Differentiation Strategy BY SARATH G

Differentiation Strategy : 

Differentiation Strategy Sarath.G 2/1/2011 Service. Marketing. 1

Dif-fer-en-ti-ate. : 

Dif-fer-en-ti-ate. To perceive or show the difference in or between; discriminate.

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Differentiation strategy is an integrated set of action designed to produce for deliver goods or services that customers perceive as being different in ways that are important to them.

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Differentiation is concerned with how a firm competes

Differentiation help to attract more customer. : 

Evaluate and adjust differentiation method at least annually. Differentiation help to attract more customer.

For example, : 

For example,

Other requirements for differentiation : 

Other requirements for differentiation Marketing abilities Creativity Capability in basic research Loosely structured organization, strong interfunctional coordination Compensation and rewards based on subjective criteria Strengths in marketing, R&D, technology, and innovativeness

METHODS: : 

METHODS: The various methods of differentiating into four general categories: Price Differentiation . Focus Differentiation. Product/Service Differentiation. Customer Service Differentiation

Price Differentiation : 

Price Differentiation Differentiating on price is probably the most common and easily understood method. Differentiation enables the company to charge premium prices and enables the company to charge the lowest competitive price. Thus, the company is able to achieve a competitive advantage by delivering value to customers based on both product features and low price.

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Be creative.. potential customers might expect a lower price than from the competitors because they perceive as having less overhead. On the other hand, cheaper prices can evoke perceptions of lower quality, a less-stable business, etc.

Focus Differentiation : 

must pick a specific way to focus the business. this is the most important method of differentiation, and in many ways, the easiest. differentiate through: Location Customer specialization Customer relationships Affinity relationships Focus Differentiation

Service Offering Differentiation : 

Service Offering Differentiation Key to successful differentiation in this category. know the customers, really, really well. Talk to them often, and you will know what they need most and be able to offer it, long before competitors know what is happening.

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Quality - create a service that is exceptional in one or more ways. Examples: Lasts longer --Better --Easier to use –Safer. New/First - be the first one to offer something in location/field. Features/Options - offer lots of choices, unusual combinations, or solve a problem for a customer in a way no one else does.

Customer Service Differentiation : 

Customer Service Differentiation Excellent customer service a great opportunity for differentiation.

Deliver Fast : 

Deliver Fast - next day, or one-hour--make it faster than customers think possible.

Unique channel : 

Unique channel offer a service over the phone or Internet instead of in person or in their office rather than yours.

Service-delight customers! : 

Service-delight customers! - it may seem expensive to offer exceptional service--but it pays off in word-of-mouth advertising.

Guarantee/warranty : 

Guarantee/warranty offer 100% money-back, or free replacement parts.

Keys to Successful Differentiation: : 

Keys to Successful Differentiation: Know your customers, really, really well. Pick a blend of differentiation methods that, in the eyes of your customers, truly sets you apart. Talk about your differentiation in terms of customer benefits. Tell everyone about what differentiates you--often. Keep your differentiation fresh by listening for changing customer needs.

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2/1/2011 “The trouble with being punctual is that nobody's there to appreciateit”. Albert Einstein 20