What are the benefits of product differentiation

Horizontal differentiation has similar products that vary in ways that are often superficial and do not impact price.Even though monopolistic competition does not provide productive efficiency or allocative efficiency, it does have benefits of its own.Therefore, the strategy offers a variety of advantages depending on a company's specific situation.With a product differentiation strategy, though, explaining and demonstrating why your brand is the best option and value is key.Here's how product differentiation can benefit a business.Here are the possible benefits of creating a differentiation strategy:

The added value can come from the product itself, but it can also come from the brand overall.Strong product differentiation makes your business memorable.Sets offered by different suppliers will have variations in shape, size and look which make them recognisable.This means that customers will get extra value and not just a product that satisfies their needs.Product differentiation is a marketing process that showcases the differences between products.This allows customers to easier recognize it, thus increasing awareness of the product (and consequently brand).

There are three main types of product differentiation based on.In this article, we discuss what is product.This is how the company can be improved.Many people would prefer to live in an economy with many kinds of clothes, foods, and car styles.