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.

10 Clues That It May Be Time To Re-Energize Your Brand

As the year draws to a close and the economy continues to pick up in fits and starts, there's been a lot of marketing industry press about the need to re-energize brands that have suffered during the recession. There's also been a lot of discussion about how to get started - since there's so much to do, and as always, resources are limited.

So here are some clues that signal it may be time to brush up your brand. Many are related, so don't be surprised if more than one applies to your business or organization.

1. Have you lost your position in the marketplace?
2. Are you experiencing diminishing returns on your marketing investments?
3. Are you unhappy with your name?
4. Are you dissatisfied with your logo?
5. Have you changed your business strategy?
6. Have you gone through a merger or acquisition or shed some of your divisions?
7. Have your revenues stopped growing?
8. Has your market changed?
9. Have you restructured your senior management team?
10. Has your company or organization turned 20 years old?

If your answer was "yes" to more than a couple of these questions, this could be the perfect time to start developing a better brand - understanding it, delivering on your brand promise, communicating it effectively and measuring it. After all, your brand is your most powerful asset, followed closely by your employees - who deliver your brand promise every day.

The Key To Building An Authentic Brand

This week, an article in my local paper by New York Times columnist Maureen Dowd caught my attention.* It made some interesting points about how superstar Tiger Woods and White House Social Secretary Desiree Rogers hid and remained silent when confronted with problems rather than dealing with them head on. Tiger and Desiree thought they were protecting their respective Brands.

Nothing could be further from the truth. Whether you're trying to build - or protect - your personal or corporate brand, one of the most important elements is honesty.

Your brand is the promise you make to your customers about who you are, your values, your differentiation and what you'll deliver. When you're clear about what you're offering and consistently deliver against your brand promise, your customers will trust you - because their expectations have been met.

If and when there's a problem with your brand, honesty is critical. Classic case in point - Tylenol. Even though it's been 27 years since Johnson & Johnson faced the death of 7 people due to pill tampering with their Extra-Strength Tylenol brand, it remains a textbook example of how facing the crisis with integrity is the best solution.

If you want to build an authentic brand and, in the process, something goes wrong, don't stonewall your stakeholders - as Tiger and Desiree did. Think it through, respond with truthfulness and be true to your brand. This is the only way to strengthen your brand and continue to build it.

A Tiger or a Snake?

Depends on your point of view, but one thing is true. . . the Tiger Brand certainly carries a different kind of promise than it used to. Before the current situation, the Tiger Woods Brand stood for the Gold Standard in sportsmanship. He was an icon to golfers and a role model for youth.

Now, when you see the TW interlocked logo on a golf cap, what does it mean to you? Two women? A terrible womanizer? A liar and a coward?

It used to mean a lot of positives, but now, whether you like it or not, the well has been poisoned.

Think that can't happen to your brand? Think again.

In today's world, everyone communicates with everyone about everything. Pay attention to your social media, and make sure you're protecting your strongest asset. Take control. Limit exposure. Manage the message. Don't let the tiger out. It just might hurt something.

Such as your most important asset - your brand.