The wasted dollars of product naming
Product naming – Stop the craziness
Product naming is important. But brands should hold every part of their businesses to a high standard of eliminating wasteful spending. For example, few industries are worse at spending money on foolish efforts than medical devices. Pick up any corporate brochure from a medical device manufacturer and here’s what you’ll see: Mountains and mountains of individual product brand names.
For some reason, companies love giving every single product they manufacture its own unique brand name. That’s not product naming for any meaningful purpose. That’s spending wasteful amounts of time and money on something that only causes confusion.
This is big business
The medical device industry is a $150 billion industry in the US alone. Few industries would tolerate the sheer amount of money wasted in product naming. In fact, the value of a company lies not in its individual products, but in the company brand and its equities. When consumers buy products, they are purchasing the brand.
But medical device manufacturers are going insane over spending countless dollars that actually hurt the value of the company. No matter if it is a stent, wire or an ICD, it will have some clever brand name that means little to anyone but the company’s own marketers. Doing so does nothing to help define the parent brand or the brands of other products.
Instead, the medical device parent brands are crowded into the same space. They all claim to be forward thinking, innovative and reliable. Yet millions of dollars and countless resources are spent marketing the individual products like they are their own entities. Even when they are using the same language.
That reduces the corporate brand into an afterthought.
Cleverness is the enemy
The overabundance of cleverness is certainly not unique to the medical device industry. Marketing executives, in general, are convinced that a name or theme will be remembered if it’s clever enough.
The opposite is exactly true, which means the money to market them is ill spent. If the name or theme is clever, then it is not believable because it feels like an advertising firm wrote it. It will sound like marketing.
Let’s use an example from the medical device industry. St. Jude Medical, through its acquisition of Thoratec, sells a left ventricular assist device called HeartMate. Its meaning is clear. It assists the heart.
But it still sounds like marketing and made up. It suggests no emotional meaning. Considering the sheer litany of products with made-up names like HeartMate, it won’t be remembered because no one says “Nurse, give me the HeartMate.”
Think about this. These names do nothing to create preference or add to any financial or emotional investment in the company. Just because a device has a clever name does not mean that hospital administrators and doctors will prefer that product. So why do it?
Product naming as an inhibitor to switching
Stealing market share means you must convince your target audience that what you offer is something you do not already have. That’s the definition of a switching trigger.
Switching is often seen as difficult because it means adjusting to something new. It’s a change even if it is a minor one. That means you must reduce the hurdles to switching if you want to attract the customers of your competition.
With so many branded products that have no relation to each other, but operate individually from other products, doctors and hospital administrators are reluctant to switch to them.
The same holds true for any manufacturer, medical devices or not. A litany of unique product names creates a hurdle to adoption because audiences are asked to learn something new. That is especially difficult when you consider the entire scope of products.
It is easier for audiences to switch if they know they are buying the company brand name instead of the product. It is just simpler.
Product naming. What to do?
The answer to that question should be obvious. Don’t overdo product naming when it comes to individual products. We live in a world in which simplicity and control rule, meaning it’s the customer who is in charge.
A list of its endoscopic suturing accessories lists these products:
- Endo Stitch Single-Stitch
- Endo Stitch Tripe-Stitch
- V-Loc Wound Closure
- Surgitie Ligating Loop
- Surgiwip Suture Ligature
- Endo Slide Single Use Knot Pusher
It would be better if the names were:
- Medtronic Single-Stitch
- Medtronic Tripe-Stitch
- Medtronic Wound Closure
- Medtronic Ligating Loop
- Medtronic Suture Ligature
- Medtronic Single Use Knot Pusher
Now the company is actually investing in the parent brand and not just talking about it. And the sheer amount of wasteful spending has been reduced while market share increases. You’ve asked customers to choose the parent brand. That’s all any brand manager could want. (Read about St Jude Medical here).