As you know, the first impression is of great importance, and the name of the company is what potential clients and partners initially encounter. Let’s figure out how to choose the right one.
What is naming and why does a company need it?
Naming is the process of creating unique and memorable names for brands, products, services and brands. It is one of the most important parts of a company’s branding and marketing strategy. Thanks to the name, you can make products or services recognizable, as well as create certain associations among consumers.
Here are some reasons why naming is so important.
- Uniqueness. In a world oversaturated with various products and services, a unique name helps a company stand out from its competitors. It creates a special image and helps to form a certain position of the brand in the market. For example, Apple is an electronics and software company. Its name is not directly related to the products, but created an association with something innovative, fresh and unique.
- Memorability. An easy-to-remember name makes it easier for consumers to recognize a brand or product. It also promotes repeat purchases and the establishment of long-term relationships with customers. For example, Nike is one of the most recognizable and successful brands in the field of sportswear and footwear. Its short and simple name is easy to remember and is associated with dynamism, sport and quality. Thanks to this, the brand name can immediately come to mind for people who are looking for new sportswear or shoes.
- Emotional impact. The name of a company can evoke certain emotional reactions in consumers: interest, inspiration and trust. And this has a positive effect on the brand image. For example, Disney is a name that is associated with magic, childhood and fantasy. The company is known for its cartoons, amusement parks and characters that have left an indelible mark on the lives of many generations. Therefore, the name Disney inspires confidence, uplifts the mood, and generally creates positive emotions.
- Simplifying communication. When the essence of a product or service is clearly reflected, consumers are more likely to understand what the company does and how it can help them. Let’s say the name Burger King means that this is a place where you can get royal (high-quality and tasty) burgers. In addition, it is immediately clear that the company specializes in fast food.
- Creating the necessary associations. A brand name can evoke certain feelings and expectations among consumers. For example, it can represent high quality, innovation, affordability, and so on. A correctly chosen name can form the desired associations and maintain the company’s image. For example, the name Rolex is associated with luxury, prestige, style, elegance and high quality watches.
If the name of a company or product is meaningful and easy to remember, then it is likely that it will become a powerful lever for successfully promoting the brand in the market.
What problems do companies face when choosing a name?
Even though naming is a creative and interesting process, this does not mean that it will be simple. Here are a few challenges businesses may face when choosing a unique name.
Similarity to another company name
Before you settle on any option, you should make sure that the desired name, as well as the domain address for the website and email, are available. But there is another important point here.
A name that is too close in sound or spelling to existing trademarks can also lead to unpleasant legal problems and disputes. In addition, there will be a risk of consumers being associated with another company.
For example, in 1968, The Beatles created Apple Records. And in 1976, Steve Jobs, Steve Wozniak and Ron Wayne founded Apple Inc., now known as Apple. This led to legal disputes between them that continued for many years.
The word “Apple” was a common element in both brands, and even though they were different businesses, this could cause confusion among consumers and create the impression of some kind of connection between the two companies.
Having difficult to pronounce words or poor wording
Sometimes companies choose a name that does not reflect the essence and values of the brand or does not resonate with the target audience. In addition, a name that is too complex or difficult to pronounce may be forgotten or misunderstood by customers, which will also lead to loss of market position.
For example, in 1985 Coca-Cola decided rename its legendary Coca‑Cola drink at New Coke. This decision came after years of market dominance and competition with Pepsi. However, this name caused protest among loyal fans of the brand.
Many people also did not like the new formula, and Coca‑Cola was forced to return to the old version called Coca‑Cola Classic. The New Coke drink was almost immediately discontinued.
The emergence of negative associations
Some words may have negative or inappropriate associations with certain groups of people or cultures, which will certainly harm the company’s image.
For example, Chevrolet was faced with a naming problem, when its representatives decided to sell their Nova car model in Spanish-speaking countries. In Spanish, “No va” means “doesn’t work” or “doesn’t work”, which created negative associations among consumers and reduced demand for the car.
To avoid such problems, companies often turn to naming specialists for help, who help them choose the most suitable and successful name.
What rules should you follow when choosing a name?
Let’s look at five rules that will help you choose a successful creative name for your business or product.
1. The name should be easy to remember
An original name allows you to stand out among competitors and create a unique image in the business world. When consumers encounter a name that is unusual and memorable, they are more likely to associate it with certain products or services.
How to create such a name? It is important to avoid common words and common formulations, and also check the availability of the name on the Internet and social networks.
A great example is the name Google, which has become synonymous with Internet search. The company’s founders chose it as a play on the English word googol, a mathematical term for a 1 followed by 100 zeros. Thus, they emphasized their goal – to organize a huge amount of information, while making it accessible to users.
2. The name must correspond to the brand and its target audience
The company name should generally be easily associated with the brand and convey the right emotions and messages to consumers. Studying the target audience will help with this. Understanding her interests and preferences will make it easier to create a creative name that will evoke a positive reaction from potential clients.
For example, Amazon is a global leader in e-commerce, cloud technologies, and a variety of products and services. Its name is translated from English as “Amazon” – a mighty river. The company’s founder, Jeff Bezos, chose it to create associations with the exuberance, ambition and unlimited possibilities that the company strives to provide to its customers. It also symbolizes expansion and growth.
3. The name should be expandable and global
The name of the company should under no circumstances limit its development. After all, it is quite possible that in the future you will want to expand your activities, offer new products and services, and enter the global market.
Therefore, it is worth choosing a flexible name at the initial stage and avoiding words that have different meanings or sound funny in the countries you are considering for scaling.
So, in 1971, Ford presented the Pinto, which was successful in the American market. However, problems arose when trying to expand into the global market. The fact is that in Portuguese the word pinto can be used in an unpleasant context and refer to the male genital organ.
This would create mixed and negative associations among potential customers, which could have a negative impact on sales and brand perception. It all ended with the company being forced to reconsider its plans to promote Pinto to the Portuguese market and make changes to the name.
Ultimately, the word chosen was Corcel, which means “horse” in Portuguese. This changed associations with the car to more neutral and positive ones and helped the company successfully introduce its product to the Portuguese market.
4. The name should not be taken
Before you finally decide on a name, you need to do a thorough check of its availability. This process involves searching the Internet and databases for companies, trademarks, and domain names. If the desired name or domain is not taken, you can assign it to your brand.
Legal protection is an important aspect, therefore, having created a unique and memorable name, the company must provide his legal protection. For example, register a trademark or obtain copyright for a brand name.
By following these simple rules, you can create a unique and memorable name that will help your brand or product stand out and attract the attention of consumers.
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