Any company that wants to succeed and increase its market share should be aware of its point of difference (POD) and point of parity (POP) as they impact the functioning of organisations and their outcomes. There are also some weak and strong aspects associated with these two phenomena that should be considered when trying to plan the work of a firm and become more appreciated by clients.
The company trying to increase its market share should realise that POD includes all attributes and qualities appreciated by clients and associated with the brand. It means that the main criteria for this factor are desirable, deliverable, and differentiating. In other words, a brand should create a unique product that will become attractive to the audience and serve as the main differentiating factor for clients to consider when making their final decision. POD is crucial for companies regarding the severe rivalry peculiar to the business world and the need to compete with similar companies that also try to attract the target audience’s attention.
At the same time, as for POP, this concept presupposes elements that are not unique and can be associated with other brands working in the same segment. It is needed to improve communication with the audience, simplify the recognition of the brand and its belonging to a particular market segment. The existence of similar features between multiple companies is one of the integral parts of the modern world, which also means that companies have to cooperate to form a recognisable image of the whole industry and create positive associations. At the same time, the employment of both POP and POD is critical for a brand operating in a certain segment.
There are several examples of how POP and POD work in companies. For instance, any modern brand that creates and sells mobile phones tries to attain a competitive advantage by offering a specific, unique product that differs from other smartphones present in the market. The combination of unusual characteristics, features, and attributes serves as the firm’s POD and helps to make the brand recognisable for clients. At the same time, it still operates in terms of a particular industry, which constitutes the POP of the company. Seeing its name, the client starts to think about smartphones in general, which is vital for decision-making and sales.
One of the main strengths of POD is that it makes the brand more accessible and establishes effective positioning by offering unique and high-quality services and goods. At the same time, it might demand high investment and increase the final price customers have to pay to buy a particular item. On another hand, POP remains a less effective strategy because of the absence of the need for the creation of specific associations; however, it is also weak in differentiating the brand from other companies operating in the same space.
In such a way, both POP and POD are critically important for the work of the modern company and its positioning.