Choose your business, product or service name wisely!

Talk about pressure: choosing the name for your company, key product, or service, may in fact be the most important marketing decision you make. Don’t take this task lightly!

Many businesses, unfortunately, put little thought into this all-important decision, settling for names that do little to enhance image or reputation. And it’s not simply small start-ups that fail at this responsibility; in fact, many large, sophisticated corporations are equally guilty of settling on generic, nondescript names.

3 Simple Rules for naming your business, product or brand

Here are 3 simple rules that will help you develop an effective name for your business, product or brand. These are guidelines, rather than hard and fast rules. And if you find a name that you really love, by all means, trust your instincts and go with it. There are always successful exceptions to every rule.

Rule 1. Avoid generic sounding names

If it sounds cliché, it is cliché, so don’t use it. Very often, businesses choose names that are generic, non-descript and overused. Avoid using words like the following:

• General
• Consolidated
• International
• Associates
• Universal
• World-Wide

Companies think that using these terms they will position their company as large, long established and stable, but these traits are too common and do little to differentiate itself from the competition. Which company has a stronger brand image: General Tire or Michelin?

Rule 2. Avoid initials or acronyms

Another common error is relying on initials and acronyms. This is epidemic among business today, and I can’t understand why business partners would use their initials to form the company name – other than driven more by personal ego and than sound business tactics. Not a smart move.

If you call your company the SMC Corporation, what are you communicating to your customers? Nothing! When you use initials, you lose the opportunity to quickly communicate key business elements to your customer when they first encounter your company. Don’t make it harder on your customers to know who you are!

Rule 3. Avoid names with too many words

During the 1980s, American Express wanted to expand into the brokerage services business – it purchased Shearson Loeb Rhoades and Lehman Brothers Kuhn Loeb, calling the new firm Shearson Lehman American Express. Phew! Quite a mouthful, and an example of how large, sophisticated companies make naming errors. The resulting merger so thoroughly confused customers that the brokerage business was ultimately sold to Primerica, and the firm again became known as good old American Express.

If you already have a long name, think about abbreviating or shortening it. International Business Machines, which violates Rule #1 and Rule #3, became simply known as IBM (which happens to violate Rule #2). This goes to show that there are always successful exceptions to these rules when the company is exceptional at its core business and creates a powerful brand.

BP Provides A Classic Case Study Of How To Screw-Up Your Brand

As many of you know, I’m a bit obsessive about branding. In my book, Branding Insights for Small Business, I cover the essential components of an effective branding strategy every successful company achieves: creating a powerful brand image, being authentic to the core values of your business and building goodwill with your customers.

It’s never easy to transcend the signal-to-noise ratio that pervades the marketplace and launch your business or product into public consciousness, and there’s that old adage, “any news is good news.”

But what if your company is responsible for the biggest natural disaster in history? That’s a life-or-death question right now at BP. As a horrified public watches images of oil-covered wildlife, ruined coastal areas and destroyed businesses, the petroleum company that once touted itself as a progressive force in environmentalism is now trying to save the tattered remnants of its corporate reputation.

When the President accuses you of “nickel and diming,” you’ve got a image nightmare on your hands

Even BP’s damage-control efforts have backfired — the company poured $50 million into an apologetic public relations campaign, then saw its efforts backfire when reports surfaced that the company was being stingy with cash compensation for people whose homes and businesses were ruined by the oil spill. Even President Obama even got involved, accusing BP of “nickel and diming the folks down here.”

Of course, few of us are multinational executives, who run  corporations operations with such far-reaching consequences. But BP’s missteps provide lessons we can all learn from:

BP spent millions advertising itself as an eco-friendly company, but had three of the largest and deadliest oil-related accidents in the past five years.

- Don’t just say you stand for something — actually STAND something. In the words of a brand strategist who wrote an op-ed for Fast Company: “Pretty logos mean nothing if your actions don’t back up what you say.” Before the oil spill, BP did a great job of positioning itself as an eco-friendly company, but as Fast Company notes, “BP has had three of the largest and deadliest oil-related accidents of the past five years.” That fact has been hammered home as repeated efforts to stop the spill have failed.

- Don’t say anything stupid. This sounds like common sense, but with an army of handlers and highly-paid public relations experts, BP’s chief executive still managed to put his foot in his mouth several times since the disaster. While BP’s share prices dropped by 30 percent and investors lost millions, CEO Tony Hayward complained, “I’d like my life back.” Earlier, he asked a New York Times reporter, “What the hell did we do to deserve this?” Sorry Tony, but when wildlife is dying and people are losing their livelihood by the thousands, people are not going to take pity on a guy who banks $8 million a year — they’re just going to get angry.

- Don’t understate things — be honest. Again, courtesy of Hayward: “The Gulf of Mexico is a very big ocean. The amount and volume of oil and dispersant we are putting into it is tiny in relation to the total water volume.” That’s a bit like saying Katrina “only” flattened one city. And it doesn’t exactly inspire confidence in oil containment efforts when the guy in charge apparently slept through his geography class.

Those are three “don’ts,” but what about the things BP should do?

That’s pretty simple — walk the talk. As I mention in my book, it’s important that your brand is built on authentic core values of the business. And these values need to permeate down to every department and employee so they know exactly what the business stands for and the promise it makes to its customers.

When BP spent millions rebranding itself as a “green” corporation a decade ago, environmental groups pointed out the company had spent more money on its image than it did on renewable energy resources. And as the story unfolds before us, it’s become obvious BP never took its responsibilities seriously beyond appearance. This is a mistake many companies make with their brand efforts: they superficially believe a marketing slogan and ad campaign will define what their company stands for. And they believe employees, shareholders and customers will simply buy into that myth. But if rumors that BP circumvented safety protocols in its deep water drilling are true, then the public backlash could be passionate and intense.

A great PR team is an essential component to any brand emergency, but it’s just as important to remember public relations is only half the battle — if a company’s actions don’t support its brand image, sooner or later that fact will be exposed, and the results could be catastrophic. Just ask Arthur Andersen.

Many have heard the marketing term U.S.P. or Unique Selling Proposition, but I would wager most don’t have a clue to its inherent value when marketing your business.

The term Unique Selling Proposition was originally developed in the 1940s by marketing guru Rosser Reeves, which he defined as the ability to communicate a distinct and unique benefit a product offers a consumer which only that specific product or service or brand can provide.

Business owners, often just assume their customers will understand what makes their business different or better than the competitors, and overlook the USP. When carefully nurtured, however, an U.S.P. will provide your company a significant competitive advantage in the marketplace.

Rosser Reeves maintained an effective U.S.P. needed to accomplish the following four objectives:

1. It must make a specific proposition to the customer: “buy this product, and you will get this specific benefit.”
2. The proposition must be unique or “perceived unique” by your customers – something your competitors don’t have or offer and would not be able to imitate easily.
3. It should be so compelling and relevant to your ideal customers that it entices them to try your product or service because it addresses their needs, fears, frustrations, or desires.
4. It must be simple and easy to articulate and communicate so your customers quickly understand that your product or service offers them unique benefits.

An excellent example of an effective USP is the famous “Got Milk.” The campaign repositioned milk, a universal staple in practically all households which had been maligned as an unhealthy, antibiotics-filled food to avoid, to the opposite: comforting scenarios of milk and cookies, as well as a nutritional drink appropriate at anytime.

The campaign stuck in the customer’s minds and was carried into the grocery store aisles while milk consumption rose dramatically. Genius!

The fact that the campaign fostered numerous copycats with Got Fish? Got Fleas? and Got Freud? only added to effectiveness of the original USP. Even President Obama’s campaign slogan of “Got Hope” mimics the original.

A strong USP (or lack thereof) for your business can be the driving force behind the success and failure. Is that really something you want to leave up to assumption? To occur haphazardly? Or instead, will you take a proactive, deliberate approach ensuring correct positioning of your product or service exactly where it needs to be for future success.

To talk or not to talk? That is the question, but with nothing but dodging from Florida, the blogosphere is more than happy to answer.

While Tiger maintains his silence, or his roundabout explanation that fuels guilt and scandal yet explains nothing, has this mega-superceleb squeaky clean sure thing fallen like … like … Kobe and Phelps and Serena and Michael Vick and Britney and Chris Brown and Kanye and … and … well, you get the drift.

Celebrity endorsements mean a big cha-ching for product placement and sales. Celebrities are a brand onto themselves, as corporations are quick to scoop up the good ol’ boys and girls to be their shining star. But who calculates the missteps? What is the cost of damage control — the necessary clean ups in Aisle Life – when the star crashes to earth?  Or into the neighbor’s tree?

Tiger screwed up (or perhaps he didn’t). We don’t know how or why or when or what, but his silence is deafening. And the corporate bigwigs are squirming big time. Buick, Nike, Gatorade, Gillette, TAG Heuer, Accenture, AT&T.  Is this fixable? What’s it going to cost?  What’s plan B for when the best and brightest prove to be all too human? The brands Tiger represents are now running through the “what if” scenarios, praying for a minor character flaw and not a shock and awe to their brand image.

Sure, celebs of yesteryear were only human too. But that was before Twitter, Facebook, TMZ, MySpace, breaking news all night and all day, and with a buzz of a CNN update, dirty laundry is spilled for all to see.

Speak now, Dear Mr. Clean, or others will speak for you. The blogosphere is erupting. If Tiger doesn’t talk, others put words into his mouth and ergo, the mouths of his sponsors. And the many, many customers are just waiting and listening, wallets in hand.

Fighting public opinion can be tough, as McDonalds found out a few years back. Environmentalist groups had been pressuring McDonalds to change from using Styrofoam packaging to paper. They alleged that Styrofoam was contributing to landfill problems because of Styrofoam’s long life.

The President of McDonalds at the time, Ed Rensi, disagreed and hired archaeologists from the University of Arizona to conduct extensive research into the landfills. They concluded Styrofoam had little, or nothing, to do with the impact or contribution of the landfill problem, especially McDonalds packaging.

McDonalds tried to share their findings with the news media, but found it difficult for them to pick it up. It just seemed that it didn’t fit the narrative of what the news media thought was environmentally correct.

After months of trying to change public opinion and the news media, President Ed Rensi angrily realized he just was not going to change public opinion. He ultimately switched McDonalds from Styrofoam packaging to paper packaging.

Looks like the “Friendly Skies of United” are a little less friendly for musicians. Country singer Dave Carroll created a video regarding his less than “friendly” experience flying United Airlines

Carroll had his guitar broken by the airline’s baggage handlers and when he received no compensation with the airline, he took out his frustrations by writing a country song and created a music video about his experience.

The video has since gone viral and was featured on major American and Canadian news outlets. With all this unwanted attention, United Airlines recognized its error and has since contacted Carroll to make reparations. In addition, it has asked to use his video as part of its training.

Here’s the music video: http://www.youtube.com/watch?v=5YGc4zOqozo

Recently, I read an article that appeared in the New Yorker Magazine. It discussed how two well-known cereal companies, Kellogg’s and Post, dealt with the economic depression in the late 1920s. At the time, ready-to-eat cereals were relatively new and Americans didn’t view them as a real alternative to oatmeal or cream of wheat.

When the Depression hit, Post did what most companies do, reined in expenses, cut back on research and development and cut its advertising budget. But Kellogg’s did the opposite, it doubled its ad budget, moved aggressively into radio advertising, and heavily pushed its new cereal, Rice Krispies. Even when the economy cratered in the early 1930s, Kellogg’s profits rose 30% and used that momentum to go on and become the industry’s dominant cereal company.

Research has shown time and time again that companies that continue to spend on acquisition, advertising, and research and development during economic downturns do significantly better when the economy turns around.

You can read more about Kellogg’s in my book: “Branding Insights for Small Business” available on Amazon.com.

To read the complete article, click here. Special thanks to Gary Carr, an excellent media rep at Hanley Wood, for forwarding the article link to me.

Recently, I had an opportunity to be interviewed by Jim Kukral, one of the top business web experts around.

Some of the questions we covered are:

• What value does your brand bring to your business?
• Does your brand need a tagline?
• Understand the way your brand impacts your customers.
• We discuss just what the definition of a brand is, and its components.
• And, much more…

Click here to listen to “Branding Tips & Secrets To Improve Your Business”.

I had a great “fireside chat” with Tony Parinello the other day. Tony is the author of the best-selling book: “Selling To Vito”

This book is a must read for anyone involved in sales directed towards the CEO, CFO or senior VP management at large firms. Tony’s entire business focus is helping salespeople “sell to VITO.”

Listen in to my interview with Tony to hear about what branding has meant to him – especially in building the very recognizable VITO brand – and hear what you can learn from a master.

Branding starts at the top and lives at the bottom.

What does that mean?

It means that a CEO or senior management might develop and launch a new “brand promise” initiative (the main thing that the company stands for), but it’s the salespeople and customer service people, the employees on the the front line of the organization, who are the ones that ultimately will deliver on that promise.

One of the keys to ensuring a successful launch of a new brand initiative is to make sure that the people who are on front lines of your customer interaction are involved early on with the process. Their input will ensure that you are not making a promise to your customers that you can’t deliver consistently. And, it being part of the process will give your salespeople and customer service people a sense of ownership with the brand promise and will more likely deliver your company’s promise with “on-brand behavior.”