It’s about offering something that has an attractive advantage. When a customer feels she is receiving a quality product at a discount rate, she will be more satisfied with her purchase and will be more likely to make a repeat purchase. Is it the market standard? That’s cool! What is Market Research and Competitive Analysis? There are several key skills and resources that managers should be cognizant of in order to build and base their positive differentiated strategy. 7 tips on product differentiation is … 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. Location and Service. Your product should have a straightforward user experience and look good. When used as part of a larger competitive strategy, differentiation can be essential in propelling a company to the next level of growth. It is because once a consumer is satisfied with a few pr… From choosing colors to product features, a customized product will differentiate your offering from your competitors and can lead to greater market share. This differentiation strategy involves using the characteristics of the product you market to differentiate from your competitors. Product differentiation deals with making changes in the marketing mix of a product so as to differentiate it from whatever the competition is offering OR to offer a product which stands out in the market. This is not to be confused with a value propositionwhich communicates your overarching promise. Where you want to focus your differentiation efforts depends on a lot of factors unique to your product (industry, type of service, etc), but these are some examples and common ways products approach a differentiation strategy: Design. What Is Product-Based Differentiation This differentiation strategy involves using the characteristics of the product you market to differentiate from your competitors. Features which provide more – or less performance. Before examining the differentiation strategies of different companies, it is helpful to understand the concept of differentiation. Product Managers often shoot for the easiest way to create product differentiation: they add more features. Customers buy from you not only based on product features. In fact, it’s the opposite—the world has a massive sameness problem. In business, competition is hard. If you include items that make using your product more convenient for your customer, you will distinguish your products from similar product offers. T-Mobile. Where you want to focus your differentiation efforts depends on a lot of factors unique to your product (industry, type of service, etc), but these are some examples and common ways products approach a differentiation strategy: Design. And, as a consequence, they are willing to pay premium prices for them. Product differentiation is part of the strategic marketing process. I want it!” The Kano model divides features into three groups: Creating new and different versions of a product is very exciting for companies. Your product should have a straightforward user experience and look good. In Kotler’s model are you a market leader, challenger, follower, or nicher? Product Differentiation •A business level strategy intended to: -increase the perceived value of the firm's products 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. But so do your competitors’ products. Position your products for customer convenience as a differentiation strategy. Productizing differentiation is a common task and uses tools and processes that Product Managers are familiar with. Creates Value: Product differentiation gives a reason to the customers to choose the brand over others. A differentiation strategy is the efforts to make a product, brand, or service unique as compared to all other competitors, hence providing a competitive advantage (Pearce & Robinson, 2011, p. 219). Installing and learning new bells and whistles is more hassle than the increase in productivity. Product Differentiation Strategy. When a company efficiently differentiates its products, and few essential products stand out, it usually brings out brand loyalty on the consumer’s part. Put yourself in your customer’s shoes. Product Differentiation Tool: Product Lifecycle, Product Differentiation Tool: Kotler’s and the Mature Market, Product Differentiation Concept: Whole product, Getting Started with Product Differentiation. Consider integrating customization options into your website for maximum benefit. Use an example marketing plan to build your marketing mix product. By offering greater values, customization features and convenience options, you can influence a customer to purchase your products. Product Differentiation Strategy A good product differentiation strategy may gain brand loyalty, which is paramount to any successful business. Helps in non-price competition: It allows the companies to compete in areas other than price. Learn the iterative customer-led product management methodology used by successful companies. Allow customers to tailor your products to their desires. Ok, you can make notes on a laptop if you must. 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