Differentiated Strategy

Posted in Marketing and Strategy Terms, Total Reads: 892

Definition: Differentiated Strategy

A ’differentiated’ or ‘differentiation’ strategy is adopted by business organisations to enhance the perceived value of their brand or products, to be seen as different from (and better than) those offered by the competitors.It is aimed to catch the attention of customers, boost sales and better the brand image. Differentiation can be achieved through competitive pricing, enhancements to functional design or features, distribution timing, expanded distribution channels, distributor location, brand reputation, product customization, and enhanced customer support.

Differentiation, in business strategy, is a competitive strategy taken up by firms to gain substantial and sustainable competitive advantage over their competitors, by increasing the perceived value of their products and services compared to the perceived value of those offered in the market.

It can be called an art of designing a set of meaningful differences to distinguish the company’s offering from others and establish its strong identity.

A better product or service, after all,will not be successful in the market if prospective customers are unaware about its superiority. Differentiation shall be most successful only if the difference is communicated effectively to the potential customer, and he perceives the benefits of the offering to be superior.


Looking for Similar Definitions & Concepts, Search Business Concepts