Reflective Journal #4
Differentiation
Prepared by: Neil Shreedhar
Due Date: Jun 02, 2007
Instructor: Professor Mark Burgess
Course: GBA 602 Marketing Management
Differentiation
It is true that product differentiation is essential to the branding process. In choosing to differentiate a product, a marketer has the choice of form, features, performance quality, conformance quality, durability, reliability, reparability, and style. What follows are examples of currently produced products that have been differentiated and branded for each of these design parameters, a brief analysis and discussion of the example.
Definitions, examples and brief discussion of above marketing terms.
Conformance quality. Buyers expect the degree to which all the produced units are identical and meet the promised specifications to be high.
Example: Toyota’s are manufactured to stringent standards. Here is a mass produced item that practically revolutionized the car world. At one point in time it was difficult to get cars to start in cold winter weather, but now that Japanese automakers have resolved this problem, or perhaps with higher car standards have initiated the resolution to the problem, thankfully, it has become a non-issue.
According to ‘Mastering the quality staircase,’ Conformance, reliability, performance, and customization are the steps to climb on the way up to achieving competitive edge (Kim et al, 2007, p.1). In a step-by-step progression in order for its workers to understand the importance of quality analysis and problem-solving in the making of its car:
Toyota Motors trains its workers in these methods (Step one of the progression) for four months before they start to work (Kim et al, 2007, p.1).
No wonder they excel and garner a loyal customer following!
Durability is a measure of the product’s expected operating life under natural or stressful conditions, and is a valued attribute for certain products.
Example: Kenmore appliances. Sears has made an enviable reputation with the durability and the service attention that it gives to its appliances. It is evident that this reputation has also endured over the years since Sears has been selling appliances such as refrigerators since about 1910 (Sears Archives, 2007, p.1)![1].
Reliability. Buyers normally will pay a premium for more reliable products. Reliability is a measure of the probability that a product will not malfunction or fail within a specified period.
Example: Dell is another company known both for its reliable computer products and its ability to service these items:
Dell, EMachines, and IBM stand out on most reliability measures, while HP and Compaq often lag their peers. We’re treating HP and Compaq as separate brands (PC World, 2007, p.1)
- This is a measure of the ease of fixing a product when it malfunctions or fails.
Example: Microsoft. Despite all the woes that we seem to experience due to patches that have to be applied to prevent viruses from entering our computer systems, I am amazed at the ability that Microsoft has demonstrated to be able to resolve the issues of potentially millions of computer users. This is a phenomenal achievement when it is put into perspective.
Style describes the product’s look and feel to the buyer. Car buyers pay a premium for Jaguars because of their extraordinary look. Aesthetics play a key role….(Kotler & Keller, 2006, p.377).
Personally, I prefer a Lexus, and associate this car with esthetic beauty and class.
Example – Lexus:
Lexus has become synonymous with luxury since its introduction in 1989. By offering some of the finest quality luxury vehicles and providing benchmark customer service, Lexus has become the top-selling luxury nameplate in the United States for six years in a row. Lexus and its 217 dealers have repeatedly achieved high honors for both the products they sell and the customer service they provide as rated by the independent research firm of J.D. Power and Associates (FT Business of Luxury Summit, p.1).
The ‘style statistics’ seem to speak for themselves! Wow!
Conclusion
In sum, “to be branded, products must be differentiated. Physical products vary in their potential for differentiation. At one extreme… (there are)…products…that allow little variation…At the other extreme are products capable of high differentiation, such as automobiles” (Kotler & Keller, 2006, p. 376). This implies that in order for the consumer to keep clear which product he wishes to buy, and for what reason he wishes to buy it, it is important from a brand recall perspective that marketers learn to differentiate their products, no matter how small the differences, in order to be successful marketers.
BIBLIOGRAPHY
Kim, K.Y., Miller, J.G. & Heineke, J. (1997). Mastering the quality staircase, step by step. Business Horizons. Retrieved on May 30, 2007 at 8:13 pm from http://findarticles.com/p/articles/mi_m1038/is_n1_v40/ai_19369681
Kotler, P., & Keller, K.L. (2006). Marketing Management (12th ed.). New Delhi: Prentice-Hall of India Private Limited.
FT Business of Luxury Summit. (2006). The Rationalization of Luxury – New Business Models, New Strategies. Retrieved on May 30, 2007 at 8:38 pm from http://www.ftbusinessofluxury.com/2006/Sponsors.asp?m_pid=0&m_nid=5805 – 37k –
PC World (2003). Reliability and Service Report Card http://www.pcworld.com/article/id,112915-page,8/article.html
Sears Archives. Retrieved on May 30, 2007 at 7:59 pm from http://www.searsarchives.com/products/questions/appliances/kenmore_refrigerator.htm
[1]Retrieved on May 30, 2007 at 7:59 pm from http://www.searsarchives.com/products/questions/appliances/kenmore_refrigerator.htm
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