“A product is something made in a factory; a brand is something that is bought by the customer. A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is timeless.” Stephen King
Yesterday’s step regarding the personality of your brand, should get one thinking of all the factors that need to be covered to successfully attract your target customer. The next couple of steps will cover essential components which need to be thought through clearly when building a brand. The component I will talk about today is the answer to the question above, namely, your competitive advantage. If one cannot answer why a customer should select your product over your competitors, there won’t be a business to build a brand for. To answer this question correctly, one needs keen insights into the internal selection process of your target customers. Communicating with your target customers and finding out what their needs and requirements are, is the only way to do this.
For example, you want to launch a new web based product which aims to provide an ability to manage your contacts and communication logs. The market place is currently filled with such products, and include Highrise, a product I use for the same function. When this new service comes along, and they have essentially replicated existing product features and functionalities, there is little chance of success. Even if minor changes have been created, they stand to lose this competitive edge when these functionalities will be copied by existing players. This is an example of when business owners have not put enough thought into the reason for creating the service, for whom it is being created, and how they plan to provide long term value to the target customer.
On the other hand, take for example, the social networking space. Friendster started off with a bang and a small niche social networking site called Facebook, they entered the market, and addressed key concerns regarding, privacy, communication tools and useful applications to make the experience more enjoyable. They clearly addressed the question “why should I choose to switch to your platform?” This leads to an important conclusion, which is, businesses and brands have to be rooted in strong business models which address customer needs in an unique way. Our branding strategy needs to continuously communicate this competitive advantage to our target customers, reminding them of reasons they should choose us, over our competitors.