Points of Parity and Points of Difference

Once a marketer has defined the target market and the type of competition, it’s imperative for the marketer to define the basis of this positioning. This can be done by the defining the Points of Parity and Points of Difference.

Points of Parity (POP) are usually the attributes or functionalities or benefits or any other marketing mix elements that are not unique to the brand and might be shared by some or all the competitors, as they mostly include the basic necessities for a brand to be considered in a particular category.

There are two types of Points of Parity:

i)           Category Points of Parity: These represent the necessary elements that a brand should possess for a consumer to consider it in a particular category. In other words, these elements ensure that a consumer considers your brand too while considering your competitors.

ii)          Competitive Points of Parity: Once your brand provides the basic elements required by the category, the next step is to add elements which would negate the competitors’ points of difference. It gives a brand a good competitive positioning if it can provide similar or better elements as compared to its competitor’ POD. 

Once a brand has established its Points of Parity, to be considered in a specific category and negated its competitors’ advantage, the next step is to develop and highlight its own advantage in the category.

Points of Difference (POD) are usually the attributes or functionalities or benefits or any other marketing mix elements that a consumer strongly associates with a brand, which he/she feels is not offered by and of the competitors. To define in short, Points-of-difference are relatively distinct aspects of a brand, as compared to its competitors.

Unique Selling Proposition (USP)

Basically Unique Selling Proposition is the distinctive unique product benefit, not offered by any competitor. Hence, Unique Selling Proposition and Points of Difference invariably talk about the same thing.  Quite often you’ll notice these two terms being interchangeably used. In the 1950s, the Rosser Reeve and Ted Bates advertising agency emphasized that, what was said in an ad was more important than how it was said. Thus it became more important for ads to highlight the unique difference rather than be the most creative.

Many a times a brand needs to decide which has to be given more emphasis, Points of Parity or Points of Difference. Below are various circumstances:

1.       Brand is a market leader – In this case, the brand needs to highlight the superior and key differences, thus the brand needs to focus on its Points of Differences.

2.     Brand as a “me-too” or  a follower brand – In this case, the brand needs to piggy-back on the market leader, hence the brand needs to highlight the points of parity  with the market leader.

3.       Brand entering an established and mature market – In this case, since the consumer switching would be low due to customer loyalty, hence the brand needs to highlight the points of difference.

4.       In a target market where the brand offers multiple products – In this case, the brand should emphasize on the Points of Difference of all the products in order to avoid the cannibalization.

5.       In a price sensitive market – In this case, the brand needs to provide additional benefits to the customers, so that customers feels he’s getting more value for his money. Thus emphasis should be on Points-of-difference.

In Summary, Points of Parity is what gives a brand a competitive positioning in a category, while it’s the Points of Difference which gives a brand a competitive advantage over the competitors in that category.