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Differentiation Strategy

Differentiation Strategy

Differentiation strategy means that every business manager should know what steps he/she can take to produce a product that prioritizes his products and services in the competitive environment in the market and attracts more customers. This strategy seeks to create a competitive advantage for the products of a business over similar businesses. By employing a differentiation strategy, we will experience greater profitability without having to lower our prices.

The Importance of Differentiation Strategy

In today’s competitive market and in any field, target customers are faced with various options and choices. The existence of distinction between the products offered by us and our competitors gives us a competitive advantage and persuades customers to choose our products; Because human is always looking for variety and novelty. Therefore, the remarkable differentiation of the activities carried out by us will attract more customers. The presence of differentiation will also be effective in branding our products. Differentiation in all the inherent characteristics of products such as Lego, color, description, size, etc. can change the game in our favor when comparing our products with similar products.

Advantages of Differentiation Strategy

1. Not Engaging in Price Challenges

Differentiation strategy allows us to stay away from financial stress and price volatility in the market by focusing on competitive advantages. In this case, just when other businesses are looking to increase the price of their products for more profit, we will inadvertently gain more profit by creating differentiation and increasing our competitive advantages. In fact, our competition will be quality competition, not price.

2. Offering Unique Products

By preparing a list of special and unique features of our products and focusing and strengthening them, we can offer unique and distinctive products with a similar domestic example to the market and our target customers.

3. Prioritize

By using the strategy of differentiation, in the competitive market and the many options that each person sees in front of him/her, we can take the reins of the game in our hands. As we said, the existence of differentiation creates competitive advantages. These advantages make us the first choice for customers and other similar products are on the sidelines.

Differentiation Strategy استراتژی تمایز

Types of Differentiation

Differentiation according to customers is divided into 3 general categories:

1. Vertical Differentiation

In vertical differentiation, an objective factor is influential in choosing customers. An objective factor such as price or quality.

2. Horizontal Differentiation

A subjective factor is involved in horizontal differentiation. Subjective factors such as the color of the product or its taste.

3. Hybrid Differentiation

which is a combination of vertical and horizontal differentiation; That is, when choosing the desired product, the customer pays attention to both its objective features such as price and more details of the product such as its taste.

Differentiation Strategy in Marketing

Marketing, which is one of the main methods of attracting customers, also needs a distinction. Establishing more effective communication with customers and obtaining their maximum satisfaction will lead to more sales and, as a result, higher profits. In this way, the company can leave a higher value than itself in the minds of customers. It will also be more successful in evaluating the needs of customers, understanding their preferences and desires.

How to Differentiate

Creating differentiation in products requires the use of a specific and planned strategy. A strategy that can be used to create a competitive advantage and enter the competitive market.

1. Focus on Who We Are

By focusing on the existential nature of our business, we determine what we are looking for to introduce ourselves to others. How we try to introduce ourselves to others will help us in creating a competitive advantage and differentiation.

2. Innovation

Initiative and creativity in the way of providing products and services can also be a source of distinction. Innovation can be in the design and logo of a specific product, the way it is presented, or adding new functions to it.


Differentiation Strategy استراتژی تمایز
Differentiation Strategy (D.S)
3. Creation and Concentration of a Dedicated Market

Creating a specific market and portal to offer products can help us differentiate. It means to have two or three branches to supply our products or provide our services. So that our target customer knows that he must go to a certain sales center to get the product he/she wants. This mentality that our product is a product that anyone can have access to, can distinguish us from other products in the market. Creating a specialized market will also focus more on the quality of the products and the needs and demands of the target customers.

4. Customizing the Payment Method

This method, which is also known as conditional purchase, provides the customer with conditions that allow him/her to make his/her purchase according to his/her personal conditions in cash or in installments. Surveys have shown that people in these conditions are more likely to buy.

5. Facility of Work

Convenience and ease of use can be considered a competitive advantage and differentiation. Because ease of operation is an advantage for customers.

Up To Sum

Differentiation strategy is effective in creating competitive advantage. In order to rise in today’s competitive environment, we must work on the differentiation of our business. Choosing the best differentiation strategy will require careful evaluation and market research.


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