It is important for any business entity to separate and distinct itself from many other products out there in the market. This can be done in two ways:
- PoP – Point of Parity: the similarities the products share, eg.type of goods/ service being offered
- PoD – Point of Difference: the differenciation of the product to other similar products, eg. size,colour, packaging, logo, promotion
PoD and PoP are what determines value proposition. Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation.