Differentiation: Key to business success – a Case of Bank PHB
differentiation: the key to business success – a case study of Bank PHB
This week, I decided to us the concept of differentiation to discuss, because of its strategic importance to the success of the businesses. Differentiation comes in different shades – one from a corporate point of view or perspective of the product, services, processes or even pricing behavior and attitudes
If you
these days in Nigeria, there appears to be a plethora of me ‘products, promotion and pricing strategy, especially with the use of advertising. Sometimes the moment the soundtrack of a certain brand on TV started immediately reminds one of the soundtrack of another brand. Our people seem not to bother, it offends the sensibilities of a viewer or listener a trademark in another brand experience to get involved. Most of them realize not do that with the advent of DSTV / HiTV, the Internet and extensive travel around the world, Nigerians are much more exposed to international media now more than ever, so that if a brand copies’ another brand’s promotional strategy abroad, it will be easily noticed, even here in Nigeria. Repeating other people’s advertising platform, whether in the form of a creative strategy, or even run, a lot of people off the product.
your company or your brand in order to continue to get people that you and your brand to admire, you have to be different. People just love a company or a brand to see, do or say something good in a unique and interesting way. It appeals to the spirit and soul to experience new things. That’s why I think the Bank PHB “One day cars will run on water” is a classic. The concept is philosophical and futuristic.
Philosophical
because it questioned the existing standard, the existing value. It challenges our current world view and our current logic of existentiality. It extended the boundaries of thought. This creates the vessel and the possibility of extending the idea of ​​the vast landscape of life to appreciate as a construction of infinite possibilities. It is futuristic because it offers tomorrow to the people of today, substitutes “belonging” to “What is.” That ad is a typification of the fertile mind could be: expansive and elastic. To be different, you have the spirit to expand. That’s why sometimes you hear people say “dare to be different.” It takes courage, guts and a big heart, let alone dare to dare to be different. Again, I give to the Bank PHB
Well, talk about the differentiation from a technical standpoint, this means that differential advantage. It is one or more unique aspect of an organization that cause target consumers that firm rather than promote competition. In another way, differential competitive advantage is achieved when a company offers something unique and valuable beyond a lower price than the competition offers buyers
one way or another, most companies do not mind their eye to expand when they think of a unique value proposition an edge over the competition creates. This is why they simply fall into the easy trap of using lower pricing mechanics, or the market penetration of their market share to maintain the place of business. Meanwhile, there are so many ways to distinguish yourself in the market. Some argued that it is very difficult for a commodity, product or highly industrial goods and services.
to distinguish
I’ve always thought that there is a canvas of opportunities – product, process, delivery index, and all promotions – available for the various businesses to exploit as a creative way to distinguish themselves from the competition . As Theodore Levitt, an Edward Carter professor of business administration at Harvard Business School would say, “there is no such thing as a commodity. All goods and services are differentiable. In the market, differentiation is everywhere. Everyone – the producer, fabricator, seller, broker, agent and all tried continually offering distinguished from all others. This is true even of those who produce and trade in primary metals, grain, chemicals, plastic and money.
For me, the use of the prize to distinguish is not really strategic. What if the competition decides the price game with you? Anyone can do it. It is not creative, it makes your mind task. Most times, it is better – other than the use of the product – access to quality service and customer intimacy a differentiation strategy to craft. In the financial market, where service is key, a marketer must sell to get more demanding in terms of praise of their implementation – the efficiency of their transactions on behalf of their clients, their responsiveness to inquiries, clarity and speed of their confirmations and the like. This means that the offered product is differentiated, but the generic product is identical
example, the banks started offering education loans to their customers. Let me say here that it is a product in demand in Nigeria are many. Two banks that offer this service that can easily come close but: Oceanic Bank and Bank PHB. Now, you can see, the “loan” is the product. In all the actual loan is generic, because in the real sense, a bank may decide today to start offering education loans to its customers. So the loan is a commodity.
However, protection for the product to get, it goes beyond just the loan, but the service portfolio in the cause of providing the loan will go a long way to determine whether the client or Oceanic Bank PHB will patronize. Again, the convenience of reviewing the loan repayment, the processes and the kind of attention given to prospective applicants for the loan is very important. But above all, the overall perception of the corporate organization in the spirit of the applicant is a big motivator for the applicant because it is what helps the applicant make the decision in the first place, or to go to the bank A or B or even not at all bothered, to gain access to the loan
all it must be emphasized that companies must issue a lot of differentiation to take seriously, because when the chips are down, which is what really counts. Organisations must also try and ensure that their product differentiation ties with the overall corporate differentiation with the aim of achieving the overall company goal. Differentiation should not be a “Me too” thing. It must be the company’s vision and core values ​​flow
Desmond Ekeh is the CEO of Synthesis Communications, a Nigerian based strategic public relations company and the editor of Brandigest, an integrated marketing communications publication cerebral information industry managers support decision making and to help the public understand events in the industry in Nigeria and around the world.
Article
Tags: bank, Business, Case, Differentiation, success
Posted in Harvard Business | No Comments »