Why Marketing Must Go Beyond Product Differentiation
October 19, 2011
Product differentiation is touted by every marketing expert. When we think about what’s unique or different about our products, we think in terms of the product’s features and benefits. Marketing takes those unique bells and whistles and creates demand. What happens? If you product outsells your competitor’s, then you end up in a “feature race” – no different than a price war. It’s easy for your competitors to copy those tangible features and benefits. Eventually all products consolidate down to a common set of features – just think about all those smartphones – can you tell me the difference between them? Probably not. Marketing differentation requires more.
It’s much harder to copy that warm, fuzzy, good feeling created by those intangible aspects of your business or product. When a start-up company builds a product, rarely does the intangibles such as service cross minds as a marketing or product differentiator. You can’t easily copy fans or an audience. Retailers have figured out that service matters, maybe it’s just more obvious to them because they are resellers and don’t make any of their own products. Zappos made their mark by making service their priority. Starbucks isn’t about getting a cup of coffee; it’s about a sense of community and atmosphere in the shop. Other industries and businesses should do this too. Intangibles are important.
Many of your customers are people who have been to one of the Disney theme parks. Disney goes above and beyond what most people expect. My point is your customers have experienced great service at some point in their lives. They may even have encountered one of those rare businesses that have wow’d them. Even though your company may be in an entirely different industry, these other experiences act as a benchmark for your customers.
As children, we have all been taught that there is a clear relationship between effort and reward. Okay, so that’s a blinding glimpse of the obvious, but it goes further than effort. The reward is greater for those with accomplishments.
I continually run into businesses that want to center their proposals on their best effort. They want to be paid based upon the effort they put into your assignment. For example, a marketing firm wants to be paid for getting your company exposure in the press, but if your intent is to sell a product then what really matters is whether that exposure increases your sales. Firms may not be able to predict results, but they should at least be curious as to whether their methods are producing results. I’ve dealt with marketing firms that don’t even ask for the numbers, yet want to continue to spend your marketing and ad budget. This leaves the customer with the impression that they don’t really care at all.
I’ve placed job ads on numerous online sites and the only company that has ever called and asked whether my ads were working was Monster. Not only did they show concern for my results, but when I was disappointed, they offered to place the ads in different categories for no additional cost and give me access to premium features to test out some possibilities. The features offered by Monster’s software aren’t much different than those provided by the other vendors. All the other job sites took my money and never even asked if I was satisfied. Now compare my customer experiences, who do think I’ll give my business to again?
Customers do business with and continue to give their business to those they believe have taken the trouble to see their concerns from their point of view. Every business wants you to buy their product or service. Everyone clamors for your attention so they can sell you. It’s about what the seller wants; it’s about them. Few sellers, however, ever return to ask if their product met your needs. It’s this after sale concern that could create market differentiation point for your product and create the success for your start-up.
Filed under: From Concept to Start-Up
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