21. References Kotler, P. & Keller, K. (2009). Marketing Management, 13th edition. New Jersey: Prentice Hall. Kotler, P. & Lee, N. (2009). Up and Out of Poverty: The Social Marketing Solution. New Jersey: Wharton.
Editor's Notes
Hi everyone I am kim with team sweetwater… In the next five minutes we will take a closer look at differentiation strategies that companies use to drive consumer purchasing on a day to day basis. First we should look at how a product is defined- it is basically anything that consumers want or need.
First we should look at how a product is defined- it is basically anything that consumers want or need. And since products are essentially everything the market gets competitive Product selection is like choosing one fish out of an overcrowded fishbowl bowl The challenge for marketers is to make their product seem more desirable and different than the other options in the packed bowl.
The challenge for marketers is to make their product seem more desirable than the other options in the packed bowl. In a crowded marketplace the challenge becomes making people think that your choice is the different one, or the red or blue fishTo help us We will walk through a typical day of our new friend kelly
To help us We will walk through a typical day of our new friend kellyto look at 10 examples of how marketers swayed her choice by proving their product is the different one that best meets her desires. Even before she leaves the house for the day she is subject to marketing-
Even before she leaves the house for the day she is subject to marketing-First thing, Kelly gets out of bed and faces a difficult decision of which shoes to wear This choice is hard since she has purchased 100’s from ZapposKelly has so many shoes because her purchasing habits reflect the market hypercompetion
Kelly has so many shoes because her purchasing habits reflect the market hypercompetionshe has been sucked in by easy online purchasing and friendly customer service reps like Samantha & JamieZappos made kelly believe that they have the best combination
Zappos made kelly believe that they have the best combination of her Values, Expectations and bonusesThey created a unique offering in an oversaturated market and filled her closet!Now that Kelly is dressed she needs her daily dose of caffine-
Now that Kelly is dressed she needs her daily dose of caffine- she chooses starbucksStarbucks captures Kelly’s purchase by marketing the style and perfection of their drinks that are hand crafted by trained baristas. Even the milk that she puts in her coffee (a commodity)
Even the milk that she puts in her coffee (a commodity) is subject to differentiation- after all, marketers say you can differentiate everythingShe chooses the organic option which she thinks promises to be healthier than the restNow that she is dressed and caffeinatedKelly needs to get some work done
Now that she is dressed and caffeinatedKelly needs to get some work doneShe grabs her coffee and goes to the office- the big question is did she choose to invest in a mac or a pc to use everyday?It was an easy decision for kelly to choose a mac
It was an easy decision for kelly to choose a mac since durability and reparability were the most important factors for her. She even loves the sleek and trendy design that she gets with her macbook as an added bonus. After a long work day she shuts down the computer and heads for happy hour
After a long work day she shuts down the computer and heads for happy hourHer favorite bar has 15 draught beers to choose from. Good thing Kelly knew what she wanted before even stepping foot in the bar. As always, she chooses the microbrew pale ale.
As always, she chooses the microbrew pale ale. She opts to enjoy the superior option to the low quality coors light. The microbrew wins her purchase by providing a specialized product with a unique flavorIn fact the microbrew wins her purchase at a premium price
In fact the microbrew wins her purchase at a premium price- double that of the coors lightKelly loves the crisp taste so much that she invites her friends and the microbrew gains sales from word of mouth marketingAfter catching up with her friends she heads home for the day
After catching up with her friends she heads home for the day,puts on a pair of comfortable shoes (that she got from Zappos of course) Eats dinner and then she has to do the dishes- good thing she can load the cluttered mess into the dishwasherKelly lives in SF and is environmentally conscious
Kelly lives in SF and is environmentally conscious and chooses a dishwasher product that is chemical free. Method wins Kelly’s purchase by providing a safer alternative. The method fish is swimming in a less toxic sea than his competition. As we followed kelly through her day
As we followed kelly through her day we can begin to see how a company gains a customer’s purchaseIndustries can be categorized into four sections based on number of differentiation advantages and the size of the advantage. Once a company identifies where their differentiation sweet spot is on the grid
Once a company identifies where their differentiation sweet spot is on the grid they can apply these 6 key factors to strengthen their ability to differentiate their product in a crowded market space Here are the 10 differentiation tactics that worked to win kellys purchase
Here are the 10 differentiation tactics that worked to win kellys purchase Companies won kelly’s purchase using these 10 tactics because they marketed their products as:Important, Distinctive, Superior, Preemptive, Affordable, and all in a profitable way. Now that kelly is tired and broke
Now that kelly is tired and broke I urge you to think about why you buy certain products and if your choices are driven by differentiation and ultimately how you can help a company market their product as the red or blue fish in the bowl of competition
