A differentiated product is one that has different attributes, but satisfies the same needs of the final consumer.
A differentiated product is a very simple concept to understand, but not easy to do. It is not just that the product is different from the others, but that it is different and more valued by consumers. Good because it brings them more utility, more benefits or better meets the need they want to satisfy.
Attributes of the differentiated product
If the attributes of the object are relatively contrasting, then consumers are willing to pay a significantly different price in exchange for that important variant.
The application of a marketing strategy achieves a differentiation in the product, since it achieves that the consumer has a different perception regarding a product of the same category.
A relevant element when making purchasing decisions for a product of this type is that the attributes can be recognized and valued by the consumer, whether for their tangible or even intangible characteristics.
Uses of the differentiated product
Companies need to know the needs of their customers and develop products or services that have attributes that make them unique, because it sets them apart from the competition; what causes the possibility of generating in the consumer a loyalty to the brand, in this way it offers the opportunity to stay in the market and even win more market. This applies as an “Ocean blue strategy”
For this reason, part of the companies’ efforts is focused on locating the internal and external factors that can condition the differentiation of their product .
It is for the above that; Product differentiation can be considered as a competitive strategy. For example, some companies may flood the market with products that contain small deferences, in order to prevent other companies from competing, that is, they fill the spaces that other companies could use; thus achieving a barrier to entry that is not based on quality standards or price reduction, so they cannot be accused of “anti-dumping” , thus winning the market.
What product differentiation depends on
The existence of a significant amount of differentiated products depends on the size of the market. In other words, if there is a small number of consumers , then the number of products with small variants that are produced and sold profitably is limited; while a significantly high number of consumers will reflect greater opportunities to be bought, therefore, producers will increase their supply.
The international trade , for example, involves a larger market differentiated products, as consumption possibilities increases.
The most important attributes that make the difference
Among the characteristics or attributes that allow a product to differentiate itself from its competition:
- Exceed customer expectations through higher quality,
- Implementation of services associated with the product, for example, satisfaction guarantees, post-sale services, home delivery, etc.
- Innovation in the product, that is, characteristics that improve the product itself.
- Use of exclusivity, either for its unique or personalized design.
- Adequate management of resources to be friendly to the environment.
- Representativeness in countries where such products do not exist.
- Adjusting to new generational market trends.
- Closeness in location.
- Experience in the market.
- Immediate delivery, among others.
It is because of that; Given the changes in the market due to the preferences and needs of consumers, it is necessary for companies to constantly adapt to these changes and achieve a good response capacity in order to gain market.