What's in a Name: The Art of Naming a Business

WHAT'S IN A NAME: The Art Of Naming a Business Choosing a name may not seem like the biggest challenge your company faces, but the right name can influence buyers and become a staple of your company's entire image. The most notable brands of the world understand that a name should never be chosen on a whim-it must be carefully planned and selected with purpose. THE APPROACHES THREE There are three common approaches that companies use to name their businesses. Each style offers benefits and drawbacks depending on the goals of the company. ABC+D=NAME THE BLANK SLATE: THE DIRECT APPROACH: COINING A NAME: Choosing a broad and Choosing a name that Making up a new word for abstract company name describes exactly what the company name that that doesn't indicate what the business does. doesn't currently exist in the business actually does. language. RURGER EXAMPLE: NG Burger King skype EXAMPLE: Apple Inc. EXAMPLE: COGNITIVE FLUENCY Regardless of the approach a business takes, science shows an easy name is usually the way to go. Cognitive fluency is a study in psychology that measures how easy it is to think about something. Psychologists have found that shares in companies with easy-to-pronounce names significantly outperform those Psychologists believe that with hard-to-pronounce names. the early brain likely Pronouncable evolved the preference for IUnpronouncable 20% easy names and avoidance of unfamiliar ones 10% as a survival mechanism. 0% In other words, if it is 1 day 1 week 6 months 1 year familiar, it hasn't eaten Duration From Initial Offering you yet. MAKE WORK FOR YOU COGNITIVE FLUENCY Since cognitive fluency can influence the way people behave with their wallets, professional business namers warn companies against choosing non-fluent names. There are always exceptions, but most recommend avoiding: Initials Words from a Words that can Words that language foreign to the main be pronounced in several different ways are difficult to pronounce Strings target market of COINING NAME When a company decides to coin a new word for their name, they do so with intent. Most coined names were chosen because they say something about the company: USING PREFIXES & COMBINING PAINTING AN IMAGE: WORD SEGMENTS: RELEVANT WORDS: Companies who thrive on Coined words can Combining two words how customers see their convey a message by that describe what your products often use words using common prefixes business does can produce that trigger images and or suffixes. an original name that shape perception. explains what you do. EXAMPLE: EXAMPLE: EXAMPLE: uses "acu" to ALIENWAREO ACURA express precision. travelocity creates a futuristic, combines the words "travel" otherworldly image of and "velocity" to explain that its product with its name. they can book travel quickly. DECIDING ON A WINNER Sometimes businesses come up with several possible names and gut instinct isn't enough to choose the winner. How do they choose the best name? Testing: 63% 37% FOCUS GROUPS: OPINION SURVEYS: Gather a group of volunteer consumers Distribute surveys about your product and ask them to record how they feel and the potential names that could be about the potential names, what each associated with it, and see which ones name makes them think of, etc. participants respond positively to. TM $ $$$ A INC GRAPHIC ELEMENTS: MARKET TESTING: Try combining different graphics, fonts, Run some ads using one name, and other and logos with your names to see how the ads using another. Let the customers name appears when stylized for branding. pick the winner with their wallets. webs SOURCES: ENTREPRENEUR.COM, MEMBERS.BOSTON.COM, NAMELAB.COM, SBA.GOV, PNAS.ORG Change in Share Price