Differentiation Tools

Length: 872 words

Differentiation tools There are a lot of different differentiation tools that a company can use. These differentiation tools are used to distinguish yourself from other company’s. Company’s can make use for example product differentiation, service differentiation, personnel differentiation, image differentiation and channel differentiation. Product differentiation: This is the product of a company. Company’s can vary there products very much here. For example you can vary in shapes, but you can also differentiate your product by providing very high quality goods. •Features

You can differentiate from your competitors by creating products that have different features. For example making a car that has better safety features then your competitor. •Performance You can also differentiate by making sure your product has the best performance. This will give you a great advantage over your competitors, because customers might even pay more for your products while they could get a similar product elsewhere, just because your product just performs better. •Style and design A lot of customers will look at how the product looks. If you create your product in a nice design, it might attract more customers.

For example cars, people will look at how a car performs, but they will definitely look at the design of

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the car, the shape, the color etc. •Consistency Meaning that your product is always consistent, that all the products function the same way and function constantly •Durability You can differentiate your product here by making sure your products last long. That they will not break or stop functioning very soon. •Reliability Another differentiation tools is reliability. Here you make sure that your customers can rely on your products. That it will not stop working for no reason, and that it will do the job its designed for. Repairability You can provide a service to repair the product of your customers, or create products that can be easily repaired if the might break. Services differentiation: In addition to differentiating its physical product, a company can also differentiate the services that accompany the product. •Delivery If you make sure you can deliver fast, customers might be willing to pay more for the product. Studies have shown that when a company delivers within 24 hours, customers are willing to pay higher prices up to 30% of the normal costs. •Installation You can distinguish your company from others if you have a good installation service.

For example if you make sure that you install it correctly and fast, customers will get the impression that you know what you are doing, and will get you a better company image. •Repair services Companies can further distinguish themselves through their repair services. For example car buyers, they would gladly pay a little more for a car, or travel a little further to buy it if the company provides very good repair services. •Customer training Some companies differentiate by providing a customer training service. They will show the customer how to use the products effectively.

An example of this is x-ray equipment, some providers show the hospital personnel how to use this equipment. •Consulting services Another way to differentiate is by consulting your customers. Listen to their needs and then advice them on what they should buy to meet their needs. •Speed of services Speed of service is a competitive advantage used by many firms. For example fast food, a lot of people buy it because it is fast. Much faster for example then a restaurant. image differentiation: even when competing offers look the same, buyers may perceive a difference based on company or brand images. Images Create the image you want your customers to see in your company. If customers perceive your company as having very fast delivery service, customers might be convinced solely by your image to purchases from you because you have such a good reputation. However, you company has to keep up to his image, otherwise customers will be highly disappointed. •Symbols Another way to distinguish yourself from others. Create symbols for your company that are recognizable. So whenever the customer sees the symbol, they immediately will think of your company. Personnel differentiation:

Companies can gain a strong advantage over their competitors trough hiring and training better personnel than them. •Training personnel As stated above, you should make sure your personnel is better than that of your competitors. One way to do this is by training your personnel. •Hire the best personnel with the required skills to deal with your customers Instead of training, you can also look for the staff that already has the required skills or knowledge to handle the job. This will save you the training costs. However hiring this better staff is also more expensive.

Channel differentiation: A last method to differentiate is by channel differentiation. This is the channel that ROBINSON can use to get its product to the customers. •Intermediars One can differentiate their channels by using, or eliminating, their intermediars. For example if a company sells its products to outlett stores, they can stop selling to outlett stores and start selling their products to the customers directly. •Using the internet Another way to differentiate is by using the internet. A lot of company’s already have a website at which their customers can purchase products.

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