Disadvantages of Product Differentiation

Intended audience is defined as the group of people for which a service or product is designed. An example of an intended audience is the population of people targetted by a new movie.

Targeting in marketing is a strategy that breaks a large market into smaller segments to concentrate on a specific group of customers within that audience. It defines a segment of customers based on their unique characteristics and focuses solely on serving them.

A differentiation strategy focuses on what’s different about your brand and products, and why your audience should buy from you instead of your competitors.

1. Know Your Differentiators.
2. Map Differentiators to Your Audience.
3. Use Your Value Proposition to Highlight What Makes You Unique.

Differentiation strategy is built on a belief that one needs a clear and unique positioning. Differentiation leadership focuses in providing perks that add value for consumers, while higher prices are a sort of “make up” for their higher costs.

• Revenue increases are not guaranteed. Will consumers find value in the unique features your product provides?
• The offering’s perceived value can decline.
• It can strain resources.

Product Differentiation Examples

• LUSH.
• Airstream.
• Oscar Health Insurance.
• T-Mobile.
• Whole Foods.
• Client Heartbeat.
• Yoh.
• Four Quadrants Advisory.

1. 1) Innovation / Invention – The best way to implement differentiation strategy is to invent or innovate.
2. 3) Price differentiation strategy –
3. 4) Branding –
4. 5) Packaging –
5. 6) Service pre sale and post sale –
6. 7) Point of customer interaction –
7. 8) User convenience –
8. 9) Offer variety of products –

A positioning strategy is when a company chooses one or two important key areas to concentrate on and excels in those areas. An effective positioning strategy considers the strengths and weaknesses of the organization, the needs of the customers and market and the position of competitors.