How to choose a name that will increase the value of the company

As you know, the first impression is of great importance, and the name of the company is what potential customers 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 trademarks. 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 a few reasons why naming is so important.

• Uniqueness. In a world saturated with different products and services, a unique name helps a company stand out from the competition. 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 products, but has created an association with something innovative, fresh and unique.
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• Memorability. An easy-to-remember name makes it easier for consumers to recognize a brand or product. And 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. sportswear and shoes. Its short and simple name is easy to remember and is associated with dynamics, sport and quality. Thanks to this, the brand name can immediately come to the mind of people who are looking for new sportswear or shoes.
• emotional impact. The name of the company can cause 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 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. That is why the name Disney inspires confidence, cheers up and generally creates positive emotions.
• Simplification of communication. When the essence of a product or service is clearly reflected, consumers more easily understand what the company does and how it can help them. Let's say the name of Burger King says 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.
• Create the right associations. A brand name can evoke certain feelings and expectations among consumers. For example, it can represent high quality, innovation, affordability, and so on. The right name is able to form the desired associations and maintain the image of the company. For example, the name Rolex is associated with luxury, prestige, style, elegance and high quality. hours.

If the name of a company or product makes sense and is easy to remember, then it is likely that it will become a powerful lever for the successful promotion of the brand in the market.

What problems do companies face when choosing a name?

Although naming is a creative and interesting process, this does not mean that it will be easy. Here are a few issues that companies may face when choosing a unique name.

Similarity to another company name

Before settling on any option, you should make sure that the desired name, as well as the domain address for site 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 nasty legal problems and disputes. In addition, there will be a risk that consumers will associate with another company.

For example, in 1968, The Beatles created the Apple Records label. 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 industries, it could cause confusion among consumers and give the impression of some kind of connection between the two companies.

The presence of difficult to pronounce words or unsuccessful formulations

Sometimes companies choose a name that does not reflect the essence and values ​​of the brand or does not arouse interest among the target audience. In addition, too complex or unpronounceable the name may be forgotten or misunderstood by customers, which will also lead to loss of market position.

For example, in 1985 Coca‑Cola decided rename your legendary Coca‑Cola drink at New Coke. This decision was made after years of dominating the market and competing with Pepsi. However, this name caused a protest among loyal fans of the brand.

The new formula was also not liked by many, 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 be negative or inappropriate associations certain groups of people or cultures, which will certainly damage the image of the company.

For example, Chevrolet faced a naming problemwhen its representatives decided to sell their Nova car model in Spanish-speaking countries. In Spanish, "No va" means "does not work" or "does not go", which created negative associations with consumers and reduced demand for the car.

To avoid such problems, companies often turn to naming specialists for help in choosing the most appropriate and successful name.

What rules should be followed when choosing a name

Let's look at five rules that will help you choose a good creative name for your business or product.

1. The name should be easy to remember

The original name allows you to stand out among competitors and create a unique image in the business world. When consumers encounter the unusual and catchy name, 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 language, as well as to 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 by playing with the English word googol, a mathematical term for 1 followed by 100 zeros. Thus, they emphasized their goal - to organize a huge amount of information, while making it available to users.

2. The name must match the brand and its target audience

The name of the company, as a rule, should be easily associated with the brand and convey the right emotions and messages to consumers. This will help to study the target audience. Understanding her interests and preferences will facilitate the process of creating a creative name that will evoke a positive response from potential customers.

For example, a company Amazon is a global leader in e-commerce, cloud computing and a variety of products and services. Its name is translated from English as "Amazon" - a mighty river. The founder of the company, Jeff Bezos, chose it to create associations with the abundance, ambition and unlimited possibilities that the company strives to provide to its customers. It also symbolizes expansion and growth.

3. The name must be extensible and global

The name of the company should in no case limit its development. After all, it is quite possible that in the future you will want to expand your activity, offer new products and services, 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 countriesthat you are considering for scaling.

So, in 1971, Ford introduced the Pinto car, 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 with potential customers, which could have a negative effect on sales and brand perception. It all ended with the fact that the company was forced to revise its plans to promote Pinto to the Portuguese market and make changes to the name.

As a result, the word Corcel was chosen, which in Portuguese means "horse". This changed the association with the car to a more neutral and positive one and helped the company successfully introduce its product to the Portuguese market.

4. Name must not be taken

Before finally deciding on the choice of a name, it is necessary to conduct a thorough check of its availability. This process includes Web search and databases of 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, by creating a unique and memorable name, the company must provide his legal protection. For example, register a trademark or register a 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 grab the attention of consumers.