A STUDY ON PRODUCT DIFFERENTIATION WITH REFERENCE TO SELECTED SMART GOODS AMONGST USERS OF BANGOLORE

Abstract

Differentiation means making the product offer different from the rest. Differentiation is the route for adding value to the product offering. While differentiation can be achieved through several elements, the product lends maximum scope for carrier of customer value. There are different facets to value – tangible and intangible, material and aesthetic. The customer seeks and find value in different entities and the customer differ in their value expectations from a given offer. The process of differentiation that the marketers build such value in their offers, cater to the differing value needs of customers and win them over.

The price route and the differentiation are two route. Which helps to gain market leadership, companies take either of the two routes, they try to achieve either a low cost position / low price advantage or a differentiated position. Though both routes can offer superior value to the customer, differentiation remains the more versatile route. The major attraction and benefit in restoring to differentiation strategy which takes the firm away from a total price-based competition. It allows the firm to fight on the non-price plank with all the benefits associated with it. Differentiation is a crucial decision for a firm in its search for an effective marketing strategy. Through differentiation the firm moves to a position wherein its offers can claim a premium in the market.