A point of difference is a marketing strategy that a company uses to distinguish its products from those of its competitors. A competitive point of difference must give the first priority to consumers’ interests and ensure that it comprises something that they prefer.
Since the main objective of a point of difference is to locate a benefit that differentiates the brand from others of the same type, a company has to find a feature that will motivate its consumers to purchase its product and avoid those of its competitors. The point of difference strategy is applied to distinguish different brands in the same product category; the three different product categories on which this marketing tactic can be applied include unsought, specialty, and shopping products.
How Competitive Point-of-Difference Works
The first product category, unsought products, consists of goods that consumers do not even want to think about and whose purchases are usually realized as a result of intensive marketing and branding tactics. The consumers do not actively seek out these products to purchase them but rather they get persuaded by the brand’s marketers and advertisement agencies. The best example of a brand under the unsought category of products is life insurance, which people only purchase after a serious persuasion by policy salespersons.
Some of the strongest competing brands in the unsought category are: MetLife Term Life that is offered by MetLife Insurance Company, and Prudential Term Life, which is offered by Prudential Insurance Company. The two competing brands have different points-of difference that they use to lure consumers into taking life insurance policies. It is through a well calculated application of the point of difference strategy that MetLife Company has been able to control the insurance market.
The three main points-of-difference that the MetLife Term Life brand uses to attract its consumers include: an affordable way to get maximum coverage, an inexpensive system to cover specific financial responsibilities like mortgage and college expenses, and a reasonably priced means to supplement one’s permanent life insurance during periods when coverage needs, such as family growing and mortgage-paying years, are higher in number.
On the other hand, the Prudential Term Life product is based on points of difference such as: the policy is convertible to permanent insurance at any time up to 65 years of age without proof of insurability, the premiums can be waived in case of unemployment or disability prior to the age of 65, and clients enjoy a provision that allows them to purchase another policy from the company without having their premiums increased.
On the other hand, specialty products represent a category of goods that are very luxurious, expensive, unique and exclusive in nature. For that reason, these goods are mostly purchased by individuals considered to come from the high-class social category. These goods are not purchased out of necessity but as a result of their brand names and the special features that they have, which make them attractive to consumers.
Two of the most competing brands under the specialty product category are BMW and Mercedes. The two brands use different strong points, which determine the proportion of the market that each one of them dominates.
The Mercedes brand employs three main points of difference: the cars have high fuel efficiency especially when the car is used for long distance travel, contain an engine and body that are strong and efficient, and are properly balanced making driving easy and enjoyable. On the other hand, the BMW brand convinces its customers by the wide availability and affordability of the cars’ spare parts, the low cost associated with purchasing and maintaining these cars, and their usability on a variety of roads or terrains.
The last category, shopping goods, consists of household commodities. These goods differ in aspects such as style, cost, comfort, and most notably brand. These are the major aspects that prospective buyers of this category of goods normally take into consideration before making a decision on whether to purchase a particular product or not. Unlike other consumer goods, shopping goods are durable in nature.
The two brands that are known to compete within the category of shopping goods are LG and Samsung refrigerators. The points of difference used by the LG brand are: it is available in different colors, has an assortment of different refrigerator door types, and is fitted with many cooling ways.
On the other hand, the Samsung brand is known for unique advantages such as various temperature control systems for different types of food, its unique design and fashion that can look good with any kind of kitchen, and its large interior that increases the refrigerator’s capacity to accommodate many food items.
Although all the six brands described above have very strong features that enable them to dominate the markets in their industries, the companies that own them should add more strong points to their marketing strategies and slogans to realize more sales. For instance, MetLife could add a catchphrase like ‘the policy assists you to fund your child’s education’ to its slogan while Prudential could incorporate a watchword such as ‘the policy helps you make up for you lost income’ into its adverts.
Mercedes could add a slogan like ‘cars fitted with air conditioner that enables you to regulate the car’s temperature while on the road’ to its ads. BMW could also bring in something like ‘we have the strongest models in the world’ when advertising its brands. LG could include a statement such as ‘fitted with a built-in water filtration’ in its marketing slogans while Samsung could add the declaration ‘extremely strong and durable’ to its product labels.
How These Points-of-Difference Convince Consumers
The points of difference applied in the six different brands have different effects on potential buyers who are willing to purchase them. For instance, in the case of MetLife Term life insurance, the policy holders believe that such a policy will assist them in getting maximum coverage and in covering some financial responsibilities such as college expenses. The policy holders in the case of Prudential Term Life believe that the policy is of great importance in cases such as job loss or disability.
The points of difference used in the case of specialty products also determine the consumers’ preferences and influence their choice to buy or ignore certain special goods. In the case of the Mercedes brand, the consumers believe that these cars are fuel efficient and consume less fuel especially when driven over long distances. On the other hand, BMW’s customers have been influenced to believe that its cars are strong and can be driven even on rough roads.
The same effect that is witnessed in the specialty goods is also evident in the case of the shopping goods. The buyers of LG refrigerators believe that the gadgets can preserve any kind of foodstuffs owing to the wide-range temperature control system fitted in them. On the other hand, the buyers of the Samsung refrigerators are attracted to them as they are convinced that they have the ability to clean and detoxify the water stored in them.