Marcom A to Z — D for Differentiation

A silver lining to the sleepy economy: proactive, smart companies have committed found-time to assess their strengths, future potential and competitive environment in preparation to leapfrog the competition when business starts to flow again. The assessment process is a great first step toward guaranteeing future differentiation. It delivers, among other things, a good understanding of a company’s current brand identity and competitive set (close competitors), its aspirational brand positioning and future competitive set, and a clearer articulation of how the company should differentiate itself.

Although with so many companies assessing, strategizing and investing in plans for future growth right now, the competitive landscape may look entirely different a year from now. To put it another way, if two currently competing companies study their relative position now and strategically plan to move toward an altogether new brand position (within a new competitive set), will either be closer to truly understanding its competitive positioning and differentiation a year from now?

It will be a brand new competitive world out there, particularly in certain industries like energy, healthcare and technology.

This warp-speed evolution driven by a tanking economy shouldn’t preempt strategic planning and brand analysis now. Not all companies can or will invest in marketing when dollars are down, which opens space for growing and emerging companies. There’s a large potential to gain ground in this war for dominant share of voice and market. However, because no company can be sure exactly what its current or aspirational competitors are doing or where they’ll move within the next year, this change should force the need to reassess again.

Even with all of these moving parts and an inability to see how they’ll fit together, companies that differentiate now and reassess in the near future will have a better chance of growing in the right direction and owning a truly differentiated position.

This weekly series discusses marcom concepts by the letter — from A to Z. The next post: E for e-.