Point of Difference

Point of difference: a unique promise that differentiates a company’s product or service from its competitors.

The new marketing challenge

The rapid growth of new media, and digital media in particular, resulting in an abundance of messages created everyday means that standing out within your chosen media channel has become the new marketing challenge. On overcoming the media saturation by selecting the correct message to convey, a company will stand out from its competitors, hence being able to deliver its unique promise clearly and concisely.

This point of difference should be built around niche market needs. Niche needs provide the perfect opportunity for a company to satisfy a customer’s needs, wants and requirements that are not being addressed by other competitors.

Discovering niche needs

Companies need to understand their customers in order to be able to satisfy their niche needs. Research of current and potential customers provides important feedback, and therefore the chance to uncover potential niche needs and create a point of difference.

Testing the point of difference

To see whether or not a company’s point of difference is viable, it must satisfy five crucial tests:

Clarity: Is the point of difference focused on a specific need that customers require?

Uniqueness: Is the point of difference significantly different from the competitors’ promises?

Perceived value: Do customers care about the point of difference offered?

Profitability: Do customers care enough to pay a premium for the product or service based on the point of difference?

Capacity: Can the point of difference promise be kept by the company?

Leveraging the point of difference

Once the point of difference has satisfied the above criteria, it is important to audit all aspects of the company to ensure that each aspect of the company, be it delivery or marketing, gives weight to the chosen point of difference. e.g.

Delivery resources:

• Choice of suppliers
• Choice of distribution channels
• Inventory management and quality control
• Service

Marketing resources:

• Choice of brand identifiers
• Choice of marketing materials
• Design of materials
• Use of promotions

Conclusion

A company’s point of difference can be almost anything it chooses as long as it passes the five crucial tests of clarity, uniqueness, perceived value, profitability and capacity to distinguish a company’s product or service from its competitors.

*The Design Works attended a workshop on this subject, hosted by Greig Whitton from Wolftime Community. Thanks to Greig of Wolftime Community for the informative workshop experience. For further details or to get in touch visit www.wolftime.co.za