A better option may be to keep a steady hand on the tiller of the product that you do offer. 2. 2. This type of differentiation is very easy to copy by your competitors and is often very short-lived. In economics and marketing, product differentiation (or simply differentiation) is the process of distinguishing a product or service 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 products. One key aspect to keep in mind in making sure you offer a differentiated product is to ensure that the product includes at least one ‘delighter.” A delighter is a feature or benefit which caused your customer to say “Wow! Use buy-one, get-one free offers, free add-on products, increased size offers and immediate-use coupons. This is the essence of differentiation. Because buyers don’t like to have, any extra attributes m the products that will increase the price. Product Differentiation •A business level strategy intended to: -increase the perceived value of the firm's products Then create your product features and marketing around how your product solves those frustrations. Product differentiation strategy helps you determines why a customer should buy your product and what makes it stand out from your competitors. Now that you know what your product differentiation strategy is, you will find it easier to defend your position in the market. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. The concept was proposed by Edward Chamberlin in his 1933 The Theory of Monopolistic Competition. Your differentiation lies in being the trusted supplier in your market category. In fact, it’s the opposite—the world has a massive sameness problem. 2. Differentiation Strategy is the strategy that lays emphasis on offering a superior product, on some dimension(s), compared to what competitors are providing. This differentiation strategy does not mean to compete with generic or low-priced products, but rather provide customers with the best overall value out of all your product competition. A formula that is costly -or impossible- for your competitors to recreate is central. They productize their way into differentiation. For products that do not lend themselves to production customization, offer self-customization options. 7 tips on product differentiation is … Product differentiation refers to the strategy used by businesses to highlight the unique features and benefits of its product or service to separate it from competitors. Where your product is in the Product Lifecycle can tell you a lot about what the next strategic moves are. The physical structure, size … Which part of the product life cycle is your industry in? Kotler’s strategies in mature markets shows that the market leaders primary marketing stance is to remind customers that they are still the brand that customers trust. A differentiation strategy is the efforts to make a product, brand, or service unique as compared to all other competitors, hence providing a competitive advantage (Pearce & Robinson, 2011, p. 219). From choosing colors to product features, a customized product will differentiate your offering from your competitors and can lead to greater market share. A differentiation strategy is an approach businesses develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace. A formula that is costly -or impossible- for your competitors to recreate is central. Top Competition: AT&T, Verizon Wireless. On that basis, what would be your best course of action? In Kotler’s model are you a market leader, challenger, follower, or nicher? But so do your competitors’ products. It refers to making a company’s product different from the similar products of the competitors. These customers do not want to overpay for features they do not want and do not want to compromise for a product that does not meet their preferences. When a customer feels she is receiving a quality product at a discount rate, she will be more satisfied with her purchase and will be more likely to make a repeat purchase. Product differentiation is part of the strategic marketing process. Every brand is built on a product (I include services here as well). Then create your product features and marketing around how your product solves those frustrations. It thus appears that a differentiation strategy may not always work. Here’s a few steps to get you headed in the right direction. For example, if a customer purchases a product for a gift, they may want it delivered closer to a specific occasion. Take note of the market your product serves. According to Porter’s generic strategies, the differentiation approach involves the creation of new and unique products (or services) that create exceptional value for their customers.And, as a consequence, they are willing to pay premium prices for them. It is a key element to market the product, create a longstanding brand, and … From a customer point of view, a new product can actually be more of a headache than a blessing. Who are the competing organizations and what do they offer? Curiously, not so much. Installing and learning new bells and whistles is more hassle than the increase in productivity. Apple has made product design a hallmark of its differentiation strategy since the company's origins. Customers buy from you not only based on product features. You price the product to gain share and allow deal-making maneuvers. But so do your competitors’ products. Differentiation is possible along one or more of various dimensions — product features, quality, customer service, guarantee, distribution, delivery, product customization, etc. Product Differentiation Tool: Product Lifecycle, Product Differentiation Tool: Kotler’s and the Mature Market, Product Differentiation Concept: Whole product, Getting Started with Product Differentiation. This strategy focuses on … Coming up with a differentiation strategy is essential to the products and services you sell, but it’s also important for your branding and marketing efforts. Prices for them basic product ( originally launched product or the currently offered )... Problem with your entire team to establish ways you can make notes on a if. That cater to customers ' schedule and preferences being the trusted supplier in your last product ( I include here... Screwdriver with an item that needs assembly brand loyalty, which can increase customer loyalty m the products that not. 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