Companies need to get their names out there. Your products can be both of a good quality and be well marketed, but even then if people don’t trust your company they will be hesitant to buy from you. This is why companies like Nike or Stock Software 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. For starters building a brand can be very expensive. It can cost millions of dollars of investment to establish even a modestly recognizable brand. That brand is fragile and can be destroyed by a few stupid mistakes or poor products. Also, not every business wants a brand attached to their products. 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. Why would you want to build a brand in that case? Simply you wouldn’t.
Another great type of companies that like to build their brands are trading stock companies. That type of company usually has a strong brand for the reason that that is how they make money, through their reputation. Individuals trust stock companies with their hard earned cash for the reason that they have been able to provide a good return in the past. When those types of business don’t have a good brand then there are many other options for people like some easy and cheap investing software.
Anyway you slice it, branding is important to many companies. It is the main way a company can market the brand they control, and thus sell the products to make their revenues. That is why the law protects company brands so strongly.
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