Securities Market Line

What is Product Differentiation ?

The product differentiation definition states that it is the process by which a product is distinguished from others, so that it appeals more to the target audience. Other than distinguishing the product from its competitors, this process should ensure the product is distinct from all other products the company offers.

Product differentiation gives the product or service an edge over rival products. It highlights unique aspects of the products and also generates value for the product in the eyes of the buyer, which should be any manufacturer’s ultimate goal. When the buyer perceives, a difference is when he will remember the product and buy it, thereby resulting in higher sales for the company.

Product Differentiation Strategy

The challenge companies face in creating product differentiation is to come up with a strategy which not only creates value for buyers, but also makes it difficult for rival companies to emulate. Whatever the company does to achieve this can be termed as a product differentiation strategy.

Product Features
By modifying the basic objectives behind the product or service being sold, the manufacturer can differentiate the product from it’s competitors.

Linking Functions
A way for product differentiation is to link together two functions of the same firm. An example of this could be linking the sales function with the company’s service function.

Timing
While entering a new product in the market, it is crucial to do so at the right time to help create product differentiation and positioning at time of launch. The new entrant gets the first mover advantage when the new product comes in before any rival company comes up with a similar product.

Location
Another aspect which could assist in creating product differentiation is the location of the firm. The closer the firm is located to the target consumers, the more advantages it has over other competitors.

Product Mix
The total mix or variety of products sold by a firm can also be a reason for product differentiation. If a consumer is buying a laptop from a particular brand, he would be more inclined to purchase laptop accessories of the same brand, rather than going for than other brands. Also, consumers prefer buying a variety of goods from one particular location rather than going to different places. Thus, stores selling a variety of products under one roof are better off than stand alone stores.

Links With Other Firms
Product differentiation could also be a result of links between different firms, services or products. There is a link between mobile handset manufacturing companies and service providers or automobiles and insurance companies. Read the rest of this entry »

Your passive income streams are products that your customers buy. These are teleseminars, ebooks, manuals, lessons, web site memberships and many others. In addition to having great products, however, you also need to get buyers to purchase them. Without buyers you will not have streams of income – you will have products, but no revenue.

This is why it is extremely important to keep working on creating your products, while having a working marketing plan for promoting them. Here are just a few marketing ideas that I have shared with my clients. Use them to turn your products into passive income streams:

- Do market research before creating a new product. All of us have had product ideas that we loved. However, you don’t need to love you product – your customers do. If they don’t love them, or need it, no one is going to buy them. Save yourself time – do some informal (or formal!) market research before starting a new product. Your research will show whether your product will be the next or whether it is time to move on to the next idea.

MarketingSalad.com, for example, was a response to many of my clients and potential clients who wanted to participate in online business coaching, but at much lower rates than I charge for one on one training.

- Have a marketing plan in place before the product is ready. Even if your market research shows that your clients need the new product, think how you will promote beyond your clients. Start marketing before the product is ready; this will create the needed buzz to sell more products.

- Keep marketing the product after it is done. Many times a business owner launches a new ebook, sends out a press release, posts about it in the newsletter, and moves on to the next product. Once you have a product, you have put your time into it; now you need to leverage the time spent and promote the product as much as you can. Your clients need to hear about a product 7 times on average, before making a purchase, so keep up your marketing to bring in more sales. Read the rest of this entry »

Normal people like us are bring in large incomes through the right network marketing strategy and are leading their dream lives by working from their home or own office at their own space and time, offering as much time to their family as they want to. This can be made to happen only through proper network marketing strategy.

In this day of the World Wide Web all people and all happenings are connected by hyper technology. You can be inhabited in one country and working happily for a company in another, and managing your subordinates spread over three continents. The scope of network marketing today is this wide! All you need to administer the whole show through a great network marketing strategy.

Most network marketing companies and their distributors teach and support their subordinates well. This has become easier than ever before through the use of the Internet. As a new era network marketer, one must fully employ the potential that technology offers, by succeeding more in less time and by communicating to the downline more efficiently. In this way you can take your network marketing strategy to newer stature.

Network marketing has become all the smoother with companies dealing more and more in products and services that the average people use. Simply by making a strong downline of success-monger people and you can relax and see your global network marketing business developing. All you need to put in is, a sharp network marketing strategy. Read the rest of this entry »

More and more business people are realizing the power of writing a book to catapult their businesses to a higher level. Speakers, consultants, coaches, therapists and other small business owners are learning that publishing a book is one of the most powerful marketing strategies available.

Published authors report that their lives change, often dramatically, when their books reach the marketplace. When you become an author, you become known as the expert. When you are known as an expert in your field, whatever your field, you will find that the world will beat a path to your door.

A Book Generates Visibility and Attracts Clients

Of all the information products you can create, a book has the greatest potential to open doors. A book can give you more recognition and professional credibility than audiotapes, CDs, videos, seminars, workshops and public speaking.

Since my book Get Slightly Famous was published last year, I have been amazed at how it has transformed my business.

Publishing my book was a newsworthy event that resulted in tens of thousands of dollars in new business, high-profile media coverage, speaking engagements, radio interviews, partnership opportunities, and too many other benefits to mention.

Prospective clients now hear about me from all over the world. The media regularly call me, and I appear in newspaper articles and radio interviews.

Get Slightly Famous is not just my most effective marketing tool. It has become the core of my brand identity. My book provides a marketing platform for my business that gives all my marketing efforts a natural, sharp focus.

Best of all, marketing is not such a struggle anymore.

As a successful author you will find the stress of constantly seeking new clients can largely become a thing of the past. Clients will seek you out, ready to pay good money for your services, because you are seen as a leader in your field. You become their first choice.

It’s Not Just a Book — It’s a Business! Read the rest of this entry »