Role Of Differentiation Strategy And Branding

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CHAPTER 6 6.0 CONCLUSION This research has aimed to explore the role of differentiation strategy and branding in business to business marketing of products that are perceived to be a commodity. It further analyses the strategies of the leading steel companies to establish that differentiation is an effective means of improving their long term performances. While previous researchers have focussed more on the role of differentiation and branding in consumer product markets, this study extends previous studies in the context of B2B marketing of commodity products. This chapter is intended to give a summary to the former chapters and presents the main conclusions as well as points out the limitations of this research to indicate possible…show more content…
However, these tend to increase the supply in the market thus putting more stress on the price. In a capital intensive industry like steel, the cost of idling of assets is high and hence the problem is further compounded. There is a common perception that steel is a commodity product and therefore, choices are very limited for the marketer. In this situation, price becomes the only differentiator resulting in prices decline to lower levels. Therefore, industries like steel face an uphill task to return the value to the shareholder causing lack of investments in this sector, reduction in research and development budget leading to less innovation and progress. On the other hand, the consumer marketing companies have found a way to overcome similar problems by differentiating their product offerings from competitors and thus escape from a direct price war like competition within commodity products. Customers attach a different value to different brands or differentiated product offerings and thus are prepared to pay according to the perceived value of that brand or product. In spite of this knowledge being available to marketing executives, the role of differentiation and branding has been limited in the B2B marketing of commodity products. This study has shown that the pioneering work
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