For marketers, product differentiation offers a competitive advantage over other substitute products or services.
Products stand out to consumers in the various ways listed below.
For example, cars all have similar functions, but each company emphasizes a different characteristic.
Let’s break down Tesla using the model above.
- Pricing: High-end pricing allows users to view this product as a luxury good.
- Quality: As a battery-operated vehicle with innovative technology, Tesla assumes the role of a high-quality car.
- Design: Tesla’s cars are designed differently with a sleek exterior.
- Features: This self-driving car with an endless list of features makes this product different from others.
- Service: Remote diagnostics, mobile service, and minimal maintenance allow Tesla to be unlike other models.
- Customization: Tailor your Tesla to your needs to give your car a unique experience.
As you can see, Tesla is a prime example of product differentiation.