Differential effect
In today's competitive marketplace, consumers must be provided with a compelling argument as to why they should choose a particular brand from a wide variety of alternatives available to them. It is also important to ensure that consumers have sufficient exposure to such a message, so that they are knowledgeable about the brand's assertions. If marketers are successful in accomplishing this, they can hope to see a differential effect of this brand knowledge on consumers’ behavior toward their brand—evidence that consumers believe their product is more appealing than competing brands. Marketers can pursue two different approaches toward this goal. The first method focuses on the value that the brand provides to consumers. Often, consumers feel that many brands in a product category are very similar. In such situations, a strong case can be made to the consumers to choose a particular brand if it is “value priced”; that is, the brand offers good quality at a low or competitive price. This strategy is particularly feasible when a company has cost advantages. A second approach that is commonly used is to create differentiation from other brands. This can be done on the basis of superior quality, physical attributes, or intangible benefits. If marketers are successful in creating this differentiation, they are in a position to charge a premium for their offering. However, if they pursue the latter strategy, they need to ensure that the brand is well-differentiated, because this becomes the core of any persuasive marketing message to urge customers to buy their brand.
Unless a brand is value priced, lack of differentiation is likely to lead to decline. As Volkswagen's public relations manager stated, “Brands must offer something different; they can’t just be another flavor of vanilla” (T. Fouladpour, personal communication, October 20, 2005). This being the case, marketing managers should not only monitor differentiation, they should carefully articulate it. This may require some creativity, but meaningful differentiation—that which is appealing to customers—is necessary. Even some makers of gasoline, often considered a commodity product, have succeeded in creating differentiation. One notable example is Chevron, which emphasizes its trademarked additive, Techron. Many consumers seem to have bought the idea, and base their loyalty to Chevron because of Techron, a detergent that reduces accumulation of deposits in fuel injectors and intake valves. Interestingly, all major brands of gasoline have detergents in them; Chevron has just seized on it as a source of differentiation.