176 CHAPTER9POSITIONINGPRODUCTSTHROUGH THELIFECYCLE
Product Differentiation
Physical products vary in their potential for differentiation. At one extreme we find
products that allow little variation: chicken, steel, aspirin. Yet even here, some differ-
entiation is possible: Starbucks brands its coffee, and P&G offers several brands of
laundry detergent, each with a separate brand identity. At the other extreme are prod-
ucts that are capable of high differentiation, such as automobiles and furniture. Here
the seller faces an abundance of design parameters, including:^31
➤ Form.Many products can be differentiated in form—the size, shape, or physical
structure of a product. Consider the many possible forms taken by products such as
aspirin. Although aspirin is essentially a commodity, it can be differentiated by
dosage size, shape, coating, and action time.
➤ Features. Featuresare the characteristics that supplement the product’s basic
function. Marketers start by asking recent buyers about additional features that
would improve satisfaction, then determining which would be profitable to add,
given the potential market, cost, and price.
➤ Performance quality. Performance qualityis the level at which the product’s primary
characteristics operate. The Strategic Planning Institute found a significantly
positive correlation between relative product quality and return on investment. Yet
there are diminishing returns to higher performance quality, so marketers must
choose a level suited to the target market and rivals’ performance levels.
➤ Conformance quality.Buyers expect products to have a high conformance quality,which
is the degree to which all of the produced units are identical and meet the
promised specifications. The problem with low conformance quality is that the
product will disappoint some buyers.
➤ Durability. Durability,a measure of the product’s expected operating life under
natural or stressful conditions, is important for products such as vehicles and
kitchen appliances. However, the extra price must not be excessive, and the product
must not be subject to rapid technological obsolescence.
➤ Reliability.Buyers normally will pay a premium for high reliability,a measure of the
probability that a product will not malfunction or fail within a specified time period.
Maytag, which manufactures major home appliances, has an outstanding reputation
for creating reliable appliances.Product Services Personnel Channel ImageForm Ordering ease Competence Coverage Symbols
Features Delivery Courtesy Expertise Media
Performance Installation Credibility Performance Atmosphere
Conformance Customer training Reliability Events
Durability Customer consulting Responsiveness
Reliability Maintenance and repair Communication
Repairability Miscellaneous
Style
DesignTable 3.8 Differentiation Variables