Developing unique product differences with the intent to influence demand. marketing process that showcases the differences between products. Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products. 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. ny 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. ne 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. y cn make informed strategic choices Economic Definition 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’ offerings. 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 difference is superior to other ways of obtaining the benefit. ?Preemptive:The difference cannot be copied easily by competitors. ?Affordable:The buyer can afford to pay for the difference. ?Profitable:The company will find it profitable to introduce the difference Through differentiation , firm move to a position wherein they can position wherein they can claim a premium claim a premium in the Market in the Market
Caterpillar Tractor , the leader in earthmoving equipment, made a mark through its equipment, made a mark through its distribution channel and service . Dabur Vatika with herbal ingredients used by woman for hair care -Coconut oil ,Brahmi’ , Lime and Mehandi etc. hair care -Coconut oil ,Brahmi’ , Lime and Mehandi etc. s P&G introduced New Ariel Microshine – a new P&G introduced New Ariel Microshine – a new technology Detergent incorporating carezyme far beyond technology Detergent incorporating carezyme far beyond conventional cleaning (1990) in India and gained some onventional cleaning (1990) in India and gained some market share. Indecor Paints launched ‘Vinycide’ Paints with an insecticides , Innovation with unique formula from insecticides , Innovation with unique formula from Artlin of france , Paint that has already turned interiors Artlin of france , Paint that has already turned interiors in Europe beautiful and insect free . Dunlop’s Olympus car Tyres claimed that they studied each car separately , for Maruti tyre designed specially for each car separately , for Maruti tyre designed specially for front wheel drive , extra wide tyre for the Premier , Tyre ront wheel drive , extra wide tyre for the Premier , Tyre with extra rubber to take care of extra weight for with extra rubber to take care of extra weight for Ambassador . Frooti in Tetra pack s Brylcream in handy tube Brylcream in handy tube Product Differentiation by Packaging Le sancy in see thru pack Le sancy in see thru pack s Harpic Toilet cleaner with an application Harpic Toilet cleaner with an application friendly nozzle friendly nozzle s Hit for cockroach with sleek nozzle for Hit for cockroach with sleek nozzle for hidden areas .
When Physical cannot easily differentiated , the key to competitive success may lie in adding key to competitive success may lie in adding services and improving their quality. The main services and improving their quality. The main service differentiators are : service differentiators are : s Ordering ease Ordering ease s Delivery Delivery Services Differentiation Installations Installations s Customer Training Customer Training s Maintenance and Repair Maintenance and Repair s Miscellaneous Services Miscellaneous Services Product quality – level , Consistency & durability level , Consistency & durability Godrej Godrej offers high quality steel cupboards as a part of its storewel offers high quality steel cupboards as a part of its storewel range range s s Ford with videotapes of repair , Microsoft service Ford with videotapes of repair , Microsoft service standards: to answer 90 percent of service calls within 60 standards: to answer 90 percent of service calls within 60 seconds seconds, Dominos , Dominos to be Delivered within 30 Minutes . to be Delivered within 30 Minutes