Question

True or False? With a product differentiation strategy a company can either actually change the product or just position it differently by advertising.

Answer 1

Answer: True

Explanation: Product Differentiation strategy simply a method a business uses to distinguish itself from the competition.

Differentiation Strategy is defined as an approach a business takes to develop a unique product or service that would wow customers, thus making them find it better than whatever other business offer. A business can either initiate or innovate new products and services, improve on the existing one, repackage an existing products and do anything to make what they distinctive from products or services offered by competitors.

Answer 2

Answer: True

Explanation: A company's application of the product differentiation strategy enables it to distinguish its products or services from that of competitors. This proffers it competitive advantages and building brand awareness.

A successful product differentiation involves identifying and communicating the unique qualities of a company's products in other to focus consumers' attention while highlighting the peculiar differences between those products and others on the market. By doing so they can actually change the product or just position it differently by the use of advertisements.