Duvall & Associates, Inc.
BUSINESS ADVISOR NEWSLETTER
 

Name games: Why monikers are important

- by Alan Duvall 

Published in Dayton Daily News  January 28, 2007 

“Like the singin’ bird and the croakin’ toad, I’ve got a name.”  Jim Croce 

Corporate names have been drawing a lot of attention these days. 

Bon-Ton Stores, Inc. purchased some Parisian retail stores and is changing the name of a local mall location to Elder Beerman.  Initially, some market confusion may ensue, but locals do not seem to be overly dramatic about the adjustment. 

Certainly, Daytonian reaction does not rival the furor caused in Chicago by Macy’s decision to attach its flagship moniker to recently acquired Marshall Fields’ stores.  Historically a Chicago icon, the strategy could create long-term consumer backlash which Macy’s may come to regret. 

Marketing gurus argue universal labeling simplifies product branding and reduce advertising costs.  But national namebrands also eliminate regional identities which are familiar to consumers. 

Entertainers have always recognized the marketing potential of name changes.  So it is Norma Jean became Marilyn Monroe and we have come to live with the likes of P-Diddy and Snoop Dog. 

Certified Public Accountants deem it unprofessional for any firm to adopt a name which does not contain the surnames of present or former partners.  Oddly enough, physicians do not feel so constrained. 

On the opposite end of the spectrum, some companies have adopted monikers which have no descriptive basis at all.  Thus we have distinct and separate businesses titled Sysco, Systran, Syscom and just plain SYS.  Other firms have come to acronym their names as National Cash Register evolved into NCR and American Online morphed into AOL. 

A recent study revealed 72% of the French people are confused by their country’s wine labels.  Such labeling is largely responsible for France’s declining wine market share.  Compare France’s economy Fat Bastard wine, which has grown from 2,500 cases in 1998 to 425,000 cases in 2004, a result of its clever marketing tag. 

Perhaps the ultimate success in marketing is found in company names which become verbs in common vernacular.  In the 60’s and 70’s we Xeroxed reports.  Today we Google web searches.  

As for me, “I can be your long lost pal...You can call me Al.”  -Paul Simon 

Alan Duvall is a certified public accountant in Dayton.  Contact him at Alan@Duvallcpa.com.