Brand Distinction vs. Brand Differentiation: A Rallying Call for Effective Brand Naming and Identity Design.

In the world of branding (my world), we often discuss the difference between brand differentiation and brand distinctiveness. It’s easy to confuse the two terms, and this isn’t a question many people outside my industry ponder. However, when rebranding your company or launching a new brand, you’ll naturally look at the competition and ask, “How are we different?” And rightly so! Yet, there’s a distinction between these words.

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Brand Differentiation

Brand differentiation focuses on the features, attributes, or benefits of a product or service that make it stand out in the marketplace.

Let’s explore some Business-to-Consumer (B2C) examples of brand differentiation:

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• An electric car brand develops a battery that provides 50% more miles per charge than competitors’ electric car brands.

• A television boasts the latest OLED technology, the highest definition, and the brightest screen.

• A wristwatch manufacturer creates technology that allows their products to work flawlessly at extremely high altitudes.

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All these examples highlight features or benefits of the products.

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Brand Distinctiveness

Brand distinctiveness, on the other hand, is about how effectively your brand stands out from the competition through its brand assets (such as its name, logo, and tagline) and how easily it can be recalled by your audience.

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Examples of brands with distinctive brand assets include:

• McDonald’s with its ubiquitous golden arches and slogan “I’m loving it.”

• Nike with its Swoosh logo and slogan “Just Do It.”

• Mailchimp’s fun and approachable name and illustrated brand identity.

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Brand distinctiveness, on the other hand, is about how effectively your brand stands out from the competition through its brand assets (such as its name, logo, and tagline) and how easily it can be recalled by your audience.

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The Importance of both

Is it important to have both brand differentiation and brand distinctiveness? According to the book How Brands Grow by Byron Sharp & Jenny Romaniuk (2008), it’s not as crucial as you might think. Consumers often base their buying decisions on brand distinctiveness, which leads to brand salience, meaning the brand is easily recalled. (More on this later.) Sharp points out, quite rightly, that branding (distinctiveness) endures, whereas differentiation doesn’t. In Chapter Eight, the book states: "Rather than striving for meaningful, perceived differentiation, marketers should seek meaningless distinctiveness. Branding lasts, differentiation doesn’t".

Considering the differentiation of features and benefits in the examples of technology mentioned earlier, we can agree that technological advancements in electronics like televisions and mobile phones are constantly evolving and improving. In electronics, ‘setting the bar’ is a fleeting unique selling point until the competition catches up. Technologies converge, the ‘wow’ factor of technological benefits loses its uniqueness, and over time, it is hard to maintain differentiation and stay ahead in the long term. What was cutting-edge five years ago is now standard or even subpar.

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The chapter argues that while differentiation exists, brands, even in similar categories, do not compete as perfect substitutes. Differentiation can and does play a role, and the idea that similar brands are identical is logically untrue.

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An example of how differentiation can influence buying decisions is situational differentiation:

• I know where this toy shop is.

• This shop stocks my size.

• This is the only product in this color.

• This is the product I noticed.

• This is the product that comes to mind.

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However, the book questions whether there is differentiation at the brand level (beyond just features and benefits) and notes that consumer behaviors and traits among buyers of comparable brands are similar (e.g., those who buy an expensive cologne of one kind may likely buy an expensive cologne of another kind).

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Perceived Differentiation

So how do buyers make purchasing decisions when considering branded options?

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First, let’s set aside price differentiation, which is considered a category differentiator. Buyers usually know the price category they want to purchase in, making it unlikely they’ll compare a premium £10,000 Bang & Olufsen TV with a £350 LG television. It stands to reason that the Bang & Olufsen brand targets a different consumer profile with different demographics.

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Within a similar price category, is there another reason for consumers to buy beyond just the features and benefits?

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The book notes two points:

1. Brand Loyalty Despite Minimal Perceived Differences: Buyers display brand loyalty even if they perceive little differentiation between their favored brand and a rival brand. For example, you might prefer K Swiss over Adidas but are unsure why; you just like the K Swiss brand more.

2. Similarity in Perceived Differentiation: A brand’s perceived differentiation level is similar to its rivals. The Ehrenberg-Bass Institute surveyed soft drink buyers and found that, on average, only 9% of respondents felt their preferred soft drink was different from its rivals.

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In conclusion, consumers often show brand loyalty to some brands over others without necessarily understanding the differences between them.

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What Drives Consumers Towards a Brand?

The book suggests that if brand differentiation isn’t as important to consumers as once thought, purchasing decisions might hinge on brand salience (the awareness of the brand in buyers’ minds) developed through brand distinction.

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Understanding Brand Salience

Brand salience refers to how easily and quickly a brand comes to mind when a consumer is in a buying situation. It’s about being top-of-mind, ensuring that when someone thinks of a product category, your brand is the first they recall. This is not merely about being known but about being known at the right moments. The higher the brand salience, the more likely a consumer will choose your brand over others.

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So, how do we create brand salience? It’s all about repeat exposure to distinctive brand assets. Every time consumers see your logo, hear your slogan, or engage with your advertising, it reinforces their memory of your brand. The key is consistency and frequency.

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Consider the power of McDonald’s golden arches or Nike’s swoosh. These symbols are more than logos; they are triggers that spark recognition and recall. Consistent and repeated exposure to these elements across various touchpoints – from TV commercials to social media ads, and even product packaging – embeds these brands in consumers’ minds.

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Building Brand Salience

1. Consistent Messaging: Ensure your brand’s message and visuals are consistent across all platforms. This reinforces the brand’s identity and makes it more memorable.

2. Frequent Exposure: Regular exposure through advertising, sponsorships, and promotions keeps your brand visible. The more often consumers see your brand, the more likely they are to remember it.

3. Emotional Connections: Create campaigns that resonate emotionally with your audience. Emotional engagement fosters stronger memories and associations with your brand.

4. Distinctive Assets: Utilize unique brand elements like logos, colors, and taglines that are easily recognizable and can be consistently applied across all marketing materials.

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By maintaining consistency in your brand’s assets and ensuring they are frequently encountered by your audience, you effectively build brand salience. This makes it easier for consumers to recall your brand when they are ready to make a purchase, giving you a distinct advantage in the competitive marketplace. Brands must stand out, and the role of brand identity is to identify the product or service’s source. A distinctive brand element is its name, and another is its logo, both of which should be unique, protected, and used to identify the brand. Other elements include colors, straplines, mascots, and advertising campaigns.

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From my previous research at my brand agency Prosper, I know that 80% of the top 500 accounting firms in the US are named after founders, and the most popular color scheme for accountants in the UK and the US is grey and blue. This shocking absence of brand distinctiveness leads to mediocre branding and a lack of distinction for firms. These findings informed our decisions when naming and branding Canadian CPA firm Numerity and US-based CPA firm Kinline.

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The point of branding is to help consumers identify the brand. If your features and benefits are similar to the competition’s, you face the even more important task of creating brand salience through distinctive assets such as your name, tone of voice, logo, and colors. As Sharpe points out, "Distinctiveness reduces the need to think, scour, and search, thus making it easier for consumers without them even realizing it".

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The point of branding is to help consumers identify the brand. If your features and benefits are similar to the competition’s, you face the even more important task of creating brand salience through distinctive assets such as your name, tone of voice, logo, and colors.

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What Makes a Distinctive Brand Asset?

Sharp and Romaniuk argue that two criteria define distinctive brand assets: uniqueness and prevalence. As a brand identity designer, I strive to create unique brand assets, such as logos and names, by taking a branding brief and conducting a brand strategy workshop.

Brand asset prevalence is something earned over time as more people associate your brand assets with your name. Logos like the Nike swoosh and the McDonald’s M have enough prevalence to substitute for a brand name, but this takes time and consistent application. The more unique these assets are, applied with consistency, the quicker this will happen in consumers’ minds.

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Book a Discovery call

If you're considering starting a business, or you're charged with rebranding one, then creating a solid brand strategy to base your brand identity on a a vital first step. Book a free fifteen minute discovery call with me to discuss your brand ambitions and answer any questions you have about your brand.

We can chat about things like:

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‍How to develop your business's positioning statement.
Important questions to ask when formulating a brand strategy.
How to shortlist your business name ideas.
How and when to choose a domain name.
The Do's and Don'ts when designing a brand identity.

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