How to Achieve Competitive Advantage?

The number of brands offering similar products and services is increasing day by day; from toothpastes with the same qualities to automobiles with similar technical specifications, we encounter many sectors that manage to produce substitutes for each other.

While this multiplicity of choice is at worst indecisive for the consumer, it creates a very challenging situation for both advertisers and marketers. Creating competitive advantage is challenging especially for the teams working with brands that aim to "get differentiated" in the market and think that this is possible only through marketing or communicative moves.

Because it is very difficult to create a competitive advantage and to maintain this advantage. In today's world of technology and communication, no brand has a unique selling proposition that can be a monopoly. Their originality is blocked by innovations developed by other brands, non-stop innovation efforts, campaigns that start with the same promises at similar times.

To overcome the barriers to gaining competitive advantage, marketers usually devise two methods; the first is to change the nature of the product and the form of the service provided, through continuous innovation. Competitor brands also continue to innovate and may follow a more aggressive plan by positioning themselves according to their competitors. Therefore, contrary to popular belief, even a sustained innovation plan is not enough to ensure competitive advantage.

When competition is intense and the conditions for innovation are equal, differentiation through positioning strategies is recommended. Gaining a different position in the minds of consumers, achieving a distinct place in their perception and thus being preferred is seen as the greatest success that can be achieved for different brands offering the same products. This approach seems an ideal way for success of communicators and marketers. Although it was possible to differentiate with positioning in the reasonable market conditions of the past years, unfortunately this is no longer realistic. But this does not mean that positioning strategies are dysfunctional. A positioning strategy based on insights is essential for brands that want to pursue a successful, targeted communication strategy. While positioning strategy can inspire good marketing tactics, it alone is not enough to differentiate a brand. The reason can be found in consumer behavior, which holds the answer to everything.

Assume that you are working for a water brand; you are in a sector where competition is intense and differentiation is almost impossible and very costly. It won't be long before you realize that you will fall short when it comes to innovation or positioning strategy. Because in their daily routine, no consumer buys water because it is in a different position in their minds or because your innovative work in water does not affect your preferability.

So what to do if innovation and positioning are not enough to gain competitive advantage?

The solution, of course, is to think strategically again. If competitive advantage is to be achieved, the first focus should be on consumer behavior and routines. A good starting point would be to ask why a consumer prefers one of two brands that are equal in terms of competition, have the same quality, the same price and meet the same needs. The answer to the question is usually the marketing mix. In other words, brands for which promotion activities are carried out, which succeed in gaining a place in the minds of consumers, which are remembered and distributed well, win at the end of the day. Brands with a good distribution channel and familiarity with the consumer can achieve competitive advantage through purchase rates.