2Bobs—with David C. Baker and Blair Enns The Waterfall of Differentiation
Jun 4, 2025
Creative firms often struggle with differentiation, failing to answer key questions in the right order. The discussion highlights the vital role of clear categorization and specialization in reducing competition. Listeners learn how effective positioning can enhance client perceptions and pricing power. Real industry examples showcase the challenges of creating a unique value proposition. Finally, the conversation encourages a fresh perspective on firm size and its influence on agency selection in a crowded market.
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Differentiation Defined by Client Perception
- Differentiation means eliminating interchangeability in the client's eyes.
- The longer a client takes to find a substitute, the more differentiated you are.
Category Then Specialization
- Define your category by an established market label, not by invention.
- Narrow your focus with a specialization, either vertical or horizontal, to reduce competition.
Courage is Key to Specialization
- Positioning requires courage to say no and narrow focus, especially when business pressures demand it.
- Lack of courage often masks as lack of information in making this decision.