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The Role & Importance of Brand Naming in Brand Positioning

Your Brand Name set’s the scene for what your customers perceive about your business

Your Brand Name set’s the scene for what your customers perceive about your business

There is no underestimating the significance of brand naming when it comes to brand positioning. A carefully curated name can dramatically impact how a business is seen by its target audience. It's their first point of interaction. In addition, a company name sets the scene for how customers perceive its personality, values, and offerings; in this article, we'll look into this topic further and how brand naming contributes to business success.


The Power of a Name

Apple Inc is an excellent example of how brand naming can impact brand positioning: in 1976 when founder Steve Jobs named it Apple Computer Inc; however, in 2007, with the growing focus on other products like iPhones and iPods, they changed it to simply Apple to emphasize broader technological innovation; hence their brand name plays an essential role in positioning as well.


Brand Naming:

Brand naming refers to giving an organization, product, or service its distinct identity by creating a memorable name that stands out in relation to its offerings, is easy for consumers to pronounce, and represents its personality or values.

Some examples of successful brand names:

  • Coca-Cola also stands out with a straightforward name that is memorable, catchy, and easily pronounceable, reflecting its beverage offerings. Finally, Nike stands out because their name is short, simple, and unique while at the same time reflecting its focus on athletic footwear and apparel products.
  • Airbnb stands out with an iconic and memorable name while reflecting its mission of offering affordable lodging solutions worldwide.


Brand Positioning:

Brand positioning refers to creating a memorable identity for a brand within its target audience's mind. It involves defining their Unique Selling Proposition (USP), targeting their ideal demographic, and designing brand personalities that resonate with those audiences.



  • Volvo: Volvo positions itself as a safe, dependable car brand that attracts families. Apple positions itself as an exclusive and cutting-edge technology brand that attracts creative professionals and tech enthusiasts.
  • Coca-Cola is an iconic beverage brand that appeals to people of all ages and provides refreshments in moments of need and joy. 


A Name’s Integral Role in Positioning:

Brand naming plays an integral role in brand positioning. Here are a few ways it could impact the success of any given business:

  • The Brand name can help distinguish brands from one another: an unforgettable and distinct name can set an organization apart in a crowded marketplace; for instance, Netflix stands out due to being both unique and memorable among streaming services.
  • An effective brand name sets the tone for its personality: its name can communicate its core values to target audience members. For example, "Patagonia" represents adventure, ruggedness, and environmental responsibility, all qualities that perfectly reflect its offerings.
  • Brand names that are easy to pronounce and remember make brands more relatable to their target audiences; Chewy is such an example. Pet parents seeking quality pet products find its brand name easy to remember - perfect!

Squadhelp offers a free tool to help individuals and businesses name their brands. The tool uses advanced algorithms to generate unique and catchy name suggestions based on the user's inputs. Users can also work with a community of naming experts who can provide feedback and additional suggestions.


A Name’s Pivotal Role in Positioning:

Brand naming plays a pivotal role in brand positioning. A well-crafted brand name should accurately convey a company's value proposition and personality while differentiating itself from competitors and making it easier for consumers to remember, recognize and recommend its offerings to others.

Companies that recognize the significance of brand naming spend time, money, and effort creating names that reflect their positioning strategy. They can even work with external naming agencies to generate ideas for them.

No single formula exists for brand naming; however, here are a few best practices companies should heed when developing brand names:

  • Keep It Easy & Pronounce It Right - Avoid complex names that are difficult to remember or pronounce to ensure easy learning of the pronunciation and memory recall of their names.
  • Be mindful of meaning and connotations - When selecting a brand name, ensure it aligns with its values and messaging. Avoid choosing names with negative connotations or associations with other companies or products.
  • Keep it original - A creative brand name can give your product or service the edge in an increasingly competitive market.
  • Consider the Long-term Goals of the Company - Consider long-term business goals when creating and selecting brand names to ensure they can grow alongside them.
  • Test It - Before finalizing your brand name, conduct focus groups among potential customers to receive feedback on its clarity, memorability, and relevance.



Brand naming is an integral component of brand positioning. A creatively named company can distinguish itself from competitors by using the name to communicate the value proposition and increase consumer recall; by following best practices for naming products or brands, they can ensure their name supports brand positioning strategy and ultimately helps meet business goals.