Thursday, April 19, 2012

Differentiate or Die


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

At the moment we’re all working hard on our big event coming up soon. This is the Resolving Workplace Disputes Conference,

No comments:

Post a Comment