The Assets and Liabilities of Brand Names

The Assets and Liabilities of Brand Names

When examining examples of good and bad brand names we must use a set of reasonably objective evaluation criteria. As these were discussed in the last post, I will summarise all of them like this:

“It’s not what it is, but how you use it – your brand name that is!” This is especially true for small businesses that do not have multimillion dollar budgets to “make their brand synonymous” with a particular product or service through the sheer weight of their media investment.

Hence ‘campiagnability’, how the brand name provides the business with creative flexibility to promote it’s services and more memorably and emotionally connect with its customers is paramount.

Let’s look at a few examples:

Radio Rentals – the iconic Australian electronics retailer’s brand name may have been great when it was founded in the 1930’s in the UK, but today this functional or descriptive name is no longer relevant and is in fact very limiting. No brand consultant would ever recommend changing it unless there was a multimillion dollar budget and a great reason to do so, because the brand equity built over the years is too great but ‘radio rentals’ lost its relevance probably by the early 1950’s.

Most SME brands are today still named after their founders or are very descriptive in nature, a benefit when the business is starting out and the name tells the target audience exactly what the business is all about, e.g: John’s Plumbing Supplies, etc. However as the business grows the name doesn’t lend itself to be easily promoted…

The Shaver Shop franchise – a great concept – looks like it is facing a similar dilemma. What started as a focused category player is now selling a number of product categories that are no longer about shaving. Only time will tell if this “brand extension” will be successful. The brand name again was most likely too descriptive and limiting in the first place.

Let’s compare that with one of the world’s most famous and successful brands like Apple – which was never a name that sounded like it was in the computer business. Jobs came up with the name “Apple” after visiting an orchard and having a wonderful experience, an experience he wanted his customers to have with an approachable company, which the name Apple fit perfectly. Experiential names and names that tap into consumer emotions are more likely to become much greater assets. Branson did the same with Virgin in the music industry!

Here are some of the names we have developed for our clients:
D&M – A brand of natural skin care products
Fighting Fit For Life – A Personal Trainer that specialises in boxing and martial arts training
Room to Improve – For an interior designer and decorator
Money Rules – A debt reduction educational program and software
Sirius Business – A business coach
Meaningful Exchange – A multi-lingual translation service
Guys Domain – A psychotherapist specialising in men’s issues
Schoffered Tours –  Personalised Wine Tour Operator

Everyone of these names creates a myriad of promotional possibilities for many years to come and this is further complimented by the brand positioning statements / slogans. You can see the names, logos and the positioning statements on the next post.

Finally a great name is worth protecting – ‘Trade Marking’. Do it through a professional IP lawyer, you may pay more but it is worth doing it correctly the first time around. There are a number of legal issues than can make the DIY approach more expensive in the long run.

For example in the Australian market place there are 2 “Women at Work” and 2 “The Extension Factory” businesses that obviously didn’t protect their great names when they started their business. If your name is worth using it is worth protecting.

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THE 1-PAGE PLAN FOR DESIGNING, BUILDING AND MAINTAINING YOUR MARKETING HOUSE.

Starting at the bottom and working your way up will give you an incredible advantage over most of your competitors.

The estimates are that only 3% to 5% of Australian small businesses starting from scratch prepare a business and marketing plan; that is, know that their business is feasible and have a formal plan to steer that business towards success.

It is then no surprise that CPA Australia estimates that one in three new small businesses in Australia fail in their first year of operation, two out of four by the end of the second year, and three out of four by the fifth year. Just approximately 8% of small businesses succeed beyond five years. These statistics are similar across many of the western economies.

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Marketing is an ongoing process, similar to designing and building a house.

Marketing is an ongoing process, similar to designing and building a house.

Marketing is an ongoing process, similar to designing and building a house.
It is then important to maintain and build the value of your marketing properties and prevent this value being depreciated through neglect of infrastructure or promotional activity by competitors.

Firstly the structure must be designed correctly, beginning with the foundations that will support any future building.

Unfortunately, many businesses do the equivalent of trying to put a roof on a house with no foundations or walls by asking marketers to jump straight into execution and promotion. And many marketing suppliers oblige them!

By demanding that marketing people produce a Website, Advertisement, Brochure, etc. before the business has answers to strategic questions and clear plans for long term communication, inevitably always ends up wasting time and money.

To get the best return on the marketing investment, time needs to be dedicated to answer the questions that assist in building a solid foundation for the marketing of the business. By starting at the bottom and working up, the business building process will be shorter, less painful and more profitable.

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Understanding the customer as an important marketing tool

Understanding the customer as an important marketing tool

Epictetus
Image via Wikipedia

Is there anything more important than understanding the customer?
The ability of the entrepreneur to put themselves into the shoes of their customers or prospects and to see the world from their perspective is probably the single most important characteristics of successful business people.

Some marketers call it “marketing by walking around” and many sales professional often refer to the ancient Greek philosopher Epictetus quote “We have two ears and one mouth so that we can listen twice as much as we speak.”

Being a keen student of human behavior, observing, listening, and asking questions is the key.

Here are some of the most important questions you should be asking:

  • Who are the current customers?
  • Who are your desired customers?
  • What do they really want / expect?
  • What dot they THINK? Rational Benefits
  • What do they FEEL? Emotional Benefits
  • How do they ACT? What is the BUYING PROCESS? What people SAY is often very different to what people DO!
  • Why do customers buy from you?
  • Why do they buy from your competitors?

The next entry will provide you with just about every conceivable reason of why people actually buy!

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