Product differentiation is an effort to make your product unique and valuable. You need to make it stand out from competitors’ offers. And most importantly, the uniqueness of the product must make consumers want to pay a premium price.
The differentiation strategy emphasizes the creation of added value. The higher the value you create, the greater your profit opportunities.
Two things you need to focus on.
First, you focus on your product. I mean, you need to think about the uniqueness of what you have to offer, whether it is related to functions, features, or support services.
Second is the focus on creating perception. You need to influence consumers and convince them that your offer is better than competing products. Creating perceptions is vital because values often cannot be measured precisely and objectively.
Details of how you should differentiate
Differentiation involves a variety of considerations, including:
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- Create a unique selling proposition for your product (whether related to the function, design, and features). That is the main reason why consumers want to buy your product at a premium price.
- Build a strong brand image through branding. Your job is to create the perception that your product is truly “Wow.”
- Launched superior support services. Providing customer service is an important task to maintain good relations with them. Excellent service makes customers more loyal.
- Choose the right location and distribution channel. Sometimes, a product requires a special channel for sales. For example, you might need to choose a direct sales strategy instead of over the internet. That’s because you need to communicate intimately with customers and explore their needs.
- Choosing the right market segment. You must know who is willing to spend more. Not everyone wants to pay a premium.