What is product differentiation

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Product differentiation - is the introduction of diversity in products that meet a need and has a single main characteristics.With this diversity creates additional barriers to entry into the industry.This is due to the fact that a certain brand of product is more attractive to a particular category of consumers.A so-called "brand loyalty" - brand loyalty.As a result, new companies have to overcome stereotypes consumers.Particularly difficult situation at the new firms entering the market in a fairly aggressive advertising companies that exist for a long time.

Product differentiation is forcing companies to spend more money on building and maintaining its image.

Before any enterprise is the question of how to stay on the market.In the context of the fight should not only be able to meet the needs, and to do it better than the competition, thus creating significant advantages.

strengthen its position in the market can be, comparing favorably to the goods.There is a definite strategy of differentiation.

Development and implementation differences of goods in order to isolate it against competitive carried out in several directions: efficiency, advanced features, the level of durability, comfort, maintainability, reliability, and design and style.

With the introduction of additional features significantly expand the basic functions of products.Generally, these features are added to the existing pattern of the goods.In order to product differentiation in this area was the most effective conduct surveys consumers themselves.Based on these data the most attractive implementing improvements.

effective use of the products depends on the quality with which the product performs its basic tasks.In some cases use a gradual improvement in quality, which usually causes a gradual increase in market share and profits.But usually the quality of the product remains unchanged throughout the production period.

comfort level is the degree of conformity to the specs.

Durability - an indicator of life products.Note that this feature is not always attracts consumers.This is especially true of the goods, models are rapidly becoming obsolete in the scientific and technical progress.

attractive feature for many consumers is reliable.

Equally important is the maintainability of the product.In order to attract more buyers to the manufacturers or other type of product they offer free or subsidized service.

attractive characteristics of products are design and style.

style is a kind of emotional perception of the goods or packaging.For a certain group of products, this characteristic is particularly important.For example, for cosmetics, certain foods, perfumes and other things.

believed that the most effective product differentiation passes while improving any one, but strong differences.However, the behavior of companies with respect to giving the product, or other advantageous features should depend largely on the specific conditions of the market.In addition, product differentiation in various sectors is carried out differently.At the same time, there are strictly standardized types of products whose characteristics are virtually impossible to improve.For example, these include meat, steel or drugs.