product differentiation

Examples of product differentiation in the following topics:

• Promotion Objectives

  • Promotion is to present information to consumers to increase demand and to differentiate a product.
  • There is the physical form of product promotion and the digital form, both of which require clear and concise textual information about the product being advertised.
  • These are to present information to consumers as well as others, to increase demand, and to differentiate a product.
  • There are different ways to promote a product in different media.
  • This is to increase the sales of a given product.

• Promotion Strategies

  • Promotion strategies differ depending on the individual business or product, but all strive to increase product demand and awareness.
  • There are different ways to promote a product in different areas of media.
  • These methods are used to increase the sales of a given product.
  • The generic strategy framework (porter 1984) comprises two alternatives, each with two alternative scopes: Differentiation and Low-Cost Leadership, each with a dimension of focus—which can be broad or narrow.
  • A company or product can fall into one of three categories:

• Developing Products

  • Organizations assess the current market for new product opportunities and, when potentially profitable, develop new product prototypes to test feasibility of production.
  • New product pricing – Once the product has been on the shelves for a some time, sufficient data can be collected to identify the financial impacts of this new product.
  • Differentiating between segments, price points, consumer groups, and competitive markets can yield useful strategic information for the firm.
  • Another useful concept to learn in regards to product development is referred to as the minimum viable product (MVP).
  • Refining production for a new product requires consideration of a variety of factors, including productivity, quality, economics, flexibility, and sustainability.

• Introduction

  • Chances are competition for your firm's product is already well established.Other firms can be in direct competition with you when they offer a similar product and target the same customers.They can be indirectly competing with you by offering a similar product or service, but targeting a different demographic.Competition can come from overseas.Competition can come from another firm in the same city.Competitors are all around you whether you choose to be aware of it or not.Recognizing and dealing with competition is necessary to your business success.
  • What every firm is competing for are buyers or customers.Customers are the final evaluator of your product.If they prefer your product above those of competitors, you will receive their business and the sales which will keep you in business.Even a great business idea will fail unless it attracts buyers.

• Promotional Objectives

  • A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.
  • Promotional merchandise, promotional items, promotional products, promotional gifts, or advertising gifts, sometimes nicknamed swag or schwag, are articles of merchandise (often branded with a logo) used in marketing and communication programs.
  • They are given away to promote a company, corporate image, brand, product or event.
  • A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.
  • They are given away to promote a company, corporate image, brand, product or event.

• Activities in Marketing Departments

  • For example, in a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product.
  • Product Planning and Development: PPD is concerned with identifying customers needs, developing new products and improving existing products in order to meet desires of customers.
  • It helps in ensuring that products confirm to standards.
  • Branding: A brand is a name, sign, symbol, or design assigned to a product so as to differentiate it from products of competitors.
  • Labels are attached to the product package to provide information about the product, such as manufacturer of the product, date of manufacture, date of expiry, its ingredients, how to use the product, and its handling.

• Differential

  • Differential pricing exists when sales of identical goods or services are transacted at different prices from the same provider.
  • However, product heterogeneity, market frictions, or high fixed costs (which make marginal-cost pricing unsustainable in the long run) can allow for some degree of differential pricing to different consumers, even in fully competitive retail or industrial markets.
  • Price differentiation can also be seen where the requirement that goods be identical is relaxed.
  • For example, so-called "premium products" (including relatively simple products, such as cappuccino compared to regular coffee with cream) have a price differential that is not explained by the cost of production.
  • There are two conditions that must be met if a price differentiation scheme is to work.

• Product/promotion

  • One product, one message, worldwide: While a number of writers have argued that this will be the strategy adopted for many products in the future, in practice only a handful of products might claim to have achieved this already.
  • Dual adaptation: By adapting both products and promotion for each market, the firm is adopting a totally differentiated approach.
  • Product invention: Firms, usually from advanced nations, that are supplying products to less well developed countries adopt product invention.
  • As discussed earlier, product positioning is a key success factor and reflects the customer's perceptions of the product or service.
  • The product positioning, therefore, must vary in some dimensions.

• Classifying Consumer Products

  • In its online product catalog, retailer Sears divides its products into "departments", then presents products to potential shoppers according to (1) function or (2) brand.
  • If the product is not available when, where, and in a form desirable by the consumer, the convenience product will fail.
  • Although many shopping goods are nationally advertised, often, it is the ability of the retailer to differentiate itself that creates the sale.
  • The differentiation could be equated with a strong brand name, such as Sears Roebuck, effective merchandising, aggressive personal selling, or the availability of credit.
  • Although these products may be custom-made (e.g., a hairpiece) or one-of-a-kind (e.g., a statue), it is also possible that the marketer has been very successful in differentiating the product in the mind of the consumer.

• The competitive environment

  • Entering an international market is similar to doing so in a domestic market, in that a firm seeks to gain a differential advantage by investing resources in that market.
  • A typical American company will design a new product, then calculate the cost.
  • If the estimated cost is too high, the product will be taken back to the drawing board.
  • Product designers and engineers are then directed to meet the cost target.
  • US firms tend to build products, figure how much it costs to build the product, and then ask whether the product can be sold at a profitable price.