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March 30, 2008

Define or Differentiate? A Marketer's Dilemma

Fellow PRSA Counselors Academy member Eric Morgenstern of Morningstar Communications wrote an interesting article for Counsel -- the organication's monograph -- on the possibility that marketers are spending a little too much time on differentiation and not enough time on meeting -- or exceeding -- customer requirments. There's an excerpt below and you can purchase the full version for a nominal fee on the Counselors Academy Web site.

He makes some good points. Too many companies ask the question "how can we be different" when they should be asking "what does the customer want and how can we deliver better than the other guys?" When we're leading our Communicating for Action planning sessions, we make absolutely sure that, along side any differentiating messages, there are also clear "definers" that help a target audience understand the company.

Awareness first -- differentiation second. Or, as one of our clients said recently: "You've gotta be IN the game before you can separate yourself from the other players."

Think Excellence, Not Difference
Positioning Strategies for Success
ERIC M. MORGENSTERN, APR, FELLOW PRSA, PRESIDENT AND CEO
MORNINGSTAR COMMUNICATIONS
Executive Overview

In recent years, marketing professionals have focused their strategies around
market differentiation.

However, in many industries, companies are finding it increasingly difficult to
differentiate themselves from their competitors. What's more, the chief concern of
customers -- whether they be consumers shopping in a retail store or businesses relying
on the advice of a consulting firm -- is not differentiation at all. Instead, it is "Who can
most effectively fulfill my specific needs while meeting my standards?" or "Who is my
best choice?"

For many customers, different isn't necessarily better -- it's just different.
The only solid strategy for meeting these ever-increasing customer expectations is one
focused on excellence. This means if you manage a company's marketing or public relations
programs, you want your company's customers to perceive it as excellent, instead of
simply different from the rest of the pack. Similarly, if you work for a public relations or
marketing agency, you want your clients to be perceived as excellent -- rather than
different -- by their customers.

This proposed approach -- Think Excellence, Not Difference -- is not another
marketing theory that has little connection to the real business world. It is, simply, a smart
marketing method communicators can use to position forward-thinking companies as
market leaders.

Leading companies can no longer prosper by continually positioning themselves
against their competitors. Instead, their continued success depends upon convincing
customers that they are a reliable resource for excellence.
There are four steps to the Think Excellence, Not Difference method. They are:

• Determining the end customer's definition of excellence
• Evaluating how well your client, or company, is currently meeting
those expectations
• Designing a measurable program that will meet or exceed the expectations of
your customers, and
• Leveraging your excellence to attract other, similar customers or clients.

An organization can measure its immediate success with this method by how well it is
retaining its customers, its rate of revenue increases, routine client satisfaction studies and
its profitability. However, the sustainability of an excellence mind-set will ultimately
Think Excellence, Not Difference depend on how a customer describes the organization to others in the marketplace. What an organization's customers say about the organization to others represents the true
embodiment of that organization's brand.

Posted by Matt Kucharski at March 30, 2008 11:23 AM

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Comments

We can certainly learn from our competitors, but we have to respond to our customers. I've run across many clients who are obsessed with their competitors to the detriment of their business. It's among the reasons they are not industry leaders, and unless they change, never will be.

Posted by: Leo Bottary at April 5, 2008 4:37 AM

Great insight, Leo. Thanks for commenting...

Posted by: Matt Kucharski Author Profile Page at April 7, 2008 8:24 AM

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