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While many marketers report that they are planning to increase spending on brand protection, many still struggle to understand, monitor and measure the impact of brand corruption and product 'knock-offs' on consumer trust and confidence. bmonger This article is copyright 2009 TheWiseMarketer.com).
The global survey of 306 marketers, sponsored by brand protection agency MarkMonitor, found that trademark trespassing is moving increasingly online, and that this kind of fraud is becoming more difficult to identify due to the increased sophistication of so-called 'brand hijackers'.
Among the key findings of the study:
- The top six market segments with the highest prevalence of abuse are digital media, luxury goods, software, footwear and apparel and Internet ecommerce (tied), and consumer electronics;
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- 30.3% of respondents said their company has a specialised brand protection group with another 17% choosing to outsource those efforts with a third party provider or leaving it up to their industry trade organisation;
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- 27.4% of respondent reported they spend less than US$100,000 on brand protection annually and the same number reported they have no budget allocations. Only 9.8% say they're spending more than US$500,000, while 2.7% say they're spending more than US$5 million;
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- The value and integrity of brand assets suffered the greatest impact from counterfeit products, knock-offs or online brand hijackings, with 41.2% of marketers rating this highest, followed by 35% blaming it for undermining revenue and margins, and 26.7% saying these activities raise unnecessary customer concerns and anxieties.
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