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MARKETING MANAGEMENT - Concept Of A Product

Product differentiation - Concept Of A Product

   Posted On :  18.06.2018 02:35 am

Is the act of designing a set of meaningful differences to distinguish the companies offering from competitor’s offerings?

Product differentiation
 
Is the act of designing a set of meaningful differences to distinguish the companies offering from competitor’s offerings? The number of differentiation opportunities varies with the type of industry. The Boston consulting group has distinguished four types of industries based on the number of available competitive advantages and their size.
 
1. Volume industry              : One in which companies can gain only a few, but rather large,competitive advantages.
 
2.  Stalemated industry : One in which there are a few potential competitive advantages and each is small.
 
3.  Fragmented industry: One in which companies face many opportunities for differentiation, but each opportunity for competitive advantage is small.
 
4.  Specialised industry : One in which companies face many differentiation opportunities, and each differentiation can have a high payoff.
 
Theodore Levitt in one of his books “Marketing Success, through differentiation of anything” explains that in a market place, there is no such thing as commodity .All goods and services are differentiable. In a market place differentiation is everywhere .All the companies try to distinguish their offer from that of their competitor. This is true of even those who produce and deal in primary metals, grains, chemicals, plastics and money. Starting from technology to plant location to post sale service firms to the personnel/procedures employed for various functions like sales, production etc., and companies can differ their offers in many ways. Companies usually choose those functions, which give them greatest relative advantage. 
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