Today is my last day in Japan/Tokyo after spending two weeks here and meeting a few people. I’ll have some homework to do once I’m back in Seattle. I was hoping for cooler weather since it’s mid-September, but in reality, the average temperature has been over 35°C (90°F). I’ll be returning to Tokyo at the end of next month, and I’m sure the weather will be much more comfortable by then.

 

 

 

One of the most important ways to have customers recognize the value of your product is through differentiation. Differentiation is the process of clearly showing how your product is superior compared to similar products from competitors. There are several methods of differentiation, but the easiest approach is lowering the price. This strategy appeals to price-sensitive consumers by setting a lower selling price than competitors without making any changes to the product itself.

However, price differentiation can lead to price wars, creating a situation where it becomes difficult to maintain profitability. For this reason, it is preferable to differentiate through factors other than price, if possible.

Next is “differentiation through functionality,” which is a strategy that enhances competitiveness by offering unique features not found in competitors’ products. However, these features need to be perceived as valuable by consumers. No matter how many additional features you offer, they will not increase competitiveness if consumers don’t see them as valuable.

So far, we’ve discussed price and functionality as methods of differentiation, but these are only basic approaches. The most crucial differentiation is “marketing-based differentiation.” Beyond price and performance, the true differentiating factor is how well-known your product is. Products that sell well aren’t always superior in terms of features or price. Typically, high-selling products are those that are heavily advertised.

Nowadays, advertising methods aren’t limited to paid advertisements. Utilizing social media and video platforms to raise awareness of your product is also a form of differentiation. The ultimate goal of differentiation is to sell more products. While improving product quality is fundamental, what’s even more important is how many people know about your product. Spending money on advertising can easily increase brand awareness, but in today’s world, true differentiation lies in how you can use the internet to raise awareness among a large audience at a low cost.