The Economic Essence of the Own Trademarks and Their Function

Abstract

The article is aimed at presenting results of the study on defining the essence of the own trademarks and their functions. On the basis of a comparative analysis of the interpretations of «own trademark» and «brand», the content of the concept of «own trademark of trade enterprise» is clarified. As a result of generalization of existing interpretations, it is determined that the trade enterprise’s own trademark is a means of identifying the belonging of goods to a particular trading network and differentiating the enterprise. The essential characteristics of the own trademarks are determined, which include: belonging to a retail trade chain, the retailer’s ownership of the trademark, contract production, exclusivity of sales in the stores of a certain network, formation of a certain commodity and price policy for goods under its own trademark. It is substantiated that the main functions of the own trademark are ensuring the price competition of the trading enterprise, reducing dependence on brands of other manufacturers, differentiation from competitors, winning loyalty of consumers.

Keywords

• own trademark
• brand
• trade enterprise
• functions of own trademark