By Lachezar Ivanov

 

The Differentiation Versus Distinctiveness Debate

What will contribute more to the growth of your brand – whether consumers perceive the brand as very different from competitor brands in the category or simply whether consumers are able to correctly identify the source of the product or service? The clash between these two perspectives represents one of the most heated and persistent debates in marketing.

Proponents of the differentiation approach, like Kotler, Aaker, and Reeves, argue that positioning your brand as highly differentiated should be at the heart of your marketing efforts. Author Jack Trout amplifies this line of reasoning and claims that differentiation is the key to the survival of brands in his Differentiate or Die book.

Advocates of the distinctiveness approach, like Sharp and Romaniuk (How Brands Grow), question the validity of the differentiation gospel that has dominated marketing thinking for years and put it to empirical scrutiny. The data that Sharp and Romaniuk present (also replicated by research agency Kantar Millward Brown) illustrate that, across different categories, the degree of differentiation between brands is rather weak. Hence, marketers should worry a little less about differentiation and instead focus on the distinctive assets that do not necessarily motivate consumers to buy the brand but rather help in identifying the brand and increasing brand salience.

Differentiation versus distinctiveness, like some debates in marketing, is a false dichotomy. While distinctiveness is more important for your brand, you can also use differentiation to your advantage. Understanding your brand positioning relative to competitors is a valuable strategic tool that can help your brand consistency in your tactical efforts (e.g., ensuring that your marketing communications sound like you).

The Brain, Relative Differentiation, and Values

Understanding how the human brain works can help explain the behavioral science behind relative differentiation. The human brain is like a sailor (I’m borrowing this metaphor from Johnson and Ghuman’s Blindsight) that looks for good places to anchor. Comparing different places and assessing their goodness happen automatically and sometimes behind the curtain of consciousness.

Our brains are comparison and evaluation machines. Many information processing models (see Fishbein and Ajzen) support this view. Humans approach what they consider good and avoid what does not qualify as good.

Values are properties of objects that make objects good. Values also have an opposite (or converse) mode (e.g., traditional versus modern). However, this does not mean that it is a wise idea to measure values with semantic differential scales, but more on measurement later. Objects (and brands) can have multiple values – values can coexist. For example, a brand can be at the same time economical, popular, and convenient.

Here it is important to note that no brand owns completely a value-based attribute. No values are unique to only one brand (sorry, USPs). For example, the Aldi supermarket brand does not own the economical attribute, but it can be perceived as more economical when compared to competitors. Hence, there is room for this gentler approach to brand positioning that is relative differentiation.

How to Build and Measure Your Positioning

While consumers can associate many different values with your brand, it is beneficial for you to focus on and build up to three values. New brands in a category can reflect on how they want their brand to be perceived and pick and rank their three most desired values. Do not forget, though, that this is your intended strategic positioning, and what values consumers will ascribe to your brand may differ from the values you intended to imbue.

For both newer and established brands, measuring your positioning is an imperative. You can conduct this perceptual measurement in two steps. First, you survey the consumers with a list of category-relevant values and ask them to select the values (up to three) they associate with your brand. Second, you measure the strength of association between each value and your brand and compare this number with competitor brands in the category.

Armed with the knowledge of how your brand stacks up against competitors on different values, you can emphasize the values where the differences are most pronounced in your marketing communications (e.g., when briefing an agency). In this way, you can cement your brand positioning. You should remember that your positioning is a part of your long-term strategy and needs to be the same for all segments – targeted short-term activation campaigns should not contradict your positioning. Different segments should not perceive your brand positioning differently.

How Brands Use Relative Differentiation to Position Themselves

Here are three examples of campaigns that seem to have a clear intended positioning. I say intended positioning because we do not have the data that can show whether these campaigns have resulted in measurable perceived differences between these brands and their competitors.

Peugeot HDi Is Economical

Starting with a great and memorable creative, the Marathon Runner campaign for Peugeot aims to position the diesel engines of the brand as economical. The campaign pursues its aim with a powerful metaphor of a runner that only needs a drop of water to complete the 42 km distance.

Apple Means Privacy

In 2015, in an interview for NPR, Apple CEO Tim Cook declared that “Privacy Is a Fundamental Human Right”. This statement by Cook likely intended to deepen the chasm between Apple and Android privacy perceptions. Arguably, it achieved this goal successfully. Now, do Apple products grant a Nokia 3310 level of privacy? Probably not. But this does not stop the Apple brand to be perceived as offering more privacy than its competitors.

Cravendale Milk is Pure

Wrapping up with another decent creative, Cravendale Milk states that their brand uses a filtering technology, which makes their milk purer. The Cravendale pure milk is so good that The Cows Want It Back.

Conclusion

In a nutshell, the debate between differentiation and distinctiveness in brand positioning is a false dichotomy. While distinctiveness is more important for a brand, differentiation can also be used to your advantage. Understanding the behavioral science behind relative differentiation can help you build and measure your brand positioning. By focusing on and emphasizing the values where the differences are most pronounced compared to competitors, you can cement your brand positioning in the minds of consumers.

Lachezar Ivanov
Lachezar Ivanov is a marketing consultant working on strategy, communications, and pricing. He earned a PhD in Marketing from the European University Viadrina, Germany. Lachezar also publishes the Evolutionary Inc newsletter, in which he discusses marketing and behavioral biology frameworks that you can apply in your work and life.