differentiation and distinctiveness: do you know how to distinguish?

hello, @. how are you? in this article, we will talk about differentiation and distinctiveness: two words that may seem similar at first glance but not only carry different meanings in marketing, but also have the power to enhance the reach of your brand, especially when combined.

so, let’s start from the beginning, learning to distinguish them:

DIFFERENTIATION: having “more of something” that matters to consumers [an attribute, an association, a belief] compared to your competitors. it’s not about uniqueness but rather about comparative difference.

DISTINCTION: standing out; being easily identifiable. it refers to the brand investing in distinct assets, such as packaging, logo, visual identity, characters, etc.

EXAMPLES OF DIFFERENTIATION AND DISTINCTION IN PRACTICE

DIFFERENTIATION

• Listerine: the mouthwash’s burning sensation was, for many years, a point of differentiation as it gave the feeling of a cleaner mouth. one of its slogans even said, “The taste you hate, twice a day.”
• Gillette: the first brand to add more blades to razor blades, which became a major differentiation attribute.
• Liquid Death: instead of using traditional clear plastic bottles, their water is sold in cans, which not only differentiates them – as it’s more sustainable – but also provides distinction by making the product easily recognizable on the shelf [definitely a five-star example].
• Dove: here we have a case of differentiation through a belief, as Dove has been working under the organizing principle of Real Beauty for years, connecting with people on a deeper level.
• Honda: for those living in Brazil, the Japanese automaker is synonymous with quality. people often say that Honda cars are reliable and don’t break down. this is a case of association. Interestingly, this perception isn’t the same in other countries. for example, in the U.S., Volvo is more associated with cars that don’t break down.

DISTINCTION

• Nu Bank: both the name “Nu,” which refers to transparency, and the purple color adopted by the brand are strong assets that, when placed side by side with banks at the time of its launch, highlighted the brand.
• Liquid Death: the water that carries a visual identity inspired by heavy metal bands. definitely distinctive!
• Apple: it’s hard to notice nowadays because so many companies have adopted similar strategies, but Apple was the first technology company to create a premium experience in both product design and packaging, bringing the experience of buying their gadgets closer to buying jewelry. Another example from Apple is the white headphones of the iPod, which were so distinct (compared to the generally black headphones of the time) that they became the focus of some of their advertising campaigns.
• Casa Ermelinda Freitas: I talked about this brand in an article about distinction, but basically, they adopted a subtle but extremely effective strategy that makes all the difference at the point of sale: the plastic wrapping around the cork has stripes. yes, it’s “just” that, plastic with stripes! however, as they are the only ones with this characteristic, their wines stand out amid the infinity of similar bottles and labels on the shelves of Portuguese markets.
• McDonald’s: want a more recognizable and distinctive asset than the golden arches? they became so relevant [and ubiquitous] that recently the company launched a campaign in which the simple raising of eyebrows was a reference to going to McDonald’s because it reminded people of the golden arches.

A LITTLE HISTORY ABOUT DIFFERENTIATION AND DISTINCTION

the debate around differentiation and distinction has a long history. for many years, differentiation reigned. Philip Kotler and Kevin Lane Keller preached the gospel, urging companies to leverage significant (real or perceived) differences. Jack Trout and Steve Rivkin reinforced this view in 2000, declaring that companies should “differentiate or die.”

but this emphasis on differentiation was emphatically challenged in 2010 with the publication of “How Brands Grow” by Byron Sharp. Sharp acknowledged that brands demonstrate differences but argued that “differentiation plays a small role in how brands compete.” he advocated for distinction: a high focus on recognizability, removal of cognitive friction, and investment in distinct brand assets, such as colors, logos, symbols, and characters.

more recently, the pendulum has begun to swing again. the Kantar BrandZ 2017 study highlighted how companies perceived as highly disruptive and different increased brand value by 28%, while those perceived as low in both metrics decreased by 5%. the Kantar Innovative Brands analysis, presented at Cannes Lions 2023, showed that “difference” is the main brand factor for performance, representing 25% of the brand’s impact compared to 0.6% for saliency. according to Kantar, this “exposes as false the claim that difference does not exist among brands or does not matter much.”

SO, WHERE DOES THIS LEAVE US?

for me, the most convincing positions have come from figures within the marketing effectiveness community, such as Mark Ritson and Tom Roach, both advocates of a “recipe” approach. for them, differentiation and distinction can and should complement each other – they are both vital sources of competitive advantage for modern brands. in other words, the key is in the combination!

there you have it, now it’s up to you: in a scenario of constant changes, identifying and cultivating differentiated and distinctive attributes can be challenging, demanding research, time, and effort. however, the recipe for brand success seems to lie in the ability to strategically combine the elements of differentiation and distinction. it’s in this intersection that brands find not only survival but prosperity in a dynamic and competitive market.