With numerous new brands entering the market, it’s crucial for companies to maintain a strong and recognizable brand. As you launch your service/product, you will need to highlight the business’s unique feature to stand out from others. This differentiation strategy can put an emphasis on your brand’s different elements to avail a market advantage.
Four Types of Differentiation Strategy
- Product Differentiation
If you want to promote your product’s unique feature to upscale your sales, then it is known as product differentiation. These products generally appeal to a small yet loyal target audience. Furthermore, focus on the best benefit your product is going to provide to the customers such as single-origin spices, and lotions made with hand-gathered cocoa.
- Service Differentiation
When you introduce a new service into the market, you need to pay attention to the points making it better than that of the competitors. For this purpose, you can conduct a competitive analysis to assess certain information. Moreover, give emphasis to factors such as price, quality, customer service, delivery, etc.
- Reputation Differentiation
Using this type of differentiation strategy upholds the company’s reputation by highlighting the uniqueness of its persona. You can point out every detail representing your brand’s identity such as logo, visual aesthetics, etc. Moreover, you can also focus on its different types of packaging, engaging website, strong values, and much more.
- Pricing Differentiation
You will have to adjust the pricing of your product/service depending on various factors. It can be either by looking at the customer’s proven expectations or competitors’ pricing strategies. It is important because you will get an overview of how much price a customer is willing to pay depending on its demographics.
Wrapping it Up
Enabling a differentiation strategy will help your brand get a better place in the market and grow significantly. By highlighting your product, and brand’s best features you can give a tough time to your competitors. Hence, know your differentiation factors and start making use of them to get the best out of them!
