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Legal Pitfalls of Brand Management. Dr. Eli Seggev. Guest lecture in Prof. Goodrich’s Marketing Strategy class Florida Atlantic University Boca Raton, FL . November 7, 2007. The Speaker. Academics Marketing professor: strategy, research, consumer behavior, advertising, entrepreneurship
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Legal Pitfalls of Brand Management Dr. Eli Seggev Guest lecture in Prof. Goodrich’s Marketing Strategy classFlorida Atlantic UniversityBoca Raton, FL November 7, 2007
The Speaker • Academics • Marketing professor: strategy, research, consumer behavior, advertising, entrepreneurship • Business • Founded two marketing research companies • Pioneered customer satisfaction research in large organizations • Developed computer simulations of marketing strategy outcomes • Founding member of high-tech startup • Litigation Research • Conducted research and gave expert testimony in Federal Courts Dr. Eli Seggev
Focus of Discussion Marketing Strategy Brand Development Brand Management Brand Defense Dr. Eli Seggev
Building a Strong Brand Conceptual or inherent strength (Relationship between the inherent meaning of the brand and the product) Commercial or acquired strength (Consistent brand exposure to consumers) • Arbitrary relative to the product benefits - memorable • Cleverly suggesting nature or product benefits • Courts give inherently strong brands broader protection (variations + line extension) • How well is the brand known to consumers – awareness • Inherently weak brands can acquire strength. Examples: Amazon, Google, Rolex, Doritos, Pepsi Examples: American Airlines, Nationwide Insurance Dr. Eli Seggev
Protecting a Brand Brand is successful Confrontation & Legal action Another brand imitates it Lifetime Dilutes brand distinctiveness and reduces strength Dr. Eli Seggev
Branding-Related Litigation • Likelihood of confusion • Dilution • Secondary meaning • Genericness • Legal strength Dr. Eli Seggev
Surveys in Litigation Research • Marketing research (following strict “legal precedent” guidelines) is a “must” • Survey evidence replaces individual testimony • Survey results, when properly obtained, are perceived as “hard facts” rather than opinions • As a result, surveys open the door to settlement Dr. Eli Seggev
Likelihood of Confusion Measurement Do you think these products are put out by the same company, are put out by different companies, or you don’t know? Do you think they are put out by companies that are affiliated, connected or associated with one another, they are put out by companies that are not affiliated, connected or associated with one another, or you don’t know? Dr. Eli Seggev
Likelihood of Confusion Results (*) Difference is statistically significant at 95% confidence. Dr. Eli Seggev
Likelihood of Confusion Results (*) Difference is statistically significant at 95% confidence. Dr. Eli Seggev
Summary • Branding strategy doesn’t end with brand name selection • Policing successful brands is the responsibility of the marketing department • Court decisions are heavily impacted by objective, quantifiable results Dr. Eli Seggev