Three Questions You Need to Ask About Your Brand

Three Questions You Need to Ask About Your Brand (Kevin Lane Keller, Brian Sternthal, and Alice M. Tybout, HBR):

When I first began learning about marketing the first thing everyone was going on about was “brand differentiation”. But what truly matters when comparing your brand against others and how do you stay competitive in a field of many competitors while finding your own unique value proposition. Keller, Sternthal and Tybout answer this question in the HBR piece Three Questions You Need to Ask About Your Brand. They introduce 3 main differentiators between brands: points of parity, points of difference and frame of reference. These concepts explain how a brand must identify themselves in current markets. First of all, points of parity, this is what makes brands similar. Think the inherent quality characteristics that compel someone to a market. For example, a dishwashing soap must be able to cleanse dishes well, that’s its main purpose and value proposition. Second is points of difference, these are what sets brands apart. The piece used an interesting example comparing Visa priding itself on its ease of use and wide presence with AmEx, priding itself on their prestige and benefits. Brands can compete against other brands point of reference for competitive advantage, this may look like Visa adding gold and platinum cards or AmEx expanding their presence. Finally, frame of reference. This speaks to what industry you are in. A brand must fulfill its core competencies to be competitive. Furthermore, they can easily be drowned out by modernization within or outside their industry., Take FedEx who set themselves apart with their 1-day delivery. With the advancement of fax and email, this became a less strong differentiator. There are a few more points that stood out in regard to this piece. One additional point I found interesting is a brand’s ability to fit a frame of reference when it is innovative. When a company does not know where it fits or is too complicated, this can be a disadvantage. As we progress in the digital age with AI innovations, I wonder if it will be subject to this phenomena and how it may be combatted? Looking forward, it is important that brands find their unique value propositions and differentiating attributes while remaining true to their core competencies and industry. Once they have that base, then they can flourish.