Why the word solution replaced the word product
A product has edges, a price and a comparison set. A solution has none of those, because the noun describes an outcome the buyer wants rather than a thing being sold.
Filed by The Archivist 2 min read
Intuition test — answer before you read on
What does relabelling a product as a solution accomplish commercially?
Correct answer: B
Option A is a marginal effect and does not survive procurement scrutiny. Option C is not generally true. Arguments for defining a business by customer need and for locating value in use are well established, and their side effect is that outcomes have negotiable boundaries while artefacts have specifications.
A firm that sold door locks now sells access solutions. The catalogue is the same catalogue. What changed is the category the buyer is invited to shop in, and the new category contains no competing item that could be laid beside it and checked line by line.
What everyone sees
The vocabulary is mocked as jargon, empty inflation of plain words. Empty is the wrong charge. The substitution does specific work: it moves the object of sale from a defined artefact to an undefined outcome, and outcomes cannot be compared on a specification sheet because no two vendors define the outcome identically.
What is actually happening
Levitt argued that firms defining themselves by their product rather than by the customer need it serves become vulnerable when the means of meeting that need changes, which gave commercial language a permanent incentive to describe needs instead of artefacts. Vargo and Lusch formalised the shift as service-dominant logic, in which value is created in use rather than embedded in an item at the point of manufacture. Both arguments are serious, and both hand the seller a side benefit that is rarely stated. Once the unit of sale is an outcome, the boundary of what is included becomes negotiable, comparison across vendors requires reconstructing what each one means, and the buyer’s ability to shop on price is degraded before any discussion of price begins.
Why it stays hidden
The move hides because it is defended on genuine grounds. Everything said in favour of outcome language is partly true, which makes the pricing consequence look like a side effect rather than a benefit. And a buyer who insists on discussing products instead of solutions sounds unsophisticated, so the vocabulary defends itself socially as well as commercially.
A product can be compared. An outcome has to be defined first, and whoever defines it controls what the comparison includes.
A product can be compared. An outcome has to be defined first, and whoever defines it controls what the comparison includes.
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A product can be compared. An outcome has to be defined first, and whoever defines it controls what the comparison includes.
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Sources & further reading 2
- Levitt — marketing myopia
- Vargo & Lusch — evolving to a new dominant logic for marketing
Cross-references
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