Page 311 - Foundations of Marketing

278 Part 4 | Product and Price Decisions

use fabricated words that have absolutely no meaning when created—for example, Kodak
and Exxon.
Who actually creates brand names? Brand names can be created internally by the
organization. At OPI, for example, a team of six employees brainstorm possible names for the
new nail lacquer colors. Some such names include “Aphrodite’s Pink Nightie,” “Lincoln Park
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After Dark,” and “Tickle My France-y.” Sometimes a name is suggested by individuals who
are close to the development of the product. Some organizations have committees that par-
ticipate in brand-name creation and approval. Large companies that introduce numerous new
products annually are likely to have a department that develops brand names. At times, outside
consultants and companies that specialize in brand-name development are used.

Protecting a Brand

A marketer also should design a brand so that it can be protected easily through registration.
A series of court decisions has created a broad hierarchy of protection based on brand type.
From most protectable to least protectable, these brand types are fanciful (Exxon), arbitrary
(Dr Pepper), suggestive (Spray ’n Wash), descriptive (Minute Rice), and generic (aluminum
foil). Generic brands are not protectable. Surnames and descriptive, geographic, or functional
names are difficult to protect. However, research shows that, overall, consumers prefer
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descriptive and suggestive brand names and find them easier to recall compared with fanciful
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and arbitrary brand names. Because of their designs, some brands can be legally infringed on
more easily than others. Although registration protects trademarks domestically for 10 years,
and trademarks can be renewed indefinitely, a firm should develop a system for ensuring that
its trademarks are renewed as needed.
To protect its exclusive rights to a brand, a company must ensure that the brand is not
likely to be considered an infringement on any brand already registered with the U.S. Patent
and Trademark Office. In a landmark ruling, Marvell Technology Group Ltd. was ordered to
pay $1.17 billion to Carnegie Mellon University for patent infringement. The university sued
Marvell Technology Group for infringing on patented technology developed by its employ-
ees. However, proving that patent infringement has occurred may be complex because
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infringement is determined by the courts, which base their decisions on whether a brand causes
consumers to be confused, mistaken, or deceived about the source of the product. McDonald’s
is one company that aggressively protects its trademarks against infringement; it has brought
charges against a number of companies with Mc names because it fears that use of the prefix
will give consumers the impression that these companies are
associated with or owned by McDonald’s.
A marketer should guard against allowing a brand name
to become a generic term used to refer to a general prod-
uct category. Generic terms cannot be protected as exclusive
brand names. For example, aspirin, escalator, and shred-
ded wheat —all brand names at one time—eventually were
declared generic terms that refer to product classes. Thus,
they could no longer be protected. To keep a brand name
Terri Miller/E-Visual Communications, Inc. name of the general product class, as in Kool-Aid Brand Soft
from becoming a generic term, the firm should spell the name
with a capital letter and use it as an adjective to modify the

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Drink Mix. Including the word brand just after the brand
name is also helpful. An organization can deal with this prob-
lem directly by advertising that its brand is a trademark and

the brand is a registered trademark by using the symbol ®.
A U.S. firm that tries to protect a brand in a foreign
Brand Protection should not be used generically. The firm also can indicate that
Companies try to protect their brands by using certain phrases and country frequently encounters problems. In many countries,
symbols in their advertisements. Note the term “brand” after Kool-Aid brand registration is not possible; the first firm to use a brand
and the use of the ® symbol. in such a country automatically has the rights to it. In some

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