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Power of the Branded Differentiator
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This is an MIT Sloan Management Review article. If a brand fails to develop or maintain differentiation, consumers have no basis for choosing it over others. The product's price will then be the determining factor in a decision to purchase. Absent differentiation, says the author, the core of any brand and its associated business--a loyal customer base--cannot be created or sustained. In a time when the competitive terrain for most brands is difficult to brutal, the author describes a new tool that can help companies maintain an advantage: the branded differentiator. A branded differentiator can be a feature, service, program, or ingredient. It must be meaningful to customers; that is, it must be both pertinent and substantial enough to matter when people are purchasing or using the product or service. It must also be actively managed (and, thus, be able to justify the investment of management time) over an extended period--years or even decades--so that it does not become stagnant. Explores the different types of branded differentiators, the pros and cons of developing them internally vs. looking outside for them, and questions about managing these brands-within-brands.