Differentiate or Die - Jack Trout - E-Book

Differentiate or Die E-Book

Jack Trout

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Beschreibung

A newly revised and expanded edition of the revolutionary business classic, Differentiate or Die, Second Edition shows you how to differentiate your products, services, and business in order to dominate the competition. Veteran marketing guru Jack Trout uses real-world examples and his own unique insight to show you how to bind customers to your products for long-term success and loyalty. This edition includes new case studies, new research, and updated examples from around the world.

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Table of Contents
Title Page
Copyright Page
Dedication
PREFACE
CHAPTER 1 - The Tyranny of Choice
Fishing for Dinner
Going to Dinner
An Explosion of Choice
Choice in Healthcare
Choice in Consumer Electronics
Choice Is Spreading
The Law of Division
The “Choice Industry”
You Have to Be Careful
And It Will Only Get Worse
CHAPTER 2 - The Creeping Commoditization of Categories
Wishful Thinking versus Reality
The Hard Facts
CHAPTER 3 - Whatever Happened to the Unique Selling Proposition?
The Definition
The Argument Still Rages
Where’s Rosser Now That We Need Him?
Step 1 in Building Brands
How People Figure Things Out
You Can Differentiate Anything
CHAPTER 4 - Reinventing the Unique Selling Proposition
What Happened?
Is It Really “New?”
Is It Really Protected?
Analyzing Them to Death
It’s Not Impossible
Improve, Upgrade, and Innovate
Hot Chicken and Cool Music
Beyond Product and Benefit
Ted Levitt’s Warning
CHAPTER 5 - Quality and Customer Orientation Are Rarely Differentiating Ideas
The War on Quality
Who Wins with Quality?
The War for Customer Satisfaction
It Can Happen with Bicycles
Love Those Miles
The Rising Tide
The Myth
Satisfaction versus Commitment
Michael Porter Gets “On Board”
It Can Happen
CHAPTER 6 - Creativity Is Not a Differentiating Idea
The Creativity Trap
An Industry Debate
The “Creativity” Defense
The Ghost of Bill Bernbach
The Ghost of Mean Joe Greene
Sergio Gets Religion
Information, Not Ads
Difference, Not Slogans
CHAPTER 7 - Price Is Rarely a Differentiating Idea
The Case of Cheaper Carrots
Building a Price Advantage
The Wal-Mart Success
Dell’s Approach
Charles Schwab’s Approach
Getting around Price
Some Words about Promotions
David Ogilvy on Price
Getting Hammered in Russia
The Travails of Sports Retailing
The Ultimate Price: Free
Differentiating with High Price
CHAPTER 8 - Breadth of Line Is a Difficult Way to Differentiate
Category Killers
Enter the Discounters
How Big Is Too Big?
Becoming More Shopper Friendly
Wal-Mart Junior
Breadth of Line on the Web
If the Shoe Fits, You Can Sell It Online
Cybersqueeze
A Digital Gold Rush?
What’s Really Needed
An Important Lesson
CHAPTER 9 - The Steps to Differentiation
The Power of Logic
Creativity versus Logic
Some Words about Resources
Advertising Is Expensive
It Helps to Be Rich
Iron Computer Melts Down
CHAPTER 10 - Differentiation Takes Place in the Mind
Minds Can’t Cope
Electronic Bombardment
Minds Are Limited
Minds Hate Confusion
The Power of Simplicity
Minds Are Insecure
Buying What Others Buy
Minds Don’t Change
Minds Can Lose Focus
Some Surprising Research
The Power of the Specialist
CHAPTER 11 - Being First Is a Differentiating Idea
Firsts That Are Still Firsts
So It Is in Families
Why Firsts Stay Firsts
When Seconds Die
The Generic Advantage
Now the Bad News
Still More Bad News
Needed: A Good Idea
One More Sad Tale
A “First” Ignored
A Healthy First
A Merger Tale
A Do-Good First
A Borrowed First
CHAPTER 12 - Attribute Ownership Is a Way to Differentiate
Owning an Attribute
Focus Is the Key
Attributes Are Not Created Equal
Attributes in Automobiles
No Attribute Uncovered
Attributes in Credit Cards
Attributes in Retailing
Attributes in Fast Food
Attributes in Water
The Use of “Negative” Attributes
Bloodless in New Jersey
Smaller in New York
Bigger in Massachusetts
Simple in Massachusetts
Is “Being Green” a Difference?
CHAPTER 13 - Leadership Is a Way to Differentiate
Leadership Psychology
Owning a Category
Don’t Be Afraid to Brag
Our Kind of Leader
Different Forms of Leadership
Leadership Is a Platform
The Strength of Leadership
The Leading Lollipop?
CHAPTER 14 - Heritage Is a Differentiating Idea
The Psychology of Heritage
A Substitute for Leadership
Bringing Heritage Forward
Heritage in Politics and Law
Doubling Back on Heritage
DDB Tries to Double Back
Updating Heritage
Locational Heritage
Family Heritage
A Heritage Landmark
The Character
CHAPTER 15 - Market Specialty Is a Differentiating Idea
A Lesson Learned
Big Names Are Weak
The Same Goes for Retail
The Specialist Has Weapons
Becoming the Expert
A Publisher’s Dream
Becoming Generic
Now the Bad News
Beware of the CEO’s Hobby
Tell It Like It Is
Too Many Specialists
CHAPTER 16 - Preference Is a Differentiating Idea
Following the Herd
Social Proof
The Rain in Britain
The Beer in Chile
No Preference Overlooked
A Questionable Preference
A Legitimate Preference
Getting the Nod from J.D. Power
An Ethical Preference
Preference in Sneakers
The Spirit of Emulation
The Importance of “Fit”
China Loves Heroes
China Loves Cognac
An Exercise in Hotel Preference
CHAPTER 17 - How a Product Is Made Can Be a Differentiating Idea
The Magic Ingredient
High-Tech Ingredients
Dramatize the Difference
Product Innovation
System Innovation
Making It the Right Way
A Better-Made Pizza
Making It Square
Making It the Old-Fashioned Way
Giving Up the Old Way
Charge a Little More
Handmade in Malaysia
Environments That Help Heal
Caskets That Are Different
Crackers That Are Different
CHAPTER 18 - Being the Latest Can Be a Differentiating Idea
Making Yourself Obsolete
A Ski Boot Saga
The Battle over Acid Stomachs
Break with the Past
Add Another Technology
Take Advantage of History
The Latest Doesn’t Always Work
The Latest Can Sneak Up on You
What’s Next Should Be Different
CHAPTER 19 - Hotness Is a Way to Differentiate
Afraid to Boast
Corbett Canyon: A Case in Point
Hot Chicken
Many Ways to Be Hot
Every Way to Be Hot
The Press Can Make You Hot
The Press Can Cool You Down
How iPhone Got Hot
Publicizing a Problem You’re Solving
CHAPTER 20 - Growth Can Destroy Differentiation
Problem 1: Distraction
Problem 2: Line Extension
ESPN everything?
Damaging Your Difference
Wall Street Rebels
Less Can Be More
Growth via Multiple Brands
A Spanish Multibrand Story
A Korean Disaster
CHAPTER 21 - Differentiation Often Requires Sacrifice
More Is Less
What Do Cowboys Smoke?
The Basic Problem
What’s a Porsche?
Convergence: The Latest “More”
Different Kinds of Sacrifice
CHAPTER 22 - Being Different in Different Places
Play It Where It Lies
The Finnish Coffee Caper
The Universals
A Global Pioneer Finds There Are Limits
Hold the Beef, Please
Beer That Travels
Different in India
Some Rules for the Road
One for All?
CHAPTER 23 - Maintaining Your Difference
Remember Your Difference
The Sears Story
Stay Contrary
A Contrary Move in Jet Engines
Be Consistent
Making the Tough Calls
Consistency in Operation
Stay Connected
Evolve Your Difference
Don’t Just Sit There
An Irish Legend
Evolving versus Tinkering
CHAPTER 24 - Differentiation in the New World of Buzz
It’s Not so New
Now the Bad News
Now for Really Bad News
An Enlightening Interview
Buzz Is Only Another Tool
Some Real World Research
The Ultimate Example
CHAPTER 25 - You Can Differentiate Anything
Study the Trends
Shift the Battlefield
America Dislikes Losers
Making Over America’s Image
Differentiating the Democrats
CHAPTER 26 - Who Is in Charge of Differentiation?
Why CEOs Fail
Missing the Point
What Really Went Wrong?
Why CEOs Must Be Involved
“I’m in Charge”
One That Went Right
The Best Do Their Own
A Success from Finland
A Successful Lady’s View
EPILOGUE
NOTES
Index
Copyright © 2000, 2008 by Jack Trout. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.
Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.wiley.com.
Library of Congress Cataloging-in-Publication Data:
Trout, Jack.
Includes bibliographical references and index.
ISBN 978-0-470-22339-0 (cloth)
1. Advertising—Brand name products. 2. Brand name products. 3. Competition. I. Rivkin, Steve, 1947- II. Title.
HF5415.T727 2008
658.8—dc22
2007052393
To Rosser Reeves, the man who made the “unique selling proposition” famous. He was truly a man ahead of his time. Little did any of us realize just how competitive the world would become.
PREFACE
For what seems like several lifetimes, my partners and I have been preaching the importance of being different:
• In Positioning, being different meant differentiating yourself in the mind of your prospect.
• In Marketing Warfare, being different meant using a differentiating idea to defend, attack, flank, or become a guerrilla.
• In the 22 Immutable Laws of Marketing, being different meant using a differentiating idea to build a brand.
• In the Power of Simplicity, being different meant using a strategy that was all about differentiation.
Being different is at the heart of everything we’ve done for over 30 years.
You might assume that by now the message has been delivered. Everyone is busy building “differentiation” into their plans. And no one would leave home without his or her differentiating idea. Right?
Wrong.
What we tend to see are two types of organizations. One type still doesn’t get it. They’re out there doing battle with “higher quality” or “good value” or good old “better products.” They feel that they are better than their competitors and that truth will prevail.
They surround themselves with gurus who talk about quality, empowerment, customer orientation, and various forms of leadership.
Unfortunately, all of their competitors are surrounded by the same cast of “you-can-get-better” gurus. Nothing different.
The other type of organization understands the need to be different. But after some prodding, they will admit that they just don’t know how to do it. Their excuse: Our product or salesforce just isn’t that much different from our competitors.
They tend to get sucked in by the motivation crowd that promises peak performance, a winning attitude, and effective habits. Unfortunately, the same cast of characters is hanging around and motivating their competitors. Nothing different.
They don’t get much help from the big-name academics. Harvard’s Michael Porter, for example, does talk about the need for a unique position, but he never offers much help on how to be unique. Instead, he talks about strategic continuity, deepening strategic position, and minimizing trade-offs. Nothing different.
Their advertising agencies aren’t much better. They talk about bonding, likability, breakthroughs, and cool. To them it’s all about being artful, not scientific. Nothing different.
This book is about changing all that. It outlines the many ways you can be different while avoiding the lure of those things that sound different but really aren’t.
With this information in hand, you should be in a better position to thrive in a very unforgiving and competitive world. It’s a book, if you’ll pardon the pun, that can make a difference in your business.
JACK TROUT

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