Start doing business many entrepreneurs wonder if it is really necessary to create and register brand name. The concept of the brand in marketing is a combination of certain properties, associations, images that allow the goods of this brand to stand out from competitors in the market. The whole branding process begins with the creation of a brand of goods. It represents a starting point for all other actions.
What about brand name registration, a brand is born when you come up with a unique name for your product, develop unique product design, create a corporate identity, or invent a slogan. Moreover, the product can be completely standardized and not differ in its characteristics from competing products. But at that moment when you created a brand name and designed your product, you gave it a certain image. So, your brand was born.
What you need to start
Why is the brand name one of the most important product attributes? First of all, because the name replaces the idea of the brand and the product itself in all communications associated with the brand. The brand name is most often contacted by consumers. As a rule, this is the most active communicator. The first impression often determines the consumer’s attitude to the company or product designated by the trademark. Therefore, it should contain key information for its customers.
A correctly chosen trademark company name should be very accurate and informative, point to one (several) of the following categories or be associated with them:
- brand positioning idea;
- brand essence;
- the main difference from competitive brands;
- the main benefit or advantage for consumers;
- result from use received by the consumer;
- purpose of goods, product category;
- basic aspects of quality or quality certificates;
- composition, design features of the goods ;
- sales offer to the customers;
- the main value of the brand from consumers’ point of view;
- consumer’s style and standard of living;
- motives that encourage consumers to buy this brand;
- price category;
- situations of use of the goods;
- the situation of the purchase of goods.
Another requirement for a brand name is the absence of negative associations with these categories. The brand name should not mislead consumers, reduce the quality of a product, contradict the brand identity, or erode the idea of the purpose, benefits, and advantages of this brand. As a rule, the best brand name suitable for company name registration contains indications of several categories at once or is associated with them.
Why do you need a brand name
A company with a strong brand has a competitive advantage over companies with unbranded products. It can get higher profits from sales, its sales are less prone to the spikes. In addition, the brand is becoming a certain barrier for new players to enter into the industry.
The main importance of a brand for companies is the possibility of increasing the company’s profitability. Creating a strong brand, the company guarantees the consumer the reduction of certain risks, provides it with a certain service, creates a feeling of satisfaction. All these additions form added value or premium to the price of a standard product. The stronger the brand, the higher the value added, the higher the company’s profit is.
Stability and long-term
It is assumed that the trademark a company name has a sustainable advantage, which provides a long-term opportunity to charge value-added for the purchase of goods, which means it guarantees the stability of sales and profits. The long-term advantage is formed not only due to the unique properties of the product (which are sometimes easy to copy) but also due to the relationship between the brand and the consumer, which is much more valuable asset of the company and it is quite difficult to quickly copy and destroy it.
Industry entry barriers
The presence of strong brands in the industry is a high barrier for new companies wishing to enter the market, especially if the market is highly promising.Atrium Business Solutions
Strong brands already have high knowledge and customer loyalty, new products will require a high level of investment in order to switch customers’ attention.
Where to look for a good name for the company
To register brand name is necessary to create it first. How to create brand names, where to find them? Let’s turn to the existing names. Most of the names can be divided by referring to their morphology. Such a classification is rather arbitrary: some names can belong to two or three categories at the same time. The main brand name categories are outlined below:
- Compound word: a word formed by adding two words (Aquafresh, Rollerblade, Thunderbird).
- Hybrid: the end of one word goes to the beginning of another word (Eveready, ReaLook).
- Abbreviation: a compound word consisting of truncations of several words (Calibaker, Electrolux, Nissan).
- Shortened word (Intel, Optima).
- Acronym: a word consisting of the first letters of compound words (AT&T, DHL, LG).
- Association: a name associated with the benefits, the purpose of the product, method of use, place of origin of goods (Bounty, Motorola, Pringles).
- Sound association: the sound name associated with product properties (Jeep, Whiskas, Zippo).
- Mimicry: a name imitating the sound of a famous word (Chef, Nesquik, Polar Bear).
- Alliteration: a name consisting of rhythmic repetitions of consonants (Coca-Cola, Kitekat, Sisi).
- Rhyme: rhyming phrase (7/Eleven, Pickwick).
- Founder’s surname: a name based on the surname of the founder of the company (Bacardi, Lipton, McDonald’s).
To register new company name it’s necessary to check that brands with this name are not registered in this class and country of possible use. The name should not belong to the category of names that are not subject to registration for any reason. Also, the name should be rhythmic and easy to pronounce and correspond to the sound structure of the language in which the name is used. The name should sound significantly different from the names of competitive products.