What does differentiated product mean

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The modern market economy is characterized by a high level of competition: the same product can be offered by different manufacturers, so consumers have freedom of choice. It can be influenced by various factors: product quality, price, personal preferences, etc.

There are differentiated and standardized mexico telegram number database goods. The latter include essential goods: here, buyers are not inclined to think and buy what is most accessible to them. However, other categories of goods are chosen more consciously, and therefore manufacturers need to find ways to attract consumers' attention.

This is done not only by reducing the price and improving the characteristics, but also through original design, bright packaging, targeted advertising, etc.

This approach in marketing is called differentiation. Differentiated products are similar in their main indicators, but there are differences between them.

As part of developing a strategy, a firm must:

determine the needs of the target audience and identify the criteria by which buyers make their choices;
compare your product with your competitors to understand its strengths and weaknesses;
highlight the distinctive characteristics of the product that can be emphasized in positioning and advertising.
To make it clearer how the differentiated goods scheme works, we will give examples.

Let's say there is a carbonated beverage market, where different manufacturers offer identical types of soda. However, one of the companies then launches a fundamentally new product - low-calorie soda without sugar, which is supported by a powerful advertising campaign. Some consumers - those who watch their figure - then buy drinks only of this brand.