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WHITE PAPER
Differentiation:
Why it's so hard to do it well.
Differentiation is a business when there were millions of ailing long-term benefit for customers, decision made at the highest levels Pintos limping along the roadways. channel partners, stockholders, about the company's positioning and employees develop a clear and values-how the company adds Differentiation also brings out the vision of how they add value. And value to a customer relationship. creative tension between the company they apply that vision consistently There are many ways a company and its marketplace. A company across their enterprise.can make those decisions, and may be internally unified on what many different approaches to doing it is and how it wants to go to That doesn't mean that a company's so. The most successful companies market, but what about the market differentiation can't change over adopt a positioning that offers itself? What do your prospects and time. In fact, companies do sustainable competitive advantage- customers want or expect from you? need to constantly evaluate their a way of adding value that Is your company ready, willing, positioning and make adjustments competitors cannot easily duplicate. and able to provide that product or refinements as appropriate. or service at the price the market But think more in terms of Developing appropriate expects (or, at least, will tolerate)? evolution than revolution.differentiation can be a challenge for business-to-business marketers, and Why is it so important? Quite In the B-to-B world, the process of for good reason. To be successful, simply, differentiation precedes determining differentiation should a company's positioning must hit strategy and needs to be at the heart be firmly grounded in marketplace all the bases: it must have top- of all business decisions, not just reality: everything from product level support and buy-in, but be marketing. Here's why: marketers mix, product selling advantages easily understood and embraced who stake out a positioning that vs. competition, perceptions of throughout the organization, is inappropriate, ill-advised, or channel partners, customers, and not only by sales and marketing unsustainable are wasting their the market at large. It is a classic people, but also by the rank and company's valuable resources. opportunity for basic, fundamental file, who will be charged with the They may argue that those positions branding research to make sure responsibility to bring it to life. were imposed by market forces or you're being realistic in the market, by management fiat or any other finding out what your customers Good differentiation also requires of a number of reasons, but their think vis-à-vis your managers, striking a balance between a companies pay the price. Whether sales folks, rank and file.company's past, present, and it's poor performance, reduced future. Aspirations are wonderful, profits, lost market share, or outright For many b-to-B companies, the but when a company has a huge failure, the price is high indeed. most difficult hurdle is articulating installed base, it may take quite a effective differentiation. It's not while (and cost quite a bit) to change The key for b-to-b companies is to that they don't have it - they the market's perception. find a positioning that is sustainable probably wouldn't be in business A good example: Ford's campaign and difficult for competitors to if they didn't. But many companies several decades ago to position itself duplicate. Experience demonstrates have their differentiation hard-wired with the line, "Quality is Job One," that companies that deliver into their DNA, with all the key decision-makers acting on it reality is that brands are always be easily understood by the workers almost on instinct. Articulating it associated with differentiation on the assembly line. It should is something else. With today's rapid in the minds of the audience. match the customer's experience changes in work force, customer The only question is whether a and offer a reason to act. It should base, and markets, the most effective company's marketing enhances that create a vehicle to launch new companies are efficient at articulating differentiation and is enhanced by it. products, justify solid margins, and their differentiation, for both build shareholder value over time. internal and external aud... [download for more]
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