The paper "Perceived Differentiation and Branding" is a great example of marketing coursework. Differentiation is a strategy employed to distinguish a service or product from others that are available in the market so that it is made more attractive to a specified target market. Differentiation is not only making it different from competitors’ products but also those organizational products. Three forms of differentiation exist, which are vertical, horizontal, and simple. Simple is based on numerous characteristics; horizontal is based on a single character without conclusive knowledge on the part of the customer while vertical differentiation has clear quality offerings and single characteristic.
The major sources of differentiation include availability, sales promotion, and ignorance of buyers, functionality and quality. Different organizations develop specific brands, and the organization is known by that brand; for example, Toyota is a manufacture of Toyota brand of cars while Samsung is a producer of Samsung products. Hence, an organization is liked directly with the product. Therefore, the name organization and brand will be employed interchangeably to advance the requirements of the assignment. Perceived differentiation is important to both an organization and customers when it relates to branding. Perceived product differentiation makes the products seen, felt and other subjective methods of creating a memory in the customers’ minds.
Branded companies employ different strategies for creating perceived differentiation (Gyrd-Jones, Bill and Dale 2013). For example, a brand company can use price, location, promotion and type of service in advancing the uniqueness of the product relative to the competitors (Hillenbrand et al. , 2013). This aspect has played a crucial role in organizational marketing capabilities in which a single company produces numerous products and services for targeted markets (Lam et al. , 2013).
For example, Toyota produces different car models and the company champion’ s quality, and it produces numerous cars under their brand. For instance, there is the Vitz, which is cheaper compared to the expensive Toyota Landcruiser VX. The pricing differentiation is based on the application or use of these models (Czinkota, Hans and Gianpaolo 2014). The Toyota Vitz is targeted to the female category while the Toyota Landcruiser VX is targeted to those customers who want luxury and frequently move across different terrains.
In the case of perceiving, the customer is able to differentiate the two products from the same company and determine, which one fulfills aimed objectives. Conversely, differentiation based on pricing as become an important component but there are challenges associated with the procedure (Hillenbrand et al. , 2013). It is crucial to remember the purpose of using differentiation is creating a lasting image on a brand; it results in the creation of the right perceptions (Gyrd-Jones, Bill and Dale 2013). Those organizations that employ both service and price may not benefit in the long term because the argument that an organization offers superior services may make the customers access the product or service but since the organization would not deliver, the customers may not be convinced in future and ignore such claims (Lam et al. , 2013).
In addition, undercutting is a common component in the current business dispensation and a company can easily enter the market and offer a price that is lower than the organizational prices (Hillenbrand et al. , 2013). The new organization can employ modern technologies that make production cheaper making obsolete organizations that have championed cheaper prices to be ignored (Czinkota, Hans and Gianpaolo 2014).
To prevent such challenges, it is appropriate for an organization to employ alternative differentiation strategies.
Czinkota, Michael, Hans Ruediger Kaufmann, and Gianpaolo Basile. 2014. "The relationship between legitimacy, reputation, sustainability and branding for companies and their supply chains." Industrial Marketing Management 43, no. 1, pp. 91-101.
Gyrd-Jones, Richard, Bill Merrilees, and Dale Miller. 2013. "Revisiting the complexities of corporate branding: Issues, paradoxes, solutions." Journal of Brand Management vol. 20, no. 7, pp. 571-589.
Hillenbrand, Philipp, Sarael Alcauter, Javier Cervantes, and Fernando Barrios. 2013. "Better branding: brand names can influence consumer choice." Journal of Product & Brand Management 22, no. 4, pp. 300-308.
Lam, Pong Yuen, Annie Chan, Hannie Gopaoco, Kevin Oh, and Tsz Him So. 2013. "Dual branding strategy for a successful new product launch in China." Business Horizons vol. 56, no. 5, pp. 583-589.
Nordin, Fredrik, Ingela Lindahl, and Staffan Brege. 2013. "The applicability of integrated solutions offerings: differential effects of product complexity." Journal of Relationship Marketing 12, no. 1, pp. 59-78.