The Concept Of Product Differentiation

The strong competition among rivals pursuing a similar strategy is vastly based on product differentiation and a niche market attraction, as companies are constantly working to surpass their competitors and seek to provide just what certain consumers want.

On the other hand, prices are the most insignificant buying criterion in High End, Performance and Size segments. No matter how high the prices are, customers in these segments are more preferable to high-tech product. In particular, for the High End and Size segments, ideal position occupies 43% and products’ ideal age is 29%. Furthermore, reliability is the most important consideration to customers in Performance segment. Hence, Niche Differentiation is a proper alternative for these three segments.

Brand competitors and the diversity of choice that is available to consumers, puts brands under pressure to offer high quality products and service, excellent value and a wide availability (Clifton et al., 2009). Brands must differentiate themselves from the competition and create an unforgettable impression.

Competition is a healthy and important part of doing business. It keeps everyone on their toes so to speak. Differentiating your business means defining your company in relationship to the competition. It means continuously making improvements and reinventing yourself. If you want to differentiate your business, you need to look at your business from your client’s point of view. By educating our clientele concerning the use of organic products that leave your skin and hair feeling vibrant and young, Impressions Salon & Spa has taken steps to set ourselves apart from our competitors. Some points of differentiation include: quality, performance and leadership, superior service, and customer support. Creating a differentiation strategy is to develop a Unique Selling Proposition. The Unique Selling Proposition is the biggest marketing weapon and is the key to differentiating your business from others like you.

An oligopoly is a market situation (or industry) in which there are few sellers. These sellers are

the unique product in hole. Increase brand awareness and sales by the development of the

Although Norwalk Division of Chadwick is not dominate the industry of personal consumer products and pharmaceuticals , it earns a high market share and is successful rely on the well –managed and its high quality product . In order to maximum its profit in modern market , a balanced scoredcard can be used to support its “Product differentiation ” strategy .

According to Philip Kotler, “Marketing management is the analysis, planning, implementation and control of programs designed to bring about desired exchanges with target markets for the purpose of achieving organizational objectives. It relies heavily on designing the organizations offering in terms of the target markets needs and desires and using effective pricing, communication and distribution to inform, motivate and service the market.”

Differentiation can be achieved in a variety of ways: unusual features, responsive customer service, rapid product innovations, technological leadership, perceived prestige and status, appeal to different tastes, and engineering design and performance. Methods of controlling costs, however, may be limited. The ability to price differentiated products competitively will be important for reducing upward pressure on customer prices so that they do not exceed the level customers are willing to

In order to achieve an unconventional spot in the market place, Michael et Augustin has to identify competition, potential customers and create customer value propositions. As we have seen in the first part of this paper, there are many competitors with similar products, yet, there are high end producers like Fauchon and Hediard. Division of the market implies that Michael et Augustin can find a spot between these

We are going to create some differentiation of our product in order to achieve the aims.

First of all the product must be a unique product. This means it should posses a specialty that no other product in the market can satisfy or supersede. A product should also be part of a strong brand that can leverage the required demand to sell. It should posses the ability to capture the market even if it is completely a new segment.

customers there is a constant need to reinvent the products and services which are being offered.

This step defines te product, makes it distinguish from others and also provide a mechanism for linking the provider of a product to the valuable business assets of trust and goodwill. Company achieves this through a distinct trade names and one or more trademark. The selection of right trademark plays a significant role in marketing strategies of differentiating products of a company. With right trademark branding may be so much successful that product may develop a long-term, even an emotional development with customer such that they will grow a tendency not to look at the prominent weak side of the product but to look at the emotional and brand value of it resulting in increase further brand value following an iterating loop. The following path every company must want to follow:

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