In marketing, product differentiation (also known simply as "differentiation") is the process of distinguishing a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own product offerings. any differentiation must be valued by buyers.
The objective of differentiation is to develop a position that potential customers see as unique.
. A successful product differentiation strategy will move your product from competing based primarily on price to competing on non-price factors (such as product characteristics, distribution strategy, or promotional variables).
development or incorporation of attributes (such as benefits, price, quality, styling, service, etc.) that A product's intended customers perceive to be different and desirable. Advertising and promotion of a product is based on its differentiating characteristics.
Product differentiation – Establishing clear distinction between products serving the same market segment. This is typically accomplished through effective positioning, packaging, and pricing strategies.
the The task of positioning is to deliver a central idea about a company or an offering to the target market. Differentiation goes beyond positioning to spin a complex web of differences characterizing that entity. I.e. one brand should be differentiated from another brand available in the market of the similar nature. Differentiation can be defined as " The process of adding a set of meaningful and valued difference to distinguish the company's offerings from the competitor's offering.
The companies can achieve differentiation using the product development or distribution method or promotional aspects. Actually, right from the plant location to the after sales services that company offers, anything can be used to differentiate an offer and make it "Different"
Procter & Gamble's Head & shoulders is considered among the top brands in Indian Anti- Dandruff Shampoos, H & S differentiates itself from its close competitor Clinic All Clear Anti- Dandruff Shampoo in the sense that it is available in different varieties like Menthol, Lemon & Strawberry as well as having a ZPTO factor in it which makes a USP of H & S and positioning it as one of the best brands in the Anti Dandruff Shampoo market. Nestle Milk is available in Tetra Pak which does not require any preservation and it can be stored for a longer time without any refrigeration and boiling which is not the case with other milks.
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Real of perceive differences among similar goods that prompt buyers to pay different prices. Product differentiation is a method used by some firms to achieve market control. The three methods of product differentiation are physical differences, perceived differences, and support services. The greater the differentiation is among products, then the more ability firms have to exert control over prices. Product differentiation is perhaps most important for market control by firms in monopolistic competition, but it also plays a role in oligopoly.
The act of designing a set of
meaningful differences to
distinguish the company’s
offering from competitors’
All products can be differentiated to some extent. But not all brand differences are meaningful or worthwhile. A difference is worth establishing to the extent that it satisfies the following criteria: Important:The difference delivers a highly valued benefit to a sufficient number of buyers.
Distinctive:The difference is delivered in a distinctive way. Superior:The...