Question

In your own words, explain the five common purposes served by trademarks. Give a real-life example of each purpose.

Answer 1

The five common purposes served by trademarks are:

1. Identification: The trademarks helps in identification of the product and the origin of the product. This helps in the consumer identification of the product when they are in confusion while choosing among similar products.

Example - The trademark of Baskin Robins ice cream (BR logo) helps the customer in identifying the product among many available options.

2. Quality: The quality of a product is also guaranteed by a trademark. This happens when a particular product can be multiplied by so many sellers.

Example - The trademark of certain gold jewelry brands guarantee the presence of good quality gold in the jewelry.

3. Advertisement: A trademark advertises a product. This happens when a trademark is so strong that when it attaches with a product, the product becomes more valuable and gets better traction.

Example - The Trademark of IKEA gives an advertisement that the store available will have all the listed furniture items.

4. Creates an image: A trademark creates an image in the perception of the customers that the product is suitable for them or not.

Example - The quality rating of 3, 4 or 5 stars help the customers in choosing the right set of electronics for them.

5. Legal: The trademark can also give the firm ownership of a specific location for doing business. This may also happen when the two firms are entering into a co-branded product partnership.

Example - The trademark of using a particular logo can have the exclusive right of the firm while marketing a product, legally.