Product differentiation

1. Product Differentiation
Ajilal

2. Competitive business world, companies should
constantly examine their products and services to better
serve customers. What worked and yielded profits last
year may not work as well this year. Product
differentiation and positioning are key parts of a
company's marketing strategy and are necessary to keep
ahead of competition. They also require an innovative
spirit coupled with careful analysis.

3. Product Differentiation
Product differentiation is the incorporation of
attributes, such as quality or price, into a product to
encourage the intended customers to perceive it as different
and desirable. For example, if your company sells seat belts
to automotive manufacturers, perhaps your unique value is
never-fail, on-time delivery with no rejected belts. If other
seat belt manufacturers are not meeting these desired goals,
you will have a unique advantage against your competition,
and will have differentiated your seat belts from those of
your competitor

4. Product Positioning
Positioning is how you provide your product or
service brand identification as you go to market. It is the
next step after you have determined how to differentiate
your product or service. In the seat belt example, the seat
belt manufacturer can market itself on the premise that it
does not miss delivery times and that its products are free of
flaws. The product is positioned against those of competitors
on the basis of timely delivery and excellence in
manufacturing. All of the seat belt manufacturer's major
marketing efforts should emphasize this positioning in the
marketplace.

5. Positioning Statement
A positioning statement is a short sentence or phrase that
conveys the essence of the differentiation and positioning
strategies and is developed after these have been set. This
statement is used as a marketing tool by which to judge all
marketing materials to see if they are in keeping with the
strategies. A positioning statement for the seat belt manufacturer
might be, "On-time delivery and flawless manufacturing." This
statement can, though it does not have to, appear in all of the seat
belt manufacturer's marketing materials. Rather, it is often used
as a check to make sure all marketing materials produced convey
the essence of how the product is differentiated and positioned
against competitors.

6. Relationships among the Three
Product differentiation, positioning and
positioning statements go together one after the other.
Once you have decided how best to differentiate your
product based on customer needs and wants, the next
step is to determine how to position it in the
marketplace. The positioning statement then follows the
positioning strategy

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8. The Importance of Imagination
Successful differentiation and positioning
strategies depend on an imaginative approach to the
marketplace.

9. Different types of positioning strategies
• Attribute positioning
• Benefit positioning
• Use or application positioning
• User positioning
• Competitors based positioning
• Product category positioning
• Quality or price positioning
• Positioning in relation to target market

10. Thank You