Examples of Product Differentiation. Products. While the benefits of the workshops is resonated across the organization. Change ), T1 2016 MPK732 Marketing Management (Cluster B). There is economic value in product differentiation, especially in the case of monopolistic competition. Product differentiation is a viable strategy, especially if the company exploits the conceptual distinctions for product differentiation. they can afford to set a higher price than that of their competitors as the products continue to be of great quality and have a long lasting life and the consumers know this. 2. Once you understand that, you can see which other products compete in that space. Since companies pursue niche markets, there is a reduced threat of rivalry among industry competitors. Leaders such as Apple use outside data to fuel creating insight vs. endless analysis. Apple had issues within its organization. To continue a product differentiation strategy, Apple must continue its appropriate management of innovation dilemmas and maintain the five leadership roles that facilitate the innovation process. Product differentiation is a viable strategy, especially if the company exploits the conceptual distinctions for product differentiation. Find a differentiation idea. This has started tot become evident as Apple’s chief competitor, Samsung has a majority market share in the smartphone industry. Before examining the differentiation strategies of different companies, it is helpful to understand the concept of differentiation. This has made it very important for businesses to make their customers understand what different they have to The company headquarters is in Cupertino, California, CEO and co-founder is Steve Jobs and the company boasts of 284 retail locations spanning 10 different countries. Ideas, suggestions, and examples abound in this podcast episode of Manufacturing Marketing Matters. This completed their “product matrix”, a simplified product mix strategy formulated by Jobs. ‎In this episode, we talk about the key to differentiation as you learn how manufacturers can achieve differentiation. An example of product differentiation is with the series of Apple products such as the I Phone, Mac Air laptop, and the I Pad. They outline four steps to follow to achieve differentiation: 1. Apple has had a very strong public association with high quality design for most of its history. Change ), You are commenting using your Google account. Apple will continue to build features in both operating systems that the other can leverage. CELEB ENDORSEMENTS: Enhancing brand image or ruining it? ]]> Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. The increased competition has divided the demand among different players in the market. Some of the most prominent examples include Apple’s iPhone, Sony’s PlayStation, or Toyota’s Corolla car. Change ), You are commenting using your Facebook account. it is slowly being taken over by Android as the leading smartphone software due to its cheap prices and similar features. Although you want your business to excel in all things, it has been proven time and time again that specialization is the key to success. Let’s look at some recent examples in the section below. MWS thrives in the B2B arena. Philip W. Schiller, VP of Worldwide Product Marketing for Apple, stated, “iPod is going to change the way people listen to music.” He was right. One example of differentiation strategy is Apple Inc.: Businesses use the marketing strategy of product differentiation to distinguish their products from those of their competitors. In 2003, Apple released the world’s fastest PC (Mac G5), which had dual 2.0GHz PowerPC G5 processors. Tech giants Apple have been selling their line of products such as the Iphone, the Ipad and the Ipod for about a decade now. Since the 1980s, Apple Inc. has successfully used product differentiation to separate its products from those of other electronics manufacturers. Aha! Apple is an American corporation that designs, manufactures and sells electronics, computer hardware and software, and personal computers. In many industries, the barrier to entry has dropped significantly in recent years. The mentor coaches, counsels, and advises. To resolve these dilemmas, there must be an appropriate organization structure. Guest: Andrea Olson, Founder & CEO Prag’madik, Author of No Disruptions - The N… Five leadership roles will facilitate the innovation process: Institutional Leader, Critic, Entrepreneur, Sponsor, and Mentor. We can describe Apple’s strategy in terms of product differentiation [Pt 1] and strategic alliances [Pt 2]. This elegance and simplicity is highly valued by customers. Combining the old with the new resolves the connection to the past dilemma. the next 5 years will be crucial is deciding Apple’s fate as a smartphone company and see how they decide to compete with Android and Windows. New devices like the iTunes compatible iPod, capable of downloading full-length movies in a wireless mode, is seen as a natural product extension guiding Apple's future. All of these products are unique to what Apple’s competitors are selling which is why there is so much buzz around these products. Those that are relevant to Apple are product features, product mix, links with other firms, and reputation. ( Log Out /  When reviewing the history of Apple, it is evident that this attitude permeated the company during its peaks of success. Anti-Features - … Another factor, which of course is considered a part of the product, is Apple’s unique operating system. In 2001, Apple hit another important historical point by launching iTunes. The end users or the participants experiencing the products and services are the trainers and the workforce. Those that are relevant to Apple are product features, product mix, links with other firms, and reputation. Examples of product differentiation including unique design, customer service, and price. As a result, the company has power over prices through product differentiation, innovative advertising, ensured brand loyalty, and hype around new product launches. the success of the Iphone is a clear cut example of Apple making it difficult for other competitors to imitate their products and setting a lower price. helps companies build products customers love and be happy doing it. 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