Product
Differentiation
A typical
evolution in the history of an economy is to go from making and selling
generic products to making and selling differentiated products. In
an economy which is not very developed the different manufactuerers
produce basic types of shirts, soaps, shoes, etc.
Henry Ford
succeded in the first couple of years because he made cars which were
exactly the same model and black in colour. At the start of an economic
development the consumer tries to satisfy their basic needs by buying
clothes and products to use to wash the clothes, body, etc. In these
environments companies concentrate on manufacturing these basic products.
When the
consumer's purchasing power increases, they no longer conform with
the basic, standard, indifferent product. General Motor's exceeded
Ford's sales when they made different models for different income
groups. Different models of cars of a different brand and different
colours for the different levels of income.
General
Motors organized the company into five divisions each division with
its different brands, models and target audience. Cadillac and Buick
are two brands which have very different and distinguished models
which appeal to different poplational groups and people with different
levels of income.
Before
we considering what to say about a product we have to analyze it.
The intense competition obliges us to adopt a well defined strategy.
Some companies that operate in developed economies compete by manufacturing
a basic product at a low cost. However, without forgeting the cost,
almost all companies compete by making their product slightly different.
In the
following example, Dial soap explains that it is a different soap
because it has AT-7 a component capable of eliminating bacteria from
the skin which causes bad odour. Dial soap is different from other
soaps because it has a different composition.
To develop
the marketing and advertising plan for a successful product,
we have to ask ourselves:
How is
my product different to the competition's?
Does
this difference suppose an advantage to the consumer?
Do
the consumers know the differences between my product and the competition's?
Do
the consumers value the difference?
The differences
between my product and the competition's can be found in:
The production
system and the company
The
components of the product and its characteristics. Where
the components come from. E.g. Pizza elaborated with products from
a famous market.
The
design.
The
packaging.
The
added services.
Many
other characteristics can differentiate the product from the competition.
In the
following example the advertiser is communicating the advantage of
refridgerating using air instead of refridgerating using water. The
advert comes from Adflip.com.
The following
advert communicates the advantage of consuming.
