PM360 March 2011

FEATURE

BRAND NAMES: It All Begins With A Name
BY PETER L. TOBAR

Developing a brand name is a critical responsibility that has the potential to create a lasting imprint on the minds of customers. It is imperative that it be among the first commercial activities initiated in building a brand.

“Satisflying”... a contrived word on a billboard against a backdrop that was unmistakably the logo for a well-known brand of candy bar. It was marketing genius. As my wife and I approached the airport exit, the power of this message became clear. “As soon as I get through security,” my spouse proclaimed, “I’m stopping at the snack shop to buy a Snickers bar.”

RECOGNITION IN A BLINK
This is a perfect illustration of the importance of establishing a recognizable global brand. So successful in this case, that a logo alone, devoid of any mention of brand name, conjured up a vivid image of a delicious, hunger-dampening, peanut-laden chocolate treat. From the marketing perspective, this example serves as an objective that every product manager should strive to realize. Specifically, to establish a clear position in the mind of a customer that results in a desired marketing outcome (e.g., increased demand, market share, and sales).

So while this scenario demonstrates what “marketing nirvana” ultimately looks like, it’s important to note that it all begins with the first application of paint to canvas ...the selection of a trade name. On the surface, choosing a product name may seem like a relatively easy endeavor. It can, however, be an enormously complicated process, especially when selecting trade names within the pharmaceutical world.

NOMEN EST OMEN
The name of a product has obvious and important implications on “brand personality” and the perceptions that consumers will ultimately have toward it. As an elementary school student, I once had a classmate whose first name was Delbert. I am convinced that this name somehow played a pivotal role in how others thought of him, as well as how he defined himself. Delbert seemed to participate in a disproportionate number of schoolyard fights and was frequently in trouble. While I cannot prove it (and apologies to anybody who shares this name), I remain confident that Delbert would have found himself in far fewer scraps as a youngster had he been named John.

A SINGULAR NAME
When it comes to naming a pharmaceutical entity, the fights may not come at the hands of a schoolyard bully, but rather from FDA and other global regulatory authorities that are charged with ensuring the acceptability of a trade name. This governance, however, serves an important purpose. A 1999 Institute of Medicine study attributed 7,000 deaths in the U.S. each year to medication error. Obviously, when it comes to naming drugs, it’s important to land on a name that is not likely to be mistaken for another medication. The need to minimize the potential for confusion is only one consideration that a product manager must deal with when establishing a trade name. Other hurdles that must be successfully cleared include ensuring that the name is protectable from a legal and regulatory perspective, that the name resonates globally, and that it does not carry unintended negative connotations or associations. I learned about the importance of “associations” the hard way, during my previous life as a product manager for an investigational vaccine.

BAD ASSOCIATIONS
After making a dazzling presentation on all aspects of the exhaustive global marketing research that was conducted on behalf of our recommended (undisclosed) brand name, the president of our company looked at me and said, “That name reminds me of a sleep aid.” Undaunted, I was quick to point out that “fewer than 5% of physicians globally made that association,” to which he responded, “That’s 5% plus one president.” Perhaps the presentation was not quite so dazzling after all, but it did serve to underscore the importance of establishing a name free from preconceived associations. Today’s marketer should pay heed to a number of other considerations while evaluating name choices. Brand Institute is one of the preeminent name development companies supporting the pharmaceutical industry. According to its president of the U.S. Eastern and Canadian Division, Bill Johnson, “There are numerous steps involved in naming a drug—name strategy and creation, trademark, legal screening, linguistic and translation work, market, and name safety research to name a few.”

SEARCHING FOR AN IDENTITY
In addition to the many steps involved in trade name development, a marketer needs to consider several potential roadblocks. Trademark searches alone typically knock out as many as 50% to 75% of brand name candidates. Typical searches take place in trademark classes that include drugs, biotech, medical devices, diagnostics, and equipment. As most companies focus on creating and securing global trademarks, the challenges toward clearance become exponentially more difficult. In the U.S., there are nearly 150,000 trademarks in these categories alone. Exacerbating the situation is the fact that given a very rigorous regulatory review, the FDA rejection rate currently approaches 40%. The bottom line: Developing a trade name for a product early in its lifecycle is important to avoid delays.

FIRST STEPS
Within the realm of product management activities, developing a brand name is critical because of its potential to create a lasting imprint on the minds of customers. Choosing a name should be among the first commercial activities initiated in building a brand. It all begins with a name... just ask my friend Delbert.

Peter Tobar is Managing Partner of Tobar, a company providing consulting services in support of pharmaceutical and vaccines marketing. He recently established a partnership with MediMedia Educational Group (MMEG), the clinical communications operating unit of MediMedia Health. MMEG’s core competencies are medical marketing, advisory services, and brand promotion. He can be contacted at peter.tobar@comcast.net