What is in a name? Everything! Whether you are looking for a unique corporate name or trying to find a snazzy one for a new product, be original! Select a name that is pertinent to your industry or market segment. Avoid names that are similar to the competition. Not only does this cause confusion, and reflects poorly on your company, but it provides free advertising to your rivalry. Be diligent: take the time to conduct market research studies and focus groups. Test what works and what does not. And listen to your customers!
Three common errors seen in the market:
1. Similar corporate names, in two different industries. Avoid names that look identical to the average consumer. You may lose valuable clients if they mistake you for the competition and may give up trying to find you.
Example: Datek Inc. is a companies that offers microchip and imaging services while Ditek Corp. manufactures industrial surge protective devices.
2. Two products with virtually identical names in the same industry. Not only is this perplexing, this could be outright dangerous. For instance, consider two products with similar names in the pharmaceutical industry. Imagine if a pharmacist cannot read a prescription properly and provides a patient with the wrong prescription! It is not surprising that there are so many lawsuits in this field.
Example: Celebrex is a prescribed drug for relief of arthritic pain and inflammation while Cerebyx is a water-soluble drug used used only in hospitals for the treatment of epileptic seizures.
3. Two comparable corporate names in the same industry. A big industry no-no. Shows no creativity. Even worse, your corporation may be perceived badly by infringing on another firm’s trademark.
Example: Party City and Party Land. Both companies offer the same products and services. The average consumer would not know that there were two different companies!
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