The effort by the pork industry to get the government and news media to stop referring to "swine flu" generated some laughs among late-night comedians, but it points out a profound reality in business: names matter.
Kentucky Fried Chicken changed to KFC to downplay the word "fried" (and KFC is now pitching its Kentucky grilled chicken). A recent article in the New York Times described how an environmental group wants to stop referring to "global warming," and instead talk about "our deteriorating atmosphere." The auto insurance subsidiary of AIG, a profitable and honorable arm of an otherwise toxic brand now calls itself "21st Century Insurance."
This is not just spin. What you name something directly influences the perceptions of your target audience. As marketers and communicators, we believe it can be useful to think about the name of your product or service, or even your organization itself, to see if it conveys what you want it to convey. Changing a name can be an effective strategy, but it should not be considered lightly or for the wrong reasons. The risks can be considerable and the implications costly.
Research is key. How widely is your name known now, by whom, and what qualities does it convey? If the answers to these questions align with your business strategy, your name is helping you. The Wellynn Group recently completed a project for the Wharton School of Business. "Wharton" is a name that works: it's known worldwide by prospective students and business people, and conveys a long history of quality business thinking.
Certain conditions, however, can call out for a change. For example, if the name conveys persistent and deep-seated negatives (we doubt there will ever be another firm called Enron). Or it has a geographical association that no longer makes sense (US Airways used to be called Allegheny). Or technological advances have rendered the old name obsolete (Bell Telephone became Verizon). Again, research is key: it can help determine if a name change is appropriate, what alternative name would be most effective, and how best to communicate the change.
Research is only half the job, however. Once you make the decision to change, you must allocate enough time and money to make the new name stick. Names can be persistent within the community and consumers can develop deeply personal connections to an organization's name that will resist any change effort. A new name is not just a sign on a door or a new logo. It touches everything and everyone within your organization. You must have realistic expectations about the amount of time and money required to build recognition and use of the new name both internally and externally.
