EXPLOIT THE INVERSE RELATIONSHIP BETWEEN DIFFERENTIATION AND COST – 3 OBSERVATIONS In a previous article, I articulated a definition of strategy offered by Michael Porter, possibly the world’s leading authority on strategic planning. Porter defined strategy thus: ‘Performing different activities from rivals, or performing similar activities in different ways’. I like this definition because it […]

EXPLOIT THE INVERSE RELATIONSHIP BETWEEN DIFFERENTIATION AND COST – 3 OBSERVATIONS In a previous article, I articulated a definition of strategy offered by Michael Porter, possibly the world’s leading authority on strategic planning. Porter defined strategy thus: ‘Performing different activities from rivals, or performing similar activities in different ways’. I like this definition because it highlights the importance of ‘differentiation’ – a critical issue, all too often overlooked, avoided or deliberately ignored by businesses when developing marketing strategy. Further, not only is differentiation critical, but it is absolutely central to reducing the cost of marketing and/or maximising the return on investment in marketing. Differentiation is often overlooked by marketers or business people who do not understand its importance. Only last week, when I asked a client why a member of the target market should buy their product, I received the answer – ‘service and quality’ – both factors that all…