diffrentiate or die- book review (1)

8/8/2019 Diffrentiate or Die- Book Review (1)

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Presented BY Group 5 Vikram S 005

Abhay Kumar 035

Shivani Sharma 046

ArunThakur 050

Aparna Katiyar 057

Akanksha Sadekar 060


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Steve Rivkin

Steve RivkinRivkin & Associates LLC

y A marketing andcommunications consultant,author and speaker.

y He spent 14 years workingwith Jack Trout and Al Ries atTrout & Ries Inc. as executivevice president.

y He founded Rivkin &Associates LLC in 1989.


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About the Author

Jack Trout,Trout & Partners ltd.

y an owner of Trout & Partners,a consulting firm.

y

one of the founders andpioneers of positioning theory,and also marketing warfaretheory.

y acclaimed author of numerous

marketing classics, Trouts TheNew Positioning became aBusiness Week best seller in1995 and Marketing Strategy

which highlights key strategicprinciples.

Jack Trout


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Differentiate or DieFlow of this presentation summary

Who is in-charge?

Being Different in Different Places

Growth A Sacrifice in Differentiation

Differentiation Strategy

Differentiation what it is & what it is not?

Unique Selling Proposition

The Tyranny of Choice.


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The Tyranny of ChoiceAn explosion of choices

y Car Markety In 50s buying a car meant a choice between a model

from GM, Ford, Chrysler or American Motors.

y Healthcarey Earlier

y People had their fixed Doctors and Hospitals

y Today

y Its gotten so confusing that people arentworrying about getting sick.

y They worry more about where to go to getbetter.


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The law of Divisiony A category starts off as a single entity.

y Division is an unstoppable process.

Initially Eventually

Computer System Mainframes, Minicomputers,

Workstations, Personal computers,Laptops, Notebooks, Pen computers.

Operating system (DOS) Xp, vista, Mac, Window 7

ITEM Early 1970s Late 1990s

Vehicle styles 654 1212

Websites 0 47578

Running shoe styles 5 285


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Rise of Choice Industry

y Internet isfast fillingup with dot coms that can helpyoufind

andselect.

y

Everywhere you turn someone isofferingan advice.

y Magazineslike Consumer Reports andConsumers Digestdeal

productsandchoicesbyrotating the categories theyreport.


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The Unique Selling Proposition

RosserReeves

(191024 January 1984)Ted Bates agency

today as Bates 141

y Introduced by RosserReeves in1960 - book Reality in

Advertising.

y A successful Americanadvertising executive andpioneer of televisionadvertising.

y U.S.P is supposed to be thebasis for marketing Campaign.


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U.S.P By Reevesy Each advertisement must say to

each reader and viewer, "buythis product and you will get

this specific benefit.y Uniqueness in Proposition

uniqueness in brand wise or

claims that competition cannotmatch.

y Proposition to Move masses


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Consumer Differentiation Abilitiesy INTUITIVE

y uses intuition to concentrate on possibilities, avoiding details in favorof a big picture view.

y susceptible to a next generation strategy of differentiation.

y THINKERS

y analytical, precise and logical.

y possess a lot of information, often ignoring the emotional or feelingaspects, responding to the facts about a product.

y FEELERS

y

Dispenses with intellectual analysis in favor of following their ownpreferences.

y an ideal group for third-party endorsements from experts who lookand sound real.

y SENSORS

y

enormous capacity for detail and a knack for putting things intocontext


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Need For Reinventing

Unique Selling Proposition

y Competition

y Similarity of products

y Speed of Technology


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What Differentiation Is Not

Qualityand Customer Orientationy Every companys mantray Consumers have grown more demandingy

The myth- serving the customer is the name of the gamey Remediesy operational effectiveness and product positioning

Creativityy

Puffery and ineffectual advertising run under the guise ofbeing creativey Remedies-

o emotion and intelligence togethero Advertising should communicate information about the

product


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What Differentiation Is Not

Price

y Greatest Enemy of differentiation, however, Pricingstrategy can be a differentiator.

y Differentiating with high price.

Breadth of Line

y

Is a difficult way to differentiate becausey there is no way to keep your competitors from using the

same strategy

y Problems of being too big.


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The Four Steps to Differentiation

Step 1: Make sense in the context

Step 2: Find the differentiating idea

Step 3: Have the credentials

Step 4: Communicate your difference


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Differentiation Takes Place

In The Mind

Minds cant cope

Minds are limitedThe power of simplicity

Minds are insecure

Buying what others buyMinds dont change

Minds can lose focus

The power of the specialist


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Eight Successful

Differentiation Strategiesy Be First:

y Being 1st is one thing , staying 1st is another.

y Specialize in your market:y Concentrate on core competencies

y Be the preferred provider:

y People are more likely to purchase a product that othersthink is the correct one to buy.

y Make your products in a special way:

y Having a name which catches peoples attention


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y Be hot:y Show people you are growing , why hide when you have

something???y Maintain attribute ownership:

y Best way to differentiate a product or a service

y Be a leader:y

It creates credentials of a brand E.g.: IBM, Heinzketchup

y Have a history:y History makes people secure of what they are buying

Eight Successful

Differentiation Strategies


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Growth - A Sacrifice in Differentiation

Growth negatively affects differentiation in two keyways:

y Distracted focus

y Rather than pouring on the resources and preempting adifferentiating idea, companies in growth mode tendto focus those efforts on growing their businesses.

y Over-extension of Product Liney to pursue endless growth, companies fall into a line

extension trap, trying to hang their brand in as manyrelated or unrelated categories as possible.


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Being Different in Different PlacesFive Rules for the road

y The current ideamaybe the wrong idea.

yAttributes can change when you cross borders.

yYour market leadership may not translate.

yYourheritage may not be respected.

yYour specialty may get blurred.


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Whos in Charge Here?

Differentiation strategy cannot be left to marketingpeople and ad agencies.

Top Management

y Generate, communicate and maintain differentiationstrategy.

y The best CEOs do their own strategy, in their own specificways.


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Managerial Lessons - Conclusiony Companies must give customers the tools they need

in purchasing decisions, to draw them to theirproducts.

y Differentiate products from competitors.

y A logical approach to engaging customers

y Growth can kill differentiation.

y What differentiation strategy will work abroad?


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diffrentiate or die- book review (1)

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