Feb 202015
 

What is meant by Points-of-difference (POD)?

The aspects of the product offering that are relatively distinct to the offerings of like competitors.

What is meant by Points-of-parity (POP)?

The aspects of the product offering that are largely similar to the offerings of like competitors.

Should a brand emphasize POD or POP?

Emphasize POD when…

  • The firm is the a market leader
  • The firm enters an established and mature market
  • There is a diversity of consumer needs
  • Competing in a target market where the firm already offers multiple products
  • Operating in a relatively price sensitive market

Emphasize POP when…

  • The firm is a ‘me-too’ competitor
  • The firm is in a fast-growing market

What is under and over-positioning?

A firm that has under-positioned a product has failed to communicate a clear positioning.

Over-positioning is where the firm has over-emphasized aspects of the product and the market has a narrow perception of the product

Points-of-difference (POD) and points-of-parity (POP) example

  • A chain of fast food outlets competing against McDonald’s
  • Points-of-parity include a similar menu choice, similar in-store dining facilities, and pricing
  • Two points-of-difference are built around high-quality ingredients and having more flexibility in the menu for the individual
  • The overall combination of POP and POD creates their overall positioning