Product/service differentiation

  • Product/service differentiation is :: the process of developing and prompting differences between the business’ products or services and its competitors.

    • differences can be simple like changes in packaging, more features and better value for money etc.
  • value for money is :: the desire to obtain the best quality, features and performance for a given price of a product.

  • four main ways that businesses can distinguish their products from its competitors:
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  • Customer service

    • personalised, caring, high quality & value
  • Environmental concerns

  • Convenience

  • Social and ethical issues

    • Ethical consumerism, (e.g. Fair Trade movement)
  • ethical consumerism involves :: buying products that are not harmful to the environment, animals and society

Product/service positioning

  • Product/service positioning refers to :: the technique in which markets try to create an image or identity for a product compared with the image of its competing products.
    • Also concerned with how potential buyers perceive the product