The means of differentiating products have to do with first understanding the type of product. Theodore Levitt in his article, "Marketing Success Through Differentiation-of Anything” explains when products do not have a distinct and substantive difference, the sales power dynamic diverts to the only things that can influence a buyer and that is differentiation factors. (Levitt, Jan 1980) The product have been classified into the following types.
Generic product: These product all have the same base construct but only difference is in packaging. For example Wai Wai and Rara. Both are noodles but are packaged and presented in different forms.
Expected product: These are what the customers expect to be present in a product. For example a mobile phone now a days must have a touch screen. These factors needs to have these expected products to be present.
Augmented product: When the product offers something extra for the customers in addition to the product or service it is called augmented product. For example free swimming and gym while staying at a hotel. This differentiates the hotel with its competitors.
Potential product: These types of products are created after careful market research. It’s a product that has augmented proposition for the future. For eg: An app that can help taste quality in a food product.
Based on these type of products the differential strategies can be applied. Differentiation of products have been categorized by Kotler and Kellar (2012) under the form, features, customization, performance quality, conformance quality, durability, reliability, repairability and style. (Kotler & Kellar, 2012) Changing the products size, shape, quantity, quality, custom product etc. have been used by marketers to differentiate products.
Product differentiation strategy depends on the type of product that I will be purchasing. Purchasing generic products such as food item will be more focused on the quality and hygiene. You could say a proper and quality sealed packaging for flour, rice and freshness for vegetables and fruits would be preferred as a differential indicator. For example we buy a flour in sealed packet, i.e. Chakki atta for chapatti instead of the open one because we care for the cleanliness of the product and have a perceived belief that it has quality. The open one can have various diseases carrying insects and rodents walking on it.
Purchase of expected products such as electronic or mechanical products i.e. car and bikes will be focused on the performance quality, design, durability, reliability and reparability. For example purchasing in a 150cc segment, people may tend to lean towards Bajaj bikes as it has good design, readily available spare parts and good resale value.
Similarly purchasing augmented products such as cloths will be influenced by comfort, brand, fashion and color. When it comes to shoes, we usually go for branded ones. Eg, Nike, Adidas, Converse etc. The colour also influences a lot in the differentiation which motivates purchase. These products carry with itself a perceived customer value which says it is not only durable and reliable but also fashionably accepted.
Two things to understand when marketing managers differentiate products is to keep in mind that great products make life easier and when a product is used as a verb it has done something great. Thus looking at Nepali products I think WaiWai had one of the best strategy to differentiate in their product segment. It is easy to purchase, easy and quick to cook and people use it as a verb. On international level, I would say LG is the product that has differentiated itself in its product segment. It stand over other as having good performance, reliable and durable. This perceived customer value has helped differentiate it and increased its market share.
Reference
Kotler, P., & Kellar, K. L. (2012). Social Responsibility Marketing. In K. L. Philip Koter, Marketing Management (pp. 170-171). New Jersey: Prentice Hall.
Levitt, T. (Jan 1980). Marketing Success Through Differentiation–of Anything. Harvard Business Review , 15.
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The means of differentiating products have to do with first understanding the type of product. Theodore Levitt in his article, "Marketing Success Through Differentiation-of Anything” explains when products do not have a distinct and substantive difference, the sales power dynamic diverts to the only things that can influence a buyer and that is differentiation factors. (Levitt, Jan 1980) The product have been classified into the following types.
Generic product: These product all have the same base construct but only difference is in packaging. For example Wai Wai and Rara. Both are noodles but are packaged and presented in different forms.
Expected product: These are what the customers expect to be present in a product. For example a mobile phone now a days must have a touch screen. These factors needs to have these expected products to be present.
Augmented product: When the product offers something extra for the customers in addition to the product or service it is called augmented product. For example free swimming and gym while staying at a hotel. This differentiates the hotel with its competitors.
Potential product: These types of products are created after careful market research. It’s a product that has augmented proposition for the future. For eg: An app that can help taste quality in a food product.
Based on these type of products the differential strategies can be applied. Differentiation of products have been categorized by Kotler and Kellar (2012) under the form, features, customization, performance quality, conformance quality, durability, reliability, repairability and style. (Kotler & Kellar, 2012) Changing the products size, shape, quantity, quality, custom product etc. have been used by marketers to differentiate products.
Product differentiation strategy depends on the type of product that I will be purchasing. Purchasing generic products such as food item will be more focused on the quality and hygiene. You could say a proper and quality sealed packaging for flour, rice and freshness for vegetables and fruits would be preferred as a differential indicator. For example we buy a flour in sealed packet, i.e. Chakki atta for chapatti instead of the open one because we care for the cleanliness of the product and have a perceived belief that it has quality. The open one can have various diseases carrying insects and rodents walking on it.
Purchase of expected products such as electronic or mechanical products i.e. car and bikes will be focused on the performance quality, design, durability, reliability and reparability. For example purchasing in a 150cc segment, people may tend to lean towards Bajaj bikes as it has good design, readily available spare parts and good resale value.
Similarly purchasing augmented products such as cloths will be influenced by comfort, brand, fashion and color. When it comes to shoes, we usually go for branded ones. Eg, Nike, Adidas, Converse etc. The colour also influences a lot in the differentiation which motivates purchase. These products carry with itself a perceived customer value which says it is not only durable and reliable but also fashionably accepted.
Two things to understand when marketing managers differentiate products is to keep in mind that great products make life easier and when a product is used as a verb it has done something great. Thus looking at Nepali products I think WaiWai had one of the best strategy to differentiate in their product segment. It is easy to purchase, easy and quick to cook and people use it as a verb. On international level, I would say LG is the product that has differentiated itself in its product segment. It stand over other as having good performance, reliable and durable. This perceived customer value has helped differentiate it and increased its market share.
Reference
Kotler, P., & Kellar, K. L. (2012). Social Responsibility Marketing. In K. L. Philip Koter, Marketing Management (pp. 170-171). New Jersey: Prentice Hall.
Levitt, T. (Jan 1980). Marketing Success Through Differentiation–of Anything. Harvard Business Review , 15.