Product Differentiation: You must have understood now that a product is really a bundle of potential benefits offered to a purchaser. However, there are certain products which basically look alike. Take blinds, for example. These are offered by different manufacturers and different types life vertical blinds, roman shades, faux wood shades etc. The customer would not even be able to distinguish between the products of most different manufactures. To make their product distinct from others the manufacturers identify them to the customer, that is, ‘differentiate’, by using different packaging, coloring etc. and by emphasizing different benefits or advantages in their promotion. For example, term life insurance rates providing company provides their term life insurance rates always with one particular picture and same color. That creates a brand image for them in the market.
Product positioning: You know that all products do not appeal to all income groups or age groups, unless they are meant to satisfy basic necessities. A manufacturer can thus use the need-oriented segmentation. For example, a toothpaste manufacturer may appeal to prevention of ‘tooth decay’, while another might offer ‘sociability’ in the sense of preventing bad breath. Still another may provide the need to be ‘attractive’ by emphasizing the whiteness of the teeth which his product, toothpaste, gives. This is the concept of product positioning. In the case of vertical blinds or roman shades product positioning can be done in terms of pricing, size details, product specifications and installations guide, user manuals and in many other ways. Thus positioning is used for bringing about differentiation in a manufacturer’s product.
Tags: Blinds, Business Management, consumer needs, customer care, product concept, Product Differentiation, Product Mangement, Product positioning, small business, term life insurance rates
