Choosing a Brand Name

Choosing an effective brand name is an important decision for both manufacturer and distributor brands. The brand name communicates a great deal, which can facilitate brand awareness and brand image. In general, an effective brand name suggests something about the product’s benefits; is easy to pronounce, recognize, and remember; is distinctive in some way; and can be translated into other languages.

Ideally, a brand name should help to communicate to consumers the major benefits of the firm’s product. If it is achieved, the brand name helps to link brand awareness with brand image. As consumers become aware of the brand name, they begin to associate it with specific product benefits. Sometimes this association can make it difficult for companies to change strategies. Take the banking industry as an example. Many banks are trying to expand into different financial service areas, such as investment management and insurance. A problem is that many consumers perceive banks to be very conservative and not innovative, friendly, or aggressive. Thus, many banks either avoid using the word bank in their name or play down the bank part of their name.

A brand name that is easy to pronounce, recognize, and remember helps in establishing brand awareness. The name should also be distinctive. Brand names that meet these criteria are Mustang, Kodak, and Crest. Sometimes a brand name can be effective and not really mean anything in real words.

A brand name should be translatable into different languages for global business. For example, brands that are translated well into Russian include Sony, Adidas, and Ford etc.

An alternative to developing a brand name is licensing an existing name or logo. Licensing typically consists of the right to use a trademark in exchange for paying royalties on the sale of the licensed product.

Another approach is co-branding, where two brand names are used on a product. The objective is to capitalize on the brand equity in each brand as a way to appeal to defined target markets more effectively. Co-branding has become commonplace in the credit card industry. For example, the Visa brand name is often combined with another brand name to focus on specific markets. The other brand might be another company trying to generate sales for its products, such as Ford, Churchill Downs, or a non-profit organization trying to generate revenue, such as your university or alumni association. There are similarities in many co-branding relationships, the details of each situation are typically negotiated and formalized into a contractual agreement.

Comprehension questions:

1. Why is choosing an effective brand name an important decision?

2. What should a brand name help to?

3. Must a brand name really mean anything in real words or not?

4. What is the role of licensing in choosing brand a name?

5. What is co-branding?

Дата добавления: 2015-11-16