Being in business today – in any industry – means being open to a lot of opportunities and taking up chances that could either be good or bad for the business. When people buy things from your goods, then you might want to genericize your store so that people could easily have access to your products with less hassle.
But what happens when a brand becomes too big that its brand name replaces the actual name of the product or service they offer? What happens when they go through genericization? Think about how Band-Aid is now used to call bandages in general or how Kleenex became the common name for tissue.
And that’s just two of them.
There’s a list of at least 20 brand names that already went through genericization. But it happens. After all, success comes with challenges, just like how power comes with great responsibility. Lastly, when a brand becomes a household name, isn’t it beneficial for the company? Isn’t being popular a goal of brand awareness?
Before answering these questions, let us first understand what genericization is and what it’s about.
What Is Genericization?
According to Michael N. Cohen, a Los Angeles lawyer, a brand can become too famous and ubiquitous that people start associating it with that action. Then, they begin using the name in their everyday lives – a process called genericization.
Genericization can be catastrophic when starting a big business since it increases the risk and decreases focus on what matters most. It was delivering value to customers in the current market while building valuable assets for expansion into a new market later along the way.
In simple terms, genericization is when brand names become generic. It is the process of becoming less specific, of decreasing generalization.
And this phenomenon happens more often than companies would like to think. It’s surprising to know how often a single product becomes the common name for that category. And when the law gets involved, brands lose their right over the brand name.
It happened with aspirin – once a trademark name for acetylsalicylic acid but now a generic name for the medicine in the U.S.
Cellophane, also a victim of genericization, lost its trademark as a brand name for a thin, transparent sheet made from regenerated cellulose.
Other brands that lost their trademark because people began using them as a common name include dry ice, escalator, flip phone, heroin, laundromat, linoleum, and trampoline.
The list goes on.
Unfortunately, many more brands are on the verge of losing their trademark due to genericization. These are Adrenaline, Bubble Wrap, ChapStick, Clorox, Mace, Pampers, Plexiglas, and more.
Genericization happens when you invest heavily in one area of your business and neglect other areas. It can be a good thing if you do it right, but in most cases, it leads to poor performance and can even lead to bankruptcy.
Genericization is good for business. However, proper handling might lead to different problems along the way. In business, all things were considered to give off both advantages and disadvantages.
Pros and Cons of Genericization
If there is one thing you can be happy about, it’s the popularity that comes with genericization.
Imagine being too famous that your name gets to be part of the dictionary. Marketers will marvel at the awareness and reach your brand receives, not to mention the money that comes in.
Unfortunately, that’s where the good things end.
In the process of genericization, the cons have the upper hand.
Yes, even with the popularity, you would not want your brand to fall victim to it. Google doesn’t want you to say “just Google it” because when brand names become generic, people will associate it with the product or the act and not the brand itself.
So, when people ask for your brand, shops may provide other products under the same category instead of your specific product. Eventually, the fame and money you enjoy will fade, and you lose out.
Genericization is also a threat to startups due to its results in a loss of brand identity and personality. On top of losing sales, you might also find the renewal for your trademark name denied – something bound to happen when brands become genericized.
Of course, genericization only happens when a brand becomes very successful. But thankfully, there’s no challenge you can’t overcome.
Preventing Genericization
Genericization is something you want to steer clear of if you want your brand to retain its trademark and all its perks. If it still hasn’t happened yet, then it will.
Genericization was an ongoing process that can be prevented. And the best way to avoid becoming a victim of this phenomenon is to have a team that’s always on the same page when it comes to your brand.
Startups often go through a series of changes as they mature from their initial state to becoming larger and more established businesses. There are many possible paths that companies take on this journey, and those startups will experience at least some degree of genericization, whether intended or not.
Genericization events can be catastrophic for businesses if they were not prepared for them. When your marketing and support teams come together, they can achieve effective communication and better understand the brand. Without internal conflict, your brand image remains strong. Thus, they can develop a foolproof plan for preventing genericization.
And that plan needs to include the following:
- Identify a generic term to describe your trademark and use it all the time.
- Always use the registered trademark symbol (®) to stop others from using your name without permission or excessive use. This will help prevent genericization and ensure that people know that you own rights to this brand name and logo.
- Use your trademark correctly, meaning your branding team should use it on marketing materials, consumer documents, and all things related to the brand, whether in written or verbal form. In addition, incorrect usage can be considered infringement under U.S copyright law.
- Create a marketing campaign dedicated to protecting your trademark. This could include advertisements directed at ending genericization and increasing awareness among customers about how they should properly use trademarks when referring to products produced by different companies with similar names/logos as you.
- Take appropriate measures to prevent incorrect use of your trademark. Sit down with your legal team and discuss what to do about third parties who continue misusing your name. This would provide remedies against those who knowingly traffic in counterfeit goods bearing another’s registered mark.
- With a brand manager and a team that works in harmony, plus a strong strategy, your brand won’t fall victim to genericization. Ultimately, higher customer satisfaction and increased revenue are reached. And consumers will continue buying your specific product and tell others about it.
So, if you don’t want to have any trouble with genericization, find a team that can work with your brand and helps you get on top of the trademark game.
And if you want to know more about this process, we can help you out. Feel free to contact us any time.
With proper handling of the situation when a business goes under genericization event, then it would not be hard to deal with it. Business would be good with proper preventions.
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