- MemberDecember 26, 2021 at 10:53 pm
Consider the different means of differentiating products and services. Which ones have the most impact on your choices? Why? Can you think of certain brands that excel on a number of these different means of differentiation?
Product differentiation is the introduction of unique, distinctive characteristics or features to a product to ensure a USP of the product. The differentiation enables a company to achieve a competitive advantage over other companies offering similar product substitutes. It is an essential marketing process that is of vital economic importance to a business. There are two types of differentiation
Vertical differentiation focuses on differentiation in a product based on quality. In any market, a quality hierarchy exists for a particular type of product that ranks products of one kind from a position of low quality to the highest quality product.
Essentially, vertical differentiation is aimed at differentiating the product in order to move up the hierarchy toward higher quality and use the trait as a competitive advantage to sell the product.
Horizontal differentiation is when products are differentiated according to a specific feature. The differentiation can be about colors, packaging, shapes, flavors, etc.
I remember during my early 20s when I first started working, I used Blackberry because it stood out exceptionally through product differentiation. Back then, Blackberry was the only smartphone brand that offered an in-device instant messaging feature called BBM. It helped the company stand out significantly in the market. Many of my colleagues and networks in MNCs were using Blackberry. Sadly it did not evolve with the innovation of the smartphone