Differentiation and Positioning are essential parts of a marketing plan, and most marketing strategies use both techniques. Although the two are different and at slightly different product lifecycle positions, product differentiation and positioning serve a similar drive. Together are especially relevant in markets where a product has multiple competitors.

Product Differentiation

Is the value proposition of a product, which makes it unique. As the number of products multiplies, product differentiation becomes increasingly important. When it comes to product differentiation, a company must identify the features of its product that differentiate it from rival products. Knowing a product’s value plan highlights the qualities that consumers find attractive compared to competing brands.

Common Differentiation Strategies Aim To Draw Consumers

Attention to the product’s value, quality, or uniqueness. For example, a value-based differentiation strategy might emphasize how well the product represents an excellent financial offering relative to competitors. In industries such as insurance or among network providers, the differentiation strategy may be more conceptual than real in terms of value.

Geico is known for its efficiency and afford ability in obtaining an insurance quote with its catchy slogan, “15 minutes could save you 15% or more on auto insurance. Meanwhile. Other insurance companies like AAA back their high-quality service and insurance heritage. For network providers ranging from AT&T to Verizon, claims such as “America’s Largest Network” or “America’s Most Trusted Network” help differentiate between different networks. T-Mobile, for example, also offers free international mobile phone coverage, giving it an edge over other networks.

Product Positioning

After identifying the differences, marketing looks for ways to position the product favorably in the minds of potential consumers over its competitors. The marketing and raise plan manipulates symbols, such as on displays and packaging, and communicates personalized messages to people who are likely to appreciate life sold.

Product positioning places the differentiated product in the market to attract the attention of potential customers. This positioning remains to influence consumers’ perception of the product. While product differentiation is often product-specific. Product positioning is more about the target audience. For example, a brand that wants to market to a younger Millennial or Gen Z audience could position itself alongside famous TikTok stars or celebrities to make the brand trendier. On the other hand, even if a laundry detergent brand is the best on the market, the product will fail if positioned for a younger audience that does not do their laundry.

The Bottom Line

Generally speaking, product differentiation can be part of a strategy to position a product among its competitors: to highlight its unique qualities. Although product positioning changes customer perception, the marketing message does not always influence people. Marketers may misunderstand their market and the key characteristics necessary to consumers. Meaning successful marketing requires thoughtful product differentiation and positioning.

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