The Power of Naming - How Words Shape Reality

Today At a Glance

• The Netflix vs. Blockbuster naming lesson — How "streaming" won before the tech did
• Historical naming game-changers — Churchill's "Iron Curtain" to Trump's nicknames
• Three psychological frameworks — Why certain names rewire our brains
• Real-world naming wins — Airbnb, Tesla, and Zoom's strategic word choices
• Core insight: Naming isn't semantics—it's strategy

When Netflix launched in 1997, Blockbuster dismissed it as a "niche market." But when Netflix announced "streaming," everything changed.

Not because the technology was new, online video had existed for years. But because "streaming" painted effortless flow, content rushing toward you like water. Blockbuster clung to clunky terms like "digital downloads"— phrases that felt like work.

Then Netflix landed the knockout punch: it rebranded traditional TV as “appointment television.” Suddenly, competitors weren’t offering convenient entertainment—they were forcing viewers to schedule it.

Netflix didn't just build better technology. They named it better. And that name shaped how millions of people thought about watching movies at home.

This is the power of strategic naming in action. History is littered with moments where naming changed everything:

When Winston Churchill coined "The Iron Curtain" in 1946, he didn't just describe Soviet policy—he created a visual metaphor so powerful it defined the Cold War for decades. The image of a heavy, impenetrable barrier falling across Europe made abstract geopolitics become vividly real.

When Steve Jobs called Microsoft's strategy "embrace, extend, and extinguish," he didn't just criticize a competitor—he branded them as predators. Three words that turned complex business practices into a sinister playbook everyone could understand.

When Trump labeled his opponents with nicknames like "Low Energy Jeb," he didn't just attack his policies—he rewired how people saw him. The name became a lens that filtered every subsequent interaction.

Naming isn't simply semantics. It's strategy.

The right name doesn't just describe something—it shapes how people think about it, feel about it, and act on it. It can reduce resistance, spark emotional connection, and turn vague ambitions into focused missions.

Think about it: Would "used cars" sell as well as "pre-owned vehicles"? Would anyone have lined up for "sugar water with caffeine" the way they do for "energy drinks"?

Every entrepreneur, executive, and creator faces moments where naming matters: launching a product, positioning a service, framing an internal initiative, or even describing a challenge to your team. In these moments, the name you choose becomes the lens through which everyone else sees your idea.

And that lens? It can be the difference between momentum and stagnation.

Why Names Rewire Our Brains

To understand why naming is so powerful, you need to understand how it works on a psychological level. Here are three mental models that reveal the hidden mechanics:

1. Labeling Theory: Categories Shape Expectations

The Framework: Once something gets a label, our brains automatically assign it to a category—and categories come pre-loaded with expectations, emotions, and associations.

How It Works: When you hear "disruption," your brain doesn't think about gradual change. It thinks about speed, urgency, and opportunity. When you hear "optimization," your brain thinks about efficiency and incremental improvement. Same business strategy, completely different mental categories.

Real-World Application:

• Airbnb didn't call themselves a "room rental platform"—they called it "belonging anywhere." The category shifted from transactional lodging to emotional connection.
• Uber didn't launch "taxi software"—they launched "ride-sharing." The category shifted from regulated transportation to peer-to-peer convenience.
• Amazon didn't build "online retail"—they built "everything store." The category shifted from limited selection to infinite possibility.

The Strategic Insight: The label determines the category. The category determines the conversation.

2. Fluency Principle: Easy to Say, Easy to Think

The Framework: Our brains are wired to prefer things that feel familiar and easy to process. Names that flow smoothly feel more trustworthy, memorable, and valuable than names that require mental effort.

How It Works: When something is easy to pronounce, think about, or remember, our brains interpret that ease as evidence of quality and importance. It's why "iPhone" stuck while "Personal Digital Assistant" didn't. It's why "Google" became a verb while "information retrieval system" didn't.

Real-World Application:

• Dropbox didn't create "cloud-based file synchronization services"—they created "your stuff, anywhere." One phrase needs IT support; the other needs zero explanation.
• Slack didn't call it "workplace communication software"—they called it "where work happens." The fluency difference is massive.
• Salesforce didn't sell "customer relationship management systems"—they sold "customer success." The name flows; the concept follows.

The Strategic Insight: If your audience has to work to understand your name, they'll work less hard to remember it.

3. Framing Theory: The Name Sets the Game

The Framework: How you name something determines which aspects people focus on and which they ignore. The frame creates the picture.

How It Works: Call it a "cost" and people will resist it. Call it an "investment" and people will evaluate the return. Call it a "problem" and people will avoid it. Call it a "challenge" and people will want to solve it.

Real-World Application:

• Southwest Airlines didn't compete on "low-cost flights"—they competed on "freedom to fly." The frame shifted from price-focused to possibility-focused.
• Patagonia doesn't sell "outdoor gear"—they sell "tools for the planet." The frame shifted from equipment to mission.
• Zoom didn't grow during the pandemic as "video conferencing software"—they became the platform that "brought people together." The frame shifted from technology to human connection.

The Strategic Insight: The frame you choose determines which game you're playing—and which game your audience thinks they're playing too.

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The Name Game in Action

Here's how these principles play out in the real world:

Product Launches: Apple didn't release "tablet computers"—they released the "iPad." The name suggested something intimate and personal (like a notepad) rather than technical and complex (like a computer).

Internal Initiatives: Smart companies don't launch "cost reduction programs"—they launch "efficiency sprints" or "optimization challenges." Same goal, but one feels like punishment while the other feels like opportunity.

Competitive Positioning: Tesla didn't just compete with "gas cars"—they positioned themselves against "gas dependency." The name highlighted the vulnerability (volatile prices, environmental impact) they were solving.

Deal-Making: Tech companies don't negotiate "user data collection"—they negotiate "personalized experiences." Same information gathering, different frame, completely different privacy conversation.

There’s a pattern here: The best strategic minds don't just build better products or services. They name them in ways that shape how others think, feel, and act.

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Give It a Try

Before you launch, position, or present anything, ask yourself:

• What category does my current name put this in? Is that the category where I want to compete?
• How much mental work does my name require? Can someone hear it once and immediately understand the value?
• What frame does my name create? Does it highlight the aspects I want people to focus on?
• What emotions does my name trigger? Do those emotions align with the action I want people to take?

The bottom line: Words shape thoughts, and names—well-chosen—can shape reality.

Every time you name something, you're not just describing it. You're programming how people will think about it, remember it, and act on it.

In a world where attention is the scarcest resource and perception drives decision-making, naming might be the most underutilized strategic advantage you have.

Until next week