A Rose is a Rose: Eight Criteria for a Good Business Name
What’s in a name?
That which we call a rose, by any other word, would smell as sweet.
In his famous line from “Romeo and Juliet,” Shakespeare seems to be saying that a name is nothing more than an artificial and meaningless construct.
Granted, the old Bard could turn a phrase better than anyone. But he obviously never ran a business. For when it comes to positioning products, services and companies in the marketplace, a Lexus or a Starbucks by any other name would not smell as sweet.
Imagine if Intel were called “Microchip Systems Technologies.” Doesn’t exactly roll off the tongue, does it? Plus those little “Intel Inside” stickers you see on the outside of almost every PCs would have to get a lot bigger in order to fit the entire name.
And suppose FedEx had a less handy moniker. Can you picture yourself saying, “Hey, the Worldwide Integrated Shipping Solutions guy is here. Anyone have a package to go?” By the time you got all the words out your mouth the delivery guy would have already come and gone.
The point I’m trying to make here is not so much that corporate names need to be short and to the point, although that certainly helps. The overriding principle is that when it comes to building a strong brand, the right name will give you a lot more leverage in the marketplace, whereas a poorly-chosen name will make it almost impossible to gain any traction.
The “Elite Eight”
Many factors go into the selection of the right corporate name. Here are eight that I’ve found to be of great value when determining and/or assessing a name:
1. Distinctiveness. Does the name stand out from the crowd, especially from other names in the category? Does is separate well from ordinary text and speech? The best names have the presence and impact of a proper noun (i.e., Intel or Lexus). They make you sit up and take notice. Nebulous, generic names like “Systems Integration Technologies” or “Medical Device Group” do not provide clarity or distinctiveness.
2. Brevity. Is the name short enough to be easily recalled and used? If not, how will people truncate the name? For example, a two-word name like “Evergreen Associates” is likely to become “Evergreen.” In the same manner, a combined-word name like “SystemPoint Corporation” is likely to become “Systempoint” or even “Syspoint.” Before settling on a name, think about the various ways customers (and your own staff) might cut it down to size.
3. Integrity. By integrity, I mean the name’s ability to resist reduction to a nickname or acronym. In almost every case, long multi-word names will quickly get reduced to non-communicative initials, such as IBM or GE. If you have a few decades and billions of dollars with which to build your brand, you can survive getting “acronymized.” Otherwise, be very careful of what others might do to your name.
4. Appropriateness. Is there a reasonable fit with the business purpose of the entity? Does the name align with the rest of the brand? Does it reinforce a brand promise or brand attribute? For example, “Acura” evokes a sense of precision and accuracy. “Accelrys” (a supplier of bioinformatics software for gene and protein sequence analysis) suggests acceleration of a process. Also, could the name work equally well (or even better) for another organization or entity? If so, keep looking. Nothing confuses the marketplace like a name that stands for two different products or brands.
5. Easy spelling and pronunciation. Will most people be able to spell the name after hearing it spoken? For example, it’s hard to miss the spelling of Lexus once you hear it. In addition, can people pronounce the name without difficulty after seeing it written? This may sound trivial, but you don’t want people to have to work at verbalizing your name. A name -- especially a synthetic one -- should never turn into a spelling test or make people feel ignorant.
6. Likeability. Will people enjoy using it? Names that are intellectually stimulating have a head start over those that don’t. People like repeating names that provide a good “mouth feel,” have a nice cadence, or sound good to the ear.
7. Extendibility. Does the name have legs? Will it support other brands, sub-brands and endorsed brands? Does it suggest a visual interpretation or lend itself to a number of creative executions? Great names provide endless opportunities for creative twists and turns over time.
8. Protectability. Can the name be trademarked? Is it available for web use? While many names can be trademarked, some are more defensible than others, making them safer and more valuable over the long run. Before settling on a name, it makes sense to consult with an experienced trademark attorney. Since you will be investing far more dollars in building the brand value of the name over the years, consider it money well spent.
In the long run, choosing a corporate name involves as much art as it does science. But the more you stick to these criteria, the better your chances of selecting a name that supports your company and helps to build your brand over time.
Comments
Excellent Article!
Thanks for sharing it with us all.
Cheers!
Rishu
Posted by: PR Agency | December 1, 2005 7:51 PM
I couldn't agree with you more Rod. There are so many poorly named companies out there. Thanks for sharing your insights.
Posted by: Mark Turok | December 27, 2005 11:28 AM