Differentiation in a marketing setting is the ability to distinguish a product from to others or make it attractive to a specific target market. Moreover, it is expressed as a promotional method employed by a business to establish a strong and unique presence in a market, when using this strategy a manufacturer uses several variations on a product to be marketed under the same name brand to give the products a wider coverage and promote market dominance.
The significance of this competitive strategy is based on the notion that, firms have resources that enable them to construct a particular competitive advantage over the rest of the competitors. Moreover, with proper management of resources the firm will reduce competition in every market aspect it is involved in (Smith, 1995). In this case, differentiation is seemingly a process of establishing a difference in products and creating more attractive ones aimed at a particular market. For instance, Apple INC has established a differentiation strategy by producing a smartphone with unique hardware and software version unique compared to major phone companies, thus remaining as a dominant in the mobile phone market through targeting specific users (Ragnetti, 2011).
In addition, it is evident that the use if differentiation one can make a business stand out and successful despite the crowded market. Apparently, this can be achieved by the integration of several aspects of differentiation such as pricing; this is done by offering customers with a different pricing strategy. For instance, high pricing sets a sense of quality and prestige thus attracting a particular group of buyers. Moreover, convenience is also a primary differentiation strategy where one operates a business in an organized manner to ensure customers times is managed appropriately. In conclusion, with a proper differentiation strategy, the customers will have a positive attitude to the products leading to the success of a company.Tags: advertising, company, differentiation, marketing
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