2. Differentiation Pertemuan 13 Matakuliah: J0114/Manajemen Pemasaran Tahun: 2008

3. Bina Nusantara Learning Outcomes Students can choose proper basis for differentiation

4. Bina Nusantara Material Outline: What is differentiation? Basis of differentiation Terms to do differentiation

5. Bina Nusantara What is Differentiation? “A firm differentiates itself from its competitors if it can be unique at something that is valuable to buyers” (Michael Porter, 2003) Differentiation results in giving a valuable value. What to offer must be different and unique in consumer’s perception How to offer must reflect the differentiation concept made Infrastructure, all tools required to support and deliver this differentiation.

6. Bina Nusantara Basis of Differentiation According to product: –Sources of differentiation will be features, performance and design According to service: –Speed, ease, delivery time, empathy According to distribution: –Channel coverage, selling techniques, customer service According to people: –Capability, culture, skill According to Image: –Logo, brand identity, brand association, character, celebrity endorser

7. Bina Nusantara Basis of Differentiation Content –This refers to “what” value you would like to offer that can differentiate your self from your competitors. –Ayam goreng Kalasan versus Mbok Berek. It lays its differentiation on the way it fries the chicken. From type of chicken chosen, unique recipe of frying chicken, and manner to offer the fried chicken to consumers. –Citibank credit card, differentiates its product from its competitors by providing credit shield, airport lounge, phone banking services and 1 Bill, or Eazypay.

8. Bina Nusantara Basis of Differentiation Context –It shows “how” or “methods” used to offer value created before. –It speaks about in what way one delivers this value to consumers, so that consumers can see this value given in a unique way. –McDonald’s offers chicken that is not so tasty as those offered by ayam goreng Kalasan. However, its counter is always full of visitors. Why? Because McDonald’s lay its differentiation on 24 hours open outlets, cleanliness, high speed service at table.

9. Bina Nusantara Basis of Differentiation Infrastructure –Refers to technology, human resource facilities, skills –In giving its convenience and ease to its consumers, BCA capability is determined by Technological advances it uses. More than 10 years, BCA has used Very Small Aperture Terminal to gain access of communication among its branch offices through satellite. Beyond that, BCA has already applied Society of Worldwide Inter-bank Finance Telecommunication that enables its consumers to do international transaction in short time.

10. Bina Nusantara Terms of Differentiation Differentiation must give excellent value to consumers. It means, this differentiation has to be able to deliver values and benefits to its consumers. –Have you drunk Yakult today? Yakult has successfully positioned itself as fermented beverages that can increase required bacteria within our body and to reduce the reproduction of dangerous fluids. –Plaza Senayan offers a superior shopping experience through live show, mall entertainment.

11. Bina Nusantara Terms of Differentiation Differentiation chosen is the competitive advantage over competitors. Differentiation will be firm if you can give more than what an industry can give in average. –Komix, is one of good examples that is brave enough to create cough medicine in sachet. As we commonly know cough medicine is wrapped in a bottle. But this time, Komix offers something different. Its slogan “Disobek langsung glek” rapidly became known when the product was first launched into the market. –Carrefour is also a good example to explain how it differs from others. Service given is higher than what other competitors can give. Wheel chair, kid-stroller trolley for toddlers, snack corner within the store.

12. Bina Nusantara Conclusions Differentiation is designed to make a product differs from that of competitors Differentiation can be developed based on product, service, channel distribution, people, or image. Differentiation must be reflected in content, context and infrastructure Differentiation must be excellent value to consumers and competitive advantage over competitors