Brand Identification: Definition, Significance, Guidelines for Selection
In the competitive world of business, a brand name plays a crucial role in establishing a company's identity and consumer recognition. A brand name is more than just a combination of letters, numbers, or words; it's a valuable asset that signifies the quality, values, and experiences offered by a company.
What Makes a Good Brand Name?
A good brand name should be unique or distinctive, making it easier for consumers to remember. Examples of such names include Apple, Go-Gel, and Yahoo, which are easy to spell in various languages. The name should also be short and easy to pronounce, ensuring it doesn't take up too much brain memory to remember it.
Moreover, a brand name should give a signal about the quality and benefits of the product. For instance, the name Apple reflects innovation and revolution, signaling the company's commitment to cutting-edge technology.
The Role of Trademarks and Brand Marks
Trademarks and brand marks are essential components of a brand's identity. A trademark is a legal concept that provides exclusive rights and legal protection to certain elements of a brand, including brand names, logos, slogans, or combinations thereof. On the other hand, a brand mark, also known as a logo or device mark, is the visual symbol or graphic that represents the brand.
Trademarks and brand marks work together to reinforce a brand's identity. They legally secure the brand’s unique elements, reducing confusion, and allowing consumers to easily distinguish the brand from competitors. This legal protection is crucial in preventing unauthorized use by competitors and protecting the brand's identity from infringement.
The Impact of a Brand Name on Consumers
A strong brand name supported by trademarks provides not only market recognition but also legal power to protect that identity, enhancing business value and consumer confidence. Consumers associate a brand name with the image of the brand or product, giving them a signal about product quality. For example, products with a particular brand name are often associated with expensive, high quality, or other dimensions of the product.
Companies spend a large portion of their advertising budget on brand name promotions, emphasizing the importance they place on their brand names. Companies should find words for brand names that have broad and robust appeal and meaning. They use brand names in various forms of communication between them and consumers, reinforcing the brand's identity and helping consumers identify and distinguish a company's offer from competitors' offers.
In 2019, the ten most valuable brands in the world were Amazon, Apple, Google, Microsoft, Visa, Facebook, Alibaba, Tencent, McDonald's, and AT&T, demonstrating the power of a well-chosen brand name. However, it's essential to remember that the right brand name should not mean "bad" in other languages. For instance, the term "Angel" means difficult in Javanese, a lesson learned by a company that once made this mistake.
In conclusion, the brand name is the verbal identity, the brand mark is the visual identity, and the trademark is the legal protection that secures both. These elements play key roles in building strong, recognizable brands that consumers trust and identify with.
A well-crafted brand name, such as Apple or Google, should not only be unique and memorable but also convey the quality and benefits of the company's products, serving as a vital component in business identity and consumer recognition. The strategic selection of a brand name, alongside trademark protection, can significantly impact a company's financial success and consumer trust, as seen with the most valuable brands like Amazon and Google.
