The marketing team communicates these unique qualities through their campaigns and promotions. 7 tips on product differentiation is … In fact, it’s the opposite—the world has a massive sameness problem. The main objective of implementing a differentiation strategy is to increase competitive advantage. 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. There are several ways to achieve product differentiation. Savvy consumers research their purchases and know what components and features they want prior to making a purchase. Every brand is built on a product (I include services here as well). Creates Value: Product differentiation gives a reason to the customers to choose the brand over others. Then create your product features and marketing around how your product solves those frustrations. Use an example marketing plan to build your marketing mix product. Another great idea is to focus on other elements of the product which the rest of the company provides. In business, competition is hard. It is because once a consumer is satisfied with a few pr… Make sure that these parts of the product offering called the ‘augmented product’ are all up to scratch. Features which provide more – or less performance. The marketing team communicates these unique qualities through their campaigns and promotions. Product Differentiation Strategy. Startups who redefine an existing market into either a low-end or a niche market need to shape their positioning and product differentiation strategy for a blend of both an existing and a new market. Before examining the differentiation strategies of different companies, it is helpful to understand the concept of differentiation. The best product differentiation strategies increase your brand image, cater to customer preferences and increase sales. Which part of the product life cycle is your industry in? That’s cool! Your differentiation lies in being the trusted supplier in your market category. However these tools may miss categories of product differentiation that are easier, cheaper and longer-lasting. Product differentiation strategy helps Product Managers answer these key questions “Why should a targeted customer buy my product?” and “How can I make my product stand out from the rest?” The seemingly easy answer is: because my product is different from the others on the market. This is how you build an outstanding product that delivers real value to the people who … Startups who redefine an existing market into either a low-end or a niche market need to shape their positioning and product differentiation strategy for a blend of both an existing and a new market. Product Differentiation – Creating a product with better features, performance or efficacy. In Kotler’s model are you a market leader, challenger, follower, or nicher? 2. Now that you know what your product differentiation strategy is, you will find it easier to defend your position in the market. 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. Offer multiple shipping options that cater to customers' schedule and preferences. In an often crowded product market, customers crave product distinctions to help them make purchasing decisions. Ready to start focusing on product differentiation but not sure where to start? Location and Service. Is it very stable? 3. 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. For example, if you are in the growth phase, you should increase the number of different versions you have in a product line to more closely target different markets. Helps in non-price competition: It allows the companies to compete in areas other than price. Position your products for customer convenience as a differentiation strategy. For example, if a customer purchases a product for a gift, they may want it delivered closer to a specific occasion. Use buy-one, get-one free offers, free add-on products, increased size offers and immediate-use coupons. When a company efficiently differentiates its products, and few essential products stand out, it usually brings out brand loyalty on the consumer’s part. Product Differentiation Strategy. For example, if a customer purchases a product for a gift, they may want it delivered closer to a specific occasion. Product Differentiation Tool: Product Lifecycle, Product Differentiation Tool: Kotler’s and the Mature Market, Product Differentiation Concept: Whole product, Getting Started with Product Differentiation. 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