Stage General description Characteristic
1 Naming, development of a name for an object of differentiation At this stage, a unique name for the product or brand is created. It should be as clear as possible to the consumer. The easier the name is to remember, the better. The name should be suitable for use in various brand communications and in other areas indonesian numbers of application
2 Identification, branding
This involves sticking stamps and labels onto packaging. In addition, it is necessary to develop mechanisms for signs, designations and symbols that will convey the company's mission and strategy to potential customers.
It is necessary to emphasize the uniqueness of the offer and make it stand out from the competition with the help of logos, properly designed packaging and other elements of the corporate style of the enterprise.
3 Personification
At this stage, it is necessary to identify the person who represents the brand. As a rule, consumers want to know the internal structure of the production process. They want to see a specific person behind the brand, who can be trusted. At the same time, the selected person must be truly responsible for the quality of the company's goods or services. If the organization decides to hide behind its logo and name, the brand will create additional barriers that can alienate customers and cause them to doubt.
By personalizing, the company builds trusting relationships with its audience. A striking example is Colonel Sanders, who represents the KFC brand.
4 Differentiation of the sentence The company creates a more advanced offer compared to its competitors. This includes providing related services, additional services, unique promotions for customers that are not directly related to the product.
Measuring the effectiveness of product differentiation
There are two key rules to keep in mind when developing approaches to measuring differentiation in an industry market:
Product differentiation can take two forms: real and “phantom”.
Differentiation can only become real if it is identified by customers.
To assess the level of effectiveness of product differentiation in an industry market, you can use several methods.
By number of brands
To quantify differentiation, it is necessary to define it as the share of product brands in the total sales volume in the industry market. In addition, it can be calculated as the share of brand production by a specific company (firm) in its sales of the corresponding product.
In the economy of industry markets, a brand is an expression of a set of image, operational, technical and other characteristics of a product that form an intangible asset (an intellectual property object). The owner of this asset (the copyright holder) can receive additional competitive advantages.
The greater the number of brands offered to consumers within a single product class, or the more products produced by a company in a given industry, the higher the level of product differentiation in relation to a particular product class.