14/05/2010

Class: Bachelor of Business Administration

MARKETING MANAGEMENT

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

Submitted in partial fulfillment of the requirements for the degree of

BA (Honors) Business Studies

BA (Honors) Business Administration

Bolton Business School

The University of Bolton

Course / Programme:        BA (Hons) Business Administration

Module:                                 Marketing Management (MKT3001DL)

Assignment Number:                One of Two (50% of final mark)

Assignment Title:                         Report – Differentiation

Assignment Length:                 2500 Words

TABLE OF CONTENT

Abstract                                                                                

Introduction                                                                                

Definition of Differentiation                                                                

Differentiation Variables

  1. Product Differentiation
  • Definition
  • Ways of Product Differentiation
  • Examples
  1. Service Differentiation
  • Service Differentiation
  • Ways of Service Differentiation
  • Examples
  1. Personnel Differentiation
  • Personnel Differentiation
  • Ways of Personnel Differentiation
  • Examples
  1. Channel Differentiation
  • Channel Differentiation
  • Ways of Channel Differentiation
  • Examples
  1. Image Differentiation
  • Image Differentiation
  • Ways of Image Differentiation
  • Examples

Conclusion

References

Further reading

ABSTRACT

In competitive market, the competitors always appear and try to win the market share from your hand through penetration pricing strategy. Some of them will success because their business model is completely set up with price factors. If you cannot keep pace with their competitive price, you have to make differentiation. A successful differentiation will make the competitors cannot copy it. The author will show you some examples and a secret to gain successful differentiation.

INTRODUCTION

Nowadays, all companies have to operate in fiercely competitive environment and the competitors always change the policies to attract customers on their side. Each type of goods, consumers have many different options on types and brands of goods. So customers can choose what goods the most attractive products to satisfy most needs and interests.

In this situation, the requirement of businesses to strive to affirm its position is very necessary. But it is also a pressure on managers because they do not know how to maximize production efficiency. What and How to do likely are big question for all businesses. One of the strategies that managers are most interested in is product differentiation strategy.

                             

WHAT IS DIFFERENTIATION

Differentiation is the method to differentiating one variety from the others (Kotler, 2001, p. 90).

The purpose of differentiation is to set up own brands. This is the process that converses goods or services to a strong brand. Differentiation aims to ensure goods or services have different features and characteristics of a company's products.

Differentiation focuses on the innovation of goods or services rather than the low price in competition. Because of the unique element of goods or services, producers can charge more prices but still have a lot of customers and get the customer’s appreciation.

When there is no cost advantage to compete with low cost, differentiation becomes the only choice for enterprise to make a business viable and to develop a competitive market.

  1. The information acquired from market research is the necessary foundation necessary to establish a differentiation strategy. Using research results, you can specify a list of specific aspects of your brand different from competitors.

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Consider two light products, they are two unused products and the power are 100 watts. If you must buy one of them, which brand will you choose: Blue Sparks (U.S. $3) or White Heat ($ U.S2.5)? Customers seem unconscious of the difference between 2 products, which one is better? White Heat, of course, because this product is cheaper than 50 cents. The author will analyze this case below.

DIFFERENTIATION VARIABLES

Regarding the tools of differentiation, 5 dimensions can be utilized to provide differentiation: Product differentiation, Services differentiation, Personnel differentiation, Channel differentiation, Image differentiation ...

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