CHAPTER 5 DIFFERENTIATION Providing unique value that allows a firm to command a premium price for its product or service Relies on the consumers willingness to pay more Differentiation Definition ID: 732343
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Slide1
Chapter 5: DifferentiationSlide2
CHAPTER 5: DIFFERENTIATIONSlide3
Providing unique value that allows a firm to command
a premium price for its product or service
Relies on the consumers’ willingness to pay more
Differentiation DefinitionSlide4
Superior Features
Better Reliability
Convenience
Brand/Image
4 Primary Ways to DifferentiateSlide5
Does a better job on existing features
Does more “jobs”
than other products
Does a “unique” job that nothing else does
3 Ways to Win With Superior FeaturesSlide6
Differentiation strategies require a
deeper understanding
of the customer’s needs
than cost-based strategies.
This typically requires
Customer segmentation
analysis
Consumption chain analysis
Differentiation AdvantagesSlide7
DEFINITION
A
nalysis of customer needs to identify groups of buyers who are similar in the way they discriminate among (and value) product or service offerings
OBJECTIVE
Identify a profit and market share maximizing strategy for each need-based customer segment to minimize:
Over-satisfying some customer segment needs
(excess financial cost)
Under-satisfying others (market share cost)
Customer SegmentationsSlide8
3 Ways to Segment the Market
Product Attributes
Features of the product
Job-to-be-Done
Attributes of the circumstance and
job-to-be-done
Customer Demographics
Attributes of the customerSlide9
“People don't want to buy
a
quarter-inch drill…
…they want
a quarter-inch
hole
!”
-
Theodore
Levitt
Defining Jobs-to-be-DoneSlide10
Get the job done by providing a solution that offers
greater simplicity, convenience, cost, and access
Look for jobs that are
important
,
unmet
, and
widely-held
Job DiscoverySlide11
Sometimes a milkshake…
Workbook Page 124Slide12
…isn’t just a milkshake
Functional Job:
Yummy treat
Social Job:
Appease my kids
Emotional Job:
Commute Companion
Workbook Page 124Slide13
Understand the Job-to-be-DoneSlide14
Functional Job
Transportation-Leisure Riding
Social Job
Meet Riding Buddies
Emotional Job
Feel Cool
Why do Customers Hire a Harley?Slide15
Emotional
Social
Functional
“Help me feel”
“Help me seem”
“Help me
do”
“I
need a pick-me-up. Help
me
feel
inspired or rejuvenated.”
“I want to make a difference. Help me feel needed, irreplaceable.”
“I
want to impress my
peers
with my
poise and presence. Help me to seem looked up to.”
“I
want to feel included. Help me to fit in, seem like a part of the group.”
“I
want it to just work. Help
me
find
a reliable solution.”
“Give
me the best value for my money. Help me find a deal.”
Elements of Jobs-to-be-DoneSlide16
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