Eslam Zaqout

Product differentiation Customers have different prefers along one dimension of a good For example : some customers prefer hot salsa , some prefer mild Vertical product differentiation: customers have the same ordinal preferences but not the same cardinal preferences

'Product Differentiation' Product differentiation can be achieved in many ways. It may be as simple as packaging the goods in a creative way, or as elaborate as incorporating new functional features. Sometimes differentiation does not involve changing the product at all, but creating a new advertising campaign or other sales promotions instead.

Development or incorporation of attributes (such as benefits, price, quality, styling, service, etc.)

The seller faces an abundance of design parameters Product form : size, shape, physical structure of product Features: calculating customer value c vs. company costs How many people want each features. How long it would take to introduce. Whether competitors can easily copy it. Performance quality.

Durability: A measure of the product life under normal or stressful conditions Reliability: the product will not fail and not defected. Reparability: how easy it's to fix product when it fails Style: how a product looks and feels to the buyer Design: the integration force , how product looks and functions according to customers need