differentiate

(verb)

To show, or be the distinction between two things.

Related Terms

  • brand awareness
  • marketing mix
  • product life cycle
  • trade
  • advertising objective
  • demand
  • Federal Trade Commission

Examples of differentiate in the following topics:

  • Intangibility

    • 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.
    • Hence, marketers can leverage the service offering to differentiate themselves from the competition and attract consumers.
  • Promotional Objectives

    • There are three main promotional objectives: inform the market, increase demand, and differentiate a product.
    • 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.
  • 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.
  • 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.
  • Competition Based on Value

    • Value-based marketing allows organizations to create and sustain differentiating values that enable them to compete within their markets.
    • TCVM helps businesses create and sustain differentiating value, enabling them to compete within their markets.
  • 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.
  • Price Discrimination

    • Unlike first degree, sellers are unable to differentiate between individual consumers, and so they provide incentives for consumers to differentiate themselves.
    • For example, airlines differentiate according to first, business and coach passengers.
    • Sellers are able to differentiate between different types of consumers.
    • For example, so-called "premium products" (including relatively simple products, such as cappuccino compared to regular coffee) have a price differential that is not explained by the cost of production.
  • Multiple Sources of Advantage

    • Differentiation Strategy - Differentiation is allows companies to provide products that are different or offer more/different features than their competitors.
    • Southwest Airlines has differentiated itself from the airline industry through its low cost and express service features.
  • Shopping Products

    • In this section, we will differentiate between convenience and shopping goods.
    • 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.
  • Other Inputs to Pricing Decisions

    • This suggests that the differentiation value relative to the closest competitive offering is $6,000.
    • Add the reference price and differentiation values together to get EVC
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