International Marketing Practices

Differentiated products. Unique attributes or variations that satisfy different market segments are a defining characteristic of differentiated products and often increase product value. Compared with commodity and specialty products, differentiated products provide manufacturers with the greatest amount of control over selling price. Product differentiation involves developing a real or perceived difference between your company’s product and that of your competitors. For a small to medium sized firm, product differentiation is often executed through superior product quality and customer service; for example, hardwood lumber manufacturers might provide buyers with exceptional consistency in thickness, color, and grade. Many large- volume hardwood lumber producers do not have procedures in place to identify when their equipment is producing inconsistent lumber thicknesses, but as a low- volume manufacturer, the ability to inspect your product for consistent thickness and color enables you to better satisfy your customers’ desire for quality. Ultimately, it is important to remember that your product is more than its physical aspects, including intangibles, such as reputation or services, like delivery, credit, and customer support (see box below).

Total Product Concept

The total product concept considers factors beyond the physical product, such as image and service features that can impact customer satisfaction. Components of the total product concept that are important to small to medium sized firms are quality, reputation, and service. By concentrating on these components, firms can differentiate themselves from the competition.

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