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courtesy, reliability, responsiveness, communication skills and their trustworthiness all factor in the differentiation process. Part of IBM’s advertising campaign is to feature some members of a product team. The aim is to illustrate that IBM is staffed by highly competent and dedicated employees, which in turn puts a human face to an organization that has long been known only as Big Blue.
CHANNEL DIFFERENTIATION
Practising channel differentiation is another source of competitive advantage. Developing the expertise to manage a large distribution network efficiently requires considerable investment and expertise that is difficult to replicate. Firms that develop a competitive advantage through their channels to market translate into an expectation by the consumer that they can depend on the firm to have their products available wherever the consumer currently resides. Learjet, which makes business jets for executives, offers outstanding parts service in remote areas of the world, speeding the time of recovery on the rare occasion your jet breaks down – a problem we would like to have to worry about!
IMAGE DIFFERENTIATION
Firms that practice image differentiation distance their product from the competition by cultivating distinct identities for their brand. One way to craft a distinct identity is to create a symbol that represents the brand. The image of the self-confident, independent- minded Marlboro Man is heralded as the reason why Philip Morris’ Marlboro cigarettes were so successful. Developing catchy slogans, sponsoring public events also adds to image development. But a word of caution when it comes to image differentiation: fantasy can turn to a nightmare quickly. Just as the Marlboro Man was successful marketing the cigarette brand with his name, shortly after his death, due to lung cancer no less, Phillip Morris and other tobacco companies are paying billions to various levels of government because they failed to properly warn users about the risks of smoking.