You can use names in some quite sophisticated ways to provide a range of additional features to your documents. Remember that a name does not have to contain a number or formula; it can contain any kind of information, entered as a string or a date.
You can use names to enter numerical variables in formulae. For example, you could create a name vat_rate, to enter the value 0.175 in any formula or cell. If the vat rate was decreased, you could then change the definition of the name, and all your formulae using it would be updated.
Names can be used to insert variables in text. For example, you could be writing about a product with a code name. By defining a name with the products code name, you can easily change it in all documents containing the name by changing the value of the name.
To do this: