In this age of myriad financial products, voluminous communications and fierce competition, naming a new venture, product or service can be one of an organization’s most important marketing decisions. A name, the initial impression made on the prospect’s mind, is the first step in the branding process. With marginal differences in financial product and service categories, a better name can mean a significant difference in acceptance and, hence, in sales. Conversely, a bad name can turn away prospects before they learn anything about the product or service. We examine just a few of the approaches companies use to find the right name. A current fad is contrived names. For example, Verizon combines the Latin word veritas (truth) with horizon, while Lucent means “marked by clarity.” Honestly, most people don’t know or care about the esoteric origins of names. Contrived names such as Accenture and Agilent not only give no clue to the businesses’ purpose or benefits, they are also not easily pronounced or remembered. Every contrived name starts life as an empty vessel waiting to be filled with positive perceptions. The creators of contrived names are betting that a substantial (and expensive) branding campaign will generate familiarity and success. Assuming that the chosen name doesn’t have negative connotations, it can be molded to signify what the sponsor wants it to mean. We believe, however, that a mean-nothing name is a luxury that only a genuinely unique new product or service can afford. Some firms use initials as their name, hoping to emulate some of the richest and most famous corporations. What these upstarts quickly learn, however, is that the successful use of initials is a validator of brand recognition, not the creator. Think of how this works in our everyday lives. When the headline reads “W Declares War,” there is no ambiguity. Companies spend years building visibility and shaping perceptions before recasting themselves with their monograms of marketplace success. Just think of GE or IBM. A store near our office is called simply Joe’s Wine & Liquor Store. This admittedly pedestrian moniker tells customers exactly what they can buy there and who to speak with if they have a problem. While Joe probably aspires to own a store the size of the much larger AAA Liquors further down the road, the name of his current business offers much more appeal for customers. Still further along thoroughfare is a brightly-lit, inviting store with attractive displays called THIRD BASE—Last Stop Before Home! Now that’s a name that gets attention from passers-by and the name’s very suggestion undoubtedly contributes to revenues. The latter illustrates a naming strategy that has long been a favorite of our firm. A brand name that is appropriately non-traditional for its industry, product or service category will stand out in the marketplace and reduce the cost of building awareness. Distinctive names can be helpful in gaining visibility, recognition and new business because they are more apt to be remembered. Further, a distinctive name creates the perception of a distinctive product or service, while an ordinary name implies that you’re just another competitor. It’s important to be distinctive—and sound it! Naming a new product, however, presents a variety of traps. Many firms add the corporate name or an umbrella name from a successful sister offering to gain quicker market acceptance. Our experience suggests that borrowing whole or half names almost always creates unnecessary baggage. New products and services are handicapped from inception if they don’t have the benefit of a name that reinforces their positioning and helps alter prospects’ perceptions of competitive products. A new product or service deserves its own name—one that will immediately go to work for it. Politicians are very canny about leveraging the power of a good name. Legislators routinely give their bills names such as “Fair Trade Act” or the “Clean Air Bill” to minimize opposition. Special interest groups like “Right to Life” or “Mothers Against Drunk Driving” use their names to rally support. If you don’t create a name that works for your organization or its products or services, you might have to invest millions to put an educated duck on TV to gain visibility as AFLAC has done. The naming process provides an excellent opportunity to put the power of marketing to work for your products and services. It is the important first step in building perceptions that will be continually reinforced by cohesive and consistent messages. The right name serves as the springboard for the implementation of an effective branding strategy. The better the name, the more potential it offers for effective, lower-cost branding that can help achieve marketplace success.
Jay Nagdeman, Founder and CEO of Suasion Resources, a Financial Services Marketing Experience. Suasion Resources’ proprietary approach to financial services marketing is results-oriented and focused on each client's individual needs. Please see www.SuasionResources.com for additional information.
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