1 / 7

Understanding Product Differentiation: Key Strategies for Meeting Customer Preferences

Product differentiation is vital for businesses to cater to diverse customer preferences. It can encompass various aspects, from unique packaging to functional features and innovative marketing strategies. Customers may have distinct preferences, such as a liking for hot versus mild salsa. Vertical product differentiation indicates that while customers share ordinal preferences, their cardinal preferences may differ. Effective differentiation can include attributes like size, quality, durability, design, and service—allowing sellers to create competitive advantages in the marketplace.

hiero
Télécharger la présentation

Understanding Product Differentiation: Key Strategies for Meeting Customer Preferences

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. EslamZaqout

  2. Product differentiation • Customers have different prefers along one dimension of a good • For example : some customers prefer hot salsa , some prefer mild • Vertical product differentiation: customers have the same ordinal preferences but not the same cardinal preferences

  3. 'Product Differentiation' • Product differentiation can be achieved in many ways. It may be as simple as packaging the goods in a creative way, or as elaborate as incorporating new functional features. Sometimes differentiation does not involve changing the product at all, but creating a new advertising campaign or other sales promotions instead.

  4. Development or incorporation of attributes (such as benefits, price, quality, styling, service, etc.)

  5. The seller faces an abundance of design parameters • Product form : size, shape, physical structure of product • Features: calculating customer value c vs. company costs • How many people want each features. • How long it would take to introduce. • Whether competitors can easily copy it. • Performance quality.

  6. Durability: A measure of the product life under normal or stressful conditions • Reliability: the product will not fail and not defected. • Reparability: how easy it's to fix product when it fails • Style: how a product looks and feels to the buyer • Design: the integration force , how product looks and functions according to customers need

More Related