Six Forces oI DiIIerentiation

To support this theory oI marketing momentum, Ricci and Volkmann surveyed 20,000 digital
customers, asking them a set oI IiIty-seven individual questions. Ultimately, using statistical
techniques, they distilled Irom these responses six distinct attributes, or forces of differentiation
that add up to success in the marketplace.
1. Relevance of value proposition - You must successIully segment the target market, and
then Iollow up with a Iocused solution to a customer problem.
2. cosystem potential - You must be able to encourage brand extensions through third-
party support and value-add innovations.
3. ategory leadership - Your company must position itselI as a thought leader Ior the
product category.
4. arket agility - You must keep the brand moving and manage transition points ahead oI
commoditization within the category.
5. anagement vision - You must maintain consistency between management ideas and
product strategies, and promote the CEO's thought leadership as a brand diIIerentiator.
6. rand integrity - Your company must demonstrate consistency with respect to value
systems and metrics Ior success -- as well as humility when things go wrong.
The authors discuss in detail the impact that these Iorces oI diIIerentiation have on purchasing
decisions Ior digital products. They propose a 2arketing dashboard that uses these six attributes
to measure and predict the value oI marketing initiatives, and to identiIy steps that a company
must take to become a 2o2entu2 brand. They also suggest using a 2o2entu2 index, a weighted
number based on the inIluence each oI the six Iorces oI diIIerentiation had on purchase intent.
This index can be used to identiIy actions that would help a brand gain momentum, while
allowing the company to maintain, manage, and market the brand to strengthen its competitive
position.
For their purposes, 2ass is "the ability to create 2arketplace value - for custo2ers, partners,
suppliers, e2ployees and investors." Speed is "those co2panies that consistently 2anage 2arket
disruptions, transitions and inflection points for co2petitive advantage." Direction is "the ability
of co2panies to anticipate and execute on the inherent 2arket opportunities that co2e fro2 the
i2pact of technology on 2arkets."
Mo2entu2 also describes and defines what the authors ter2 the "six forces of differentiation"
that help co2panies beco2e a do2inant choice a2ong digital custo2ers. They are. ecosyste2
potential, relevance of value proposition, category leadership, 2arket agility, 2anage2ent
vision and brand integrity.
The authors provide individual chapters on each of their for2ulas three ele2ents, using
exa2ples fro2 specific co2panies (as well as a series of co2parative charts) to illustrate their
theories. They also provide an infor2ative overview of the develop2ent of various 2arketing
techniques and phases over the past forty years.
The 2odels Ricci and Jolk2ann for2ulate are interesting, and they have i2portant things to say
about the continuing evolution of the digital age specifically with regard to consu2er behavior.
However, they have a tendency to get lost in 2arket-speak, which serves to dilute their i2portant
2essage.
..Too Much "Filler"
Although this model Ior understanding marketing Iactors that aIIect consumer buying behavior is
quite interesting, the authors have a tendency to digress into "Iiller" discussions. For example, in
introducing the concept oI momentum, they provide an unnecessary overview oI how various
marketing techniques and trends evolved over the past Iour decades. There is a similar digression
in the section on diIIering customer expectations Ior digital and nondigital products, and many oI
the case studies throughout are irrelevant.
My guess is that the authors really didn't have enough relevant material to Iill a book. In the
acknowledgments, they credit contributors who transIormed ideas and models Irom research
proposals and PowerPoint slides into content Ior the book. In my opinion, those slides, maybe
supplemented with a brieI research paper, would have suIIiced!
Another weakness is that the examples are out oI date. Most oI the companies the authors proIile
as market leaders, powerIul brands, or "unstoppable" market Iorces -- including Sun
Microsystems, EMC, AMD, and Nokia -- have actually lost a signiIicant portion oI their market
capitalization -- or signiIicant market share to competitors -- over the last two years. In general,
the model these authors propose is unlikely to stand the test oI time in the way that other classic
marketing models have. The "22 Immutable Laws oI Marketing" that Al Ries and Jack Trout
proposed, Ior example, still hold true aIter almost a decade! With the downturn in the economy,
the criteria Ior customer purchasing decisions about digital products are increasingly similar to
those Ior nondigital products -- cost, product Ieatures, and immediate value -- rather than the
Iactors this book identiIies.
These are serious Ilaws, and in the end the book disappoints. Once the authors Iinish discussing
each element oI momentum in detail, the book ends abruptly, with no real summary or suggested
action plan. II you have already done your taxes, you might want to skim through this book Ior
more advice on marketing. Otherwise, I recommend that you skip it, and spend your money on a
copy oI TurboTax!
fter 147.08
Build a Co2petitive Position
The authors provide many ideas to help managers and marketers measure a brand's momentum
against that oI its competitors, diagnose a company's strength and weaknesses, and develop an
action plan Ior building a competitive position. Their strategies encourage companies to add
digital Ieatures to traditional products and services by showing how others have done so and
proIited Irom their work. By applying these tactics, the authors explain, companies can rise to
industry dominance.
To round out their book with a closer look at the timely issues driving digital business, the
authors take a stab at describing what went wrong with Enron and the dot-com bust. They oIIer
this immutable wisdom: Trust is earned, and it is also demonstrated. They write that the
importance oI trust is even more apparent in the digital product model because customers who
upgrade over and over will remain loyal to the same brand iI the company is trusted by others, is
moving quickly enough to keep up, and can be trusted to solve customers' problems in the Iuture.
hy Soundview Likes This Book
By taking a close look at the interrelationships among product strategy, brand and a market's
value chain structure, as well as the importance oI digital technologies in these relationships, the
authors are able to combine many disparate concepts that are crucial to survival and weave them
into a coherent plan. Along with providing numerous examples oI companies that were able to
capitalize on creating and sustaining momentum, the authors also oIIer a clear vision oI what a
company must do to become an industry leader, and what others have done to lose that spot.
Copyright (c) 2003 Soundview Executive Book Summaries

%he word "momentum" is deIined as "the power to increase or develop at an ever-growing
pace." Mo2entu2. How Co2panies Beco2e Unstoppable Market Forces sets out to help
businesses in today's digital marketplace diIIerentiate themselves and continue to be dominant
players in their respective areas oI expertise.
Mo2entu2, written in an authoritative, iI somewhat dry, style was co-authored by Ron Ricci,
vice president oI corporate positioning at Cisco Systems, Inc., and John Volkmann, vice
president oI strategic communications at Advanced Micro Devices. Mo2entu2s Iindings are
based on an original market survey involving nearly 20,000 digital consumer and business
customers throughout the country, and more than 60 companies and brands, including Apple,
AT&T, Cisco, HP, IBM, Intel, Kodak, Lucent, MCI, MicrosoIt, Nokia, Sprint and Sun.
When viewed by customers, digital products are perceived diIIerently than others, Ricci and
Volkmann Iound. These products "are never Iinished" and "never stand alone" - and thereIore
when customers are making purchasing decisions, the sustainability oI the company behind the
product is the key Iactor in that decision. In other words, customers want to make sure that a
company in which they invest time and money will be around in the Iuture to help with any
problems that might be encountered.
"What market winners have in common |is| momentum," the authors state. "Momentum
instinctively Ielt like something a company, like any body in the universe, should have. It
captured the sense oI motion surrounding digital products."
Borrowing Irom the Iield oI physics -- which deIines momentum as "mass x velocity" -- Ricci
and Volkmann developed a Iormula to measure momentum with digital customers: "Momentum
mass x speed x direction."
For their purposes, mass is "the ability to create marketplace value - Ior customers, partners,
suppliers, employees and investors." Speed is "those companies that consistently manage market
disruptions, transitions and inIlection points Ior competitive advantage." Direction is "the ability
oI companies to anticipate and execute on the inherent market opportunities that come Irom the
impact oI technology on markets."
Mo2entu2 also describes and deIines what the authors term the "six Iorces oI diIIerentiation"
that help companies become a dominant choice among digital customers. They are: ecosystem
potential, relevance oI value proposition, category leadership, market agility, management vision
and brand integrity.
The authors provide individual chapters on each oI their Iormula's three elements, using
examples Irom speciIic companies (as well as a series oI comparative charts) to illustrate their
theories. They also provide an inIormative overview oI the development oI various marketing
techniques and phases over the past Iorty years.
The models Ricci and Volkmann Iormulate are interesting, and they have important things to say
about the continuing evolution oI the digital age speciIically with regard to consumer behavior.
However, they have a tendency to get lost in market-speak, which serves to dilute their important
message.
|ck|ng a |os|ng company cou|d mean gett|ng stuck w|th products that can't be upgraded or serv|ces
that can't be extended
Ricci and Volkmann introduce a ~momentum index that will enable senior management,
product marketers, and marketing communication strategists to:
- easure a brand`s momentum against that of its competitors
Diagnose a company`s strengths and weaknesses as a market contender
- Develop an action plan for sustaining or strengthening a competitive position
- pply momentum strategies to the digital features of traditional offerings
For anyone responsible for managing or communicating about a company and its brands,
this book shows how companies can ride momentum to industry supremacy.
ook Details
O omentum: How ompanies ecome Unstoppable arket Forces by Ron Ricci
(uthor), 1ohn Volkmann (uthor)
O Bookseller: Robert Pearson, Bookseller (US)
O Bookseller Inventory #: 006167
O Title: Momentum: How Companies Become Unstoppable Market Forces
O Author: Ron Ricci (Author), John Volkmann (Author)
O Binding: Hardcover
O ISBN 10: 157851522X
O ISBN 13: 9781578515226
O Publisher: Harvard Business School Press C2003
O Date published: November 2002
Book excrlptlon
Llke new book ln llke new dusL [ackeL Language Lngllsh lS8n10 137831322x lS8n13
9781378313226 number Cf ages 224 pages ubllsher Parvard 8uslness School r LdlLlon
uescrlpLlon lllusLraLed lormaL Pardcover ubllcaLlon uaLe nov 2002
by kon k|cc| and Iohn Vo|kman
Parvard 8uslness School ress 2002
lS8n 137831322x
Cover rlce uS$2493
192 ages

ISBN:
9781578515226
Author:
Ricci, Ron
Author:
Volkmann, John
Author:
Ricci, Ron
Publisher:
Harvard Business School Press
Location:
Boston
Subject:
Marketing - General
Subject:
Marketing
Subject:
Advertising & Promotion
Subject:
Strategic planning
Subject:
Brand name products
Subject:
Internet marketing
Subject:
Branding (Marketing)
Subject:
Business;Marketing
Edition Description:
Trade Cloth
Series Volume:
77-CD|
Publication Date:
20021031
Binding:
HARDCOVER
Language:
English
Illustrations:
Yes
Pages:
224
Dimensions:
8.5 x 5.9 in 13.2 oz