How to choose a brand name
One of the first challenges every marketer faces when launching a new brand is choosing a name for it. Naming is very important in your overall brand strategy for at least three reasons: First, it is the first point of contact your customers have with your brand, and you want to make a good first impression. Second, a well-chosen name reinforces the brand’s position in the mind of the consumer. And third, the name you choose has a direct bearing on your brand building budget, as some names are easier to communicate than others.
Brand names fall into 4 categories: surnames, semi-descriptive names, initials, and abstract names. Below is a quick overview of its advantages and disadvantages:
Surnames, as the description implies, means that the brand is named after its founder. Some of the world’s strongest brands fall into this category: McDonald’s, Disney, Mercedes-Benz, Stanley Tools, Merrill Lynch, Harley-Davidson, Chanel, Gucci. Advantages: the last name implies personal support, heritage, quality products, trust. They are mostly suitable for premium brands where the “personal touch” plays a crucial role. Disadvantages: Brands named after their founder take a lot of time, consistency of message, and significant financial resources to build. They also require consistent and flawless delivery of the brand promise.
Semi-descriptive names provide information about the product or its uses. Familiar brands that have adopted this naming strategy include Craftsman, Intel, Microsoft, and MasterCard. Pros: This naming strategy is very “end user friendly” and easy to communicate. Disadvantages: Semi-descriptive names do not provide strong differentiation and are difficult to protect as trademarks.
Initials are a collection of letters with no obvious connection to the product/service being marketed. This strategy is used by well-established companies and is not recommended for new market entrants. Examples include: IBM, GE, LG, HERE, AT&T. Advantages: Initials are very distinctive and easy to remember. Disadvantages: Since initials are meaningless in the case of a new brand, this strategy requires the largest investment in branding to create the connection between the brand and the name. They are also very difficult to protect as trademarks.
Abstract names, such as initials, do not provide an obvious description of the product or its uses. Examples include Nokia, Gap, Canon, Marlboro, Xerox, Kleenex, Apple. Advantages: Abstract names provide powerful differentiation, with many products defining the product category (Xerox, Kleenex). They are also easy to trademark and easily recognizable in different languages, making them the preferred choice for global brands. Disadvantage: the abstract name requires more investment in communicating the brand and its positioning.
In conclusion, your naming decision comes down to the type of product/service you want to launch, the marketing resources you have available, and the ability to consistently deliver on the brand promise.
