Product Differentiation

Most competitive advantages lasts only a short time. Companies therefore constantly need to think up new value adding features and benefits to win the attention and interest of consumers.

Differentiation
It is the act of designing a set of meaningful differences to distinguish the companys offering from competitors.

How can you differentiate?

Differentiation can be done in various ways depending on the industry and product category. Differentiation can occur in one or more of these areas product, services, personnel, channel, image.

Product Differentiation
Form(happydent,centr efresh,chloromint) Features(Bajaj Pulsardigital twin sparkplug) Performance Quality(Surf Excel) Durability(Ambuja Cement-har nirman ki jaan) Reliability(Castrol:its more than just oil-its liquid engg) Style(Tanishq)

Services Differentiation
Ordering Ease Delivery Customer Training Maintenance and repair

Personnel Differentiation
Competence Courtesy Credibility Reliability Responsiveness Communication
Channel Differentiation Trade Direct

Image Differentiation
Identity what the company wants to project Image what the public perceive Image can be enhanced by using, symbols, media, atmosphere, events and employee behaviour

Differentiation Startegies
Differentiation must be meaningful and relevant to the consumer. So it should satisfy the following criteria Important Distinctive Superior Preemptive Affordable profitable

USP
This should be exclusive to the product and make a significant relevant impact to the consumer

Positioning
The act of designing the companys offering and image to occupy a distinctive place in the consumers mind. Customer focussed Value Positioning Positioning normally takes one position in the mind. More than one, the company runs the risk of customer credibility and dilution of positioning

Criteria for positioning

Relevance Distinctivness Belieavability(credible) Feasibility(perception) Communicatibility(factual) Sustainability(Brand asscn, reinforcement)

Positioning Strategies
Attribute Benefit Use or application User Competitor Product category Price/quality

Positioning errors
Under Positioning(mkt has a vague idea) Over Positioning(small gr.identify with pdt) Confused Positioning(buyer feels too many benefit claims) Doubtful Positioning(buyers find difficult to believe the claim)

POD & POP

Point of Difference: Attributes that consumers strongly associate with a brand positively and feel is not present in competitors Point of parity: On that attribute customers feel brand is good enough with other brands