A business can adjust the features, appearance and packaging of a product to create competitive advantage.
What is a product?
A product is a good or a service that is sold to customers or other businesses. Customers buy a product to meet a need. This means the firm must concentrate on making products that best meet customer requirements.
A business needs to choose the function, appearance and cost most likely to make a product appeal to the target market and stand out from the competition. This is called product differentiation.
How product differentiation is created:
- Establishing a strong brand image (personality) for a good or service.
- Making clear the unique selling point (USP) of a good or service, for example, by using the tag line quality items for less than a pound for a chain of discount shops.
- Offering a better location, features, functions, design, appearance or selling price than rival products.
Firms face a dilemma if they choose to launch a premium brand…