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E. Advantages of Product differentiation
Some of the advantages to be gained by businesses and market participants of the product differentiation strategy: www.bisnisUKM.com: 2011
1. Product more memorable to consumers: everything that is unique and
different, it would be easier to recognize and remember the product, compared to other products that have been common in the market.
2. The product is superior compared to other products : if other products are considered standard by the consumers of the products you will look
superior to other products 3. Increase of selling prices product: consumers willing to pay expensive, to
be able to enjoy the innovative products offered by market participants. 4. Overcome the issue of market saturation: differentiation of products can
help businesses and consumers when market participants boring with the regular product offers.
5. Helped create a product image: the more unique the product it will be even easier for consumers to recognize the product and the greater the
opportunity to embed the product image.
F. Image differentiation
Image is formed as a result of all the experiences, values and the impression that external actors have about the company. The image is a powerful tool to use
for differentiation. A strong image does not arise on one day; it takes a significant
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amount of time to build. A companys image can be described as the overall perception of the company. The image can be enhanced by promotional activities,
environmental factors, competitor ‟ s actions or by non- paid for activities, such as
word of mouth. Image is formed as a result of all the experiences, values and the impression that external actors have about the company. Jacqueline and
Marjorie,2011: 20 Even when competing offers look the same, buyer may perceive a difference
based on company or brand image differentiation. A company or brand image should convey the product’s distinctive benefits and positioning. Amstrong and
Keller, 2009: 220 According to Philip Kotler 1994: 295 even when competing offers look the
same, buyers may respond differently to the company or brand images. The main of image differentiation are:
1. Symbol : a strong image consists of one more symbols that trigger
company or brand recognition. The company and brand logos should be designed for instant recognition.
2. Media : the message should be replicated in other publication,
such as annual report, brochure, and catalogs. 3. Atmosphere : the physical space in which the organization produces or
delivers its products and services becomes another powerful image generator.
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4. Event : a company can build an identity through the type of events
it sponsors and create event to explode a bombshell. The uniqueness of the image that will differentiate a company formed with
other companies and eventually the image will reflect the uniqueness of the situation, quality, and condition
of the company’s own that can attract customers to use products or services from companies.
G. Word of mouth
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