“When Toyota owners were asked to rate on the same 0-to-10 scale whether they would consider Toyota if they were to buy a new vehicle today, their ratings averaged an 8, whereas other automobile owners’ ratings averaged a 4.”

The study’s author, Vikas Mittal, the J. Hugh Liedtke Professor of Marketing at Rice, and co-authors Rajan Sambandam, chief research officer at TRC, and Utpal Dholakia, associate professor of marketing at Rice, termed this a “brand insulation effect” built upon previous positive customer experience with the company.

If this is true, (and it remains to see if future customer actions support their stated intentions,) then it bodes well for companies that perform consistently over the long haul. Tylenol faced a similar challenge when they recalled millions of dollars of products off store shelves from a product tampering incident. Tylenol’s share reportedly dropped from 35% down to 8%, but quickly rebounded within a year. Consumers came back to Tylenol due in large part to their proactive response and proven history.

It will be interesting to watch Toyota and see if their brand image withstands this withering assault of news reports. What are your thoughts? Is there a “brand insulation effect?” Will it work for Toyota, or is this a case of too little, too late?

In this “new economy”, a brand name must deliver more than familiarity, more than fame, more than fancy packaging. These tried and true methods have worked in better times, based in part of the theory that a known evil is better than an unknown evil. In other words, most people are reluctant to try something different and unproven. And that’s part of the problem. Big brands have banked on this comfortable “I-know-you, you-know-me” relationship. But with pressure on the wallet, consumers are reaching out for less expensive choices. Wal-Mart, for example, recently took Hefty and Glad bags off the shelves in favor of its own store brands. To add to the sticky mess, well-established brands have created “brand children” or brand extensions, which have only added to the crowded clutter on the shelves. Just how many varieties of Cheerios can the consumer stomach? Frosted? Mulit-grain? Honey Nut? All this in an attempt to increase market share.

What has been lost in all of this is the basics of branding, which involves creating a unique marketing position, a point of differentiation. Brands need to get back to the basics of being better, not just famous. Apple has done a great job of this with their iPod. Imagine giving your kid a knock off mp3 player for a birthday present. They have invested in their industrial design, intuitive use, and ease of the iTunes interface. There are any number of mp3 players with more memory and perhaps even more functionality, but it’s not enough to unseat the iPod.

But this differentiation requires an investment. It means understanding what your products and services really deliver to your customers, benefits they don’t get from competitive products. Do you know the answer to that question? Are there any real differences? Or are you relying on name recognition alone to carry the day? It might even require rolling up the sleeves and creating something “new and improved!”

The easy ride is over, and probably will be for some time. Good. It means getting back to what great brands should have been doing all along… improving, innovating and enhancing the customer experience.

• Those trying to solve a naming problem

• Those trying to convey their company image

The first group views company naming as a set of hurdles (i.e. clearing trademarks, obtaining a matching domain name, finding a name that’s short, finding a name that can’t be mispronounced, finding a name that begins high in the alphabet, etc.) In other words, it’s more about a fix than a process. It also tends to be short term focused.

The second group is less concerned (initially) about the name. They are more concerned about capturing the essence of their company, and then translating that message through a viable brand name. This group typically takes a long range approach, looking at a variety of concerns, and how to prioritize them.

The first group focuses on the solution, the second group focuses on the process.

This also explains the wide range of pricing when it comes to name development. For someone simply wanting a handle for their business, it seem ludicrous to pay tens of thousands for something anyone with a dictionary can (supposedly) do. This type of customer might be better served by simply shopping some of the domain name market places, such as BuyDomains.com, Afternic.com or Sedo.com. They can look up potential names by category and search available choices.

The second group is not so much in search of a name as they are a brand. More than just a moniker, they want the name to mean something. They want it to convey an emotion, capture a position or create further intrigue. In other words, the name serves as the beginning of the conversation, an introduction which segues effortlessly into a deeper discussion of the company’s products and services.

This often requires first digging deeper into the company’s core strengths and finding it’s “pivot point,” or that common thread that runs throughout the organization. It might be service excellence, superior quality, dependability, innovation, etc. Ideally it should be based on the company’s attributes vs. its products (which tend to come and go over time.)

Creating a company name can get a business owner out of a temporary bind, but leave him or her with little or no story to build upon. It often creates a “huh?” response (or no response at all.) Building a company brand can provide a firm with not only a compelling name, but also a future platform that will accommodate continued growth and expansion. It creates interest and often leads to a “tell me more!” response.

So before sending out requests for company naming proposals, first determine if your objective is simply a short term workable name or a long term build-able brand. The first is functional, while the second is foundational.

In the big picture, Apple has succeeded in walking to the beat of a different drummer. They have never really behaved as a “computer company,” although until just a year ago, that was their official name… Apple Computer.

At the iPad unveiling this past week, Steve Job reported that Apple was now “the world’s largest mobile device company.” Could he have just articulated their new pivot point?

Let’s look…

Are most of their products mobile?

Considering the number of laptops, iPods and iPhones they sell (in contrast to the big towers) then it would be safe to say yes.

Are they a “device company?”

That certainly takes them out of the limiting sphere of computer manufacturer.

Are they the largest?

Well, perhaps, (though Nokia might have an issue with that statement.)

My best shot at Apple’s pivot point would be to call them a “digital lifestyle provider.” That would expand them beyond the functionality and equipment positioning and allow them to incorporate music, video and e-reader services.

In pressing times, it’s more important than ever to differentiate your company, and its products and services. So before making your next move, have you thought about your pivot point? In Apple’s case, they might have just found their “core” strength…

And then there are the other issues…

• iPad sounds so close to iPod that it’s confusingly similar. Imagine if you were from Boston. The names would be interchangeable.

• Already the name has been subjected to derision by its close affiliation with certain feminine hygiene products. (Do you want the mini or the maxi?)

The initial jokes will wear off, so that’s not a big deal. What is a bigger deal is the lost opportunity cost that results from explaining/defending a name in the first few days of a launch. With a unique, compelling brand name, it may have encouraged potential buyers to inquire more deeply. A good example of this is what Amazon did with the Kindle and Barnes and Noble did with the Nook. Notice neither went with “e-reader” or some generic, functional naming solution. I realize Apple wants/needs to keep the “i” for its branding architecture. But it could have followed it with something more inspiring than a pad. As a company known for its creative brilliance, this is one brand name that fails to shine.

The answer is maybe yes… and most likely no.

The maybe yes answer depends on the amount of repeat customers you have. If your client base is a die-hard following of loyal customers, then it might be beneficial to dress up your logo (assuming it’s done tastefully) to create a little flair. And on a web site, it demonstrates that someone is paying attention, making updates, and taking action to keep things current.

The answer is most likely no, if you have an ever changing client base, or are continually reaching out to new customers. If they haven’t seen the original logo, how are they going to “get it” when you make a twist on it? It’s like telling a joke that plays off another joke. You have to know the first one to get the second one. And it’s easy to overestimate how well established your logo has become, (mainly because you see it everyday.)

So if you have a well known, iconic brand that serves a steady audience, then by all means have some fun and “Google-ize” your logo for the holidays. But for most businesses, it’s better to stay the course and build steady brand awareness.

That would seem prudent but could prove harmful in the long run. The reluctance to grow when the economy begins to improve is the equivalent to timing the stock market. By the time you realize that your customers are back, and buying, it may be too late to regain them. In other words, you might not have enough band width to handle the business, due to a number of factors…

• A reduced number of competitors weeded out from this down turn.

• A lack of suppliers which can help you fulfill orders

• A lack of staff to handle an increase in volume

Just as this economy caught business owners off guard and bloated with excess staff and inventory, it can do the same on the opposite side — make them too cautious to move when signs of improvement start to show. You will never have a better opportunity to gain “share of voice” for your brand than in a down market. Competitors are quiet and waiting things out. They are also hunkered down and looking for the same sustained sales results before investing in any type of growth. But it will be the businesses that can step up and meet this growth, right out of the gate, that will gain the most from the upturn. At that point, getting back in the game will require more expensive advertising.

If 2010 is “the year,” then what are you doing in anticipation of a possible uptick in business? Are you in hunker down mode? Or are you quietly lining up quality suppliers, keeping resumes current, and creating a plan of action to ramp up production in a short time frame? It’s a matter of being proactive vs. reactive, and it can happen on both ends of an economic cycle. If 2010 is the year, make sure it’s your year.

“BELIEVE IN Something BETTER.”

The letters were all caps except for the word “something” which was underscored for added emphasis.  Intrigued, I couldn’t wait to move forward to discover what, or who, was behind the message. Was it The Church of Latter Day Saints? The Boys and Girls Club? A new “Say no to drugs” campaign?

No… it was a cell phone company.

U.S. Cellular to be exact. You know when a brand promises too much when you feel that let down in your stomach that goes “Really? It’s all that?” I had a similar experience viewing a TV ad a couple of years back. It lured me in by saying that one thing, and one thing only, truly defined who and what we are. I had to know what could be that monumental that it could sum up our very essence. The answer?

A watch.

It’s not to say that companies can’t align themselves with strong attributes. In fact, that’s a great strategy for the positioning of a brand. But in the execution of that strategy, it’s important to ask if the promise is a realistic one. Verizon, for example, makes a more believable claim that “It’s the network.” Wal-mart played it fairly safe with “Always the low price. Always.” But of late, it shifted to “Save money. Live Better.” Is it realistic to think you are living the high life thanks to Wal-mart? I’ll let that be your call.

Dodge came out with a TV ad entitled “My name is Ram” in which images of Muhammad Ali and Albert Einstein were displayed, while they touted their vehicle as “All brawn. All brain.”  It further states that it’s “built by passion… and stopped by nothing.” And “a technological marvel,” with a picture of a major suspension bridge being built in the background. The only thing missing was a shot of a shuttle launch. Pretty heady stuff for a truck.

With all the decentralization of media, the consumer has the power now to pick and choose what he or she wants to see and hear. So if your brand message rings hollow, they will tune out. In fact, if your message is not authentic, it will create just the opposite effect… one of distrust. Years ago, Ford came out with an ad campaign that touted “Quality is Job #1!” At the time, American made vehicles were anything but synonymous with quality, and saying so did not make it so. If that were true, Quality Inn would be at the pinnacle of their industry. In business, as in life, it’s always best to underpromise and overdeliver. So choose your brand names and tag lines wisely. Make sure your brand message is not only aspirational, but also believable and achievable.

Examples of brand positioning shifts…

• Now that we’re selling products at a deep discount are we still a “quality” company?
• We always served the “XYZ” industry, and now we’ve expanded to other customers. Are we still in the “XYZ” business?
• We’ve opened a new division, serving a new customer base. Should it still be under the same umbrella name?

In other words, businesses did what they had to do to survive, and now it was time to make sense of it all. Some of the changes proved positive, forcing companies to evolve and reconfigure their service offerings. But others have caused “brand fractures,” actions that bring in short term cash flow but betray the long term values of the organization. In the wake of all these changes, now is the time to regroup and ask the pivotal questions that will help determine the future of your brand.

• Is your corporate identity based on an outdated or struggling industry? (i.e. boats, construction, automotive, etc.)
• Have you expanded your products and services in a way that no longer fits with your brand name or message?
• Are you trying to promote quality, price and service all at the same time in an attempt to be all things to all people?

Ideally, a company’s identity should revolve around one “pivot point,” a common thread that runs through everything a company says and does. Do you know what your pivot point is? Is it based on what you do or how you do it? Are you evolving with the times or dying with your industry? These are tough questions, but not nearly as tough as facing a dead end road too late to make changes. Now is the time to get clear, get focused and take definitive steps to mold a cohesive identity that both your clients and your staff members understand.

Just as 3M transformed from Minnesota Manufacturing and Mining into a company known for product innovation in the adhesive industry, CEO’s that are clear on their corporate mission and values can lead their companies to great success. If you are having defining your pivot point, perhaps it’s time to get clear on what you truly have to offer your clients. That’s what I’ve been speaking on all summer… “Brilliant Branding.” If you’re ready to shine, it might be time to consider a brand clarity audit. We’ll work with you to clarify your mission, purpose, values and direction. And best of all, you’ll discover that elusive “pivot point” around which you can base all your decisions. Having that type of guiding light can re-focus and re-energize a company as it moves towards a common goal. And it sure beats an identity crises.

This is one of those “live by the sword, die by the sword” types of branding decisions. Product specific names are great for gaining initial traction when first starting a business. Customers know exactly what you do (i.e. sell radios in small strip mall stores, sell computers in the United States, sell a million books, etc.) But when the company grows and expand its product offerings, (as they so often do,) the very name that helped define them now restrains them. The pain killer becomes the pain maker.

The solution? Look at companies that defined themselves by an attribute, such as Best Buy. Or ones that use a metaphor, such as Target or Amazon. These names provide a more lasting base to build upon. They allow the context to identify their products (i.e. their web page, their ad, their brochure, etc.) so the name can be freed up to evoke a bigger message.

So before you name your business The DVD Barn, be sure that is the only product you will ever sell.