excellent customer support to the clients throughout the registration process. Trademark registration in Coimbatore and we also do offer services at various locations in India.