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Differentiation: A Powerful Marketing Strategy

Your business is likely in a sea of others selling similar products and services. The marketing sphere can become crowded with many businesses putting out similar marketing messages. Potential customers will ask: why should I choose your business over another?

So, how can you separate your business from the field? Differentiate yourself from competitors.  

Find out more about differentiation and what it can do for your business below:

What is Differentiation?

Differentiation is a marketing strategy that businesses use to set themselves apart from competition. The key is finding a way to distinguish your business in the marketplace by providing customers with something unique, different, and distinct from your competitors. 

Differentiation has several advantages that can help your business find a dominant position in your industry:

Helps in Non-Price Competition

While having the lowest price is a way to beat out competition, it is not always the preferred/most feasible way to do so. Differentiation can allow you to compete without getting into a price war.

We have found that tactics such as offering quality products, a great customer experience, convenient distribution methods, innovative product design, and more perform just as well if not better than offering the lowest prices. It’s all about showcasing what makes your products and/or services better than the competition.

Decreases Competition and Eliminates Perceived Substitutes

When you showcase what sets your business apart from other businesses, you create a niche place for yourself in the marketplace, which can decrease competition or eliminate any perceived substitutes. Even if competitors have a similar product/service, your competitive advantages can create a perception among consumers that there are no substitutes in the market. 

Our experience has taught us that certain differentiating factors in certain industries can be the be-all end-all for some consumers. Once a business figures out what relevant competitive advantages it has and how leverage them, it can become the obvious choice.

Increases Brand Loyalty

If consumers initially choose your products/services for distinct characteristics, they are making a conscious decision based on the differentiating factors you offer. These differentiating factors are important to these consumers, which can create brand loyalty.

In our experience, we have found that when a business continues to deliver successful differentiating characteristics, customers begin to find familiarity with the qualities that won them over and will likely return to that business time after time.


To find out how to create a differentiation strategy for your business, click here to set up a free consultation.

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