Methods of product differentiation

1. Product & Service Differentiation Project Team Alok Mishra Ankit Sharma Vidur Pandit 1

2. Definition “the process of distinguishing a product or offering from others, to make it more attractive to a particular target market vis-a-viscompetitors' products as well as a firm's own product offerings” 2

3. Why is it done? Offered under different brands by competing firms, products fulfilling the same need typically do not have identical features. The differentiation of goods along key features and minor details is an important strategy for firms to defend their price from levelling down to the bottom part of the price spectrum Within firms, product differentiation is the way multi-product firms build their own supplied products' range At market level, differentiation is the way through which the quality of goods is improved over time thanks to innovation. Launching new goods with entirely new performances is a radical change, often leading to changes in market shares and industry structures In an evolutionary sense, differentiation is a strategy to adapt to a moving environment and its social groups 3

4. Basis of Differentiation Attributes of the product or service - preferences are created by actual differences in the tangible product or service offered by the focal firm vis-à-vis competitors’ offerings Relationship between the firm and its customers - preferences are created as the focal firm develops and exploits relationships with customers based on what the focal firm’s target customers want Linkages between/within firms - preferences are created as the focal firm combines the competencies of different functions within or across organizations to produce tangible and/or intangible differences between the focal firm’s offerings and those of competitors 4

5. Differentiating Factors 5

6. Product Differentiation 6

7. Differentiation Factors Price : Differentiates from the competition based on pricing factor Price Form Features Customization Performance Quality Durability Reliability Reparability Style 7

8. Differentiation Factors Form : Many products can be differentiated in the form – size, shape, or physical structure of the product Price Form Features Customization Performance Quality Durability Reliability Reparability Style 8

9. Differentiation Factors Features : Products can be offered with varying features that supplement the basic function Price Form Features Customization Performance Quality Durability Reliability Reparability Style 9

10. Differentiation Factors Customization : Marketers can differentiate products by customizing them for different users. Mass customization is such an example Price Form Features Customization Performance Quality Durability Reliability Reparability Style 10

11. Differentiation Factors Performance : Level at which the product’s primary features operate. Price Form Features Customization Performance Quality Durability Reliability Reparability Style 11

12. Differentiation Factors Quality : Ensuring that the product is of highest grade Price Form Features Customization Performance Quality Durability Reliability Reparability Style 12

13. Differentiation Factors Durability : Measure of the product’s operating life Price Form Features Customization Performance Quality Durability Reliability Reparability Style 13

14. Differentiation Factors Reliability : Is the measure of the probability that the product will not malfunction or fail within a given time period Price Form Features Customization Performance Quality Durability Reliability Reparability Style 14

15. Differentiation Factors Reparability : Measure of how easily a product can be fixed Price Form Features Customization Performance Quality Durability Reliability Reparability Style 15

16. Differentiation Factors Style : Describes the products looks and feel to the buyer Price Form Features Customization Performance Quality Durability Reliability Reparability Style 16

17. Service Differentiation 17

18. Differentiation Factors Ordering Ease : Refers to how easy it is for the customer to place an order with the company Ordering Ease Delivery Installation Customer Ed. Consulting Repair 18

19. Differentiation Factors Delivery : Refers to how well the service is delivered to the customer covering speed, accuracy and customer care Ordering Ease Delivery Installation Customer Ed. Consulting Repair 19

20. Differentiation Factors Installation : Refers to the work done to make a product operational in its planned location Ordering Ease Delivery Installation Customer Ed. Consulting Repair 20

21. Differentiation Factors Customer Education : Refers to how the customer’s employees are trained to use the equipment Ordering Ease Delivery Installation Customer Ed. Consulting Repair 21

22. Differentiation Factors Customer Consulting : Refers to data, information systems and advice services that the seller offers to buyers Ordering Ease Delivery Installation Customer Ed. Consulting Repair 22

23. Differentiation Factors Repair : describes the service program for helping customers keep purchased products in good working orders Ordering Ease Delivery Installation Customer Ed. Consulting Repair 23