Market analysis of existing business names can help you find the right name that will stand out from the crowd and fit perfectly in your target industry.
A right business name will present your offerings in the best possible light and help build a strong connection with your customers.
Here is a way to do-it-yourself the market analysis of business names. This process will help you find a right name that sets your business apart from its competition.
What is Market Analysis of Business Names?
Market analysis of business names involves studying existing business names and categorizing them into different groups in a chart in order to decide on a name that fits or rather stands-out in the market.
It’s involves studying competitors’ business names and classifying them accordingly using a name taxonomy chart.
In the end, the chart helps you ascertain the type of business name you should choose – ideally, a name that is less competitive but with great potential.
Why should you do market analysis?
A successful market analysis of business names in your niche market will help you clearly understand the competitive environment as well as the names that are commonly used in your market and where you can explore to stand out.
So, how do you do this? How do you carry out a market analysis of business names?
Here’s a quick 4-step guide to an effective business name market analysis:
Step 1: Create a List of Competitive Business Names
Write down the names of all the already existing companies/businesses in your industry. The longer the list, the better your result will be. However, keep it limited to only business names in your industry.
This list will come in handy for carrying out steps 2 and 3 below.
Step 2: Enter the Names into a Name Taxonomy Chart
Taxonomy is a system for naming, organizing and classifying things.
A name taxonomy chart is used for organizing and displaying different names according to their classes or categories in an orderly manner.
Name taxonomy charts show the relationships between the names.
After you’ve created a list of competitive business names, the next step is to display the names in a taxonomy chart.
The chart contains the following business name categories:
- Descriptive and Self-Explanatory Names
- Suggestive and Hinting Names
- Arbitrary and Random Names
- Invented and Coined Names
Refer the business name categories post to understand the business name groupings.
Use the above layout to classify and rank business names listed down in step 1.
Classify them by business name category and Rank them by their relative market value – 0 being the worst and 5 being the best.
The taxonomy chart helps you focus on the competitive aspect, forces you to analyze both the negative and positive characteristics of each name and gives you an opportunity to be different and go beyond the market standard.
Step 3: Run an Effective Competitive Analysis
While running a competitive analysis, you would need to find the answers to the following questions:
- How are your competitors positioning themselves?
- What types of business names are in use already in the market?
- Are these names different or similar to each other and to what extent?
- Do the names offer you an opportunity to stand out from the pack?
- How does your business or product differ from the competition?
- In what way can a name help you define or redefine your brand?
- Where in the market can your business name fit in perfectly and with a difference?
- How can your business name stands out from the competition?
Having some good answers to these questions will set you on course to creating a right name for your new business.
Step 4: Gather the Result… and Use It
It goes without saying, you’ll of course have to put the results together and use it to create a name that stands out from the competition.
If there is a particular category of names (say, descriptive names) with too much competition, then don’t pick a name that falls into that category.
The business name plays an important role in branding, marketing and ultimately the success your business. The purpose of doing a business names market analysis is not to blend-in, but to stand-out in your target industry.