product differentiation
Marketing
Business
Examples of product differentiation in the following topics:

Product Differentiation
 Oligopolies can form when product differentiation causes decreased competition within an industry.
 Product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market.
 This involves differentiating it from competitors' products as well as a firm's own products.
 The major sources of product differentiation are as follows:
 Explain the relationship between product differentiation and the existence of an oligopoly

Product Differentiation
 Product differentiation is the process of distinguishing a product or service from others to make it more attractive to a target market.
 Marketing or product differentiation is the process of describing the differences between products or services, or the resulting list of differences; differentiation is not the process of creating the differences between the products.
 Product differentiation is done in order to demonstrate the unique aspects of a firm's product and to create a sense of value.
 Simple: the products are differentiated based on a variety of characteristics;
 The major sources of product differentiation are as follows:

Porter's Competitive Strategies
 Michael Porter classifies competitive strategies as cost leadership, differentiation, or market segmentation.
 Porter identifies two competencies as most important: product differentiation and product cost (efficiency).
 He originally ranked each of the three dimensions (level of differentiation, relative product cost, and scope of target market) as either low, medium, or high and juxtaposed them in a threedimensional matrix.
 This strategy can include creating a powerful brand image, which allows the organization to sell its products or services at a premium.
 Coach handbags are a good example of differentiation; the company's margins are high due to the markup on each bag (which mostly covers marketing costs, not production).

Promotional Objectives
 There are three main promotional objectives: inform the market, increase demand, and differentiate a product.
 Eventually a product will reach its saturation point, at which time investing in sales will decrease as the company focuses its attention on a new product.
 Present information about the product: In order for customers and consumers to want the product they need to understand what the product is and how it benefits them.
 Differentiate a product: This is especially important if there are multiple competitors in the same market.
 For example, Apple was able to differentiate itself in the computer industry.

Promotion Objectives
 Promotion is to present information to consumers to increase demand and to differentiate a product.
 There is the physical form of product promotion and the digital form, both of which require clear and concise textual information about the product being advertised.
 These are to present information to consumers as well as others, to increase demand, and to differentiate a product.
 There are different ways to promote a product in different media.
 This is to increase the sales of a given product.

Characteristics of the Product
 The unique characteristics of a product should be used as inputs in determining the product's marketing mix.
 The characteristics of the product are the features and elements that differentiate it from other products on the market.
 A product needs to differentiate itself in the market and carry distinct characteristics that separate it from its competitors.
 Characteristics of a product also help to determine the price of a product.
 The characteristics of a product determine the target market and price of a product.

Differentiation Rules
 The rules of differentiation can simplify derivatives by eliminating the need for complicated limit calculations.
 When we wish to differentiate complicated expressions, a possible way to differentiate the expression is to expand it and get a polynomial, and then differentiate that polynomial.
 In many cases, complicated limit calculations by direct application of Newton's difference quotient can be avoided by using differentiation rules.
 Here the second term was computed using the chain rule and the third using the product rule.
 The flight of model rockets can be modeled using the product rule.

Differential
 Differential pricing exists when sales of identical goods or services are transacted at different prices from the same provider.
 However, product heterogeneity, market frictions, or high fixed costs (which make marginalcost pricing unsustainable in the long run) can allow for some degree of differential pricing to different consumers, even in fully competitive retail or industrial markets.
 Price differentiation can also be seen where the requirement that goods be identical is relaxed.
 For example, socalled "premium products" (including relatively simple products, such as cappuccino compared to regular coffee with cream) have a price differential that is not explained by the cost of production.
 There are two conditions that must be met if a price differentiation scheme is to work.

Compensation Differentials
 Some differences in wage rates across places, occupations, and demographic groups can be explained by compensation differentials.
 More skilled and educated workers tend to have higher wages because their marginal product of labor tends to be higher .
 The compensation differential ensures that individuals are willing to invest in their own human capital.
 Not to be confused with a compensation differential, a compensating differential is a term used in labor economics to analyze the relation between the wage rate and the unpleasantness, risk, or other undesirable attributes of a particular job.
 Hazard pay is a type of compensating differential.

Differentiation and Rates of Change in the Natural and Social Sciences
 Differentiation, in essence calculating the rate of change, is important in all quantitative sciences.
 Equations involving derivatives are called differential equations and are fundamental in describing natural phenomena.
 Economists study the rate of change of gross domestic product and social scientists the rate in which populations vote in a specific area.
 Accountants study the rate of change of production and supplies, and how any change can affect cost and profit.
 Give examples of differentiation, or rates of change, being used in a variety of academic disciplines