Points-of-parity/points-of-difference


Points-of-parity/points-of-difference

Points of difference and points of parity

These can be utilised in the positioning (marketing) of a brand for competitive advantage via brand/product.

In essence:

"Points-of-difference (PODs)" – Attributes or benefits consumers strongly associate with a brand, positively evaluate and believe they could not find to the same extent with a competing brand i.e. points where you are claiming superiority or exclusiveness over other products in the category.

"Points-of-parity (POPs)" – Associations that are not necessarily unique to the brand but may be shared by other brands i.e. where you can at least match the competitors claimed benefits.

The assessment of consumer desirability criteria for PODs should be against:

* Relevance
* Distinctiveness
* Believability

Whilst when assessing the deliverability criteria for PODs look at their:

*Feasibility
*Communicability
*Sustainability

These will help understand how successful these PODs are likely to be in the minds of the consumer.

Kevin Keller and Alice Tybout [The principle of positioning Kevin Lane Keller and Alice Tybout, Market Leader, Issue 19, Winter 2002, pp.65 ] note there are three types of difference: brand performance associations; brand imagery associations; and consumer insight associations. The last only comes into play when the others are at parity. Insight alone is a weak point of difference, easily copied. Putting these together, check their desirability, deliverability and eliminate contradictions.

Traditionally, the people responsible for positioning brands have concentrated on the differences that set each brand apart from the competition. But emphasizing differences isn't enough to sustain a brand against competitors. Managers should also consider the frame of reference within which the brand works and the features the brand shares with other products.

Asking three questions about your brand can help:

#Have we established a frame? A frame of reference signals to consumers the goal they can expect to achieve by using a brand.
#Are we leveraging our points of parity? Certain points of parity must be met if consumers are to perceive your product as a legitimate player within its frame of reference.
#Are the points of difference compelling? A distinguishing characteristic that consumers find both relevant and believable can become a strong, favourable, unique brand association, capable of distinguishing the brand from others in the same frame of reference.

Rajesh Iyer and James A. Muncy [The Role of Brand Parity in Developing Loyal Customers Rajesh Iyer and James A. Muncy, Journal of Advertising Research, Vol. 45, No. 2, June 2005, pp.222-228] say that high parity perceptions inhibit a company's ability to develop loyal customers. Whether that is good or bad depends on the type of competitive strategy a firm has chosen. With a differentiation strategy, advertising should be used to fight parity perceptions. However, with a low price strategy, parity perceptions should be fostered in an attempt to discourage brand loyalty. Thus, a starting point for many advertising campaigns should be a clear understanding of both the parity perceptions in the marketplace and the need to either develop or fight brand loyalty.

References


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Parity of zero — Zero objects, divided into two equal groups Zero is an even number. In other words, its parity the quality of an integer being even or odd is even. Zero fits the definition of even number : it is an integer multiple of 2, namely 0 × 2. As a… …   Wikipedia

  • Point of difference — is a term used for an outcome of product differentiation. In business economics, differentiation is seen as an important strategic move for companies to make. Because of an overwhelming variety of products and services on the market, those that… …   Wikipedia

  • Contract for difference — In finance, a contract for difference (or CFD) is a contract between two parties, typically described as buyer and seller , stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at… …   Wikipedia

  • United Kingdom — a kingdom in NW Europe, consisting of Great Britain and Northern Ireland: formerly comprising Great Britain and Ireland 1801 1922. 58,610,182; 94,242 sq. mi. (244,100 sq. km). Cap.: London. Abbr.: U.K. Official name, United Kingdom of Great… …   Universalium

  • Customer value proposition — Marketing Key concepts Product marketing · Pricing …   Wikipedia

  • Positioning (marketing) — Marketing Key concepts Product marketing · Pricing …   Wikipedia

  • Wikipedia:Citing sources — Various shortcuts redirect here; you may be looking for Wikipedia:Reference desk, Wikipedia:Clean start, Wikipedia:Citing Wikipedia or Wikipedia:WikiProject Computer science. For a simpler introduction to citing sources, see Wikipedia:Referencing …   Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Mathematics and Physical Sciences — ▪ 2003 Introduction Mathematics       Mathematics in 2002 was marked by two discoveries in number theory. The first may have practical implications; the second satisfied a 150 year old curiosity.       Computer scientist Manindra Agrawal of the… …   Universalium

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.