Differentiate or Die
By Jack Trout
John Wiley & Sons, 2000 - 240 pages

The following excerpts have been taken from the excellent and insightful book entitled Differentiate or Die by Jack Trout and Steve Rivkin.  

I hope that the below comments illustrate the insights and facts that are presented in this book.  I believe that differentiation is a key element to long-term profitability.  This book can definitely help senior managers and marketing people look at business from a different perspective.  If you are a person that likes to observe life as it passes by this book may cause you to observe business / advertising from a unique perspective.  If you find this review helpful BUY THE BOOK because I can only include so much from the book without flat out being a plagiarist.  

After presenting the unique insights and facts from the book I answer the following questions:

• How does this book affect my career / overall life?

• Does this book affect my company?

• What did I learn from reading it?

It has been estimated that there are 1 million SKUs (standard stocking units) out there in America. An average supermarket has 40,000 SKUs. Now for the stunner.  An average family gets 80 to 85 percent of its needs from 150 SKUs. That means there’s a good chance we’ll ignore 39,850 items (99.9% of the items) in that store – page 3

There were 140 motor vehicle models available in the early 1970s.  There are 260 today. – page 3

The customer, in today’s age, has so many good alternatives that you pay dearly for your mistakes.  Your competitors get your business and you don’t get it back very easily.  Companies that don’t understand this will not survive.  (Now that’s cruel.) – page 7

The top 500 global companies now represent 70 percent of the world’s trade. – page 13

Technology enables competitors to tear apart, reverse engineer, and knock off product features even before you have the chance to establish your uniqueness. – page 20

In 1987 there were 14,254 new products introduced in the United States , according to the reporting firm of Market Intelligence Services LTD.  By 1998 that number had grown to 25,181 products.  To put that number into context, it means that 69 new products serviced every day of the year in the United States .  – page 20

“A landmark study published in Harvard Business Review argued that companies could improve profits by at least 25 percent just by reducing customer defections by 5 percent.  Whoa Nellie.  You could hear alarm bells going off in boardrooms across the land.” –page 29

The great myth of marketing in the 1990s was that “serving the customer” was the name of the game (I personally think this comment is PURE CRAP because I believe customer service levels across numerous industries went straight to hell in a handbasket.)

Research from Quality Institute International shows that:

• More than 40% of customers who claim to be satisfied switched suppliers without looking back.  (So many choices, so little time.)
• 89% of people who owned cars from a certain manufacturer said they were very satisfied, and 67% said they intended to purchase another car from that manufacturer.  Fewer than 20% actually did. - Page 33

“Operational effectiveness means you’re running the same race faster.” Porter says. “But strategy is choosing to run a different race because it’s the only one you’ve set yourself up to win.” – page 34 quoted from “The Return of Michael Porter,” Fortune (February 1, 1999): 135-137

David Ogilvy – “Any damn fool can put on a deal, but it takes a genius, faith and perseverance to create and implement a brand.” – page 51

Having a good differentiating idea is not enough.  You have to have the resources to build a communications program that proclaims your difference in the marketplace.  Marketing is a game fought in the mind of the prospect so companies with big wallets can get you into a customers mind and keep you there once you get there. You can’t overcommunicate your difference to consumers.  A real differentiating idea, that customers value, is a real motivational tool.  What makes your company different? – page 70

To put things into perspective lets look at some statistics:

• More information has been produced in the last 30 years than in the previous 5,000.

• The total of all printed knowledge doubles every four or five years.

• One weekday edition of the New York Times contains more information than the average person was likely to come across in a lifetime in seventeenth century England.

• The average white collar worker uses 70 kilograms of copy paper a year – twice the amount consumed ten years ago.

• More than 4,000 books are published around the world each day. – page 74

The more variations you attach to the brand, the more the mind loses focus. The specialist can focus on one product, one benefit, one message.  The specialist can also be perceived as the expert or the best. – page 81

The Harvard Business Review published a study on line extensions.  Their conclusion was that, amongst other things, line extensions weakened a brand’s image and disturbed trade relations.  – page 80

If you’re not a leader in your category then your word has to have a narrow focus.  Even more important, however, you word has to be available in your category.  No one else can have a lock on it. – page 96

The most effective attributes are simple and benefit oriented.  No matter how complicated the product, no matter how complicated the needs of the market, it’s always better to focus on one word or benefit rather than two or three or four, and to stay with it.  Some attributes are more important to consumers than others.  You must try to own the most important attribute. – page 97  

How does this book affect my career / overall life?

1. Being different and standing out from the crowd, for a good attribute, can help an individual in their career.  

2. The most effective attributes are simple and benefit oriented, as stated above.  Think about this on a personal level.  What attribute is simple and benefit oriented.  How about humor or dependable?  These are two attributes that employees/humanity has that everyone loves.  When you are having a down or slow day don't you like to talk to a humorous person or someone that will cheer you up.  At work, do you want to work with dependable people, flaky people or unreliable people?  Which one are you?  Honestly answer that question...Do you procrastinate or not?  Does procrastination then cause other problems in your job / life?  Think about it.....

Does this book affect my company?

1. Business is global now so the potential number of competitors is higher.  This makes differentiation even more important as corporate profits are exposed more now than ever to global competition.  This only increases the odds that competition will create havoc in an industry and potentially cause jobs to be lost when profits fall.  

2. If you aren't different then you are a commodity.  Once a company's product is a commodity price becomes the primary decision making tool, which kills profits.  Through being unique and having an attribute that customers value businesses can maintain long-term profitability.  Being different is a LONG-TERM PROPOSITION, NOT A SHORT-TERM DECISION.

What did I learn from reading it?

1. This book, in general, was chocked full of excellent insights on consumer behavior and marketing know how.  In addition, the book was very easy to read and caused me to see business from a different perspective.  

If you found this review helpful BUY THE BOOK!

Sincerely,

Dan Ross

P.S. As always, if you have any comments / feedback you can reach me at dan@betterbizbooks.com