Consumer Confusion in Branding and Product Naming

Jul 12, 2024

Consumer Confusion in Branding and Product Naming

Introduction

  • Companies projected to spend $4.7 trillion by 2025 on marketing
  • Marketing includes more than just ads; significant focus on branding

Branding Examples and Strategies

  • Example of AMD and their slogan "Rise"
    • The name signifies a comeback
    • Millions spent on tone, slogans, logos, and sounds
    • Goal: Convince consumers to buy

Confusing Nature of Product Naming

  • Product names often not meant to educate but to appeal to gut feelings
  • Examples of Confusing Branding:
    • Apple's Ultra Pro Max
    • AMD's Ryzen naming scheme
    • Purpose: Make consumers think bigger numbers mean better products

AMD’s Confusing Product Naming

  • AMD's mobile product naming scheme incomprehensible
    • Requires its own Wikipedia section
    • Desktop naming: Four primary numbers with different meanings
      • Architecture number: Indicates core technology, now indicates the year
      • Market segment number: Redundant
      • Differentiated number: Zero or five
      • Letter at the end: Indicates power target or if unlocked
  • Example: Ryzen 7000 series processor confusion
    • Market created for 8000 and 9000 series without new architecture

Impact on Consumers

  • Potential for consumers to be misled into buying older tech
    • Example: Choosing Ryzen 7735U over 7640U may result in older, less powerful processor

Intel’s Naming Scheme Issues

  • Intel also part of the confusing naming problem
    • Inconsistent suffixes (HX, HK, H, P)
    • G for integrated graphics, F for no integrated graphics
    • Pentium branding inconsistencies
    • New “Ultra” suffix for AI capable chips

Simplified Naming Systems

  • Apple's M series processors as an example of cleaner naming
    • New number each year and Pro, Max, Ultra suffixes
    • However, even Apple has confusing elements: Example, two MacBook Pros in 2023 with different specs

Consumer Actions and Manufacturer Responsibilities

  • Consumers can educate themselves before purchases
  • Recommendation for manufacturers:
    • Avoid deceptive practices
    • Align branding with product quality to build customer trust

Conclusion

  • Consumer behavior unlikely to change
  • Manufacturers should aim for transparency in naming and branding * shift focus from short-term profits to long-term brand loyalty

Sponsor Segments

  • G.Skill, highlighting luxury features in their RAM products
  • Squarespace, promoting ease of use for building websites