Why Brand Differentiation Is So Important

Though I'm like many TV viewers who DVR programs and speed through commercials when I watch my shows, I admit that I still watch a few commercials when the mood strikes me. One of the most recent that I remember touted a fabric softener whose main point of differentiation was smell.

I couldn't help but think what a blast from the past that was. Fifty years ago, it was common for packaged goods brands to differentiate themselves through product performance - whiter, cleaner, softer, "lemon-fresh".

In today's global market, when competing brands perform at parity levels and most product improvements can be matched by competitors, true brand differentiation is critical. After all, the definition of a brand is "a claim of distinction."

To become differentiated, a company or organization must identify its unique and deliverable claims of distinction. It's that simple, and yet it's everything. Your claim of distinction is what separates your brand from your competitors - what makes it stand out as extraordinary. . .what makes it really different.

Every business or organization can differentiate itself in some way that's signifcant to the marketplace. No matter what your size or industry, there's something significant to prospects and customers that your competitors don't offer.

When your brand isn't truly differentiated, it's susceptible to price competition and low margins. In other words, it becomes a commodity.

If the only thing that differentiates your product is smell, you might want to rethink your brand.