Marketing Differentiation Concepts

These flashcards cover essential concepts of marketing differentiation as presented in Theodore Levitt's lecture on product marketing.

What is the main argument about product differentiation presented by Theodore Levitt?

Any product or service can be differentiated, even commodities, and successful differentiation can win and retain customers.

According to Levitt, what is often mistakenly presumed about undifferentiated commodities?

They are exceedingly price sensitive, and a lower price will secure business.

What is the role of intangibles in product differentiation?

Products are often a combination of tangible and intangible elements; the latter include aspects like reputation and customer service.

What do customers expect from the expected product?

Customers expect the minimum necessary conditions for their purchase, including delivery time, terms, and support.

How does the augmented product differ from the expected product?

The augmented product exceeds the customer's normal expectations by providing additional features or services.

Why might customers become more price sensitive as they become more sophisticated?

As customers gain expertise, they may no longer need added value services, thus increasing their focus on price.

What are some examples of how products may be augmented?

Augmentation can include added features, improved delivery options, or unexpected support services.

What does Levitt imply about the nature of commodities in the marketplace?

There is no true commodity; all goods and services can be differentiated based on additional attributes.