Nowadays, most especially in the Business
world we must realize that when we want to establish something new, we must
create a difference in the minds of consumers. We, in Legal-Island have learned
some new ideas from a book to make that possible. It's called
"Differentiate or Die" by Jack Trout. Here are some of his ideas:
The most successful brands in history are differentiated by
being linked to very basic, very essential attributes – like “safety”,
“refreshment” or “performance”.
Those that
do best are those which stand for something unique. Differentiation is the
process of identifying, amplifying and communicating what makes you different.
Rosser
Reeves definition of U.S.P:
a. An
advertisement had to be built around just one specific and central proposition
– buy this product and get this benefit
b. The
proposition must be unique – something all competitors cannot match
c. The
proposition must be compelling – so new customers will come over to your
product
4 ways
people make decisions. To make decisions, consumers:
1. Use
intuition to avoid details and focus on the big picture
2. Approach
it analytically and logically
3. Respond
to the expressed feelings of others
4. Put
things into context and respond to market forces
The most
commonly used differentiation strategies are:
1. Personify
2. Identify
3. Create
a new category
4. Change
the product’s name
5. Reposition
the category
There are
several factors which can inhibit the success of differentiation:
1. The
pursuit of growth
2. A
failure to sacrifice other opportunities
3. An
attempt at convergence
4. An
attempt at globalisation
The
Mechanics of Differentiation
The
process of differentiating successfully is simple and logical. It requires four
essential steps for success:
Step 1:
Make Sense
Step 2:
Focus on one idea
Step 3:
Have the credentials
Step 4:
Communicate your difference
In
practice, people only notice what they are interested in.
Differentiation
is all about positioning your product in the mind of the prospect. To do that,
you deliver:
1. A
simple message – built around a single, consistent idea, the point of difference
between you and everyone else.
2. A
logical message
3. A
reassuring message
4. A
consistent message over time
5. A
focused message – built around one product, one point of differentiation and
one message
To keep
differentiation on track:
1. Stay
contrary and go against what everyone else is doing. By ignoring conventional
wisdom and doing what’s best for the consumer, your point of differentiation
will shine like a beacon
2. Keep
looking for ways to redefine your business and the way it’s done which are
consistent with the way you’re differentiated
The best
CEO’s put together a good strategy built around a key point of differentiation
and then assemble the people, the resources and the internal machinery needed
to commercially exploit that idea to the best possible effect.
The 14
Differentiation Ideas
1. “Price” is rarely a differentiating idea
2. “Quality”
is rarely a differentiating idea
3. “Customer
Orientation” is rarely a differentiating idea
4. “Creativity” is never a differentiating idea
5. “Breadth
of Product Line” is rarely a differentiating idea
6. “Being
first” is a good differentiating idea
7. “Attribute
Ownership” is a good differentiating idea
8. “Leadership”
is a good differentiating idea
9. “Heritage”
is a good differentiating idea
10. “Market
Specialist” is a good differentiating idea
11. “Most
Popular Choice Among Consumers” is a good differentiating idea
12. “How
the Product is Made” is a good differentiating idea
13. “Being
the Latest” is a good differentiating idea
14. “Hotness”
is a good differentiating idea