Differentiation marketing strategy
Differentiation marketing strategy, is currently one of the most famous sales tactics
Product differentiation is economically beneficial for a company. It lets consumers know why it is worth investing in their product. It is thus opposed to all other substitute products available on the market.
What is differentiation marketing strategy?
The differentiation marketing strategy is an approach that aims to distinguish a product or service from other similar products, offered by competitors on the market . It involves the development of a unique product or service for customers. It concerns both product design, characteristics, brand , quality or customer service.
In other words, the main objective of implementing a differentiation strategy is to increase the competitive advantage . A differentiation marketing strategy is a tactic that companies develop in order to provide customers with something unique .
There are two main types of differentiation strategies that a company can implement: a general differentiation strategy and a targeted differentiation marketing strategy.
A general differentiation marketing strategy is to create a brand or a company that is distinguished in one way or another from its competitors. It is applied to industry and is aimed at a wide range of consumers.
A focused differentiation strategy requires that the company offer unique characteristics to a product or service, and meet the requirements of a niche or narrow market.
The advantages of applying a differentiation marketing strategy
The differentiation marketing strategy has several advantages that can help you develop a single niche within your industry. Here is what you will gain from the implementation of a good differentiation strategy .
Reduced competition
The differentiation marketing strategy allows a company to compete on the market with other than lower prices It allows consumers to know why it is worth investing in their product, as opposed to all the other substitution products available on the market. A successful differentiation campaign considerably increases a business sales a competitive advantage on the market . Concretely, it allows her to understand why she deserves more than others the investment of a consumer.
Unique products
The advantage of a differentiation marketing strategy is that it is based on the unique qualities of a product . Your business can create a list of characteristics that its products contain and lack your competitors. possible to differentiate your product, and you can communicate it by marketing and advertising . The distinct characteristics introduced into the product sometimes make it better than its substitutes.
Better profit margins
When the products are differentiated and transformed into better quality products, this offers more possibilities to make larger beneficiaries . For example, if your target market is ready to pay a higher price for higher quality or better value, you can generate more income with fewer sales .
Consumer brand loyalty
Effective differentiation can create brand loyalty among customers if a company maintains the perceived quality of your products . For example, if you have a brand marketed by a sports figure, this will probably increase its loyalty to it because it strengthens the value of your brand .
The stages of creating a differentiation marketing strategy
There are several ways for a company to create a competitive advantage based on differentiation for a single product or for the company as a whole. Here are some steps to creating a differentiation strategy.
Decide What You Want to Be Known For
You need to have an idea of your expertise in your business . You will need to assess what is important to you and your business and where your organization is succeeding. Note the strengths and weaknesses of your overall brand or specific products.
Research your target audience
Research will help you align your company's offering with the wants and needs of current and potential customers. It will also help you select differentiators that will make your expertise more attractive. For example, you may decide to send a survey to those who purchase your products or use your services and collect data to get a clear idea of what they are looking for.
Develop differentiating factors
This step is important so that you can find elements that make your brand or products different. Each differentiator may be broad to begin with, so you can try to write them down and then create smaller subsections that narrow them down. Here are some common differentiations:
- Price
- Image or reputation
- Relationship
- Service
- Product
- Distribution
Tell your story
When you tell the unique story of your business , it can automatically help you in your differentiation strategy, because your competitors will probably not have a story like yours. Evaluate your mission, your vision and your values, and you will be able to develop a global history on what distinguishes you, which will transform your target audience into customers.
The best way to tell your story to your target audience is to create a biographical section on your business website You can also use social media to dialogue with your customers and make them known your products and services at a more personal level.
5. Create a brand image
Put on your strategy and create a brand image by ensuring better quality . Try to be creative and design a new brand image , if necessary. This will attract new customers and consumers to your target audience.
Many companies choose to restructure over time and use different strategies to progress and distinguish themselves on the market. If you want to increase your profits without taking high risks or lower your prices, plan to create a differentiation marketing strategy .
🗣 User opinion for a differentiation marketing strategy
Amélie G., Tech Marketing Manager
“After organizing our first virtual fair, we were able to capture 3 times more participants than in physics, 40 % of whom are international. This gave us a real step ahead of our competitors. »»
2. Karim D., CEO of a B2B SaaS startup
“Virtual events have allowed us to dialogue live with prospects without the usual logistical constraints. We signed two contracts just after a 45 -minute webinar. »»
Claire V., Communication Director at a training organization
“By offering virtual open doors with interactive demonstrations, our registration rate increased by 27 %. The immersive approach has marked the spirits. »»
Thomas L., Freelance in Branding Digital
“The virtual conferences offered me a scene that I would never have had face -to -face. It allowed me to position my expertise in the face of an international audience. »»
🎓 Experts experiences and quotes
Rachel Moore, senior director at Hubilo (virtual event platform)
“A virtual event is not a simple webinar. It is a brand experience that must engage the senses, intellect and emotion, just like a physical living room ... but online. »»
Forrester study
“Companies that integrate virtual events into their marketing strategy increase their customer engagement rate by 29 % on average, while reducing organizational costs by 40 %. »»
Jason Lemkin, founder of Saastr
“During the health crisis, we changed our online annual conference. Result: 10x more registrants and a much more diverse audience, which strengthened our overall positioning. »»
Sophie Girardeau, expert in event marketing
“The virtual does not always replace face -to -face, but it allows you to create more frequent, measurable and targeted experiences. It is an intelligent differentiation lever. »»
