What is product differentiation?

Cleaning products are often marketed to customers for a variety of uses rather than a single task.

Product differentiation is the process of identifying existing distinctions between goods and services that are intended for consumption by the same segment of the consumer market. The idea behind this approach is usually to convince consumers that a particular product is capable of fulfilling all the functions associated with the competition, but more efficiently and possibly at a lower cost. As part of promoting the superior quality of the product, advertising may also identify additional features that the product can offer that are not offered by competing products.

It is important to note that the product differentiation process largely depends on creating the desired perspective among consumers. While there may not be an essential difference between the features and quality of a particular product compared to products offered by competitors, the idea is to create a sense among consumers that there are compelling reasons to consider a product in particular is more desirable than others. A number of different tactics can be used to create this perception, while offering the customer some type of value-added incentive.

A common approach to product differentiation is the use of packaging that is perceived as easier to use. For example, a beverage company may package its products in containers designed to be conveniently stored on shelves built into the door of a standard refrigerator. If competitor products are of a size and design that require them to take up more space on the internal refrigerator shelves, consumers who want to make the most of the available space inside the appliance may find this a good reason to buy what they offer. perceive as a product. More space efficient. This is particularly true if the consumer perceives that this space-saving product is of the same quality as the competition and does not cost more money.

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Sometimes the process of product differentiation involves marketing a product in a way that convinces consumers that it can be used in more situations than competing products. For example, a glass cleaner marketed not only to clean window glass but also to disinfect metal surfaces and kitchen countertops is likely to attract the attention of consumers who prefer to buy one product rather than buy three different products to clean different homes. . cleanup. While other products on the market may fulfill the same range of functions, only the product that actively advertises these functions will stand out from the rest.

True product differentiation does not involve the use of misleading advertising to attract and retain customers. To retain this consumer base, the product must match the advertising and provide all advertised value-added incentives. If the product does not meet these claims, consumers will quickly turn their attention to other products that may meet their needs.

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