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Marketing: Product Differentiation Name: Institution: MARKETING: PRODUCT DIFFERENTIATION In marketing, differentiation of products refers to the process via which products or services are distinguished from other offerings made by competitors. This is aimed at making them more attractive to the firm’s target market.
Successful differentiation gives the firm a competitive advantage as customers will look at the products as superior and unique and can be achieved in various ways. This paper will first detail eight ways to differentiate product offerings, and then concentrate on packaging the product in a more creative manner and incorporating new functional features into the product or product innovation. Strategies for Product Differentiation One way to differentiate products is via product innovation by adding functions or features into a product and commanding a higher price (Trout & Rivkin, 2012: p 34). These features can be added through acquiring or licensing complementary feature sets or by using the firm’s in-house team for product development. Another way to differentiating products is through packaging. At times, all it takes to differentiate or re-energize a product is via changing the packaging. This was very effective when it was used in collaboration with another product and delivered in an innovative manner. While this method does not have enough value to change a consumer’s life, the manner of packaging offers more convenience allowing them to charge more (Trout & Rivkin, 2012: p 45). A firm could also pursue other market niches in areas that are unsophisticated (Trout & Rivkin, 2012: p 67). ...
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