Wednesday, September 3, 2014
Some people believe that differentiation is not important to brand success. Others seem to have given up on the fight to differentiate their brand. That might be OK if all you need to do is sell more stuff, but if you want to grow profits, you had better continue to worry about differentiation.
An article in MIT Sloan Management Review: Summer 2012 Research Feature titled, “Is It Time to Rethink Your Pricing Strategy?” states:
We find that many managers in (competitive) industries mistakenly assume themselves to be in a “commodity” business. They then neglect the possibility for differentiation and customer value creation and resign themselves to competing solely on price.
The authors of the article, Andreas Hinterhuber and Stephan Liozu, suggest that seeing your product as a commodity tends to be a self-fulfilling prophecy. They propose that through deeper research into customer needs, almost any product or service can be differentiated.