PRODUCT DIFFERENTIATION - A QDP
COMPONENT FOR GAINING COMPETITIVE
ADVANTAGE
By Ramon Ignacio
Competition is a significant factor in business.. It's not
enough to demonstrate that you can deliver what the customer wants as in the D
of our QDP. You need to look
beyond what everyone else is doing. Position
your product as clearly different and better than
the competition.
Making your business different and stand out can also help your
company from becoming stagnant. You
constantly want to be improving your services
so that you can attract new customers as well
as keep the ones you already have.
KNOW WHAT YOUR CUSTOMERS WANT
Know what your customers want, and what
your competitors don't offer. You really need to
understand your customers and this includes
potential buyers as well. How do you find this
information? Ask your customers!
Differentiating your business from the
competition requires looking at your business
in another perspective from your customer's point of view.
In this age of computers and internet, online discussions and chat rooms can
be a quick and easy source for gathering first
hand information from customers and
prospects. You can also put together a simple
survey or questionnaire to get feedback on
ideas and issues pertaining to your business.
Listen to your customers. New and different
ideas are healthy for business. Even a small,
simple change can significantly increase
profits if it targets your customers' wants.
STUDY COMPETITION
Differentiation makes your business brilliant and credible. You want a prospect
to be able to quickly and clearly understand
what you do and what sets you apart from your
competitors. So let's look at our contenders to
see what we're up against:
Who are the major competitors in your
industry?
What product line does each offer?
In your industry, what are most
companies in competition about?
What are the specific strengths of each
major competitor?
Listen to your
customers. New and
different ideas are
healthy for business.
CREATE PRODUCT DIFFERENTIATION
WITH SIMPLE TECHNIQUES
Provide features that deviate from the
average characteristics of your industry. Focus on
features that achieve what your customers want
and you'll be able to cause buyers to choose your
brand over others. Increase the VALUE or your
product or service, but more importantly, make
sure that your customer perceives that increased
value. The more difficult it is for your competition
to copy your idea the better.
This type of sales positioning will work best when:
1.there are several ways to differentiate your
product or service and
2.the buyer can use your product or service in
different ways.
Think out of the box. Go against the norm and
adopt a bold approach to doing business in your
industry. Focus on an aspect that you believe your
business can uniquely excel at. Examples of
values and benefits:
Superior service
Greater product availability
Higher quality
Better performance
Increase intelligence
Greater durability
Respected image / prestige
Technology leadership
Satisfaction guarantee
Lower cost
Faster delivery
More customer support
Save time and money! It's important that you
understand your customer's desires before you
develop your differentiation strategy. Some things
to be careful of:
Make sure that buyers perceive your
product's features as a benefit
Don't raise your prices too high and drive
away customers
As part of the marketing strategy differentiating
your business is an ongoing process. The
marketplace is always changing. Don't be afraid
to change with it just do it in your own unique
way.
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