Question

why do brands utilizes one or more of these dimensions to differentiate itself. How successful are they in terms of differentiating themselves against the competition? Products: Form, Features, Customization, Performance Quality, Conformance Quality, Durability, Reliability, Repairability, and Style. Services: Ordering Ease, Delivery, Installation, Customer Training, Customer Consulting, Maintenance and Repair.

Answer 1

Differentiation and identification are the two key features of branding. Branding process includes creating a name, logo, number, or design which helps the brand to easily identify their products and differentiated them from the competitors. Differentiation of brands is very important nowadays for companies.  

Product and services can be differentiated on several factors.

Product differentiation: Product differentiation is one of the most widely used technique. It includes the physical attributes of the products that can be easily seen. Product differentiation may take the form of Customization, Performance Quality, Conformance Quality, Durability, Reliability, Repairability, and Style. A Company can customise the feature of its products and separate them from the other products available in the market. Another differentiation can be made on the physical look of the products, packaging or the goods, their labelling, colour, etc.

In the service sector, it is a difficult task to differentiate the products and these services are intangible and can be felt only. So, companies generally differentiate their services on different basis like the ease in ordering, Delivery, Installation, Customer Training, Customer Consulting, Maintenance and Repair.

The success of product differentiation for brands

1. Recognition- One of the main and ultimate objects of differentiation of the product is that it can be recognised among the thousands of other product available in the market. It helps the customer to know the company and easily identifying the brand of their choice.

2. Repeat purchase- If the customer is aware of the brand and can differentiate it from the others, then it makes easy for the customer to repeat the purchase. He/she will go and identify the brand and then purchase it again and again.

3. It helps in translating the features of product into the benefits.

4. It helps in building brand equity.

5. And, ultimately it enhances the profit volume of the company.