A feature that also differentiates the two medications is ‘price.’ Brand names are much more expensive than generic medications. When we choose between a Coke, Pepsi, or Dr. Pepper, for example, taste drives our decision. The product differentiation process may be as simple as redesigning of packaging to introducing a brand new functional feature in a product. It also gives them a better chance to compete against more popular products. It made the car ‘fast’ because it wanted to appeal to a specific group of people. This is the general area that most B2B marketers — and probably most consum… Small-business owners can also offer discounts to members of specific groups. Put simply; it is the process of distinguishing a good or service from others, i.e., making it stand out. A mid-day, off-season hotel reservation at a small boutique hotel is frequently much cheaper than one booked for a weekend during the height of the tourist season. Examples of product differentiation including unique design, customer service, and price. A major aspect of a product differentiation strategy comes from product design. It invests in production, distribution, … For example, a beverage company may package its products in containers that are designed to store comfortably on the shelves built into a standard refrigerator door. PORTER’S GENERIC STRATEGIES 2. One approach that is common in product differentiation is to use packaging that is perceived as being more user friendly. By creating product differentiation strategies for your business you stand a better chance of competing against other companies that are larger and have more money to spend. Product differentiation is a marketing process in which a product is differentiated from others. He begins by talking about a company that created a fast car. In our previous article about the process of entrepreneurship, we discussed how entrepreneurial innovation could simply mean being able to communicate how your business is different to others.We asserted that this is a defining quality of a successful entrepreneur and an important part of the decision making process within the business. Differentiation is the process companies use to make a product or service stand out from its competitors in ways that provide unique value to the customer. Companies do this because they want to show customers their product’s attributes and uniqueness. Customer se… The segment in which the product is Unique. A company attempts to make its strategy a sustained competitive advantage. Positioning is a strategic process that marketers use to determine the place or “niche” an offering should occupy in a given market, relative to other customer alternatives. It includes actual physical and perceived differences, of which the latter can be acquired through advertising. There are three types of product differentiation. Example. Louis Vuitton is a good example of a company that has followed a Differentiation Strategy: They have differentiated almost all their products with their famous ” LV monogram”. Started... 2. Interestingly enough, IKEA also follows a differentiation strategy to a certain extent, along with its cost leadership advantage. Since a company with a differentiated product competes as a quasi-monopoly in its market segment, there is a reduced threat of buyers. … Companies do this because they want to show customers their product’s attributes and uniqueness. He has contributed to several special-interest national publications. As a side effect, these industries have seen substantial increases in competitive products. 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