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First, Differentiate Your Product! 3 Ways to Find an Overwhelming ‘Strength’.

First, Differentiate Your Product! 3 Ways to Find an Overwhelming ‘Strength’.

It is a fact that sales increase if marketing is utilized.
However, there is something more important.

It's about how 'your products and services are superior to others'.
Simply put, it is 'overwhelming differentiation'.

Battles where products are not differentiated from competitors are tough.
You will be compared and considered with many competitors.

Nevertheless, it's the same even if it's a market with few competitors.
Products that users cannot distinguish from other companies' products are difficult to sell.

If differentiation is weak, marketing costs will also increase.
If strengths are not clear, customers will ultimately perceive it as just one of many products and services.
After that, if it's brought into a price war and the cheaper one is purchased, it can't be helped.
Victory or defeat will simply be determined by price competition or the size of advertising costs.

What is differentiated compared to others?
You need to find an overwhelmingly 'this is it!' kind of differentiation.

However, it's not always easy to articulate strengths.
For example, when competing in an already saturated industry.
Washing machines, microwave ovens, refrigerators.
How many people can recognize the clear differences between such home appliances?
In a saturated industry, it's often difficult to find differentiation.

Whether it's traditional products, futons, bags, or food.
At first glance, they seem to offer only minimal differentiation.
However, differentiation is possible in any situation.
This time, I've compiled methods for creating overwhelming differentiation.

Differentiate with your vision: why are you selling that product?

Some of you might have thought 'huh?' from the beginning.
At first glance, it's a different perspective from product differentiation.
Nevertheless, vision is overwhelmingly important for product differentiation.

Speaking of famous theories, there's the Golden Circle theory.
It was created by a person named Simon Sinek.
It's a way of thinking about starting a business with a flow from WHY to HOW, and from HOW to WHAT.

Typically, when people start a business, they tend to think about 'what' (WHAT) they will do.
However, starting with 'what' doesn't resonate easily with people.
What's important is 'why' (WHY) you are doing it.

For example, Apple makes computers to change the world.
The result brought about by the vision of changing the world was computers.
That's why a grand story was born in business, and people reacted to that story.
People are drawn to the vision and want to buy.

For example, when Apple makes computers, what would it be like normally?
If it were simply a company that makes high-performance computers.
What if they had neglected the 'why'?

Innovations like today's would not have happened.
Because people would not have recognized Apple as an attractive entity.

Why do we do it?
To 'change the world'.

That's why they make computers, phones, and also do music.
Those were necessary things to change the world.
That's why products and services that seemed disparate at first glance were accepted.

A great power lies dormant in 'why' you do it.

Was there really no competition for Apple?
That is not the case.

Were there really no other companies that made mobile phones?
That is not the case.

Numerous products and services were already jostling for space.
Even in such a market, the 'why' of 'changing the world' became a strength.
The 'why' captured people's hearts and built the foundation for Apple's current fans.
Capturing people's hearts directly led to product differentiation.
As a result, the current world was created.

Now, what if you apply this to your product?
Whether it's a futon or a wallet, any product is fine.
Is there a vision for 'why' you sell it?
If not, it would be good to establish one.

Just because it's profitable is not enough.
What's important is whether there's a reason to sell.

For example, what if you're selling futons?
You want to thoroughly spread the true 'goodness of futons'.
That would be fine.
Many strategies and ideas should emerge.

What kind of impact do you want to have on the world?
It's good to think carefully about 'why' you do it.

As a result, it will go better than 'because it's profitable'.
Talking about your vision is one way to differentiate your products.

If there's no room for product strength, differentiate with service.

What should you do if you're not in a position to develop the product itself?
For example, when an agency sells.
When development and marketing departments are completely separate.
In the first place, what should you do if you can't modify the product?
Even if you're told 'product differentiation,' you'll probably wonder what to do.

In that case, you should look for areas where you can differentiate other than the product.

For example, how about perfecting the service?
Thoroughly implement product usage and support.
Smooth purchasing is possible.
Award points upon purchase.

Differentiation is possible even without modifying the product.
Let's thoroughly consider services during or after purchase.
You should find differentiation that makes users choose you.

Of course, relying solely on marketing may not always lead to a fundamental solution.
This is the case when other companies offer superior products or services in the same price range.
If the product is clearly inferior in its fundamental appeal, marketing can only deceive for a moment.
Gradually, the public will choose other companies based on product differences.
Unless the product is fundamentally differentiated, you will ultimately be forced into a tough battle.

There is the world's most successful startup incubator.
It is a venture capital firm called Y Combinator.
It is operated in Silicon Valley.

Here, there are three rules.

  • Thoroughly develop the product.
  • Listen to user feedback.
  • And then, moderate exercise, diet, and sleep.

Entrepreneurs are trained with the motto, "Do nothing else."
In any case, it is conveyed that the quality of products and services comes first.
First, the product's appeal is the minimum requirement, more so than marketing.

As a result, it has produced many world-famous services and products.
This is what the refined appeal of the product can achieve.

It is necessary to have 'product differentiation' that can confidently say it will never be beaten by others.
You should start by thinking about this difference.

Differentiate products by thoroughly listening to user feedback and incorporating it.

User feedback, customer feedback, can also be difficult for business owners to hear.
You must accept all kinds of complaints and dissatisfactions.

No matter how good a service is, complaints and dissatisfactions always exist.
Even if one person gives the highest rating, another might receive the lowest.

User voices are filled with content that is painful for business owners.
However, if you avoid these, the evolution of products and services will slow down.

As was mentioned in Y Combinator's teachings earlier.
Thoroughly listening to user feedback.
That is one of the most important factors for differentiating products.

Directly accepting and incorporating complaints and claims from users.
Fix what is bad and keep what is considered important.
It is a challenging task.

Nevertheless, it is only by fully engaging with users that progress can be made.
Value is created through the accumulation of improvements, becoming know-how.
Avoiding this will only slow down your company's growth.

Summary

What I have written this time is quite obvious when doing business.

Differentiating the product itself, as well as improving the quality of service.
From the perspective of those who drive business, these are very obvious facts.

However, its essence is neglected more than expected.
Many people try to avoid differentiation and rely on the power of marketing.

Certainly, there is a temporary effect.
It is possible to achieve certain results.

But, as I've said many times, they are nothing more than a temporary measure.

In the true sense, achieving continuous results is impossible.
Absolutely, differentiation that can be called 'unbeatable' is necessary.
Otherwise, sooner or later, you will be caught in a price war.

Currently, there are several industries that have no strategy other than lowering prices.
These are industries that could not create any new ideas or differentiation.

If you think thoroughly, you can find differentiation.
Indeed, let's think until our brains hurt.
Surely, a breakthrough other than price should be found.

Without overwhelming differentiation of products and services, continuous victory is difficult.
First, let's think about products and services and improve quality.
Find differentiation, and then comes marketing.
Only then can you make marketing 100% effective.

Please, create product differentiation and utilize marketing.
If we resolve issues from their core, step by step, increasing product sales is not a dream.

上山 翔太

WRITTEN BY

上山 翔太

2007年からWEBデザイナー / エンジニアとして活動を開始。2015年には、セブ島にて立ち上げた日本人対象のクリエイター育成スクールと運営していたメディアを売却。その後、アメリカで事業デザインを無理やり学ぶ。帰国後は起業家育成プログラムを立ち上げ、新規事業開発、起業家育成に従事するほか、マーケティング戦略策定、ウェブ開発技術を提供。「IT留学シェアハウス」や「起業教育・支援プラットフォーム」を開発、運営。その後、株式会社QUONを立ち上げ。WEB制作事業を軸として、クリエイターと起業家を産む村づくりプロジェクトなどをバリ島と日本を中心に推進。

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