11. differentiation__19-03-2012

8/2/2019 11. Differentiation__19-03-2012

1/26


2/26

What is a Product?

A Product is anything that can be offered to a

market to satisfy a want or need, includingphysical goods, services, experiences, events,

persons, places, properties, organizations,

information, and ideas.


3/26

Components of the

Market Offering

Attractiveness

of the market

offering

Value-based prices

Product

features

and quality

Services

mix and

quality


4/26

Five Product Levels


5/26

The Core Product

Core Product:

What is the buyer really buying? ....

Core benefits, Problem Solving services.

Examples:

Lipstick....... Beauty, Hope, not lip color

In a hotel, customer is buying rest and sleep


6/26

Augmented Product

Consists of Additional Consumer Services and

Benefits....Augmented benefits may become expected

benefits

Camcorder: Complete solution to picture-taking problems.Warranty on parts and workmanship,

Instruction on how to use camcorder,

Toll free number for questions and problems

Hotel: Candy on hotel pillow, basket of fruit,

manager escorts you to room, Pillbox, white uniforms,toiletries.

Perfume: Fantasy, memories, hopes, dreams, life style, self-expression,

exclusivity


7/26

Product Classification Schemes

DURABILITY & TANGIBILITY

INDUSTRIAL GOODS

CONSUMER GOODS


8/26


9/26

Consumer Goods Classification

Convenience

Unsought

Shopping

Specialty


10/26

Industrial Goods Classification


11/26

MARKETING STRATEGYDeveloping a vision about the market(s) of interest to

the organization, selecting market target strategies,

setting objectives, developing, implementing, andmanaging the marketing program positioning

strategies designed to meet the value requirements of

the customers in each market target .

The issues discussed in the area of

differentiating and Positioning the

market offering are:

Tools for Competitive Differentiation

Developing a Positioning Strategy

Communicating the Companys Positioning


12/26

What is Differentiation?

Ensuring that products and services have a

unique element to allow them to stand out

from the rest.

In business terms, to differentiate means to

create a benefit that customers perceive as

being of greater value to them than what they

can get elsewhere.


13/26

Tools for Competitive Differentiation

Differentiation - Definition: is the act of designing a

set of meaningful differences to distinguish the

company's offering from competitor's offerings.

- It helps the firm fight on non price plank.

- It can be achieved through difference inproduct, distribution methods ,promotion steps,

plant location or after sales service.

-Example

Eureka Forbes used personal selling ;the sole way to reach its customer and built up

distinction through it .Where as COKE & PEPSI

differentiated through brand power ,Apple ,Microsoft

are some more examples .


14/26

Five Dimensions of Differentiation

Regarding the tools of differentiation, five dimensions can

be utilized to provide differentiation.

Product

Services that accomplish any marketing, sales and after

sales services.

Personnel that interact with the customer

Channel

Image


15/26

Product Differentiation

Product form

Features

Customization

Performance Conformance

Durability

Reliability

Repairability

Style


16/26

Differentiating a Product

Features

Quality: performance and

conformance

Performance - the performance of the

prototype or the exhibited sample,

Conformance - The performance of

every item made by the company

under the same specification.

Durability/Reliability

Product quality/service/technology

Packaging

Style

Design


17/26

Design Differentiation


18/26

Developing products for rural markets

Products should be designed keeping in mind the

rural conditions

Packaging is one of the key drivers of success in

rural areas

Issue of transfer and storage: Rugged packing

The issue of affordability: small-unit packs

Brand elements should be decided keeping in

mind rural consumers


19/26

Services differentiation

Ordering easeDelivery

Installation

Customer trainingCustomer consulting

Miscellaneous services


20/26

Ginger Hotelshas carved a

profitable niche

through itsinnovative

service

configuration


21/26

PersonnelDifferentiationCompetence

Courtesy

Credibility

ReliabilityResponsiveness

Communication


22/26

Personnel Differentiation:

Singapore Airlines


23/26

Channel

differentiation Coverage

Expertise of the

channel managers

Performance of

the channel in easeof ordering, service

and personnel


24/26

Channel Differentiation:

Eureka Forbes

Image differentiation


25/26

Image differentiation

First distinction between Identity and Image - Identity is designed by the

company and through its various actions company tries to make it known to

the market.

Image is the understanding and view of the market about the company.

An effective image does three things for a product or company.

1. It establishes the product's planned character and value proposition.2. It distinguishes the product from competing products.

3. It delivers emotional power and stirs the hearts as well as the minds

of buyers.

The identity of the company or product is communicated to the market bySymbols

Written and audiovisual media

Atmosphere of the physical place with which customer comes

into contact Events or anized or s onsored b the com an .


26/26

Image Differentiation

11. differentiation__19-03-2012

Documents