Should brands aim to be different or distinctive? What is the difference between the two, and how do these strategies add value to the branding equation? We take a closer look at shared evidence and form our own conclusions on why distinctiveness stumps differentiation.
Insight: Research shows that brand perception scores are quite similar across all brands regardless of whether they are perceived as different or not.
Data: Distinctive brand campaigns featuring recognisable brand ideas and assets achieve a +62% stronger short-term profit ROI vs campaigns which didn’t. (Ebiquity)
Key Action Point: Instead of pushing for differentiation, it’s time for brands to focus on building distinctive qualities to stand out from everyone else in the market.
For many years, we have come to believe that brands that differentiate themselves from everyone else are more successful. Throughout this time, we have pushed for differentiation, thinking brands that don’t will fail.
But a study conducted by Byron Sharp, Jenni Romaniuk, and Andrew Ehrenberg proves otherwise. Their study, highlighting key findings from 17 markets, shows that “perceived differentiation is not necessary for a buyer to buy a brand or for a brand to be successful.”
In the same report, it was observed that many consumers did not consider the brands they bought as differentiated. The results across seven consumer brand sectors in Australia also showed that it didn’t matter to them whether the brands they bought were different or not, as long as it satisfied their need and met their price point and location preferences.
The report goes on to conclude that many of the brands included in the survey that were not perceived as being different were just as successful.
So in light of these empirical findings, we wonder whether everyone’s push for differentiation in brand strategy has been misguided all along.
Distinctiveness vs Differentiation
Brand distinctiveness is standing out with impact (using brand assets such as brand name, logos, colours, messaging, etc.) so that buyers can easily identify, recall, and buy the brand.
On the other hand, brand differentiation is setting yourself apart from the competition by highlighting key aspects, features, and benefits of your brand and how it adds value to your customers.
Both are correlated but also very different.
Distinctive Brands Are More Recognisable
In a study by Jenni Romaniuk at the Ehrenberg-Bass Institute, distinctive brand assets achieved an average +34% higher advertising recognition.
Data from Brand Assets as a Source of Strength, Jenni Romaniuk, 2014Using distinctive assets makes it easy for customers to identify and recall the brand, which improves buying behaviour. It also makes it easy for customers and your target audience to associate your core messages to your brand.Brand distinctiveness, then, helps reduce the time for your audience to research the right product and minimises the number of choices for them because they can recall and know exactly who to look for to satisfy their specific need.
For example, Commonwealth Bank customers do not patronise the brand because they love the colour yellow, but seeing this colour makes it easy for them to identify the advertisement, offering, or value associated with the brand.
Table 1: Brand user perceptions of differentiation in Banking (Australia) categories
In the above table from the report, we see the proportion of each brand’s customer base that gave either a response of different or unique. This shows that only about 1 in 10 current customers perceive the brand to be different or unique, and 15–20% state it is either.
This shows that many buyers do not think their brands to be different from other brands, proving that brand differentiation cannot be a critical driver in buyer behaviour.
Distinctive Brands Are More Profitable
“Distinctive brand campaigns” featuring recognisable brand ideas and assets achieved a +62% stronger short-term profit ROI vs campaigns which didn’t in an analysis of 1,300 campaigns.
Rather than focusing on differentiated and unique value propositions, your brand’s distinct qualities help consumers to identify, recall, and choose your brand above everyone else.
It triggers brand associations that clear the path to purchase, and in a time where there are so many brands to choose from, this ensures consumers know exactly who to pick when they have to make that choice.
Tying It Together
Now that we know the difference between brand differentiation and distinctiveness, it’s important to re-assess how each of these can play a role in your marketing strategy.
Whether its time for you to focus on building up your brand’s distinctive qualities to stand out in a highly dense and competitive marketplace or highlighting your unique selling point, both are complementary and help make you become more visible to your target audience.