“Brand does not automatically differentiate a company from its competitors.” 

Differentiation based on image and reputation

Some businesses set themselves apart by their image either as part of another differentiation avenue or as a separate strategic path. Normally, image is created by other forms of differentiation such as high levels of service, superior product quality, or performance.

Image is controlled and managed by symbols used in communications, advertising, and all types of media — written, digital, and audio, as well as the atmosphere of the physical place where customers encounter the business. This is not limited to retail businesses only.

An image or reputation can be a daunting hurdle for potential new entrants. DuPont, for example, generally has a strong image as a technical powerhouse in almost all markets in which they participate. The company employs a large number of engineers, scientists, and product development experts. Their sales reps often have a strong technical education or background, and their products are positioned as being leading edge. Milliken and Company has a similar image. For the potential new start-up wishing to compete against such a juggernaut, often the only option is a type of guerilla warfare.

Brand does not automatically differentiate a company from its competitors. The brand has to stand for something, be recognized by the target audience, and communicate something unique and different from the competition. That takes a large marketing budget to pull off successfully. It is understood that it takes seven repetitions of any message to even be heard. Branding is much more than just creating a logo. It is the ongoing communication of your value proposition in a meaningful and effective way.

With a small marketing budget, the smartest, most effective strategy is to move away from a branding strategy and towards a customer-driven strategy. Pick a handful of customers that can drive the success of your business. That could be anywhere from 3 to 4 or 15 to 20, but it is not hundreds. Then focus all of your budget on these companies. Give them exactly what they want, and do it better than anyone else can. You will increase your share of their business, and they will become loyal advocates and promoters of your business.