Differentiation enables you to offer greater value to clients at a reasonable price, creating a situation that can increase the total profitability of your business. There are several methods to distinguish your business from competition, including product, service, channels of distribution, relationships, reputation/image, and price.
#1 Product Differentiation
Product differentiation is the most noticeable method. It includes actual physical and perceived differences, of which the latter can be shaped through advertising. Product differentiation may take the form of features, performance, efficacy (or the ability of the product to do what it is purported to do), meeting specifications, or a number of other criteria. This is the general area where most B2B marketers — and probably most consumer marketers as well — spend the majority of their time and dollars.
#2 Service Differentiation
Service differentiation contains not only distribution and clients service, but all additional supporting fundamentals of a business, such as: training, installation, and comfort of ordering. To many, these appear like the simple mechanisms of a business — the blocking and undertaking or the initial elements that do not require cleverness. For example, businesses like McDonald’s know how to differentiate on service. With rare exclusions, you will receive the identical product and the identical service at a McDonald’s in Texas that you will get in Georgia, Connecticut, or California. And in every location, the fries will be baked identical, have the identical amount of salt, and be served up likewise as fresh from the fryer.
#3 Distribution Differentiation
Channels of distribution are also an efficient means of differentiation. Distribution can deliver coverage or accessibility, instant access to know-how, greater ease of ordering, and better stages of clients or practical service. For numerous producers facing a fragmented market, it is not possible to influence the end user without the distribution function. Structuring materials, for instance, requires having a plan to somehow transfer them from factory plant to contractor. These products characteristically transfer through two stages of distribution counting master distributors, specialty dealers, and retailers.
#4 Relationship Differentiation
Relationship differentiation is also an effective element of differentiation. Employees and team members with customer interfaces can deliver and establish capability, civility, integrity, reliability, and receptiveness. Accountable for performing everyday client-facing communication, they are the connection between the product and client. If that connection breaks downs, the business is demolished.
In numerous businesses, the sales representative, CSR, or the technical service representative becomes a reliable associate of the customer’s team, confirming that the product is transported on time and works as it is supposed to, while undertaking any matters rapidly and precisely. Performance like this generates emotional bonds among the seller and customer.
This avenue of differentiation is nearly linked to service but directly targets the people. Clients desire to perform business with people, not an organization. Structuring this connection takes time but creates an extremely differentiated position. This is the best way for any business method to become more detailed and differentiated from others.