Question

Using this knowledge of the parent company, identify at least FIVE (5) ways in which the organisation’s competitors might be able to differentiate or diversify, in order to compete effectively.

Answer 1

Product Differentiation- The differentiation between the products is probably the most visible. It includes actual physical and perceived differences, the latter being acquired by advertising. Product differentiation can take the form of features, performance, effectiveness (or the product 's ability to do what it is supposed to do), compliance with requirements, or a variety of other criteria. This is the general area that most B2B marketers spend most of their time and dollars and probably most consumer marketers as well

Service Differentiation- Service Differentiation involves not only distribution and customer service but also all other supporting elements of a company such as preparation, installation, and ordering ease. To many, these seem to be the simple components of the blocking and tackling business, or the foundational elements that do not require sophistication. But think of a company like McDonald's. They know how to distinguish on service like their Big Mac, or not. With very few exceptions, at a McDonald's in Texas you'll get the same product and service you'll get in Georgia, Connecticut or California. And the fries will be cooked the same way at each place, have the same amount of salt and be seerved up equally as fresh from the fryer.

Distribution Differentiation- Distribution channels may also be an important instrument of differentiation. Distribution may include coverage or availability, direct access to expertise and simpler ordering, as well as higher customer or technical service levels. For many producers facing a fragmented market, reaching the end user without the distribution function is not feasible. For example, construction materials have to move somewhere from factory to contractor. Usually these products pass through two distribution stages including master manufacturers, specialist dealers, and retailers.

Relationship Differentiation- A means of differentiation which is often overlooked is through company personnel. Customer interface employees, associates, or team members can provide and demonstrate competence , courtesy , credibility, reliability and responsiveness. Responsible for the execution of day-to-day customer-facing communication, they are the product-customer linkage. If that link breaks down, it destroys the business. In many businesses, the sales representative, CSR or the technical service representative becomes a trusted member of the customer's team , ensuring that the product is delivered on time and works as intended, while quickly and accurately resolving any problems

Price Differentiation- Effective price competitiveness needs recognition that every consumer has a different price they will be willing to pay for your product. Segmentation and differentiation allow a company to approach optimizing potential sales by selling a differentiated product at a different price to each customer. Price differentiation recognizes that the value of the goods is a subjective reality that varies by customer, occasion of use, and environment of operation. Most prices in the B2B world are subject to some form of negotiation and some customers are prepared to pay more than the prevailing market price.