A discussion on the difference between a brand and a commodity is going on at one of my groups on LinkedIn. This discussion was initiated by Marco Monfils from Hungary. More than 150 comments have been made so far, indicating that marketing and sales professionals like this topic. It is interesting that respondents presented their own definition and description of brand and commodity, no author was quoted and the comments varied greatly. I noticed two significant trends as follows:
a) Though there are more than 150 different comments, these could be grouped into eight major categories. That is, most of the respondents differentiated between a brand and a commodity either via value-addition perspective, loyalty and relationship, functional & emotional attributes, brand personality & experience, perceived value & expectations, needs & wants, unique identity or price.
b) The respondents come from a diverse professional background including Business & Financial Consultancy, Sales & Business Development, Account Management, Marketing, Business & Franchise Owners, and Real Estate. Most of the respondents are from other than marketing profession. Being in the CPG marketing, I considered branding a purview of marketing because marketers are responsible for creating pull for brands. This differentiation is getting blurred and marketing is a cross-functional discipline now, especially in B2B interactions.
I took the liberty of picking the comments that I liked and present these to you here with the name of the group member.
A brand is a product that is elevated above commodity level because of its added value in the mind of a shopper or consumer. By Lynn Wentzel
Commodity resonates with consumer at the functional level; brand goes beyond, resonating at the emotional level. By Keith Kelley
A Brand is that Commodity with a personality! By Thomas Bullock
A commodity is a product, a THING, tangible. A brand is a[n] idea, a thought, a feeling and is intangible……. As Herb Lubalin said, “Products are made in the factory. Brands are made in the mind.” By Bob Bischoff
…… THAT THE BRAND PROMISES AND DELIVERS By Valerie Skala Walker
A brand provides an ‘experience’, a commodity does not. By Chad Symens
A brand improves the life of its loyal consumer because it constantly brings a new and better feature or experience – it innovates. By Dana Mosora
Brand is what people identify with. A commodity is traded, bought or sold. By Craig Castle
And my two-cent worth is as follows:
Brands create and satisfy consumers’ wants, commodities meet consumers’ needs.
Taking a leaf out of Dan Heath’s book, Brands live in the penthouse of Maslow Hierarchy of Needs; commodities live in its basement.
Which of the above brand and commodity description you like or how would you differentiate between the two? Please comment here and let us know.
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