14/05/2010                0910562        

Class: Bachelor of Business Administration – BABA3

Module:  Marketing Management (MKT3001DL)

MARKETING MANAGEMENT

Outline and critically evaluate the ways an organization may differentiate their product to achieve a sustainable competitive advantages. Illustrate your answers with examples

   NAME

0910562

Submitted in partial fulfillment of the requirements for the degree of

BA (Honors) Business Studies

TABLE OF CONTENT

Abstract………………............................................................................................4        

Introduction………………………………………………………………………………4        

Definition of Differentiation……………………………………………………………..5

Differentiation Variables

  • Product Differentiation
  • Definition of Product Differentiation…………………………………...6
  • Ways to Differentiate……………………………………………………7
  • Case.................................................................................................9
  • Service Differentiation
  • Definition of Service Differentiation……………………………………9
  • Ways to Differentiate……………………………………………………9
  • Case...............................................................................................11
  • Personnel Differentiation
  • Definition of Personnel Differentiation………………………………......................................11
  • Ways to Differentiate…………………………………………………..12
  • Case…………………………………………………………………….12
  • Channel Differentiation
  • Definition of Channel Differentiation.................................................................................13
  • Ways to Differentiate…………………………………………………..14
  • Case…………………………………………………………………….14
  • Image Differentiation
  • Definition of Image Differentiation…………………………………………………………..14
  • Ways to Differentiate....................................................................................15
  • Case…………………………………………………………………….15

Conclusion...........................................................................................................16

Reference………………………………………………………………………………16

ABSTRACT

Organizations all wish to differentiate their products because it helps to hang onto the economic profits for as long as possible. This may seem self evident, but it must be made with care. Besides, some organizations decide to differentiate their product because they can’t directly imitate their competitors’ products. This report will analyze the ways the product may be differentiated to achieve a sustainable competitive advantage

INTRODUCTION

When an organization launches or develops its product, it hopes to earn greater profits.  In the globalization epoch, a product can’t compete successfully if it has no some characteristics that differ from competitor’s products. That’s why smart organizations often rely on differentiation. So, how can an organization differentiate its product?

In this report, there will be two parts. Firstly, theories and concepts of differentiation will be discussed. Then, the author will mention five effective ways the product can be differentiated, including: product, services, personnel, channel, and image

DEFINITION OF DIFFERENTIATION

When an organization’s offerings can’t be copied by other competitors or it proves to be costly to imitate, this organization will achieve a sustainable competitive advantage (Barney, 1991). Therefore, the differentiation can be considered as the most effective way for an organization to achieve a sustainable competitive advantage. In the book “Contemporary Strategy Analysis” of Grant (2005), Mr. Goizueta, Coca-Cola’s former Chairman, believes that if the way to sell real estate is location, the way to sell products will be differentiation. So, what is differentiation?

In the Merriam-Webster Dictionary (2006) there are two differentiation’s definitions. The first one is “the act or process of differentiating”. And the second definition indicates differentiation as “development from the one to the many, the simple to the complex, or the homogeneous to the heterogeneous“

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In the book “Differentiate or Die”, Trout (2000) claims: “where there’s a will, there’s a way to differentiate”.  Also, Calori and Ardisson (1988) consider “differentiation” as a situation in which a company’s offerings has some particular and valuable characteristics for customers. Those characteristics must be accepted by consumers, protected from duplication by other rivals as well as be valuable for suppliers

DIFFERENTIATION VARIABLES

Product Differentiation

  1. Definition of Product Differentiation

Waterson (1989) claims that: “With product differentiation, anything can happen”. So, what’s product differentiation?

Shaw (1912) considers product differentiation as a strategy to satisfy consumer demands more precisely than competitors. ...

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