Differentiation and Positioning Strategy 177
➤ Repairability.Buyers prefer products that are easy to repair. Repairabilityis a measure
of the ease of fixing a product when it malfunctions or fails. An automobile made
with standard parts that are easily replaced has high repairability. Ideal repairability
would exist if users could fix the product themselves with little cost or time.
➤ Style. Styledescribes the product’s look and feel to the buyer. Buyers are normally
willing to pay a premium for products that are attractively styled. Aesthetics have
played a key role in such brands as Absolut vodka, Apple computers, Montblanc
pens, Godiva chocolate, and Harley-Davidson motorcycles.^32 Style has the advantage
of creating distinctiveness that is difficult to copy; however, strong style does not
always mean high performance.
➤ Design.As competition intensifies,designoffers a potent way to differentiate and
position a company’s products and services.^33 Design is the integrating force that
incorporates all of the qualities just discussed; this means the designer has to figure
out how much to invest in form, feature development, performance, conformance,
durability, reliability, repairability, and style. To the company, a well-designed
product is one that is easy to manufacture and distribute. To the customer, a well-
designed product is one that is pleasant to look at and easy to open, install, use,
repair, and dispose of. The designer has to take all of these factors into account.Services Differentiation
When the physical product cannot be differentiated easily, the key to competitive suc-
cess may lie in adding valued services and improving their quality. The main service
differentiators are:
➤ Ordering easerefers to how easy it is for the customer to place an order with the
company. Baxter Healthcare has eased the ordering process by supplying hospitals
with computers through which they send orders directly to Baxter; consumers can
now order and receive groceries without going to the supermarket by using Web-
based services such as Peapod and NetGrocer.
➤ Deliveryrefers to how well the product or service is delivered to the customer,
covering speed, accuracy, and customer care. Deluxe Check Printers, Inc., has built
an impressive reputation for shipping out its checks one day after receiving an
order—without being late once in 18 years.
➤ Installationrefers to the work done to make a product operational in its planned
location. Buyers of heavy equipment expect good installation service.
Differentiation by installation is particularly important for companies that offer
complex products such as computers.
➤ Customer trainingrefers to how the customer’s employees are trained to use the
vendor’s equipment properly and efficiently. General Electric not only sells and
installs expensive X-ray equipment in hospitals, but also gives extensive training to
users of this equipment.
➤ Customer consultingrefers to data, information systems, and advising services that the
seller offers to buyers. For example, the Rite Aid drugstore chain’s communications
program, called the Vitamin Institute, provides customers with research so they can
make more educated judgments and feel comfortable asking for help. On the Web,
Rite Aid has teamed with drugstore.com to offer even more health-related
information.^34
➤ Maintenance and repairdescribes the service program for helping customers keep
purchased products in good working order, an important consideration for many
products.