Product differentiation

• What does product differentiation refer to in marketing?

  Perceived distinct and desirable differences
• The most important outcome of product differentiation is that customers see the product as more desirable
• Product differentiation enables a business to compete successfully.
• What is one key advantage of sustaining product differentiation in the market?

  Competitive advantage
• Differentiated products are often associated with strong brands
• What is intangible value added to a product through branding?

  Customer loyalty
• Product differentiation can allow a business to achieve higher gross profit margins.
• What is the primary requirement for effective product differentiation?

  Deliver what customers value
• Product differentiation can be achieved through distinctive design, quality, or method of delivery
• Why is it important for product differentiation to be communicated effectively to customers?

  To ensure they understand its value
• Competitors will always try to copy successful product differentiation strategies.
• Product differentiation only works if the product is affordable and profitable
• What does USP stand for in marketing?

  Unique selling proposition
• A USP focuses on what customers value rather than just slogans.
• A USP must be built into the way the good or service is offered and delivered