Differentiation is possible along one or more of various dimensions — product features, quality, customer service, guarantee, distribution, delivery, product customization, etc. In prioritizing an inbound approach to its insurance offerings, Oscar Health Insurance designed a user experience (UX) into its website that allows customers to browse and learn about what they're paying for, buy their desired plan, and customize it with a doctor who is in their insurance network -- all from the Oscar Health website. By focusing on their product line, they are able to produce high quality products that meet customer expectations. What is a differentiated targeting strategy? INBOUND is HubSpot's annual marketing event, and perhaps its most differentiating factor is that it features both marketing and non-marketing speakers. When a firm pursues differentiation strategy, it attempts to become unique in the industry, by offering those products and services, which have value to the customers. Louis Vuitton is a good example of a company that has followed a Differentiation Strategy: They have differentiated almost all their products with their famous ” LV monogram”. Well, it's perfect for the audience of the Middle Finger Project, a consultancy that reimagines copywriting and messaging. A major aspect of a product differentiation strategy comes from product design. -Marty Neumeier. You may unsubscribe from these communications at any time. And the gift we offer the world as marketers. Heads up: Those two concepts will come up in the product differentiation examples below. At this stage, they have not yet had the opportunity to establish emotional connections with the audience or earn the loyalty of customers. Offers endless community and dealership events where you can sit in an Airstream to experience it yourself. A focused cost leadership strategy requires Nike’s differentiation strategy is to establish the company as the standard in athletic wear. Free and premium plans, Customer service software. For starters, here’s what differentiation means in a business sense: Differentiation is a marketing strategy in which your brand identifies the one thing that makes it genuinely different from competitors and then leverages that notion in its branding and messaging to effectively attract ideal customers. It’s a brand that motivates others to “Think Different” and its results are spectacular. Before developing the differentiation strategy marketers should have the answer to these questions: Is my brand the first in the category to claim this differentiating idea? Differentiation is a suitable strategy for any company as it guarantees earnings above the standard returns as brand loyalty tend to lower the sensitivity of a customer to the price. So what makes Airstream any different than Winnebago or Jayco? Perhaps, their products would not be so desired without this design… This is critical when advertising yourself to a business or potential hire. For that reason, the company has a massive brand-loyal following. Companies pursue various marketing strategies to attract customers to them rather than to competitors. Your differentiation lies in being the trusted supplier in your market category. The business understands what its customer is looking for, Promotes a "greener" lifestyle -- got rid of plastic bags in 2008, Focuses on local stores, taking away that feeling of the big chain, Bright, unique and cheerful store design that's as easy to navigate as its website, Partners with shows like Top Chef to promote their food, Clean website design that allows you to see all the features, Not a burden, overly priced, or extremely complicated like other survey design tools, More than just survey and customer feedback -- allows you to compare with others in your industry, Uses bold messaging that speaks to "you" and not about "we", Consistent and striking brand look and feel, Unique and contextual images that go beyond what they're trying to define, Original website design that is hyper visual, Downloadable content and clear CTAs that drive interaction, Transparent about their process, laid out in a simple way filled with user-benefit statements, Offers more than just financial planning, but practice and capital planning, Empowers and reveals their team as thought leaders by allowing them to create valuable content for their website, Frequent email blasts "Just the Tip" that share a tactical nugget that isn't sales-driven, Places content over sales -- the business values a bigger cause: going with your gut in writing, Makes writing great copy a state of mind and a lifestyle within an organization, Offer kits, classes, tools, and smart ideas for any business to use, Includes segments like personal inbound stories, HubSpot software deep dive and Q&A, Shonda Rhimes, an award-winning executive producer; Dharmesh Shah, co-founder of HubSpot; and Lena Waithe, an Emmy-winning writer and actor, were some of INBOUND 2018's keynote speakers, Transparent about the agenda and focuses on what you'll get as an attendee. Handmade products. The company's biggest success is knowing that its core buyers value social and corporate responsibility over a luxurious and out-of-reach image. Differentiation can be done on the design of company’s products, innovation, brand image, features or customer services (Teece 2010, 174). Airstream is simply a "silent" luxury. A differentiation strategy allows companies to communicate the unique features of their products and create a niche for the product. Even though a lot of these companies aren't dominating the marketshare, trends in the marketplace are saying people, especially Amercians, are falling in love with small business all over again. Differentiation strategy allows a company to compete in the market with something other than lower prices. So, what makes LUSH so different from the likes of Sephora or even Etsy? On our list of differentiation strategies is operating more efficiently and effectively than the competition. Oscar Health Insurance prides itself on being insurance made friendly. The company even partners with luxury brands like Mercedes Bens to maintain the sense of independence that "streamers" (the affectionate nickname of Airstream drivers) crave. Free and premium plans, Content management system software. But that's not the only way Oscar Health Insurance uses simplicity to differentiate itself in the healthcare marketplace. Although its competitors have cheaper candy, they can’t provide the taste that consumers may want from that specific candy company. Differentiation Strategy is the strategy that lays emphasis on offering a superior product, on some dimension(s), compared to what competitors are providing. Yoh embodies this difference in its recruitment product, which helps match tech companies with the right talent. Service Differentiation – This includes not only delivery and customer service, but all other supporting elements of a business such as training, installation, and ease of ordering. Differentiation strategy is built on a belief that one needs a clear and unique positioning. That's the difference. One example is Breezes Resorts, a company that caters to couples without children. Focused cost leadership is the first of two focus strategies. Yoh looks absolutely nothing like any other recruiting site (or company, for that matter). hbspt.cta._relativeUrls=true;hbspt.cta.load(53, 'ddbf2eb7-04e8-44b2-9e05-b21264e09b65', {}); Originally published Jan 9, 2019 6:53:00 PM, updated January 10 2019. Think of it like the "TED talk" of marketing conferences -- an approach that is not often seen in industry events like it throughout the year. This takes away the "behind the practice" stress that dentists experience, offering them a consultancy with people who specialize in the same line of work. 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