Product differentiation refers to a feature of the product that sets it apart from the competition. The objective of this differentiation is to provide an original, novel, and unique product. Likewise, it must stand out from its competition and push consumers to opt for it and not for others.
Therefore, producers create some psychological differences in their products. Such differences may not be tangible or material, but they are significant to the consumers. A firm uses the strategy of product differentiation to maintain control over the price of the product.
5 Benefits of Product Differentiation
Product differentiation is an important decision are of product strategy, particularly in a competitive economy. It provides the following benefits –
- Helps to attract customer attention in the face of alternative products
- Satisfies the demands of the different market segments
- Encourages non-price competition
- Assists in facing competition from competitors products
- Provides a measure of control in the matter of pricing
Importance of Product Differentiation
Companies today work in an increasingly competitive environment. So if you want your brand to stand out, you need differentiation to gain a competitive advantage.
If we put ourselves in the shoes of any consumer, we are exposed to dozens of brands every day. Through various formats, the media try to reach us and present us with an image they want to convey.
Different studies show that a consumer stays, on average, with a maximum of seven brands in a particular category. And, in the face of the bombardment that the consumer receives, how can we make our brand one of those remembered?
It is simple, but getting it is not that simple. Being different is the key to standing out from the rest and showing something that makes us unique in the eyes of the consumer. Differentiation is a competitive advantage, a key concept in the world of marketing.
In today’s competitive markets, it isn’t easy to survive without an advantage that we can maintain over time.
How can I differentiate my product or service from others on the market?
- Through the design of the property: it must contribute to improving its use, its durability, or its speed.
- Attributes of the product or service: you can count on a particular function or an extraordinary quality that the competition’s articles do not have.
- With a variety of models: pay attention to the colors and combinations. Again, the consumer is struck by these types of details.
- In customer service: the consumer expects to have strong attention and facilitate orders with immediacy. In addition, when the consumer buys your product, it is best to advise him personally.
- Giving an extra service: you can provide warranty service, installation, or home delivery.
For a product differentiation strategy to work, we must consider all attributes to be relevant. It would help if you studied your audiences and the values that distinguish your brand from your competitors. Make sure it is difficult to imitate.