Differentiation is the approach under which a firm aims to develop and market unique products for different customer segments. A differentiation strategy involves the firm in creating a product/service, which is considered unique in some aspect that the customer values because the customer’s needs are satisfied by the product/service. Due to the globalization, there is intense competition among organizations. The customers’ demand is also changing and increasing. In order to gain competitive advantage in such situation, any firm needs to produce products with more valued features. As such, a differentiation strategy would provide greater scope for the organizations to produce products with more valued, desirable features as a means of coping with changing needs and demands. Differentiation helps to achieve competitive advantage position and enhance the organization’s performance in relation to that of their competitors (Dirisu, Iyiola, & Ibidunni, 2014).
A company can differentiate its product by means of price, technology, quality, customer service, user experience, design and packaging, and product form (Kotler & Keller , 2016). Similarly, ease of ordering, delivery, installation, customer training and consultation, maintenance and repairs, and returns help in differentiating the services (Bhasin, 2017). Product and service differentiation helps in value creation, non-price competition and creation of brand loyalty that ultimately helps in gaining market share through perceived quality (Jhones, 2006).
The strategies that affect my choices of product and services includes price, customization, performance, convenience, ease of ordering and delivery. I prefer online shopping as it saves my time and effort. The things I want get delivered to my doorstep in just a click within few hours of ordering. Likewise I perceive that the products with very low price are of low quality. So I opt for the product with affordable price rather than the cheap ones. I pay more attention to the performance of the product than the aesthetics.
However there are some brands that excel at number of means of these differentiation. Apple and Zappos are two of them. Apple is providing high quality product with updated technology and good product aesthetics. Similarly, no one can beat Zappos when it comes to customer service and user experience.
To conclude, product differentiation is important to stand out in the crowd. The nature of product and targeted customers should be kept in mind while developing differentiation strategies for the products and services.
References
Bhasin, H. (2017, December 30). Service Differentiation and 7 Ways to Differentiate Service from Competitor . Retrieved from Marketing 91: marketing91.com/service-differenti...
Dirisu, J. I., Iyiola, O., & Ibidunni, O. S. (2014). PRODUCT DIFFERENTIATION: A TOOL OF COMPETITIVE ADVANTAGE AND OPTIMAL ORGANIZATIONAL PERFORMANCE (A STUDY OF UNILEVER NIGERIA PLC). European Scientific Journal, 9 (34), 258-280.
Jhones, D. (2006). Customer Service: Product Differentiation in International Market. International Journal of Marketing , 67-89.
Kotler, P., & Keller , K. L. (2016). Marketing Management. London: Pearson.
For further actions, you may consider blocking this person and/or reporting abuse
We're a place where students share, stay up-to-date, learn and grow.
Differentiation is the approach under which a firm aims to develop and market unique products for different customer segments. A differentiation strategy involves the firm in creating a product/service, which is considered unique in some aspect that the customer values because the customer’s needs are satisfied by the product/service. Due to the globalization, there is intense competition among organizations. The customers’ demand is also changing and increasing. In order to gain competitive advantage in such situation, any firm needs to produce products with more valued features. As such, a differentiation strategy would provide greater scope for the organizations to produce products with more valued, desirable features as a means of coping with changing needs and demands. Differentiation helps to achieve competitive advantage position and enhance the organization’s performance in relation to that of their competitors (Dirisu, Iyiola, & Ibidunni, 2014).
A company can differentiate its product by means of price, technology, quality, customer service, user experience, design and packaging, and product form (Kotler & Keller , 2016). Similarly, ease of ordering, delivery, installation, customer training and consultation, maintenance and repairs, and returns help in differentiating the services (Bhasin, 2017). Product and service differentiation helps in value creation, non-price competition and creation of brand loyalty that ultimately helps in gaining market share through perceived quality (Jhones, 2006).
The strategies that affect my choices of product and services includes price, customization, performance, convenience, ease of ordering and delivery. I prefer online shopping as it saves my time and effort. The things I want get delivered to my doorstep in just a click within few hours of ordering. Likewise I perceive that the products with very low price are of low quality. So I opt for the product with affordable price rather than the cheap ones. I pay more attention to the performance of the product than the aesthetics.
However there are some brands that excel at number of means of these differentiation. Apple and Zappos are two of them. Apple is providing high quality product with updated technology and good product aesthetics. Similarly, no one can beat Zappos when it comes to customer service and user experience.
To conclude, product differentiation is important to stand out in the crowd. The nature of product and targeted customers should be kept in mind while developing differentiation strategies for the products and services.
References
Bhasin, H. (2017, December 30). Service Differentiation and 7 Ways to Differentiate Service from Competitor . Retrieved from Marketing 91: marketing91.com/service-differenti...
Dirisu, J. I., Iyiola, O., & Ibidunni, O. S. (2014). PRODUCT DIFFERENTIATION: A TOOL OF COMPETITIVE ADVANTAGE AND OPTIMAL ORGANIZATIONAL PERFORMANCE (A STUDY OF UNILEVER NIGERIA PLC). European Scientific Journal, 9 (34), 258-280.
Jhones, D. (2006). Customer Service: Product Differentiation in International Market. International Journal of Marketing , 67-89.
Kotler, P., & Keller , K. L. (2016). Marketing Management. London: Pearson.