The Business Book

31

Differentiation is not so important
when a company’s products match
the desires of the customer
and do not overlap with the
competition. Although the
risks might be high,
differentiation is most
effective when your
products are popular,
but overlap with those
of the competition.

restaurants the world over. This
familiarity differentiates
McDonald’s from unknown local
offerings, and from other global
competitors who cannot maintain
the same degree of consistency
across their operating territories.
In a market in which rival
companies promote the uniqueness
of their products in ever-louder and
more complex ways, consumers
have become increasingly savvy
when it comes to distinguishing
reality from rhetoric. While
differences do not have to be
tangible—the evidence shows that
an Emotional Selling Proposition
(ESP) is often enough—the
challenge for businesses is that
points of differentiation do have to
be genuine and believable.
Developing an emotional connection
with the customer requires that the
differentiation is understood and
consistently delivered throughout
the organization. Well-defined core
principles that celebrate a
company’s uniqueness should
inform the customer experience at

every point of contact—difference

has to be believable, and it is only

believable if it is dependable.

Sustaining differentiation

Once established, uniqueness—

whether functional or emotional—

requires nurturing and protecting.

Standing out from the crowd is a

constant battle that is fought in the

hearts and minds of the company’s

staff, as well as customers. As legal

clashes between rivals—such as

Apple and Samsung—demonstrate,

uniqueness might also have to be

contested in the courtroom.

Every industry has leaders and

followers—what separates them is

that the leaders are usually those

with the most defensible points of

differentiation. Whether in features

and functionality, brand image,

service, process, speed, or

convenience, uniqueness must be

established and communicated for

a company and its offerings to stand

out in the market. The key to long-

lasting success is making that

differentiation sustainable. ■

START SMALL, THINK BIG

Rosser Reeves

US advertising executive

Rosser Reeves (1910–84)

held the maxim that an

advertisement should show off

the value of a product, not the

cleverness of the copywriter.

After a brief spell at the

University of Virginia, from

where he was expelled for

drunken misconduct, Reeves

worked as a journalist and

then copywriter before joining

advertising agency Ted Bates,

Inc. in New York in 1940. His

exceptional talent saw him rise

to become Chairman of the

company in 1955. He is credited

with redefining television

advertising and, among many

others, for formulating slogans

such as “It melts in your

mouth, not in your hand” for

chocolate confectionary brand

M&Ms. Reeves’s Unique

Selling Proposition, first

outlined in the 1940s, was

described in his 1961 book

Reality of Advertising. Such

was his impact on the

advertising industry that his

legacy lives on long after his

death—his pioneering style of

leadership was the inspiration

for the lead character in US

television series Mad Men.

High sales

Low sales

High scope for

differentiation

What your company

does well

What the

consumer

wants

What your

competitors

do well

In order to be irreplaceable one

must always be different.

Coco Chanel

French fashion designer (1881–1971)