PRODUCT AND BRAND: INTERCHANGEABLE TERMS? Geraldine Fennell, Consultant ABSTRACT Marketing authors often use "product'' where the context requires "brand. " The result is an indeterminate use of "product'' that fails to make clear if a product class is at issue or an individual brand member of a product class. Examples are discussed to illustrate the resulting ambiguity in glossary definitions. For further clarification of the marketing primacy of brands, product and brand information from syndicated research (SMM) is discussed. INTRODUCTION In marketing writing, many authors use "product" both to refer to the class to which a brand belongs, and to a specific member of the class, i.e., a brand. In the two sections immediately following, using textbook glossary definitions of market, and market segmentation, respectively, I illustrate the consequent ambiguity. In a subsequent section, I present data from the Simmons Markets and Media (SMM) annual survey, by way of communicating the marketing primacy of brands, as the actual entity whose features producers choose, manufacture, distribute, price, and promote, and that people buy and use, with satisfaction or otherwise, thus forming the basis for future purchase and use decisions and recommendations to others. In a final section, I speculate about reasons why authors fail to use the terms, product and brand, appropriately to convey unambiguous meaning. GLOSSARY DEFINITIONS OF MARKET Consider first the following definition of the term, market: "Individuals/organizations with needs for a product in a product class and with ability, willingness, and authority to buy such products." What can it mean to speak of "needing a product in a product class"? Note that the author uses "product" to refer both to a class and to a member of the class, i.e., "for a product in a product class." Moreover, because some authors use "product" to refer both to a brand and to the product class to which a brand belongs, the phrase "product in a product class" results in a definition that is ambiguous. It is unclear if "product" is toothpaste in the product class of oral hygiene products (e.g., toothpaste, mouthwash, dental floss, tooth brushes) or Aim, Colgate, Crest, or a store brand in the product class of toothpaste.i From a definition, the reader needs to take away a clear picture of the scope of a market,ii i.e., is a market's outer limit a class whose members are brands, or a class whose members are products? The definition under discussion (17, Table 1a) fails to deliver a meaning that fills such a basic requirement. In other definitions in Table 1aiii the indeterminate "product" also deprives the term "market" of clarity as regards its scope. In the case of Texts, 03, 11, 19, which add "particular" or "specific" as a qualifier, the definition could be interpreted as referring to a brand. If this is the intended meaning, the definition is to be criticized on grounds of being too narrow. A market cannot be restricted to one brand. The idea of a market implicates the notion of competition, i.e., a number of competing brands in the same product class. Such variety provides individuals, who have a use for the product class, with a range of variants (i.e., brands) from which to choose one best suited to the user's envisaged conditions of use. Consider other definitions. Bearing in mind that only a brand is actually available for exchange, definitions that refer to the product "offered" (e.g., Texts 10, 20), and to being "willing to exchange for a product," "exchange something of value to get it" (e.g., Texts 05, 15) similarly are open to be interpreted as referring to a brand. Such definitions risk conveying a view of market that is inappropriately narrow. Given the usual meaning of "product benefits," the remaining definition in Table 1a (Text 01's "group of customers who seek similar product benefits") is more appropriate to a market segment than to a market. Does the author, in fact, intend to refer to the similar product benefits that are embodied in brands whose producers have tailored them for a particular kind of demand within a product market (i.e., a market segment)? For example, within the laundry detergent market, some brands offer the benefits of "safe for lightly soiled, delicate fabrics"; others offer "stain removal for ground in dirt." A student, reasonably reading the words "group ... who seek similar product benefits" as referring to such segments of the laundry detergent market, fails to obtain the promised definition of market. On the other hand, conceivably, the author may have intended the words to refer, broadly. to all benefits associated with helping remove soil from clothes, in contrast, for example, to benefits associated with using shampoo. However, only the latter interpretation makes the definition appropriate to a market. GLOSSARY DEFINITIONS OF MARKET SEGMENTATION Similarly, the indeterminate "product" creates problems for definitions of market segmentation. Consider Text 13 in Table 1b, which refers to buyers in a segment as possibly requiring separate "products," i.e., "Dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products..." A possible implication of saying "separate products" is that a market may consist of more than one product, e.g., dog food, soap, and shirts. In that case, what or who determines which products belong in the same market? Is there an upper limit? Three? Twelve? Twenty? Who decides? What or who determines which products belong in the same market? For example, do cars and dog food and mustard belong in the same market? Or, dog food, dog accessories, and flea collars? Or, brands of dog food, e.g., Kibbles and Bits, Good Day Chunk, Purina Fit and Trim? Consider the definition when one word is changed: "Dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate brands..." Thus revised, "market" means a product market, i.e., only one product in the market, e.g., dog food, with brands of dog food tailored to the varied wants of dog food buyers. Plainly, it makes a major difference to the meaning of market segmentation if "products" means "product classes," (e.g., dog food, soap, and shirts; or dog food, dog accessories, and flea collars), or "brands," e.g., various members of one product class, e.g., different brands of dog food, Kibbles and Bits, Good Day Chunk, Purina Fit and Trim. Recalling the earlier discussion of the ambiguous use of "product benefits," note that whether the writer intends product or brand in the definition of market segmentation has implications not only for the scope of the term, market, but also for the relevant scope of what is meant by "buyers with different needs." Is the term, market segmentation, relevant to the situation where a person may be deciding to satisfy different kinds of user want such as considering to spend money on dog food, or soap, or shirts? Or, is it relevant to the situation where a person has decided to buy a particular product, e.g., dog food, and is searching for a form of that product suited to his/her particular wants, for example, one that claims to be suited for improving the dog's coat, or indulging a pampered pet, or for maintaining the fitness of a working dog, and so on? People look to definitions to tell the meaning of a word, phrase, or term, usually expecting a fair degree of precision. Yet, here is a definition that permits two widely differing meanings for the term, market segmentation: Segments that reflect differences in the kinds of product that people want, or segments that reflect difference in the kinds of brand within a product class that people want. It is unclear whether the author refers to distinctions among product classes (e.g., the differing wants that are addressed by product classes such as toothpaste, mouthwash, dental floss, and toothbrushes), or within a single product class (e.g., the differing toothpaste wants that are addressed by Crest Tartar Control, Pearl Drops, and Sensodyne). A student of marketing will reasonably want not to be left in doubt as to which meaning is correct. A similar problem is present in Text 17's definition. Consider. finally, one more example, where the indeterminate "product" along with reference to demographics leaves the reader in doubt about the meaning of market segmentation. Text 04 defines market segmentation as, "Dividing the total market into several relatively homogeneous groups with similar product interests based on such factors as demographic or psychographic characteristics, geographic location, or perceived product benefits." Again. it is unclear whether what is at issue are the "similar product interests" that distinguish users of products (e.g., toothpaste, mouthwash, dental floss, and toothbrushes) or brands within a product class (e.g., Crest Tartar Control, Pearl Drops, and Sensodyne). Referring to similar product interests as based on "demographic ... characteristics," tilts the interpretation to an interproduct focus, since demographic characteristics relate, if at all, to product use. In contrast however, market segmentation refers to diversity of wants within a product class. The "similar product interests" that are at issue in market segmentation are, then, the similarity that pertains within segments of a market, e.g., toothbrushers who are concerned to deal with tartar (Crest Tartar Control), with dull, stained teeth (Pearl Drops), or with sensitive teeth (Sensodyne). Demographics and other personal descriptors are not expected to differentiate within toothbrusher wants. DISCUSSION Authors' lack of rigor in using the terms "product" and "brand" is not symmetrical. It is rarely if ever the case that an author uses "brand," where "product" has to be the intended term. The problem arises because authors use "product" sometimes in the sense of product class and sometimes where the sense requires "brand" as the correct term. It makes a difference to the systematic import of what is being said, whether it is said of a product class, e.g., toothpaste, regardless of specific brand, or of a brand, i.e., to a concrete realization of the product class. Authors who err in the manner discussed here appear to overlook the fact that "product," in the sense of product class, has no concrete existence. One cannot buy a "product," e.g., dog food, in the abstract. One can buy only individual members of the class, whose formulation has been chosen by whomever has decided to invest in producing an offering for sale. The entities that constitute a product class are brands, i.e., the individual versions of the product that management designs and offers for sale, identified with the brand's name and, usually, the manufacturer's name and address. Even store brands and generics, which are available in retail outlets, are individual, concrete, examples of the product class. Authors appear to forget that the term, product, is a convenient concept to refer to a class to which brands belong. When they need to refer to some entity that is offered in exchange, the correct term is "brand." Space limitations permit me to present only a partial picture of the distinct meanings of product and brand. Consider first the view that may be obtained from Figure 1, which shows the kinds of basic information obtained in the Survey of Media and Markets conducted annually by Simmons, using a sample of roughly 20,000 US adults. Similar questions are asked for at least 1500 product classes, comprising 20,000 brands or more. Note that such information is obtained only from individuals who indicate that they are users of the product, in this case, toothpaste. It is important to bear in mind that incidence of use of products varies considerably in the population. For a sample of 52 products selected from the SMM database for special study (Tables 2, 3), incidence of use ranged from 13% (Scotch whisky) to 96% (toothpaste); the number of brands in each product class ranged from 5 (charcoal for barbecues) to 74 (candy bars and packs, individual, full-size). It is noteworthy that incidence of product use and number of brands per product are independent (r = 0.068; p > 0.05). A final point to note is the range of physical variation in which producers make a product available. As shown in Figure 2, toothpaste users are asked to report their use of at least five types, four forms, and four container types of toothpaste. Similarly, deodorant users are asked about their use of 2 types, 2 kinds, and 5 forms of deodorant; hair conditioner and creme rinse users are asked about 5 types, 9 kinds, and 6 forms of conditioner/creme rinse. Given the complexity and variety that exists within a product class, it is apparent that authors who write about a "product" are making points at a highly general and abstract level. Such comments are well removed from the reality of a user selecting and using a particular brand in the concrete form and circumstances in which brands are used and judged. Brands may and do vary in their formulation and presentation. Moreover, a major part of marketing's job as a management function is guiding the firm's strategic choice among the numerous options for brand formulation and presentation. To do so, real world marketers must clarify options, obtain, and interpret information relevant to management's choice among such options. Focusing marketing writing at the level of classes of item exchanged, rather than brands, excludes considerations relevant to management's strategic decisions concerning its offering. Possibly, the practice is a carry over from the discipline of economics where an ex post view of product classes is often in focus. Much economic analysis concerns what happens to the goods/services that are on offer, classically, whether such supply matches demand, and the consequences of imbalance between supply and demand, whether under or over supply. In contrast, marketers' function is to guide management's product policy ex ante. As management's source of information on the user's world, marketers guide the firm's decision regarding what to offer, i.e., in the case of manufacturing, what to produce or, in the case of retailing, what to buy for resale. Moreover, when the marketing discipline took "exchange" as its disciplinary focus, authors may have regarded "exchange" as a synonym for "trade." In turn, "trade," usually connotes transactions regarding entities, e.g., goods/services, whose form is already established. Such a meaning is but one concept, a static view, of the nature of exchange and trade. It overlooks a dynamic concept of exchange or trade, in which a producer or a seller wants to engage in exchange and, in order to do so, is ready to find out and provide the version of a product that, within law and ethics, will induce a prospective exchange partner to trade (Fennell 1989). Such a dynamic view of exchange became marketing's domain when the marketing concept was articulated. Consider the following early statement of marketing's role in the firm (General Electric 1952). The wording is paraphrased slightly to remove gender-specific language: "It [the marketing concept] introduces the marketer at the beginning rather than at the end of the production cycle and integrates marketing into each phase of the business. Thus, marketing, through its studies and research, will establish for the engineer, the design and manufacturing person, what the customer wants in a given product, what price he/she is willing to pay, and where and when it will be wanted. Marketing will have authority in product planning, production scheduling, and inventory control, as well as sales, distribution, and servicing of the product." For present purposes, the significance of the preceding words is that they make plain that not only is management not wedded to any particular version of an offering, but it is marketing's role to guide management's choice regarding strategic aspects of an offering. An example would be helping to select the attributes for management's brand entry in a particular product market, e.g., attributes that would make management's brand of pressing iron responsive to a particular set of conditions in which (some) users envisage removing wrinkles. CONCLUSION In a discipline whose subject matter has been defined as exchange, it is unclear why marketing authors would write about what is exchanged by referring to an abstraction, namely the class to which what is exchanged belongs, rather than to the actual entities that are exchanged, i.e., brands. Focusing on product class could only be justified if the class members were known to be identical. Various kinds of evidence suggest that some marketing writers consider that brands of a product class are interchangeable. In experimental work, it is not unknown for researchers to summarize findings across brands, i.e., to fail to present data for the individual brands included in the research. Moreover, Gardner and Levy's (1955) words reflect the likely existence of the belief that brands of a product are clones of each other, distinguished only by the name of their producer. In a paper in which they sought to convey the multifaceted nature of brands, particularly focusing on brand image, they found it advisable to state: "[A] brand name is more than the label employed to differentiate among the manufacturers of a product." Yet, more than forty years later, authors fail to clarify whether a product class, or a brand member of a product class, is at issue. Perhaps the view persists in today's marketing thought that brands are but a means to distinguish the producers of otherwise indistinguishable members of a product class. Authors (e.g., Hunt 1991, Teas and Palan 1997) discuss ambiguity in definitions that arises from using natural language. Here, however, greater clarity is possible even while using natural language, if authors bear in mind that the term, product, designates a class whose members cannot be regarded as interchangeable. There is an alternative explanation: Authors are intentionally writing ambiguously because they are unsure how to define "market," or "market segmentation." Is it possible that, given alternative interpretations, such as I discuss here, authors hesitate to choose one or the other? Conceivably, uncertainty pervades the discipline about the meaning of marketing's core terms and concepts, a conclusion that is not without support: Each of three recent reviews (Fennell and Saegert 1998, 2000, Fennell, Saegert, and Hoover 1999) of textbook authors' definitions of market, market segmentation, and target market, respectively, noted wide variation, as well as much ambiguity, in the glossary definitions in Principles of Marketing textbooks. If so, what is the remedy? As one means of choosing among alternative definitions, elsewhere (Fennell, 2000) I discuss following through on the implications of a particular theoretical position. For now, I trust that documenting the existence of rampant ambiguity, as have done here, is a first step toward eventual clarity and rigor. TABLE 1A TEXTBOOK 3 GLOSSARY DEFINITIONS OF "MARKET": INDETERMINATE "PRODUCT" WHO WHY ABLE/WILLING 01 03 05 10 Group of customers who People with (Potential) customers who Consumers and organizations with seek similar product benefits desire want or need a product need ability able, willing ability 11 15 17 19 Group of potential buyers who Group of customers or prospects who Individuals/organizations with All (potential) customers with 20 Group of potential customers need and want a particular product need or want a product needs for product in a product class common need can be satisfied by specific product may want the product offered TO DO WHAT buy specific product exchange something for it make an exchange for product, service, or idea offered buy it willing, able resources, willingness ability, willingness, authority resources, authority willingness, exchange something of value to get it buy such products buy the specific product resources, authority willingness, purchase it TABLE 1B TEXTBOOK3 GLOSSARY DEFINITIONS OF "MARKET SEGMENTATION: INDETERMINATE "PRODUCT" HOW RELEVANT COLLECTIVE 04 Dividing the total market into 13 Dividing a market into 17 Dividing a total market into BASIS/PURPOSE FOR MARKET SEGMENTATION several relatively homogeneous groups with similar product interests based on such factors as demographic or psychographic characteristics, geographic location, or perceived product benefits distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes groups of people or organizations with relatively similar product needs, to enable marketers to design a marketing mix that more precisely matches the needs of consumers in a selected segment. TABLE 2 INCIDENCE OF USE: 52 PRODUCT CLASSES Toothpaste Toilet Paper Paper Towels Toilet Soap, bars Headache & Pain Relievers, nonprescr'n Batteries, Household Garbage Bags & Trash Can Liners Mustard Dishwashing Liquid, not for automatics Jams, Jellies, & Preserves Salad Dressing, prepared Tuna, canned Facial Tissue Scouring Pads & Scouring Sponges Bleach Kitchen Wrap, plastic type Pancake & Table Syrup Pickles Potato Chips Cookies, ready to eat Furniture Polish Vegetables, Frozen Bacon Margarine/Margarine Spread Tea, regular in bags, packages Candy Bars & Packs, individual, fullsize 96 95 93 92 89 88 88 88 86 85 85 84 83 82 81 81 81 81 80 78 76 76 71 71 71 68 Mouthwash/Dental Rinse Cake Mixes, dry Candy, Hard Roll Coffee, ground/whole bean Frosting, store bought Spaghetti & Macaroni, cans, jars Cough Syrup, nonprescr'n Insecticides Orange Juice, Frozen Brownie Mixes, dry Drain Cleaner Snack Cakes, ready to eat Yogurt, not bought frozen TV Dinners, Frozen Complete Cola Drinks, Diet or Sugar Free, carbon'd Toilet Bowl Cleaners, in tank After-Shave Lotion & Cologne Casseroles or Entrees, Frozen Potatoes, Packaged Instant Charcoal, for barbecues Eye Drops & Eye Wash, nonprescr'n Beer, regular domestic Floor Wax or Polish Sparkling Water/Seltzer/Natural Sodas Laxatives, nonprescr'n Scotch Whisky 64 63 61 57 54 54 53 53 50 49 49 48 47 46 45 45 43 38 37 34 34 33 29 27 16 13 TABLE 3 NUMBER OF BRANDS IN PRODUCT CLASS: 52 PRODUCT CLASSES Candy Bars/Packs, individual, full-size Cookies, ready to eat Headache & Pain Relievers, nonprescrn After-Shave Lotion & Cologne Toilet Soap, bars Beer, regular domestic Coffee, ground/whole bean Yogurt, not bought frozen Casseroles or Entrees, Frozen Toothpaste Salad Dressing, prepared Margarine/Margarine Spread Paper Towels Laxatives, nonprescr'n Potato Chips Sparkling Water/Seltzer Natural Sodas Toilet Paper Mouthwash/Dental Rinse TV Dinners, Frozen Complete Facial Tissue Toilet Bowl Cleaners, in tank Candy, Hard Roll Scotch Whisky Vegetables, Frozen Cake Mixes, dry Bleach 74 47 47 46 39 38 38 37 36 32 31 26 26 25 25 25 24 23 23 22 22 21 21 21 19 18 Tea, regular in bags, packages Furniture Polish Garbage Bags & Trash Can Liners Brownie Mixes, dry Pancake & Table Syrup Batteries, Household Dishwashing Liquid, not for automatics Orange Juice, Frozen Scouring Pads & Scouring Sponges Bacon Cough Syr-up, nonprescr'n Insecticides Drain Cleaner Floor Wax or Polish Pickles Snack Cakes, ready to eat Cola Drinks, Diet/Sugar Free, carbon'd Eye Drops & Eye Wash, nonprescr'n Kitchen Wrap, plastic type Spaghetti & Macaroni, cans, jars Frosting, store bought Jams, Jellies, & Preserves Mustard . Potatoes, Packaged Instant Tuna, canned Charcoal, for barbecues 18 17 17 15 15 14 14 14 14 13 13 13 12 12 12 12 11 10 10 10 9 9 9 8 8 5 FIGURE 1 SMM QUESTIONNAIRE: EXAMPLE OF QUESTIONS ASKED REGARDING A PRODUCT CLASS TOOTHPASTE Do you yourself use it? Yes No DK/NA; IF YES, Who decides which brands you use? (Mark as many as apply) Yourself Your Husband/Wife Child(ren) under 18 Other Male 18 or Older Other Female 18 or Older Dentist Types use: Regular With Tartar Control With Whitening With Baking Soda For Sensitive Teeth Other Container use: Flip Cap Tube Regular Tube Stand-Up Tube Pump Times used each day, on average: 4 or more 3 2 1 Less than 1 For each brand you use... Most Also Often Use Aim Anti-Tartar Aim Extra Aqua-fresh Extra Fresh Aqua-fresh Tartar Control Aqua-fresh Regular Close-Up Anti-Plaque Close-Up Tartar Control Close-Up Regular Colgate Tartar Control Colgate Baking Soda Colgate Regular Crest Baking Soda Crest Tartar Control Crest Regular Crest Sensitivity Protection Gleem Mentadent Pearl Drops Pepsodent Plus White Rembrandt Sensodyne Tom's Of Maine Ultra Brite Aqua-fresh Sensitive Arm & Hammer Gel Arm & Hammer Toothpaste Arm & Hammer Tartar Control Forms use: Paste Gel Paste/Gel Combination Powder Viadent Store Brands Other Brands FIGURE 2 SMM QUESTIONNAIRE: EXAMPLES OF SUBGROUPS OF A PRODUCT CLASSa TYPES KINDS FORMS DEODORANT Clear Not clear (white or colored) Scented Unscented Aerosol Spray Liquid Aerosol Spray Powder Cream Gel Pads FACIAL CLEANSER Cream Lotion Gel Scrub Astringent/Toner/Freshener FACIAL MOISTURIZER Cream Lotion Spray With Sunscreen/Sunblock W/o Sunscreen/Sunblock HAIR CONDITIONER & CREME RINSE Creme Rinse Hair Conditioner Intensive Hair Conditioner Combination Rinse/Conditioner Leave In Regular Extra Body for Dry Hair for Color-Treated /Penned Hair for Normal Hair for Oily Hair Deep Conditioning Bottle Jar Packet Mousse Spray Tube HAIR SPRAY Regular Hold Soft Hold Super Hold Maximum Hold Scented Unscented Aerosol Spray Pump Stray HAIR STYLING PRODUCTS CONTAINER Mousse, MGel, Spritz Cream, Tonic Lotion/Liquid SANITARY PADS & NAPKINS Full size pads/napkins Thin full size pads/napkins Ultra thin full size pads/napkins Mini-size pads Panty Shields/Liners Regular Deodorant TOOTHPASTE Regular with Tartar Control with Whitening with Baking Soda for Sensitive Teeth Paste Gel Paste/Get Combination Powder Flip Cap Tube Regular Tube Stand-Up Tube Pump a The labels for the various subgroups of these product classes are as found in Simmons' Survey of Markets and Media. 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Solomon, Michael R., and Elnora Stuart (1997), Marketing Real People, Real Choices, Upper Saddle River, NJ: Prentice Hall. Teas, R Kenneth and Kay M. Palan (1997), "The realms of scientific meaning: Framework for constructing theoretically meaningful nominal definitions of marketing concepts." Journal of Marketing. 61(2): 52-67. Zikmund, William G. and Michael D'Amico (1996), Marketing, 5th Edition, Minneapolis/St. Paul: West Publishing Company. ENDNOTES To clarify as regards the topic of the present paper, the following would be unambiguous at least as to product and brand: "individuals/organizations with needs for some brand in a particular product class..." It would take me too far afield to discuss other aspects of the definition. For example, I have discussed elsewhere (e.g., Fennell and Saegert 1998) that the scope of the term, needs, is too broad to be useful in the context of the conditions that affect value in a good/service, where wants is a term whose scope is more appropriate. For present purposes, I have regard only to the product/brand dimension of a market and, for simplicity, ignore other dimensions, which are discussed elsewhere (e.g., Fennell 1982). I selected the definitions discussed here from a set of twenty Principles of Marketing textbooks used in papers that reviewed glossary definitions of the terms, market, and market segmentation, respectively (Fennell and Saegert 1998, 2000). In column I of Table 1a,b, texts are identified by number only, as I wish to focus on substantive matters rather than authors. Complete details are included in the References.
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