Bright examples are agricultural and light industry products. This group also includes coffee, metals, sugar, oil, etc. The disadvantage of such goods is that they can be easily replaced within indonesian numbers the relevant category. Because of this, companies have to compete only on the basis of basic advantages.
A differentiated product is a product that is available in the assortment of several companies, but is perceived by consumers as a unique offering.
The concept of differentiated goods
Almost all of these options are popular brands. Such products are positioned as exclusive, satisfying the same group of needs. For example, there are devices from Apple and devices from unknown Chinese companies. At the same time, there is a clear division between them on the market.
Consumers begin to perceive the product as unique through the use of the following tools:
Marketing. With the help of various advertising methods, specialists can give ordinary goods special properties and enhance the effect of their characteristics. Many leading brands have achieved success due to aggressive promotion. Thanks to marketing, consumers remember the model and name better. This allows the company to form a name for the corresponding product.
Public opinion. People tend to adopt the majority's point of view. If the masses speak positively about a particular product, then a specific consumer will most likely think similarly, even if he has not used it personally. A differentiated product is often the result of evaluating an offer according to certain criteria. For example, even food products in the same category can be perceived by people in completely different ways if they compare them by composition, quality, and packaging.
Pricing. The price of a product can greatly distinguish it from other products on the market. Pricing allows a company to protect its position in a niche. However, an incorrectly set price list can put an exclusive product on a par with standard ones or vice versa.
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Differentiated products differ not only in positioning and appearance, but also in pricing. The manufacturer can use some useful tools. For example, sales or discounts. With their help, it is possible to form a stable attachment to a certain brand.
If the theory of differentiation is used correctly, a company can achieve good profitability even in a niche with tough competition. Thanks to this, small firms can feel good in markets where large holdings are leading and sales are limited.
Types of product differentiation
There are two types of product differentiation: horizontal and vertical. The first strategy implies that the product is designed for different needs, and the second - for one.
One type of differentiation complements the other. As a rule, they are used in combination.