Naming a brand takes time. A brand name communicates identity and requires thorough preparation as it is a valuable strategic investment for a business. Approaching the brand naming process with an effective strategy can produce a brand name that is a solid foundation for differentiation from competitors and long-term success.

Definition

Brand naming is the process of generating and selecting a name for a product, service or range of products and services, especially a trademark.

Key insights

1. Brand names which describe the category may be stronger

Academic research which analysed the effect of logo design on brand equity found that descriptive logos (e.g. Burger King) can increase consumer willingness to buy and boost sales compared to non-descriptive logos (e.g. McDonald’s). The research found that it is easier to visually process descriptive logos, and this positively impacts how consumers view the brand – this in turn positively impacts sales. However, the positive effects on brand equity were smaller for familiar brands than for unfamiliar ones. Since logos can contain visual elements that communicate the category, it’s possible to have a descriptive logo without a descriptive brand name – but obviously this finding has potential implications for brand name choice.