How to build a product differentiation strategy
Posted: Thu Jan 23, 2025 6:06 am
Get ahead of buyer ignoranceWithout effective product differentiation, consumers are left misled about the product’s features and value .
Product Differentiation Risk
There is risk in any endeavor, and product differentiation is no different. Here's what can go wrong if you don't plan thoroughly.
Copycat marketing.There's nothing worse than launching a marketing campaign highlighting your UVP only to find out two days later that a competitor with a wider reach has done the same thing. What's worse, you could unknowingly create a similar message to your competitor and be labeled a copycat. Make sure you do your research.
Consumer disappointment.If you prioritize a UVP and a bahrain telegram database customer receives a defective product that doesn’t live up to that promise, it could escalate into a major problem. Even if it was a genuine accident, you need to fix the problem. Damage control. Act fast. Out-of-control word of mouth can spread like wildfire and damage your reputation.
Product Differentiators
Now that you understand what product differentiation is, we will introduce some elements that you can utilize.
The price.This factor plays a big role in determining your target demographic: affordable products can reach a wider audience, while more expensive products can fetch a higher average order value.
It's quality.A product may be positioned as a luxury item or as a household necessity. This element may overlap with many other elements.
Durability and longevity.This factor determines how long the product will last.
Technical Specifications:Here you can highlight similar factors as in the smartphone example, such as processing power and horsepower.
FeaturesMore features doesn't necessarily make a product more appealing -- after all, someone looking for a razor blade isn't going to buy a Swiss Army knife.
Product Differentiation Risk
There is risk in any endeavor, and product differentiation is no different. Here's what can go wrong if you don't plan thoroughly.
Copycat marketing.There's nothing worse than launching a marketing campaign highlighting your UVP only to find out two days later that a competitor with a wider reach has done the same thing. What's worse, you could unknowingly create a similar message to your competitor and be labeled a copycat. Make sure you do your research.
Consumer disappointment.If you prioritize a UVP and a bahrain telegram database customer receives a defective product that doesn’t live up to that promise, it could escalate into a major problem. Even if it was a genuine accident, you need to fix the problem. Damage control. Act fast. Out-of-control word of mouth can spread like wildfire and damage your reputation.
Product Differentiators
Now that you understand what product differentiation is, we will introduce some elements that you can utilize.
The price.This factor plays a big role in determining your target demographic: affordable products can reach a wider audience, while more expensive products can fetch a higher average order value.
It's quality.A product may be positioned as a luxury item or as a household necessity. This element may overlap with many other elements.
Durability and longevity.This factor determines how long the product will last.
Technical Specifications:Here you can highlight similar factors as in the smartphone example, such as processing power and horsepower.
FeaturesMore features doesn't necessarily make a product more appealing -- after all, someone looking for a razor blade isn't going to buy a Swiss Army knife.