Why does Brand Differentiation Matter?
According to a recent study, differentiation is the single most important contributor to a brand’s success in the market. Branding through differentiation has become part of the strategy employed by the world’s top brands. Unless a company can make its customers perceive its brand as somehow different from the crowd, it cannot guarantee the customers’ choice or influence purchase decisions in its favour. As long as a customer views all brands as interchangeable, the decision to buy is based solely on the price factor, which works adversely for the company seeking to establish a brand image. Hence, differentiation is key.
What Brand Differentiation Means
In order to differentiate itself from competition, a brand must need to establish its position in the market. Any reputed brand agency in Malaysia will tell you that securing a unique positioning, one that is compelling enough to attract customers, is a major part of the effort to capture market share. Once a brand has defined how it wants to position itself, every aspect of its branding proposition needs to be aligned and made consistent with, its positioning. When customers understand the ‘what’ and ‘why’ of a brand – what the brand means to them and the purpose of the brand’s existence, then the company can be said to have achieved differentiation, and buying decisions can be influenced more effectively.
Differentiation Through Unique Customer Experience
Most brands tend to focus on giving their customers the best customer experience possible. Instead of doing this, what a brand agency in Malaysia might advocate, is focusing on giving customers a brand experience. By creating a unique experience that is based on the brand’s positioning principle, a company can effectively use the experience-created touchpoints to make audiences aware of the benefits of their distinctiveness. However, as branding experts advise, it is essential during the definition of this brand experience, to keep things personal, and customize experiences so that brand users feel appreciated.
In a country such as Malaysia, which has a keenly perceptive target audience, establishing a compelling brand positioning may require a good deal of work. But, by differentiating oneself from other brands, companies will soon begin to reap the benefits of their hard work.