A trip to your local grocery store will provide a number of examples. Example: Coke and Pepsi, Same product in different colors etc. Channel Differentiation A firm can also gain competitive advantage by channel differentiation. Through experience branding firms can better retain customers, target key segments, and enhance profitability. These provide a strong brand recognition and thereby contribute to image differentiation. Firms invest millions of rupees every year to train their employees. There can be 4 performance levels: i.
Service Differentiation Service Differentiation is based on aspects such as speedy or careful delivery, opening hours, customer care etc. In growth stage, sales are increasing and company is striving for the number one space. Companies use different tools like symbols, events, print and mass media, and communication channels to communicate the image of the product to customers. Major positioning errors that can occur include underpositioning, overpositioning, doubtful positioning and confused positioning. Figure below provide four step processes that can be used in positioning of firm's product. Back in 1946, pet food was cheap, not too nutritious, and sold exclusively in supermarkets and the occasional feed store: Dayton, Ohio-based stores found success selling premium pet food through regional veterinarians, breeders, and per stores.
The service guarantee associated with the product should be unconditional b. Positioning related marketing programs are responsible to pass unique selling proposition on to the customer. Those opportunities that promise the highest return define the company's strategic leverage. Businesses do this to gain an edge in industries where multiple competitors produce similar products. As pointed out earlier, companys strategy has to change according to the stage in the product life cycle.
By making use of differentiation marketing strategies, you can make your business stand out in a crowded competitive marketplace. The extreme dynamism in the market because of globalisation and liberalization is the cause for more refined and sophisticated marketing. Image differentiation -The identity should be well differentiated from the image -Precise aim to identify itself to its customers. For example, a competitor has similar positioning ideas, than the company is better positioning product where it enjoys a competitive advantage. If organization does not distinguish its offerings and position them clearly in consumer's mind, then it must compete only on a price basis. For instance, some companies use plastic containers or wrappers to pack their product.
This bundle of benefits should appeal to a substantial group within the chosen and targeted segment. The Differentiation strategy is where a company decides to select a certain characteristic of the product to focus on. In effect, a competitive advantage is a value difference between the offers of one company as opposed to competing offers on the market. Therefore, marketers must have to be very cautious while positioning their products. Before Google, there were a variety of options to use if you had to search for something online. Positioning process Positioning is the process of creating a desired image for a company and its products in the minds of a chosen user segment. Repair ability: It is the measure of the ease of fixing a product when it malfunctions or fails.
It delivers emotional power beyond a mental image. Staff can be more friendly, competent, courteous etc. Service plays important differentiation tool where differentiation is difficult based on physical attributes of product. The freedom of maneuver is affected by the industry structure and the firm's position in the industry. Subsequent business from the customer depends to a large extent on whether his experience of maintenance and repair services from the company has been good or bad.
Positioning is a challenging job for marketers and mistakes in positioning can obstruct the reliability of the company and lead to a loss of the product's image in the market. Features: Most products can be offered with varying features i. The key is to trust customers, listen, respond, and learn. Media: The chosen image must be worked into the ads and media that could convey a distinctive story, mood, or claim iii. Certainly, this mainly appeals to customer contact staff. It could differentiate itself on more than one aspect.
One of the variables of , which may be used by a company in its strategy. Singapore Airlines enjoys an excellent reputation in large part because of its flight attendants. Positioning starts with a product. Your product differentiation should arise after carefully and should be part of a larger. You may be the only florist in your area with an advanced horticultural degree, for example.
The company realised that there is huge market for second hand cars and this market is dominated by unorganised players. Channel: In this strategy, the internet is a location-free, time-free distribution and communication channel. It might be through a smooth-functioning, speedy direct channel. Companies attempt to bring about differentiation in their products to give better value to their consumers. But differentiated marketing strategy may not be cost-effective for small manufacturers, as conducting the suitable market research and developing several brands at the same time can be costly.