The next several posts will focus on the components of Brand Distinction and their relationship to Brand Destiny.
Brand Distinction helps define what distinguishes a brand from the competition, why it should matter to the company and customers, and how this distinction will help the company grow successfully over time. Developing a clear brand distinction can be a key competitive advantage since well-known brands with a positive reputation are associated with quality, convey relevance to the market’s needs, have a memorable image, often surprise us with new solutions, and even have a deeper meaning beyond the surface attributes of name and product. A distinctive brand stands out from its competitors, offering highly differentiated qualities that inspire sustained customer loyalty, become de facto industry best practices, positively affect financial growth, and ultimately improve long-term brand value. Furthermore, competition gives customers added choice, so marketers must demonstrate why the brand is sui generis. And customers must be able to recognize the brand’s uniqueness, otherwise the professed differentiation does not exist, at least not in way that will benefit the brand. And, as mentioned above, this distinction must be relevant to customers if they are be attracted to the offering, let alone be persuaded to purchase. This relevant differentiation must also resonate with customers, inviting an emotional connection beyond satisfying basic needs (Indeed, the term ‘satisfaction’ is too clinical and boring. The top brands studied for my book Competitive Success-How Branding Adds Value rarely discussed or used the term ‘satisfaction’. Instead, they focused on qualitative appeals, such as delighting and thrilling customers....).
Changing business markets are also a contributor to the need for distinction. Globalization has introduced more competitors faster than ever before. The pressure is on brands to innovate if they are to stay ahead. But the reality is that such innovation does not conform to the classic ‘S’-shaped life-curve in which a company seamlessly transitions from one innovation to the next as their markets mature, so brands often find themselves surrounded by mimics (competitors with virtually identical offerings), creating a commodity market, at least for a temporary period of time. In effect, brands shift from a specialty position at launch toward a commodity position as they grow, blurring the differentiated advantages that once clearly stood out. Therefore, brands must find ways to return to a specialty position. Apple has done just this, and exceptionally well, ever since Steve Jobs returned in 1997. By drastically revamping its product lines, refocusing on iconic design and ‘drop dead’ simplicity, and then emphasizing customer-centered innovations, Apple moved from a commodity position (actually, more accurately, it moved from near death position) to a specialty position, thereby rejuvenating the company, inspiring customers, stimulating competitors (think Android, RIM...), and rekindling market confidence by delivering superb results ever since.
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