The concept of being different is very much essential in today’s world of cut-throat competition. The difference of one product from its competitor is the revenue that it earns. Products have to be different in order to survive the competition. It is not just the domestic competition but also the competition from and in abroad, as one country produces and sells in another country while some other countries produce and sell in our country. The targeted customers have many options. Choosing among options is always based on differences, implicit and explicit. So, one must differentiate in order to attract the customer and make him/her buy the product.
Creating
differentiation in one’s own product and services is a better way to avoid
competition.
All the above-mentioned points are for a tangible product. But, how can
we differentiate services. It is easy when the differentiation of variables is
tangible as in the case of product but difficult in case of services. If the
product has not many tangible features, then adding value-added services to the
product is one of the methods. This process is called service differentiation.
The main features of service differentiation include:
Ease in ordering:
Corporations like Dell, Baxter Healthcare and web-based services like peapod
and net grocer have eased the process of placing an order. One does not have to
step out of the house to buy the product.
Delivery: it is related
to how well a product or a service is delivered to the customer with speed and
accuracy. The best examples are again Dell, which delivers its products right
at the doorstep of the customers.
Installation: it refers
to the work undertaken to make the product operational at the prescribed
location. Buyers of heavy equipment expect good installation service.
Differentiation by installation is particularly important for companies that
offer complex products such as computers and machinery.
Customer training: It
refers to how the seller provides training to the buyer about the product and
how to use it. General Electric supplies and installs expensive X-rays
equipment in hospitals but also gives extensive training to the staff of
hospitals about using the machines.
Customer consulting: It
refers to the data, information systems and advising services that the seller
offers to buyers. For example, the Rite aid drugstore chain’s communication
program, called the Vitamin Institute provides customers with research so they
can make more educated judgments and feel comfortable asking for help. On the
web, Rite Aid has teamed up with drugstore.com to offer even more comprehensive
health related information.
Maintenance and Repair:
It refers to the post-sale services, which generally include maintenance and
repair services. Automobile manufacturers are often seen providing free
services initially for the automobiles.