Differentiation aims to establish uniqueness of a brand relative to competing brads is the perception of customers.It is making products different from competitors.It incorporates differentiating product features that are valued by customers.They cause customers to prefer a form's brand over the brand of rivals.Customers perceive superior value in differentiation.
Differentiation achieve uniqueness in ways that:
Differentiation achieve uniqueness in ways that:
- Customers perceive it hard to match or copy.
- Cost is than price premium that buyers will pay.
Bases of differentiation can be based:
- Production parameters:Size,shape,design,features,quality.
- Services back-up:Delivery,installation,repair,training.
- Personnel :For services,better and experienced personnel.
- Promotion :Using differentiating claims in promotion appeals;status symbol.
- Image :Projecting organization or brand image or reputation.
- Technological innovation.
Drivers of differentiation:Differentiation possibilities can exist all along the value chain.The drivers of differentiation are :
- Unique product performance :Strict Specification for quality inputs and procurement to raise product performance.
- Unique product features:Product R&D activities that improve design,applications,variety,safety,recycling capacity,and environment protection.Creativity in product engineering.
- New technologies:Improved production methods and process through new technologies that reduce manufacturing defects and lower product costs.
- Unique services :Better services through unique capabilities for delivering customers value.It is through personal with expectational skill or experience and improved outbound logistics.
- Detailed information :More and better product information to customers including e-commerce facilities.
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