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