The strategy of differentiation

The content of differentiation may vary in scope, depth and shape. For example, differentiation can occur:

· in the specific characteristics of the goods (gas stove with automatic dampers, etc.):

· various services provided after the sale (Luxurious servicing, individual craftsmen, etc.);

· ensuring spare parts (additional sets of the sale, delivery of spare parts needed in due course, etc.);

· engineering design and manufacturing on request (cars, furniture, etc.);

· wide range of models, sizes, pricing, etc. (watches, alcohol);

· reliability and danger (depending on the requirements of customer groups and products);

· leading for a technological production methods, quality and environmental production and consumption (including compliance with ISO);

· complete product lines and all kinds of services (from a previous order, payment, production, maintenance, etc.);

· unique products on style, fashion (brand name manufacturer, dealer, etc.).

The advantage is differentiation [12, c. 102]:

· for competitors - the company has advantages as protected (isolated) presence of strategies rivals trademarks, brands or famous name of the manufacturer;

· consumer - oriented to meet the specific needs of high quality products increases customer loyalty to competitive products, making it difficult for alternative vendors to fight for their affection. Quality of goods allows to charge higher prices because consumers are willing to accept them;

· for substitutes (substitutes) - made products that are the result of the chosen strategy of differentiation, often not flexible on price and consumers perception of quality is very individual. These features put the company in an advantageous position, protecting it from threats from substitutes in the extent to which manifested the loyalty of consumers to the products known as known manufacturers.

· for suppliers - higher prices of final products allow you to get lucrative profit margin and establish strong relationships with suppliers, choosing them according to the criteria of supply quality. This strengthens the position of an economic producer, especially in the limited extent of any kinds of raw materials and components;

· for companies that may enter the industry - leadership differentiation.

Leadership in product differentiation is the most acceptable when:

· There are many ways to differentiate the product (service);

· the variety of products (services) perceived by consumers as a value;

· is the use of goods (services) in different ways and it reflects the needs of customers;

· differentiation strategy used by a few enterprises;

· the company can offer a bit of what does not work and that competitors are based on: the unique properties of the product; Technical advantages of manufacture; higher level "support services"; the attractiveness of a product or service on a "more benefits for the same money, etc.".

· have the opportunity to compete for a key product, making basic differentiation around it. This product can play a key role basis, in which:

a) implemented marketing policy of promotion of the product (including trial application);

b) is linking the consumer to the manufacturer that creates the conditions for a change to meet the needs, along with an increase in the benefits associated with the high cost of transition to consumption of a product from another manufacturer (including substitutes).

In addition, the use of differentiation strategies associated with certain risks :

1) high prices that reflect the additional costs of product differentiation may subsequently identified to stop the consumer with additional advantages in consumption. The buyer can refuse the goods with a high price in favor of lower prices lesser known brands (realizing the need for thrift);

2) the consumer can conclude that standardized products more convenient in consumption than are differentiated, especially when the standard features associated with easier manning of other products of other sectors that are consumed simultaneously;

3) competitors are able to simulate leader in differentiating products industry to the point where the consumer does not notice the transition from one manufacturer to another, besides, imitation is possible at a lower cost than the production of the main product, which is the object of imitation;

4) the emergence of products that dramatically (based on possible limits of differentiation) differ from the base product to meet the same needs, creates barriers for new buyers of unknown companies, since, as noted, buyers show commitment to the well-known brands, and the presence of too limited distribution system makes entry into the industry is almost impossible.

The strategy of differentiation with proper use of susceptible creates conditions for cooperation with all five elements of the environment.

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