product differentiation

Examples of product differentiation in the following topics:

• The Importance of Market Segmentation

  • While there may be theoretically 'ideal' market segments, in reality, every organization engaged in a market will develop different ways of imagining market segments, and create product differentiation strategies to exploit these segments.
  • The market segmentation and corresponding product differentiation strategy can give a firm a temporary commercial advantage.
  • While product differentiation is an effective strategy to distinguish a brand from competitors', it also differentiates one product from another.
  • For example, a company such as Franco-American Spaghetti has differentiated its basic product by offering various sizes, flavors, and shapes.
  • It is in essence the most likely to buy the product.

• The Many Goals of Persuasion

  • When running promotional programs, companies seek to clearly and effectively market their product's differential factor.
  • Differentiation sets similar products apart from one another, and creates value for consumers evaluating different brands.
  • Differentiating products allows companies to influence consumers' perception of their brand in an increasingly crowded marketplace.
  • If the product's differential factor is compelling enough, companies hope to convince consumers to continually choose their products over competitors.
  • With social media, companies have the ability to advertise their product's differential qualities to any person in the world, at any given instant.

• Promotional Objectives

  • There are three main promotional objectives: inform the market, increase demand, and differentiate a product.
  • Eventually a product will reach its saturation point, at which time investing in sales will decrease as the company focuses its attention on a new product.
  • Present information about the product: In order for customers and consumers to want the product they need to understand what the product is and how it benefits them.
  • Differentiate a product: This is especially important if there are multiple competitors in the same market.
  • For example, Apple was able to differentiate itself in the computer industry.

• Impact of the Product Life Cycle on Marketing Strategy

  • The stages through which individual products develop over time is called commonly known as the "Product Life Cycle".
  • Products typically go through four stages:
  • The product is promoted to create awareness and develop a market for the product.
  • Product features may be enhanced to differentiate the product from that of competitors.
  • In the process, they miss out on opportunities to differentiate themselves.

• Characteristics of the Product

  • The unique characteristics of a product should be used as inputs in determining the product's marketing mix.
  • The characteristics of the product are the features and elements that differentiate it from other products on the market.
  • A product needs to differentiate itself in the market and carry distinct characteristics that separate it from its competitors.
  • Characteristics of a product also help to determine the price of a product.
  • The characteristics of a product determine the target market and price of a product.

• Support and Help

  • Excellent customer service can help differentiate a product or brand and may lead to increased brand loyalty over time.
  • Users of mobile phones, televisions, computers, software products, and other electronic or mechanical goods will occasionally need product support services.
  • Product support professionals attempt to help users solve specific problems with a product—rather than providing training, customization, or other support services.
  • The Internet serves as a primary source for freely available product support.
  • Examine the role of support and help programs as a differentiating factor in product design

• Intangibility

  • It is often used to describe services where there isn't a tangible product that the customer can purchase, that can be seen, tasted, or touched.
  • This is the most defining characteristic of a service that differentiates it from a product.
  • Due to the increasing homogeneity in product offerings, the attendant services provided are emerging as a key differentiator in the mind of the consumers.
  • For example, in the case of two fast food chains serving a similar product (Pizza Hut and Domino's), it is the service quality, not the actual product, that distinguishes the two brands from each other.
  • Hence, marketers can leverage the service offering to differentiate themselves from the competition and attract consumers.

• Naming Brands

  • Naming a brand is crucial to a product's reputation and success because it reflects its image and benefits in a way that can be differentiating.
  • An example of a brand name that is unique, identifiable, and differentiating is Apple's line of mobile products which all begin with a lower-case "i" (i.e., iPad, iPod, iPhone, iTouch).
  • Naming a brand is crucial to its reputation, development, and future success because the primary function of the brand (name and image) is to identify the product or service in a way that it differentiates it from those of other competitors.
  • iPad is one of Apple's mobile products named with the distinctive "i".
  • iPod Touch is one of Apple's mobile products named with the distinctive "i".

• Quality

  • When it comes to quality in product design, manufacturers might measure how well products conform to certain requirements or the level of accuracy in products and services following production.
  • Consumers may focus on product features and how well the product compares to competing brands in the marketplace.
  • For manufacturers of products, it is commonly stated that "quality drives productivity."
  • Improving product quality in businesses can lead to better productivity and more innovation.
  • Identify the attribute of quality at the design stage as a differentiating factor

• Shopping Products

  • In this section, we will differentiate between convenience and shopping goods.
  • 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 or Marshall Field, effective merchandising, aggressive personal selling, or the availability of credit.
  • Discuss the characteristics of shopping products as a specific type of product