Business want and need to promote not only their products but also their names. You can have a well marketed, high quality product, but if people don’t trust your company then it will be much harder to sell them your products. This is why companies like Nike or Telechart 2007 work so hard to protect their brands. These companies spend millions and millions of dollars to make themselves recognizable by a mere “swoosh” or symbol. That symbol lets people know that what they are getting is a high quality product and that it can be trusted. It is rational that a company doesn’t want manufacturers getting in the way of their strong brand because then people might see the product as less valuable.
So why don’t all companies build up a brand. Well there are a few reasons for this. To begin, creating a brand can be prohibitively costly. It can cost millions of dollars of investment to establish even a modestly recognizable brand. A brand is a tender thing, it can be broken by a simple mistake or one bad product. Secondly, not all companies want to establish a band. As an example, when a company makes a cheap quality product they wouldn’t want their name associated with that product because then people won’t buy the next junk product they put out. Who would want a brand like that built up for their company? Simply you wouldn’t.
Another great type of companies that like to build their brands are stock investing companies. That type of company usually has a strong brand for the reason that that is how they make money, through their reputation. People allow investing companies to handle their money because they have had strong returns in the past. If companies didn’t have this type of reputation they could just do it alone with some simple stock trading software.
Anyway you slice it, branding is important to many companies. It is the only way they can properly market their brands and make the sales they need. That is why the law protects company brands so strongly.
