Product Differentiation

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Methods of product differentiation

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Product Differentiation

  1. 1. Product & Service Differentiation<br />Project Team<br />Alok Mishra<br />Ankit Sharma<br />Vidur Pandit<br />1<br />
  2. 2. Definition<br />“the process of distinguishing a product or offering from others, to make it more attractive to a particular target market vis-a-viscompetitors' products as well as a firm's own product offerings”<br />2<br />
  3. 3. Why is it done?<br />Offered under different brands by competing firms, products fulfilling the same need typically do not have identical features. <br />The differentiation of goods along key features and minor details is an important strategy for firms to defend their price from levelling down to the bottom part of the price spectrum<br />Within firms, product differentiation is the way multi-product firms build their own supplied products' range<br />At market level, differentiation is the way through which the quality of goods is improved over time thanks to innovation. Launching new goods with entirely new performances is a radical change, often leading to changes in market shares and industry structures<br />In an evolutionary sense, differentiation is a strategy to adapt to a moving environment and its social groups<br />3<br />
  4. 4. Basis of Differentiation<br />Attributes of the product or service - preferences are created by actual differences in the tangible product or service offered by the focal firm vis-à-vis competitors’ offerings<br />Relationship between the firm and its customers - preferences are created as the focal firm develops and exploits relationships with customers based on what the focal firm’s target customers want<br />Linkages between/within firms - preferences are created as the focal firm combines the competencies of different functions within or across organizations to produce tangible and/or intangible differences between the focal firm’s offerings and those of competitors<br />4<br />
  5. 5. Differentiating Factors<br />5<br />
  6. 6. Product Differentiation<br />6<br />
  7. 7. Differentiation Factors<br />Price : Differentiates from the competition based on pricing factor<br />Price<br />Form<br />Features<br />Customization<br />Performance<br />Quality<br />Durability<br />Reliability<br />Reparability<br />Style<br />7<br />
  8. 8. Differentiation Factors<br />Form : Many products can be differentiated in the form – size, shape, or physical structure of the product<br />Price<br />Form<br />Features<br />Customization<br />Performance<br />Quality<br />Durability<br />Reliability<br />Reparability<br />Style<br />8<br />
  9. 9. Differentiation Factors<br />Features : Products can be offered with varying features that supplement the basic function<br />Price<br />Form<br />Features<br />Customization<br />Performance<br />Quality<br />Durability<br />Reliability<br />Reparability<br />Style<br />9<br />
  10. 10. Differentiation Factors<br />Customization : Marketers can differentiate products by customizing them for different users. <br />Mass customization is such an example<br />Price<br />Form<br />Features<br />Customization<br />Performance<br />Quality<br />Durability<br />Reliability<br />Reparability<br />Style<br />10<br />
  11. 11. Differentiation Factors<br />Performance : Level at which the product’s primary features operate. <br />Price<br />Form<br />Features<br />Customization<br />Performance<br />Quality<br />Durability<br />Reliability<br />Reparability<br />Style<br />11<br />
  12. 12. Differentiation Factors<br />Quality : Ensuring that the product is of highest grade<br />Price<br />Form<br />Features<br />Customization<br />Performance<br />Quality<br />Durability<br />Reliability<br />Reparability<br />Style<br />12<br />
  13. 13. Differentiation Factors<br />Durability : Measure of the product’s operating life<br />Price<br />Form<br />Features<br />Customization<br />Performance<br />Quality<br />Durability<br />Reliability<br />Reparability<br />Style<br />13<br />
  14. 14. Differentiation Factors<br />Reliability : Is the measure of the probability that the product will not malfunction or fail within a given time period<br />Price<br />Form<br />Features<br />Customization<br />Performance<br />Quality<br />Durability<br />Reliability<br />Reparability<br />Style<br />14<br />
  15. 15. Differentiation Factors<br />Reparability : Measure of how easily a product can be fixed <br />Price<br />Form<br />Features<br />Customization<br />Performance<br />Quality<br />Durability<br />Reliability<br />Reparability<br />Style<br />15<br />
  16. 16. Differentiation Factors<br />Style : Describes the products looks and feel to the buyer<br />Price<br />Form<br />Features<br />Customization<br />Performance<br />Quality<br />Durability<br />Reliability<br />Reparability<br />Style<br />16<br />
  17. 17. Service Differentiation<br />17<br />
  18. 18. Differentiation Factors<br />Ordering Ease : Refers to how easy it is for the customer to place an order with the company<br />Ordering Ease<br />Delivery<br />Installation<br />Customer Ed.<br />Consulting<br />Repair<br />18<br />
  19. 19. Differentiation Factors<br />Delivery : Refers to how well the service is delivered to the customer covering speed, accuracy and customer care<br />Ordering Ease<br />Delivery<br />Installation<br />Customer Ed.<br />Consulting<br />Repair<br />19<br />
  20. 20. Differentiation Factors<br />Installation : Refers to the work done to make a product operational in its planned location<br />Ordering Ease<br />Delivery<br />Installation<br />Customer Ed.<br />Consulting<br />Repair<br />20<br />
  21. 21. Differentiation Factors<br />Customer Education : Refers to how the customer’s employees are trained to use the equipment<br />Ordering Ease<br />Delivery<br />Installation<br />Customer Ed.<br />Consulting<br />Repair<br />21<br />
  22. 22. Differentiation Factors<br />Customer Consulting : Refers to data, information systems and advice services that the seller offers to buyers<br />Ordering Ease<br />Delivery<br />Installation<br />Customer Ed.<br />Consulting<br />Repair<br />22<br />
  23. 23. Differentiation Factors<br />Repair : describes the service program for helping customers keep purchased products in good working orders<br />Ordering Ease<br />Delivery<br />Installation<br />Customer Ed.<br />Consulting<br />Repair<br />23<br />

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