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Marketing Management Advertising Paul Dishman, Ph.D. Department of Business Management Marriott School of Management Brigham Young University Lecture 19 Marketing Management Stimulating Demand • Primary • Selective Paul Dishman, Ph.D. Marketing Management Message Appeals • Humor • Sex – Overt – Romantic • • • • Fear Ego/Prestige Moral Rational Paul Dishman, Ph.D. Marketing Management Strategies • • • • • Brand Image Positioning USP (Unique Selling Proposition) Resonance (Projective) Affective (emotional) Paul Dishman, Ph.D. Marketing Management Do you know these logos? 1. Paul Dishman, Ph.D. Marketing Management Definitions • • • • Logo Symbol Trademark Service Mark Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management A trademark is a distinctive : »word »symbol »sound »smell »logo »or other graphic Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management Paul Dishman, Ph.D. Marketing Management Trademark Searches A search is an investigation to discover potential conflicts • Internet • Many professional services available • Attorneys • U.S. Patent and Trademark Office publications Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D. Marketing Management 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 Paul Dishman, Ph.D.