Marketing theory contains the idea of points of parity and points of difference. In some ways, these are very logical. A point of difference is where you have an attribute of the product that is different from the competition. A point of parity is when you match the competition.
Balancing Points Of Parity And Points Of Difference
Concentrating on both points of parity and points of difference is required. In a 2002 article, Kevin Keller and his co-authors talk about how it is important to think about points of parity as well as the, generally more exciting, points of difference.
There are certain things that a firm must deliver to be seen as a reasonable choice. A product needs to gain parity in these areas or else it simply won’t be in the consideration set. (A hygiene factor is a similar idea. If a basic level isn’t delivered then it doesn’t matter what else is provided. It is easy to remember the idea of a hygiene factor. For example, if you know a chef doesn’t wash their hands after bathroom breaks you probably don’t care too much about the fancy extras they place on the food to make it look nice).
The authors give the example of Dove dishwashing liquid.
Dove, known as the soap with “moisturizing lotion,” moved into the dishwashing-liquid business with a product that claimed to “soften your hands as you do the dishes.” Sales were disappointing, perhaps because consumers were looking for a dishwashing liquid that cleaned the dishes rather than softened the hands. Dove needed to establish its points of parity with competitors before stressing its differences.
Keller, Sternthal, and Tybout (2002) page 5
Compelling Points Of Difference
If you have taken care of your points of parity then you then need to make sure that you have something that will set you apart. What is the point of difference you are hoping for? Is this compelling?
It is vital to be able to deliver on the point of difference. What is more, a good point of difference should be something that only your firm can provide. Volvo could be credible on safety given they invented, and gave away the patent, to the seat belt (https://www.volvogroup.com/en/about-us/heritage/three-point-safety-belt.html).
Pitfalls To Avoid
The authors finish the article with a helpful series of pitfalls to avoid. For example:
Companies sometimes invest too heavily in points of difference that can easily be copied. Positioning needs to keep competitors out, not draw them in. A brand that claims to be the cheapest or the hippest is likely to be leapfrogged.
Keller, Sternthal, and Tybout (2002) page 5
It is hard to always be the hippest. Although I’m sure it would be fun to be the hippest at least for a while.
For more by Kevin Keller see here and here.
Read: Kevin Lane Keller, Brian Sternthal, and Alice M. Tybout (2002) Three Questions You Need to Ask About Your Brand, Harvard Business Review, September