Business – 3.3 The marketing mix – Product | e-Consult
3.3 The marketing mix – Product (1 questions)
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Product differentiation is the process of distinguishing a product or service from those of competitors by emphasizing unique attributes, features, or benefits that are valued by customers.
It is important because it allows a business to:
- Command a premium price by offering perceived added value.
- Reduce direct price competition and increase customer loyalty.
- Target specific market segments more effectively.
Examples of differentiation strategies:
- Quality differentiation: Apple markets its iPhones as having superior design, build quality, and ecosystem integration.
- Service differentiation: Zappos differentiates by offering free 365‑day returns and 24/7 customer support.