MARKET AND COMPETITIVE ANALYSIS

It is critical to analyze the market and the competing products. A thorough knowledge of the customers' purchasing habits is a must. Why do the customers buy the product? What are the different attributes considered by the customers in choosing a particular brand? What are the strong influencing factors in their decision-making process? As an example, will the product be sold directly to the customers, or will specialists prescribe it to them? A name should make sense to the customers. A drug may have a scientific name like acetylsalicylic acid, but if it is to be sold over the counter, the name has to be uncomplicated like Bufferin.

Also, your product is never viewed in isolation. It is evaluated vis-a-vis your competitors'. It is therefore essential to examine your competition. This is important in two ways. From a marketing viewpoint, it helps to have a distinctive image for your product. Ten percent of new products fail solely because of lack of differentiation. If a name is distinctive enough to arouse interest, its recall is enhanced, and that of competing brands suppressed. Respondents who saw a Dristan commercial could think of fewer brand names of cold remedies than respondents not exposed to the Dristan commercial. Lack of distinctiveness, on the other hand, inhibits recognition. Besides, a brand name, which is very similar to your competitors’, may lead to confusion in the mind of the consumer and increase the likelihood of a lawsuit for trademark infringement.

To accomplish our goals in the naming process, we interview executives from your firm. We may also study the market on our own through published industry reports and first-hand investigation. This gives us a thorough understanding of the market. It also gives us an opportunity to see the customers' perspective.

NAME STRATEGY

This step requires insight into the marketing aspects of the name. The following questions need to be considered. Should the name of the firm or that of one of its existing products be extended to the new product If so, can the "equity" of the parent product be successfully transferred to the new product? The Rolex name may be more appropriate to carry over to a line of men's formal wear than the Levi's name!

Is it advisable to extend an established brand name to a new product? While it is often cheaper to "stretch" an established brand name, excessive stretching weakens the image of the parent product. Use of the "Miller" name propelled Miller Lite to the second place, but the original beer, Miller High Life, dropped to sixth place. Use of existing brand names may also increase the cannibalization of existing products. There is also evidence that established brand names do not increase the chances of a successful launch of other products.

If a new name is to be created, should a "newly coined" word be used, or should it be a "suggestive" name? Newly coined names offer stronger legal protection, are easier to extend to other products, and are less constrained to any one language. However, suggestive names may be more appropriate because of their immediate marketing appeal. Kodak, a coined name, is legally strong and is not restricted to any one product or language, but tremendous investment had to be made to establish it. On the other hand, a suggestive name like Tide for a detergent immediately brings to mind waves of sparkling froth and bubbles.

The next step entails deciding the message to be conveyed by the brand name. Again, a narrow focus should be avoided. While "I Can't Believe It's Not Butter" conveys the product attributes very clearly, a name like "Gee, Your Hair Smells Terrific" is too constraining.

Finally, how should the new name relate to the family of firm's existing products?

All these decisions are made in consultation with your marketing team.

NAME CREATION

Once the message to be conveyed has been defined, a name has to be generated. This requires creativity and hard work. What makes this task particularly challenging is the plethora of brand names already in the market. Today, there are 750 nameplates of cars, over 150 brands of lipstick, and 93 brands of cat-food. More than three-quarters of a million names have been registered with the U.S. Patent Office. In 1994 alone, 120,000 trademark applications were filed. That is ten times the size of an average person's vocabulary!

We employ a variety of creative approaches for this task, including the use of the computer programs, "random-association technique," "lateral thinking," and brain storming. Having team members with diverse backgrounds enhances the creative process. For this reason, we use a team of linguists, graphic designers, writers, and marketing professionals. A team consisting of only marketing executives will be restricted in its creativity.

The results from these processes are combined into a master list, which is then refined. It is then ready for name testing.

NAME TESTING

The role of marketing research should not be overlooked in measuring the response of the customers. While many naming firms avoid it for cost reasons, it is definitely a worthwhile investment. Ignoring it often results in names which are too esoteric and understood by the creators only. Allegis (which was a synthesis of "allegiant" meaning faithful and "aegis" meaning shield) was supposed to convey a sense of protection and caring for the traveler worldwide. Obviously, many people failed to appreciate what it meant. In a field that has not been extensively researched, opinion of one "expert" should not be overemphasized.

We test the names for appropriateness. This, as mentioned in our naming philosophy, includes testing their overall appeal, the message conveyed by them, their relevance to the product, and their recognition and recall.

Following the testing, we provide you with a list of names ranked according to the criteria established for appropriateness.

LEGAL SEARCH

The list of names should be subject to legal name search. The use of a competent attorney saves a lot of money and trouble later on. Most firms choose to have their own attorneys handle this.

The name has to be acceptable to the Patent and Trademark Office for registration. Keep in mind the simple rule that the more descriptive a name, the lower the likelihood of it being acceptable.