It takes courage to apply it, but it can dramatically increase your company’s turnover. Most of your competitors have to struggle with each other, lowering their prices more and more? You will raise them dramatically! This may seem crazy, but it actually works. Especially if you offer high quality anyway and don’t want to cut costs endlessly. There is a first-, second-, and third-degree price differentiation strategy. The first step is to set the price at the maximum level that is acceptable to the consumer. We often see it at airports, where we clench our teeth and pay 20, 30 or 40 zlotys for a coffee or a sandwich out of necessity.
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The second step is to modulate the price depending on the quantity of the purchase goods. The third level is a different price for different groups, discounts whatsapp mobile number list for students. Commplace PR agency Differentiation strategy – price, quality, bonuses? The differentiation strategy may also include a radically different look of products than the competition or a package of additional services that will turn your goods into a premium item. Differentiation can be horizontal or vertical. In vertical, imagine products stacke on top of each other, all aime at satisfying one nee. If your competition sells ordinary gray curlers, you can have gold, rainbow, pink and diamond for customers who nee something extra.
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Horizontal differentiation can be thought of as a row of different products that you have on offer. Your competitors sell gray curling irons – you have: curling iron, straightener, dryer, brushes and crimpers, all available separately or in great bundles. One USA CEO company can combine both strategies. We recommend Employer branding – how to build a brand during COVID-19? Advantages and disadvantages of differentiation strategies The differentiation strategy has obvious disadvantages. There is a risk that the new, higher price will not be accepte by customers. It may turn out that interesting distinguishing features or new functions are not neee by anyone.
