Branding and Differentiation… Thursday 24th October 2013 Year 11 Business Branding and Differentiation… Thursday 24th October 2013

Objectives To consider how we can differentiate our products from similar ones on the market.

Today… Differentiation – what do we think it means?

Differentiation… An important part of the marketing of the product is through product differentiation.  This means making the product different from its competitors.  Product differentiation can be achieved through: Distinctive design– e.g. Dyson; Apple iPod Branding - e.g. Nike, Reebok Performance - e.g. Mercedes, BMW In your books – write down a specific product and brand that differentiates itself from its competitors (not listed above) and how.

How? A key term to remember is USP, which is the acronym for Unique Selling Point. A Unique Selling Point is a feature or benefit that separates a product from its competitors. A USP could be a lower price, a smaller version of the product, offering extra functions, or even simply producing a standard product in a range of colours or designs. As before – think of a product with a USP and explain what it is.

USP… A business needs to look at its unique selling points compared to competitors.  If it doesn’t have any, the business will probably struggle to make the product seem attractive to customers (the remaining option is usually to compete solely on price). If a business finds that its customers are switching to competitors or buying purely on price, it should be asked whether the business has identified the USPs for its products and services.  If it has, then the question is whether it is communicating USPs clearly to customers?

For example…

Now… The following is from a business course I attended where in we were encouraged to consider the USP for our business, how we could create one, and the importance there of – check it out…

So… Clearly describe the 3 biggest benefits of owning your chosen product or service. Your customer doesn't care if you offer the best quality, service, or price.  You have to explain exactly WHY that is important to them. Think in terms of what your business does for your customer and the end-result they desire from a product or service like yours.  So, what are the 3 biggest benefits you offer? Write them down in your book...  1.  2.  3.

Contd. The key here is to be unique. Basically, your USP separates you from the competition, sets up a "buying criteria" that illustrates your company is the most logical choice, and makes your product or service the "got to have" item. (Not your competitor's.)  Write your USP so it creates desire and urgency. Your USP can be stated in your product itself, in your offer, or in your guarantee:  PRODUCT: "A unique baseball swing that will instantly force you to hit like a pro."  OFFER: "You can learn this simple technique that makes you hit like a pro in just 10 minutes of batting practice."   GUARANTEE: "If you don't hit like a pro baseball player the first time you use this new swing, we'll refund your money."

Contd. Consumers are sceptical of advertising claims companies make. So alleviate their scepticism by being specific and offering proof when possible…how can this happen?

But most importantly… Be bold when developing your USP but be careful to ensure that you can deliver. Your USP should have promises and guarantees that capture your audience's attention and compels them to respond to you. Having a strong USP can make your business a big success, or a big failure if you don't deliver on it thereby ruining your reputation.