Naming a Business and Products – What You Should Know

Shakespeare might have thought differently, but a rose by any other name is not a rose. Think about it. What if a rose was named dahlia, magnolia, or orchid? Would it still be the universal symbol of beauty and love? I think not. The same goes for naming a business or products. Naming is so important because it can make or break a business. It can be the factor that determines whether a business becomes successful. Picture this scenario: you have a craving for fish and decide to compare the menus of two competing restaurants. One serves “Chilean Sea Bass” while the other serves “Patagonian toothfish”. Which one would you choose? No doubt about it, you would go for the former. When it comes to succeeding in business, naming is everything. Here are more reasons why naming is so important.

Naming Affects Marketing

Naming a business and products dictates how they will be marketed and viewed by consumers. Good names have unique appeal and make a promise to clients. This is why some brands can do no wrong in consumers’ eyes. They have proven track records and any small mistakes they make are overlooked. Research shows that names which are easy to pronounce are more popular. When a name is easier to understand, people like it. Companies with simpler names enjoy more sales and perform better in the stock market. This is because the ability to pronounce a business or product name is directly related to how a person feels about it. Naming influences associative cognition; this means that your brand and product names affect how people see your business. If a name is difficult to understand, people tend to think it is high-risk – and that’s the last thing you want.

Naming Determines the Price

Popular brands can command high prices. Generic brands, on the other hand, sell merchandise at bargain prices. Most times, buyers do not use price to determine the quality of products. They just opt for well-known brands regardless of the cost. Researchers have observed that even when popular brands acquire generic competitors, they rarely lower their prices. Some even increase their prices! They are seldom affected by competitors and increased competition may translate to higher profits.

A Classy Name Suggests Better Quality to Consumers

Big companies go to great lengths to choose product names. They spend a lot of time and money on name development and enlist the services of top-tier naming agencies. The agencies come up with hundreds of names before settling on one. To many entrepreneurs, this may seem like a lot of trouble. The truth is that it isn’t. It is better to spend time and money identifying a name that will be loved and accepted by people than to choose a bad one that spells the death knell of your business.

Invest Wisely in a New Name

A name that suggests a performance difference can give your brand a head start in the marketplace. It will become a part of clients’ vocabularies and tantamount to the products it represents. A good name will show people that your business is creative, that it stands out from the dull and unimaginative. Invest in a new name and create a brand that welcomes others to share in your vision.

Numerous celebrities have changed their names in order to be accepted by the public. They understand that names can either attract or detract clients. Clients wear their merchandise with pride because their brands are outstanding. Most entrepreneurs focus on advertising, packaging and many other details but leave one of the most crucial details for last – naming. This is very wrong. Naming a business or products is like laying a foundation. Once it is in place, the whole structure will be aligned to it. If the foundation is off, the structure will be off, and people will notice the misalignment. Choose great names for your business and products and augment your sales.