Saturday, October 29, 2011

Beyond Product Differentiation Strategy to Outperform – GEC Business Review

by Rachel Poh

In general, product differentiation strategy refers to how you position your company, product, service or brand; providing unique value and benefits for your customers. Simply ask, what and why is your product? Rather thinking about the physical appearance but the overall values that you are providing customers.

It begins with taking stock of everything that goes into doing business with your customers. It includes the physical attributes and features of your products more importantly the overall experience of your customers in acquiring your products or services.

In today’s competitive market place, it’s not good enough to have only product differentiation. Customers no longer think simplistically in terms of prices, benefits and features only. Rather, your differentiation strategy must go beyond, communicating added value proposition that really differentiate you from the rivalry, ultimately generating satisfaction and enjoyment throughout the purchase experience – before the purchase, during the purchase and after the purchase.

That is, the basis of how to communicate such differentiation of your products or services, and well-presented, in a way to vow the viewer!

Going beyond the differentiation can be simply accomplished by crafting a different product, providing different purchase experience coupled with unique product descriptions and images that differ from other competitors. With differentiation, your product will be more easily recognized and provide attraction for consumers.

Launch Messaging Power to Drive Sales
I still recall that Albert Einstein, the great American Physicist and Nobel Prize winner had once said:

If you can't explain it simply, you don't understand it well enough
~ Albert Einstein

Having said that, the message ought to be stated as simple as possible, be clear and able to grab the attention of your prospect. It’s a value proposition that provides your product differentiation needs to be high on your list of things to do.

The key is – a product stands out by having a compelling position and message that anyone can instantly understand. Such task of weaving a value proposition into a statement that becomes your core marketing efforts.

One last thing, when such value proposition is created, customers should easily see the benefits of purchasing your product than other alternatives.

Here are the other important points to complement your value proposition, to set your company apart from others:-

Easy to Recognize
As long as that is unique and different (e.g. as for your brand logo or packaging etc.), it will provide a special attraction for consumers. So customers are easier to recognize and recall these products than other products that have been in common.

Look Superior
In the event of other products are considered standards by the average consumers, as a matter of differentiation, your product or service should look more superior to others. It is certainly stand out. With a superior product, you’ll easily build consumer loyalty.

Higher Price Point
No price war! A product that has its uniqueness, customers will likely purchase at any price. Limited edition products have higher prices than the regular products and many consumers willing to pay the product.

In sum, strong value propositions will bring significant impact to your company and the rest of your products, services and brands. Your messaging strategies (or marketing communication strategies) should consistently incorporate into sale strategies as well as your marketing materials.

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