How does product differentiation helps to make more profit in the midst of other competitors

in LeoFinance2 years ago

What is product differentiation?

Product differentiation is the key aspect or aspects that distinguish a company's products or services from the competition. Successful product differentiation leads to brand loyalty and an increase in sales.
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Product differentiation is a method which is used by companies, firms , and other organizations to make a product distinctive from other competitors.

Product differentiation is a uniqueness used by firms to take advantage of the market and to stand out from other competitors in the market.


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Product differentiation can come in different forms such as marketing, product design,packaging even its could be in service appearance and so on. All this is to catch the attention of customers.

There was a period that a firm make use of product design to entice the people leading to people buying more of there products and neglecting other products. There are some customers that neglect the quality of product and goes for the appearance that what they see. Making product differentiation make your brand to be well known and standout among others which can lead to people choosing your products over others and your product are chosen it leads to high demand and that leads to greater profit.

Therefore, product differentiation is very important in a firm in order to have a high demand in the market and to make more profit at the end of the day.

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