It has detailed information about differentiation strategy

1. Differentiation strategy
By
K.Mounika

3. What is differentiation?
 Differentiation is the process of adding meaningful and
valued differences to distinguish the product from the
competitors’ product.
 E.g.
◦ Diet coke
◦ Dell
◦ Reva through an electric car
◦ Xerox

4. Differentiation Dimensions
A firm can differentiate along 5 dimensions:
 Product
 Services
 Personnel
 Channel
 Image

5. Product differentiation
• Differentiating the company’s market offering from
competitor so that it achieve desire position in
consumer’s mind to give more consumer value.
 Form
 Features
 Style
 Performance Quality
 Durability
 Customization
 Reliability
 Reparability

6. Services differentiation
 When the physical product cannot easily be
differentiated, the key to competitive success may
lie in adding valued services and improving their
quality.
 E.g. Kenmore refrigerator
 Ordering ease
 Financing
 Delivery
 Installation
 Returns
 Customer training
 Customer consulting
 Maintenance and repair

7. Personnel differentiation
• Companies can gain a strong competitive
advantage through having better-trained people.
• E.g. Singapore airlines
 Competence
 Credibility
 Courtesy
 Reliability
 Responsiveness
 Communication

9. Channel differentiation
 How the companies distribute their channels?
 2 types : Direct marketing
Indirect marketing
Characteristics:
 Coverage
 Expertise
 Performance
 Internet

10. Image differentiation
 A person responds differently to company and brand
images.
 Symbols & Logos
 Media
 Advertising
 Events