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Product Differentiation




The changes are usually minor; they can be merely a change in packaging or also include a change in Advertising theme. The physical product need not change, but it could.

The objective of this strategy is to develop a Position that potential customers will see as unique. If your target market sees your product as different from the competitors', you will have more flexibility in developing your Marketing Mix . A successful product differentiation strategy will move your product from competing based primarily on Price to competing on non-price factors (such as product characteristics, Distribution Strategy , or Promotional Variables ).

The disadvantage of this repositioning is that it usually requires large Advertising and production expenditures.


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  • http://www.economicswebinstitute.org/glossary/product.htm Further explanations and a free software