Get to Know Product Differentiation: Criteria, Strategies and Benefits for Business

In the midst of today's intense business competition, business people need to innovate to create something that is different from competitors' products. Hence, differentiation product become important for business people to do.

Moreover, nowadays consumers have easy access to see the differences and choose the best among the various types of products that are the same through E-commerce or marketplace. That way, business people need to be able to win the hearts of consumers in the market.

So, how can businesses outperform their competitors? The following is an explanation regarding the meaning of product differentiation, along with the criteria, strategies and benefits for business people.

Definition of Product Differentiation

Quoting Jill Griffin (2003), product differentiation is defined as the creation of a product or product image that is quite different from existing products, with the intention of attracting consumers.

Often, consumers tend to be more interested in products that are considered different, both in terms of taste, color, shape, product packaging and other things related to products and services. brand presented uniquely according to consumers.

Not only different, business people need to create products with superior use value. That way, it can be concluded that product differentiation is an effort by business people to make products and services brandit feels distinctive and special to consumers.

Product Criteria can be Said to be Typical

A product can be said to be unique and special in this context of differentiation which can be seen from the following criteria:

• Difficult to imitate by competitors

The first criterion of differentiation is a product that is difficult for competitors to imitate. Even if one day it is to be imitated, competitors will find it difficult to produce differences so that they are not similar to products that are already on the market.

• Use Value According to Consumer Interests

Product differentiation should highlight differences that are important to customers. For example, in terms of features, benefits and conveniences offered, they have superior use value compared to other products from competitors.

• Affordable

In carrying out product differentiation, business people need to think of a strategy in order to make products that are unique and superior to consumers, but also at affordable and realistic prices.

Product Differentiation Strategy with Application Utilization

In an effort to win market competition, business people need to pay attention to and implement a differentiation strategy so that not only do they have unique and special products, business people also still get big profits.

There are also several differentiation strategies with utilization and digital applications that can be implemented by business people, including the following:

• Understand and Manage Consumers

Business people certainly need to recognize and understand their consumers so that they can provide products that meet their needs and are in accordance with the quality that consumers expect. Related to this, business people can use or app customer relationship manager (CRM) such as Mekari Qontak, Salesforce, Freshworks, Pipedrive, Hubspot and many more.

• Observe Competitors

Business people can observe how competitors build products and brand-his. That way, business people can find things that are not owned by competitors to be used as a business advantage. Business people can observe competitors by utilizing e-commerce platforms or marketplaces such as Tokopedia, Shopee, Lazada, Bukalapak and others.

• Maintain Product Quality

Quality products will certainly be favored by consumers and excel in the market. One way to make a superior product is to ensure that the raw materials used are of high quality and are maintained. Business people can take advantage of product raw material management applications such as Solubis, Youtap, Pawoon, Majoo and many more.

• Do Product Innovation

Product innovation is part of differentiation. Products that innovate to be able to have a difference with competitors' products will be superior in the eyes of consumers. In carrying out innovation, business people can explore ideas by discussing them with the team at the company through applications such as Microsoft Teams, Notion, Slack, Zoom, Google Meet and others.

• Promote Products Creatively

Creative promotions can invite consumer perception and trust in products and brand business people. Several platforms that can be used by business people to promote their products are Google Ads, Facebook Ads, Instagram Ads, and others.

Benefits of Business Product Differentiation

Product differentiation carried out by these business people will certainly have a good impact on business continuity. The following are some of the benefits that can be obtained by business people, including:

• Consumers will be more interested in something different, so business products will be easier to remember.
• Differentiation creates distinct advantages for business products, when compared to competitors' products.
• If business people offer their advantages as differentiation, business products will have a high selling value.
• Differentiation can create a good product and brand image in the eyes of consumers.
• Products that appear different on the market will arouse consumer interest and prevent consumers from being bored when there are too many products on the market that are similar.

This is an explanation regarding the meaning of product differentiation, along with the criteria, strategies and benefits for business people.