Product Differentiation

What is product differentiation? It’s a business strategy whereby firms attempt to gain a competitors advantage by increasing the willingness of customers to pay for the products or services they sell. Firms often alter the objective properties of their products or services to implement a product differentiation strategy, but the existence of product differentiation in the end, is always a matter of customer perception.

One way that Marteverick uses product differentiation with his company Pressed Out Media Group is by allowing his clients to pay for “packages” offered to them by the company. Some media companies out there are strictly photography or strictly videography. Marteverick not only offers both services but, his wonderful wife does hair and make-up as well so he is able to offer even more packages that include her services. Most companies would have to sub-contract that work out and also pay even more out to be able to get the subcontractor, which means more money for the client to cough up for the services to be provided. Marteverick is able to keep his prices lower than his competitors because is able to provide more from in house than others are. This not only allows for a higher profit (almost 100%) but also keeps clients coming back for more because they know the quality is good and the prices is affordable.