Registering Trademarks or Building Brands?

Trademarks and brands are terms that are often confused. Indeed, trademarks and brands are related, but they are not the same. Understanding the difference can help you maximize the investment in your trademark portfolio and build valuable brands for your company. This article explains the difference between trademarks and brands and provides important points to consider in building a branded approach.

What is a trademark?

A trademark is a legal term. It is a word, name, symbol or device that differentiates one product from another and signifies ownership. When you create a trademark, you claim exclusive rights to use this name, symbol, device or other identifying element. This is the first step to ensure that it will belong to you and only you for as long as it lives in the marketplace.

What is a brand?

A brand on the other hand, is a marketing term. A brand represents the sum of the images, thoughts, and perceptions that come to a consumer’s mind when they see a trademark. From a consumer perspective, it is their expectation of the value they will receive when they purchase your product. From the company’s perspective, it is your promise of value to them. In this sense, value to the consumer is more than just the product and price but also the service and image they associate with your company and products. Because of this, the responsibility for delivering the brand promise to consumers goes beyond the marketing function to all company employees.

The Relationship between Trademarks and Brands

To understand the relationship between trademarks and brands it is useful to think about the “base and face” of a brand. The base of a brand is a meaningful promise of consumer value. To be meaningful, the promise must be relevant to the customer and differentiated from competition.

The “face” of a brand is represented by the name, logo, device or other unique identifying element that is developed to represent the promise and brand. These should be developed thoughtfully to reflect and help communicate the brand promise. If done correctly, they can also become legal trademarks. These trademarks then serve as the visual identity that brings the brand to life as well as the means to protect against efforts to use your brand without your permission.

Once the base and face of a brand are established, consistency in the presentation of your brand identity is key to building brand recognition and maintaining your trademarks and brand. To do this, formal brand guidelines should be developed to ensure proper use in all communications.

The Importance of Branding

Strong brands build business and equity for their owners. Brands that deliver their promises over time become trusted. This creates loyal users. Loyal users are the source of many tangible benefits including repeat purchases, referrals to new customers, willingness to pay a premium, protection from competitive threats and easier acceptance of new products.

Brands are also assets that add financial value to a company’s balance sheet. Brands that attract buyers who return to them at regular intervals find that forecasting cash flows becomes easier and they can plan and manage the business with greater confidence. In this sense, brands can be viewed as productive assets in the same way as other more traditional assets such as plant, equipment, cash investments, etc.

Getting Started with Branding

When opening a new business or introducing a new product, making the decision to invest in trademarks and brands is an important strategic decision for the business owner. Following are success factors to consider if you choose to build a branded approach:

• 1) Make sure your positioning is clear. Identify your target customers and position your company or products with a clear idea of what product or service you will provide and what makes you unique.
• 2) Develop a brand promise that is relevant and differentiated and that you can deliver consistently time and again.
• 3) Develop a name, logo and other identity elements (e.g. graphic symbol, tagline) that reinforce and help communicate your brand promise. Create trademarks to protect these elements.
• 4) Communicate your brand and brand promise to employees first before going external to customers. The goal is to gain commitment to delivery of the brand promise by the whole organization.
• 5) Manage the brand through consistent use of look and feel in all communications.
• 6) Capture your brand in trademarks and a trademark strategy that can add significant value to your business and provide legal protection.

Paul Zimmerman, a resource to the firm on branding issues, is the 3M Companies’ former Global Brand Manager for the Thinsulate™ Insulation and 3M™ Scotchlite™ Reflective Material brands. He presently advises companies as an independent brand and marketing consultant.