Differentiation strategies

Means of differentiation

Should be compelling to consumers

Related to aspects of the product and services

Means of differentiatio

n

Employee

Channel

Image

Services

Employee differentiation

Companies should have better trained employees who can provide superior customer service.

Channel Differentiation

Effective and efficient design of distribution channels’ coverage, expertise, and performance can make buying of product easier and more enjoyable and rewarding.

Image differentiation

Companies should craft powerful, compelling images that appeal to consumers’ social and psychological needs

Services Differentiation

A service company can differentiate itself by designing a better and faster delivery system that provides more effective and efficient solutions to consumers.

There are three level of differentiation :

Reliability

Resilience

Innovativeness

Emotional branding

It can also be a tool of differentiation

A person’s emotional response to a brand and its marketing will depend on brand’s authenticity.

Emotional branding

Three specific traits are :

Strong people-focused corporate culture

A distinctive communication style and philosophy

A compelling emotional hook

Emotional branding

Potential threats posed by competitors:

Share of market

Share of mind

Share of heart

“”

Companies that make steady gains in mind share and heart share will inevitably make gains in market share and profitability

Revision: Means of differentiation

Means of differentiatio

n

Employee

Channel

Image

Services

Shreya Shwetima

From- IIT Bombay

Thank you