Product/Service Differentiation & Positioning Develop by

Product/Service Differentiation

Define Product/Service differentiation is the process of developing and promoting differences between the business’ products or services and those of its competitors.

Describe Businesses usually differentiate their products by having dissimilar appearances to its competitors to appear superior to its counterpart product.

Explain Customers always purchase products with the best benefits and having differentiating products will be easier for consumer choice.

Product/Service Differentiation

Example The Body Shop tries to differentiate their products to its competitors by showing their environmental concerns. This is done by selling products that are reusable, recyclable and refillable.

Link In relation to Qantas, the prominent Australian airlines strive to differentiate its services to its competitors by conveying a positive image of their business by marketing a variety of outstanding features.

Product/Service Positioning

Define Product/Service positioning is a technique where marketers try to create an image or identity for a product compared with the image of competing products.

Describe When a business positions their products or services, this is how their potential buyers will perceive them.

Explain Most businesses use the ‘Positioning triangle’ to help them position their products and services successfully. The three interrelated elements of the Positioning Triangle will help a business maintain a balance in attaining a competitive advantage.

Product/Service Positioning

Example For example Prada, the well-known Italian luxury fashion house, aims to portray an image of sophistication and luxury to their target market.

Link Product/service positioning is the image that Qantas projects in relation to its competitors. Qantas brings attention to its competitors by using a variety of positioning strategies.

VIDEO ON PRODUCT/SERVICE DIFFERENTIATION & POSITIONING

What is Product/service differentiation?

A technique where marketers try to create an image or identity for a product compared with the image of competing products.

Give a example of a business that position their products/services?

e.g. Prada, Ferrari and David Jones

What’s the method used in positioning for most businesses?

Positioning Triangle

REVISION QUESTIONS

Bibliography ▌ Chapman, Stephen, Natalie Devenish, and Mohan Dhall. Business Studies In Action.

Milton, Qld.: John Wiley & Sons, 2011. Print.▌ Broadbridge, David. QANTAS. Mona Vale, N.S.W.: Get Smart Education, 2013. Print.▌ http://education-portal.com/academy/lesson/positioning-and-differentiation-in-

consumer-marketing.html▌ http://www.otmmarketing.com/Portals/42226/docs/product_positioning.pdf