The Importance of Differentiation Strategy Within the Company

Differentiation Strategy

Differentiation strategy is a strategy of designing a set of meaningful differences to distinguish the company’s offerings of products they offer bidding against competitors. The existence of this differentiation strategy aims to make it more recognizable consumer or that would be typical of the products offered.

Why a company should implement a strategy of differentiation? To extend the life cycle of products, making products more easily remembered by the consumer, the product becomes better than the competitors in the eyes of consumers, increase the value of selling products, overcoming market saturation, and help the process of positioning the product.

Differentiation strategy consists of differentiation of products, service differentiation, differentiation, differentiation personal channels and differentiation of the image. The following explanation:

Product differentiation is carried out by the company to provide uniqueness on its products, so it will be interested in the eyes of the customer. This is done by way of improving the quality, durability, performance, reliability, ease of repair of the product if it is damaged, packaging, sizes, brands and the specialist of the product itself. Differentiation of the product aims to provide added value in the eyes of customers when compared to competitor’s products because it has been creating products that are more unique and innovative to solve the problem.

Differentiation of services aims to provide the best service to every customer, so customers feel satisfied after using these products, they are comfortable with the company and will purchase the same product or try a new product from the company. Differentiation of services include ease of ordering, installation training, customer consulting, customer maintenance and repair, as well as other services that can help customers in the event of problems with products that are offered.
Differentiation of personal excellence through personal differentiation is by showing that there are advantages in personal companies, such as the reliable company workforce, their loyalty towards their work, honestly, have good communication and so on.

The channel is the differentiation through design of distribution excellence, expertise and performance. Channel differentiation strategy aims to make it easier for companies to achieve a competitive advantage with its competitors. The distribution consists of three kinds, namely the intensive distribution normally used a moving company in the field of necessities by placing of the product dibanyak retailer or retailer. Selective distribution by placing its products in some retailer’s it on an area, so that there will be a competition among retailers and distributors to consumers. And selective distribution by simply placing the product on one or two retailers only on certain areas.

Differentiation of imagery is captured by the differentiation of the consumer in the form of the brand image of the products. This is done in the company to build the perception in the minds of consumers in accordance with what is expected of the company so that the company’s products easily recognized among its competitors.

Recognize the Importance of Differentiation Strategy Within the Company

Thus, it is very important for a company to do the differentiation strategy to extend the life cycle of the product, making the company’s products are more easily remembered by consumers, increase the value of selling products, overcoming market saturation, help the process of positioning a product, as well as making the company’s products is different from competitors.

Read to : Strategy Determines Positioning Of The Market

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