Naming

For example - how can you value (in money) the worth of a brand name? Did anyone ever research the effect of a name change on a commercial success of a business? I know there has been a study about the link between company name and the stock performance. But the stock performance is usually derived from the business performance  so why cant I find any study about that link?


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Changes in management thinking are suggesting that the real value of companies lies in its people. As much as 70% according to Paul Strassmann. You can test that by looking for example at Apple's share price performance in recent years. It seems the market believes Steve Jobs has the Midas Touch. That could be demonstrated by this week's launch of the iPhone and the impact it had on the market. The launch completely upstaged CES.  

However - there could yet be a backlash against Jobs. While he is seen as a creative and design genius, he has been exposed as a control freak and quite prepared to ride roughshod over others - including his own shareholders through the options back dating scandal. 

This is something I have talked about at AccMan. Look for: 'The rising stench at Apple.'

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from scorched skyscrapers, men grow wings

Interesting Question. In my experience, a strong, direct correlation has yet to be made between brand strength and business performance. I think that may be cutting out some important middlemen. Business performance translates into profit, and profit enables marketing. Marketing, along with company-wide objectives (or "vision") creates and maintains the brand, and therefore determines it's strength. This determination is based on it's overall projected effect on a user/customer's recognition, recollection, emotional impact, and trust

 The effectiveness - and therefore value - of a brand, from a customer standpoint (and, in turn, a financial one) depends on the ability of a company to instill the above values in the customer. If successful, that company earns more than a purchase, it enters a relationship. If that company delivers on the implied promise hidden beneath the brand, the relationship will be fruitful.

 In Short: The higher the repeat-business numbers, the stronger the brand.

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a few resources i liked:

Route to a brand's best strategy: new findings challenge the belief that market share alone correlates with profitability. Bain & Company's analysis of 200 brands shows that products at the high end stand to earn considerably more with a smaller share of the overall product category.(Sounding Board)

People, Planet Profit The Value of Corporate Social Responsibility - People generally want to align themselves with companies they admire and respect...the glare of the media is aimed directly at corporations nowadays; any small glitch in a company’s reputation could dramatically impact their revenues both long- and short-term.

 


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The relationship between naming and branding and the business performance are definitely a two-way street. You cannot say that only if a business performs well - it will invest in marketing - and the marketing will promote the brand.

Initially a business needs a good and solid marketing strategy in order to perform well.

The relationship between naming and branding was defined in an article by Naseem Javed that I recently read, like this: naming is magic and branding is witchcraft. Basically what it means is that no branding would develop without a proper name for the business. It also means that the power of name itself is limited and it does need the branding process in order to develop and contribute the  performance of the business.

The question I am trying to answer relates to naming, name within a brand. Every year we get a list of the most valuable brands estimated by experts. When we talk about brands such as Coke-Cola or Nike we cannot separate any more between the value of the brand name and the value of the name.

But when discussing smaller or younger companies the distinction still exists and I just wonder if such a study exist that makes an effort to value a name and to value the name's contribution to a business success. 

Fact is that thousands of companies go through a name change every year.  They invest up to millions of dollars in a process that begins with the naming process and ends with the full branding spectrum. Why do that if a name doesn't have an impact on your business performance?? 

And if a name does have an impact, can it be that no research was ever done to prove or quantify that impact?? 


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