DIFFERENTIATION AND POSITIONING OF PRODUCTS/SERVICE BY ETHAN LANEWAY AND JOSH RAWLINGS

WHAT IS IT? Differentiation position is the difference in product marketing. It could be as slight as changing the packaging and labeling of the product or service. Companies could also use more complex ways such as offering top quality services at a greater convenience,more features, however, more importantly, a better value for money, product, good or service. These factors all play a role in the larger scheme of persuading customers to perceive their offering to be superior compared to competitors. Thus making it more likely for the consumer to prioritize their product over another.

CUSTOMER SERVICE Typically consumers expect a professional level of customer sales where both pre sales and after sales are prioritized by the company to make the experience as pleasant and hassle free as possible. customers are more likely to share a bad experience than a good one. Hence it is imperative that a flawless and easy experience is available. A damaged company reputation due to bad reviews via consumers, is an incredibly hard to overcome and recover from.

ENVIRONMENTAL CONCERNS As people are becoming more aware of the environmental pollutants that business’ produce, they are becoming more proactive about selecting products that have been made in a way that is sustainable. Business’s may adopt a green philosophy by producing environmental friendly product in order to try and increase the sales.

CONVENIENCE Todays consumers are busier than ever, so they will often select products that are extremely convenient for them to attain and use. For example, many consumers do not have adequate time for proper meal preparation. In response food manufactures have developed a range of convenient food products. Such as, McDonalds, KFC and other fast food restaurants.

CASE STUDY The body shop is committed to producing products that are sensitive to environmental concerns. It sells all its products in reusable or recyclable containers, many of which can be refilled. -Environmental concerns, appealing to people who wish to strive towards a greener future. Fair Trade The fair-trade label guarantees that disadvantaged producers in the developing world receive a fair price for their commodities.

PRODUCTS AND SERVICING POSITIONING Products and service positioning is how potential buyers perceive the product. Brands such has Rolex, Ferrari and Prada tends to evoke a exquisite and exclusive product images making them a premium product that is only attainable by a specific ‘Affluent’ target market. These niche markets tend to not be as competitive due to the smaller target market of consumers able to afford such luxuries. In highly competitive markets, sales may be difficult to secure, thus a business will attempt to create and image that differentiates its product/service from the others – in an attempt to make it more appealing to the mass market. Profitable and innovative commercial businesses are ones which provide customers with exactly what they need and want.

TANGIBLE AND INTANGIBLE PRODUCTS Typically it is convenient to group intangible and tangible products. Most products are combinations of tangible and intangible components. For example: Restaurants provide tangible elements such as food and drinks. Restaurants also provide intangible elements such as efficient service, light music and a pleasant atmosphere. Both tangible and intangible elements combine together to create a full package that is the overall service the restaurant provides to the consumer. Tangible – something you can feel (Product) Intangible – something you cannot touch (service)

BRANDING A brand is a name, term, symbol, design or any combination of these that help the consumer to identify a specific product. This helps them to distinguish it from the competition, making it unique and recognizable. The term positioning refers to when products and brands are placed in a market. It is vital that consumers see where products and services are being placed in the market. For example, customers might see products as giving good value, or poor value for money. Customers may link a brand to high quality or low quality. It is key to carry out market research to spot appropriate positions to take in the market. Brands are usually classified according to who owns them. When a manufacturer owns a brand name it is referred to as a manufacturers brand or a national brand. If the brand name becomes well recognized, the business will also enjoy a carry-over effect when new products are introduced. This gives a district competitive advantage over competitors.

PACKAGING Packaging involves the development of a container and the graphic design that is representative of the product. Packaging is more than simply putting the product in a container, or placing a and wrapper around the product. The objectives of packaging is that it preserves the product, protects the product from damage or tampering, attracts consumer attention, divides the product into convenient units, assists with the display of the product and makes transportation and storage easier. The ultimate goal of packaging is to entice the consumer to buy the product. An aesthetically pleasing packaging that appeals to the mass market is more likely sell due to the fact that it attracts more attention – more consumer awareness of a product means that it is more likely to sell in larger volumes, thus making the product stand out as ‘better’ than the competitors offering.

REVIEW QUESTIONS 1) What is differentiation of products? 2) What type of goods and services fall under the category of tangible or intangible products?