What is product differentiation?

Product differentiation is the introduction of diversity in goods that satisfy one need and have common basic characteristics. With the help of this diversity, additional barriers are created at the entrance to the industry. This is due to the fact that a certain brand of products is more attractive for a particular category of consumers. Forms the so-called "loyalty to the brand" - brand loyalty. As a result, new companies are forced to overcome the existing stereotypes of consumers. Especially difficult situation for new firms entering the market in conditions of quite aggressive advertising of existing enterprises for a long time.

Differentiation of the product forces the company to spend additional funds on the formation and maintenance of its image.

Before any enterprise there is a question on how to stay on the market. In conditions of struggle, one should not only be able to satisfy needs, but also to do it better than competitors, thus creating significant advantages.

You can strengthen your position in the market by distinguishing your product favorably. There is a definite strategy of differentiation.

The development and introduction of product differences with the purpose of distinguishing it against competitive background is carried out in several directions: efficiency of use, additional opportunities, level of durability, comfort, maintainability, reliability, and also in design and style.

With the introduction of additional features, the basic functions of the products are significantly expanded. As a rule, these opportunities add to the already existing sample of the goods. In order to differentiate the product in this direction was the most effective, conduct surveys of the consumers themselves. Based on the data obtained, the most attractive improvements are introduced.

Efficiency of using products is determined by the quality with which the product fulfills its main tasks. In some cases, gradual improvement in quality is used, which, as a rule, causes a gradual increase in market share and profit. But usually the quality of the product remains unchanged throughout the production period.

The level of comfort is the degree of compliance of the goods with the declared characteristics.

Durability - a measure of product life. It should be noted that this characteristic does not always attract the consumer. In particular, this applies to goods, the models of which quickly become obsolete in the conditions of scientific and technological progress.

An attractive characteristic for many consumers is reliability.

Important is the maintainability of the product. To attract more buyers, manufacturers of one or another type of product offer free or reduced service.

Attractive characteristics of the products are design and style.

Style is a kind of emotional perception of the goods or packaging. For a certain group of products this characteristic is especially important. For example, for cosmetics, individual foods, perfumes and other.

It is believed that the differentiation of the product most effectively passes with the improvement of any one, but a strong difference. However, the company's behavior regarding the giving of goods to those or other profitable features should depend mainly on specific market conditions. In addition, product differentiation in different industries is carried out in different ways. At the same time, there are strictly standardized types of goods, the characteristics of which are practically impossible to improve. For example, they include meat, steel or medicine.