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product differentiation - USPs
Creating a feature or characteristic within a brand that makes it standout
Logo or brand name e.g. Superdry
Different ingredient e.g. SuperJam is sweetened by natural grape juice not sugar
Product feature e.g. Ford’s heated front windows
product differentiation - advertising
Creating awareness of and desire for a brand by communicating a clear brand massage
Use of humour e.g. compare the meerkat
Lifestyle/aspiration e.g. Its not just food, its M&S food
Persuasive language e.g. BA the World’s favourite airline
product differentiation
Product differentiation is important to small businesses in order to provide a competitive advantage
Firms will spend try to establish brand loyalty and repeat custom by making the consumer aware of the product and persuading them to use it through informative and persuasive advertising
They will invest in new product development on a smaller scale than large businesses but will try to make their products stand out in highly competitive markets
These are often niche markets as the economies of scale that lead to the creation of highly concentrated markets are not available to smaller firms
This allows small firms to compete against much larger competitors
satisfying customer needs
Understanding what is happening in the market:
Trends
Looking at past data to forecast the future
Changes in fashion
People’s tastes change, often because of the influence of marketing
customer service
Customer satisfaction can be measured by whether the product has met or surpassed customer expectations
A happy customer is a good source of advertising, especially in a local market, where recommendations can create trade
It is easier and cheaper to sell to existing or repeat customers
maintaining customer service
For a small business it is essential to have good customer service to:
Distinguish the product from the competition
Obtain repeat custom
Gain a good reputation
maintaining customer service - accuracy and reliability
Customers want a product that will meet their requirements each and every time
Consistent quality will earn customer loyalty and repeat custom
Customers expect predictability when buying a product – does the good or service meet expectations?
Delivery of the product should be on time
maintaining customer service - product information
To obtain the full benefit of a product the customer needs to know how it works
Expert knowledge of how a product works will allow the firm to inform customer needs when making a sale
Good customer service based on product information can make the difference between making and losing a sale
maintaining customer service - after sales service
Many products require an ongoing service including responding to any complaints
A good website, online help desk and a reliable repair/support team can provide this
This will increase the likelihood of repeat custom for new products aimed at a loyal customer base
Recommendation will also be key for small firms to increase their customer base
niche marketing
Niche marketing is when a firm targets a small subsection or previously unexploited gap in a larger market
Niche marketing may give a business first mover advantage and allow them to charge a premium price
Identifying small, currently unsatisfied, gaps in the market
The target market is well defined with distinct characteristics
Promotional activities will be targeted at just a small subsection of the whole market
Can often charge higher prices
competitive advantage and stakeholders
Stakeholder needs should be considered when making decisions
This can help to establish good relationships which will provide a competitive advantage as stakeholders will want the firm to succeed
Businesses use stakeholder mapping to help inform decision making
Stakeholder mapping maps the relative power of each stakeholder group against the degree of interest
This helps inform managers on how important each stakeholder group is and therefore how involved they should be in the decision-making process
