What’s the Difference Between a Differentiation and Differentiation Focus Strategy?

This week, differentiation is on MAD Contributor-Freak Martina’s mind.

If you’re not interested in lowering the price of your product or service, then you need either a differentiation or a differentiation focus strategy. The other two types of strategies for setting a business apart from competitors only work if you sell your product at the lowest price.

Differentiation is critical in business because consumers have so many options it’s overwhelming. They’re not living in a world where they only have 2-3 choices. In order to convince someone to buy your product, you must show not only how you’re different than the rest but why that makes you better too, at least from the customer’s perspective.

So, What’s The Difference?

The difference between a differentiation strategy and a differentiation focus strategy is the former considers the entire market, whereas only a segment of the market is relevant to a differentiation focus strategy. It’s easy to remember this variation because of the word “focus”.

Businesses that use a differentiation strategy determine how they are unique in their industry and what sets them apart from all of the other businesses in that industry. Differentiating your company from all competitors in an industry doesn’t matter in a differentiation focus strategy. What matters is you are unique to the section of the market you’re catering to. If you use a differentiation focus strategy, you only need to contemplate how to stand out in a certain section of the market.

How to Choose

Therefore, when it comes to choosing between a differentiation and differentiation focus strategy, your decision relies on whom you’re targeting. Remember these strategies are not just used for business branding but product marketing too. One of your products may require a differentiation strategy, whereas another needs differentiation focus.

Contact us to brainstorm differentiation or differentiation focus strategies for your company or product.

Advertisements