2. Differentiation Pertemuan 14 Matakuliah: J0114/Manajemen Pemasaran Tahun: 2008

3. Bina Nusantara Learning Outcome Students are able to choose a proper strategy for differentiation

4. Bina Nusantara Material Outline Stages of developing differentiation Maintaining your differentiation

5. Bina Nusantara Stages of Developing Differentiation Segmentation, targeting and positioning –Segmentation is about identifying new market segment that can be developed further. By doing so, a marketer is trying to find something new that can be explored to be something unique –Targeting is aiming a certain segment. After having market segmented, a marketer decides which market and behavior he plans to serve for. –Positioning is how to place a uniqueness in consumer’s mind. This is the base on which differentiation is laid. Since differentiation reflects product positioning and positioning is about something we do to consumer’s mind, therefore a marketer has to be certain which target segment will be exposed differentiation

6. Bina Nusantara Stages of Differentiation Based on positioning established in consumer’s mind, a marketer has to explore sources of differentiation that can give added value to product, brand and company image –To do this, an analysis on content, context and infrastructure which is currently managed, should be taken into consideration. –A company needs to view its strength and weakness in consumer’s perception. Based on this finding, company can make an effort to develop a base of differentiation Laurier, offered its first product by offering new variants of pads during which consumers were exhausted of old products. By doing so, Laurier had presented Laurier wings, regular and maxi.

7. Bina Nusantara Stages of Developing Differentiation Starbucks as a good example –As Schultz traveled along Italy, he was formidably impressive by the way people in Italy drank coffee. He first experienced how coffee could be blend with romance. Being aware of the different situation of drinking coffee which had not existed yet in US, he brought that concept of Italian’s drinking coffee to US, by designing coffee bar. This different concept of drinking coffee was found to be a great success.

8. Bina Nusantara Stages of Developing Differentiation Communication. –In marketing everything seems so vague. The best product may not be always the winner. What matters most in marketing is how to create the best consumer’s perception. It is how a consumer perceives what matters most. Therefore a good communication can mean a lot as a good marketer tries to build his product differentiation. A differentiation must be communicated in simple, meaningful and well focused manner

9. Bina Nusantara Maintaining Differentiation Focus on your core differentiation –To some extent some marketers were seduced to extend their brands to cover a group of products in a product line. However, in doing so they neglect the core of their product differentiation. This can damage the brand or product’s image in consumer’s perception, leaving the brand or product abandoned by their consumers. Dove is a good example of a brand that is consistent to the core differentiation as it extends its brand. Though Dove has launched new product variants, but its positioning to be moisturizing cream product stays firm in consumer’s mind.

10. Bina Nusantara Maintaining Differentiation Be consistent. –To anticipate consumers confusion in perceiving product or brand image, marketers must be consistent on core differentiation. If its core differentiation is cleanliness, then in producing products in different category, this concept of cleanliness must be transferred, so that consumers can view brand or product in the same perception.

11. Bina Nusantara Maintaining Differentiation Evolve product differentiation. –Differentiation must be relevant across ages. What it means? It means that differentiation must be changed according to the market demand. How to do so? Rinso keeps launching new variants of detergent to strengthen its differentiation in laundry detergent. These new variants create a good image of Rinso in consumer’s mind.

12. Bina Nusantara Conclusions: There are three stages in developing differentiation, those are: segmenting, targeting and positioning, exploring sources of differentiation and communication. In maintaining differentiation, a marketer must be focused on core differentiation, particularly as his brand extends, be consistent and be relevant to market demand.