Five Reasons Why Brand Names are Vital to the Success of Your Business

Shalom Solomon 15th April, 2021

Branding in the business world is a broad field with a number of parts that play important roles in the branding process. Brand identity is one of the components of branding that serves as a representation of an established business brand.

A properly built brand identity is a differentiator between the brand as a whole and competition from other brands in the same niche.

Now, brand identity just like branding comprises of two major pillars: the brand name and logo. Although there are other building blocks like colour scheme, tagline, website structure, brand tone or voice.

Brand names just like all universally important concepts has evolved over time. Though, despite all changes and growth to the meaning and function of brand names, one thing remains a constant.

Brand names have always served and still remain a means to identify a product, services and sometimes a business

Currently, the evolution of brand names was influenced by trends like the evolving needs of the target market, the shift of marketing power to the consumers themselves, the psychology of the consumers and most importantly the internet.

What are Brand Names?

A brand name is a name given to a product or service by it's manufacturer or the parent company. Brand names can belong exclusively to a business only if they trademarked. That is to say, any business that uses a trademarked brand name, can be sanctioned by the company that owns the name.

Your brand name can be the same as your business name as the case is with Nike which belongs to the business Nike Inc. Or, it can be different from the business name like Procter and Gamble that own brands: Ariel and Oral-B.

What is the importance of Brand Names?

We'd briefly talk about five major benefits brand names offer to businesses as a whole.

1. Identification

2. Differentiation

3. Memorability

4. Marketability

5. Connectivity and Engagement

Identification

Just like I said earlier, the primary and most consistent important of brand names is identification. A brand name gives a product or service the quality of being recognized by customers, competition and the manufacturer too.

Photo Credit: Pixabay

Differentiation

Working hand in hand with identification is differentiation. Differentiation is a quality of a product or service to be identified or recognized for certain characteristics that others do not possess. In today's business world where most companies have multiple products or services, differentiation through brand names would enable them separate one product from another.

Marketability

Brand names completes the brand identity of a product or service. This would in turn help focus the marketing efforts for such product. It is easier to tell people about a product and persuade them to buy when it has a name to serve as a reference point.

A good brand name can be a source for marketing, people sometimes buy a product because they like the name.

Memorability

In addition to increasing the marketability of a product or service, brand names also makes a products easy to remember. And consequently, would ensure higher return on investment for marketing as customers would be able to recall and recognise a product from the name.

Connectivity and Engagement

Connectivity is important when you want your brand to not only excel but live long in the market and the minds of your target audience. A brand name would facilitate the process of connecting your target customers to the product or service you offer. This would in turn improve engagement with between the brand and the customers and build trust and brand loyalty.

Conclusion

Brand names are important as evidenced by the enormous benefits they offer a business entity. So, dear reader put good thought and effort into generating or creating brand names for your products or services. Because as we've seen above, they are not just mere words, they also have a measure of influence over the success of your product or service in the market.

Thanks for reading :)