"Product differentiation is based on two fundamental premises: 1. The price of one brand exerts greater constraint on a second brand's price when they are perceived to be close substitutes (share identical attributes in the mind of consumers) than when they are not.  2. Products/services are differentiated because consumers think they are different" (www.willamette.edu, 2017, para 2).

 

Product differentiation is setting a product apart from the competition. It is important to assess a product's distinctiveness. One way that a homogeneous product can be differentiated from the competitor is through branding and advertising. A company will advertise that their brand is different and better than others. Cost and quality are not the only attributes needed for product differentiation and are not a sustainable competitive advantage. A product can be differentiated by continuous improvement and design of the product. A marketer may focus on the functional differences or performance of the product to set it apart.  

 

Product Differentiation can include: Physical differences or product features: Scents for shampoos, Cadillac, Burger King  Location: Convenience products, Free standing stores, 7 Eleven  Services: Full or No service, Federal Express, Ritz Carlton, Nordstorm Product image: Band Aid, Xerox, Ben & Jerry's Ice Cream, Coca-Cola Technological Leadership: IBM, Maytag, Hewlett Packard, Intel, Apple

 

Can you think of other examples of product differentiation? Did differentiation impact the product's success?

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Status NEW Posted 26 May 2017 06:05 AM My Price 7.00

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