What Is Product Differentiation?
Product Differentiation is a marketing strategy that makes out your product stands apart from the other products. It makes the product unique in the market. The differentiation can be based on physical attire, features or value.
In a market, there are several companies which launch similar products. So the businesses apply such strategies to make their product stand apart. There are a lot of competitors who even launch it first so that their product receives the greatest response.
To get this much better, let us take an example, you visit a grocery store and choose to buy some cereals. You got to see two options- the first one is simply packed. And the second one is differently presented with some attractive packing. Though both the cereals are the same from inside but the outer look is different. And because of this marketing strategy, the customer is more likely to buy the appealing product.
We know that a successful product is the one which satisfies all expectations of the customers. So it’s a big question: how can you distinguish your product from the rest of the market? The answer to this question is following the smart marketing strategies. In today’s competitive environment where the strategies are also changing, you can follow the competitive intelligence to crack your problem.
Here, the product manager’s role comes into effect. He designs the product in such a way that it’s different from others. The fundamental rule for designing any product is that the product management should have the complete plan beforehand.
We do this to avoid any future problems. The plan needs to have all the solutions regarding what if the product fails, or what plan will come into effect if the competitor launches a similar product? And so on.
Ways To Achieve Product Differentiation
Differentiation of products can be at three levels: core, actual or augmented level. For example, the products of Apple differ from other products from the core or the starting point only. Similarly, there are several ways to achieve product differentiation, which are as follows.
1. Based on physical structure: The physical attire, size, shape or form is one of the best ways to differentiate a product. Let’s take an example of soft drinks. Drinks are manufactured by many companies but each company, or you can say the smartest of all, uses a unique way of presenting it to the customers. The size, shape or even the color of the soft drinks can be kept different from others, which will make it appealing to the market.
2. By providing additional features: This point is equally important as everyone loves extra features at the same price or maybe by paying some extra. This additional feature needs to be extra appealing to convince the customer. It can provide extra security or some extra function. For example, if an antivirus for electronic devices has some additional features which make it different from others and is available at the same price. Then definitely the customer would choose that product over others.
3. Quality of the product: It includes points like the durability, reliability, style and the service of the product. As these things matter a lot from a customer’s point of you. And if your product satisfies all these points, then the differentiation of the product is very good.
What Is the Go-To-Market Strategy?
Go-To-Market Strategy is a strategy which includes things like how the company will connect with the customers, how it will target the right audience and how it keeps its promise regarding the quality of the product launched? These are very basic questions which a company needs to tackle with.
It is good if you already have the answers or the strategies for these questions. But if you don’t have, then you should give a read through this.
There are several advantages of Go To Market strategy (GTM) as it not only helps the business to grow but also clarifies all its customer’s doubts. It gives a lot of potential for the business to prosper. Some important points are:
It reduces the cost if you have any failed product in the past.
It provides good management of time in the market.
It ensures a good customer relationship.
It ensures a successful product launch.
It lets you keep up with your innovations.
It easily manages with a sudden change in plan.
It lets you choose the right path.
It clarifies yours as well as the customer’s doubts.
How to create your GTM Strategy?
The GTM strategy optimizes your business for a long-term growth. For creating a successful GTM Strategy you need to follow certain steps, they are:
1. Target the right audience: this is the most initial step and a very crucial one too. As targeting the wrong audience will eventually let your business suffer. Not all products are ideal for everyone. There are certain criteria for each product. Pay much importance to the customer’s feedback. Try to satisfy all the needs in limited resources. So that it may receive the maximum response.
2. Work on the targeted market: In order to have the maximum profit focus on your market. Strategize things accordingly. Find out the biggest market with least competition. Work on the urgent requirement of the market and align your strategy according to it. But always remember your goal of differentiating the product.
3. Define your platform: By platform I mean to say that a place from where the customer will get the product from. These platforms can be an offline store, or a center with a direct salesperson, or a trade show, or an online platform. There are certain things that you need to complete about your platform like how will you promote your product, how can the right targeted customer will reach out to you, how will you interact with the customer and deal with the upcoming demands and so on.
4. Work according to your budget: before starting off any business you need to set yourself with a budget model. This will help you escape from so many financial problems. Budget should include the pricing details of the product which must accord to the competitive analysis of the market.
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