differentiation

Examples of differentiation 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.

• 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

• Support and Help

  • Excellent customer service can help differentiate a product or brand and may lead to increased brand loyalty over time.
  • Examine the role of support and help programs as a differentiating factor in product design

• Defining Promotion

  • As a key marketing element, promotion comprises communications tactics used to educate consumers, increase demand, and differentiate brands.
  • As organizations implement their promotional plan, they also seek to educate consumers, increase consumer demand, and differentiate their products and services in the marketplace .