Differentiation myths
(c) Ehrenberg-Bass Institute University of South Australia

Differentiation myths

In the real world differentiation undoubtedly exists. The idea that brands are identical commodities is fiction; for a start they have different names that can be used by buyers to develop loyalties.

How Brands Grow chapter 8 "Differentiation versus Distinction", Byron Sharp & Jenni Romaniuk.

For those interested in the academic literature on differentiation, below is a link to a review article written with the inestimable Professor John Dawes . In turn it has been cited in almost 300 other academic articles.

It covers almost one hundred years of academic literature and...along the way refutes a number of widely held beliefs:

  • differentiation is synonymous with product feature differences (page 744)
  • the reward of successful differentiation must be a price premium (pages 743 and 745)
  • differentiation is a function of advertising to sales ratios (page 745)
  • differentiation always results in higher costs (page 749)

https://www.tandfonline.com/doi/pdf/10.1362/026725701323366809

Don Sajith

Head of Digital (Strategy, Marketing, Loyalty, Delivery, CRM & Transformation)

1 年

"There is no such thing as a commodity. All goods and services are differentiable." - Theodore Leviit

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Diana Caplinska ?????

Fractional CMO for Early-Stage SaaS. ???? I use creativity to cut CAC and help you beat the big guys. || Growth, Positioning, Demand Gen, Brand, ABM…and other keywords. ??

1 年

I see the owl. I drop everything and click on the owl. Thanks Byron Sharp ??

Great summary of good old marketing beliefs I grew up with: Differentiation = distinctiveness. Can be product driven, but doesn't have to. Can cost more, but doesn't always need to. Can support a price premium - only if it's of the premium kind. Is essential for a brand's strength, so best to define it and pursue it with clear positioning, a fresh-consistency creative platform supported by distinctive design and brand world.

Ankit Soni

Marketing, Paid Media & E-Commerce | FMCG, Automobile, Media & Internet | Lifelong Learner & student of Marketing, Brands & Human Behaviour

1 年
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