BPRW Marketing Strategy DIFFERENTIATION....... "Differentiate... Or Die" Whoever first said this – it has never been more true. Differentiation is not just a marketing buzz word that businesses can afford to pay lip service to. The degree to which you can successfully differentiate your business not only determines the attractiveness of your products and services to potential customers, it also influences the price they are willing to pay for them. Differentiation, therefore, is critical to the growth in your business’ sales, profitability and value.   In the following sections we will dispel some of the more common misconceptions surrounding differentiation as well as provide some practical tips for any business who wants to develop an effective differentiation strategy.   Differentiation Is Not Just About Being Different It is not enough just to be different from your competitors. The difference you offer must be perceived as being of real value in the eyes of your existing and potential customers to have any lasting value for your business. For example, painting your premises a bright purple colour may well attract some attention but this difference adds no extra value for your customers – and therefore will not provide your business with a sustainable competitive advantage. (It is also easily copied).   Differentiation Is Not Just A Marketing Gimmick Be careful not to fall into the trap of developing a clever advertising campaign based on differentiation and thinking that is the end of the job. Your chosen differentiation strategy is a business strategy not just a marketing slogan. For you to achieve more than a temporary benefit, this strategy needs to be implemented throughout the organisation – so it lives and breathes your point of differentiation. Customers will see through any attempt to fool them – they will expect your entire organisation to reflect your claim.   You Can Differentiate Any Business No matter how crowded your industry is or how powerful your competitors are, you can always differentiate yourself. It may not necessarily be easy but you can to do it. For example, who had heard of Domino’s Pizzas before it developed it’s powerful Unique Selling Point (USP) of guaranteed delivery of “piping hot” pizzas? In fact, the more competitive the industry the more benefit you will get by developing and implementing an effective differentiation strategy.   Tips For Identifying Your Unique Selling Proposition As a guide, you can often identify your best point of difference – your USP – by answering the following questions from your customers’ perspective: 1. Why Do Prospective Customers Buy From You? 2. Why Do Customers Continue To Buy From You? 3. Why Do Some Customers Stop Buying From You? 4. What Are The Biggest Risks A Prospective Customer Takes In Switching To A Different Supplier? 5. What Benefits Do You Provide That Your Competitors Do Not? 6. What Benefits Do You Both Provide That Your Competitors Do Not Capitalise On? Remember that for your USP to be effective it must focus on benefits (not features), be credible, be relevant to your target market and be clearly communicated.   At BPRW Marketing we understand the real impact that clearly differentiating your business has on the effectiveness of your marketing activity and the profitability of your business as a whole. So just call us on 1300 736 150 or Contact us online. if you need any assistance with the development or implementation of any aspect of your business growth strategy.