Program: banking and finance course: marketing of finances and coustomer services course code: bf

Reducing Price Competition: This strategy increases a businesses pricing flexibility given that customers recognize the value of your particular product attributes.
Unique Products: The elements of differentiation include product design,
marketing and packaging allowing companies to separate they’re products from other companies.
Better Profit Margin: Differentiation strategy gives a firm ability to offer premium price that outweighs the cost of differentiating, resulting in higher profit margin.
No Perceived Substitutes: No perceived substitutes A business may gain an advantage in the market even when there are similar products available because customers will not be willing to replace your product with another one.
Companies try to differentiate themselves by providing consumers with unique products that are frequently revolutionized.

Businesses looking to build a broad or focused differentiation strategy will need to produce or design extremely unique or distinctive products or services that create increased value for the consumer.
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Decide what you want to be known for
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Research your target audience
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Develop differentiators
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Tell your story
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Create a brand image
Difference between Differentiation Leadership and Differentiation Focus is that
The latter is broad and the second is focused on a specific audience.
COST FOCUS STRATEGY
This strategy focuses on a small market segment that aims to provide better products and services rather than focusing on the whole market and provide poor services. It is one of the strategies among the three that was set out by Michael
Porter in 1985 in his book called Competitive Advantage, which he divided into two, namely Cost Focus and Differentiation Focus.
Cost Focus puts an emphasis on cost minimization within the focused market whilst Differentiation Focus concentrates on strategic differentiation within the focused market. Companies that use Focus strategies concentrate on particular markets, and by understanding the dynamics of that market and the unique needs of customers within it, develop uniquely low-cost or well-specified products for the market.
Focus strategy is quite different from the others because it rests on the choice of a player in a game deciding to seek a narrow competitive scope within an industry,
for instance in the telecom-industry, we saw Vodafone do this when they entered with only a Data only License into the industry, and later on we saw Liquid
Telecom Zambia that has also targeted those customer with smartphones that access internet.
It is not enough to just focus on a particular segment of a market alone but also considering the fact that there are other competitors that are using the same strategy in the same industry and thus the need to put in something extra. For instance, in the Telecommunication industry.
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Employing skilled specialists that will add more value to the organization
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When there is an increased speed of internet access
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Types of products and services provided. e.g. liquid telecom provides internet services through fibre connections and satellite connection where fibre is not yet available, Wi-Fi Hotspot in public places and interaction education.
Contributions
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It may limit the competition. When a company create a focus strategy, they look for natural ways to limit the competition. If the firm are the best at what they produce within a specific market, it becomes difficult for other firms to

counter such a claim.
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It is a chance to provide a higher quality product. Many consumers have the desire to have the possible product available when having their needs met. Many will pay more when there is confidence in the ability of a niche product to meet their needs. It is considered more of an investment than a purchase. When a business chooses to embrace a focus strategy as part of their marketing push, it creates an opportunity to provide higher quality levels without worrying about a reduction in consumer interest.
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It improves the pricing structure for the business. When there is a higher level of loyalty within a consumer base, then a business is able to charge higher prices for their products. That is because consumers find value in supporting the brand because the brand supported them by meeting a specific need. We often call these
“power brands” because they are more than just a business. They are also a cause. There are several power brands on the market today, such as The North
Face and Apple and Trade Kings.
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Limitations
It may limit the initial demand of a product or service. Working with a niche demographic can produce amazing results. It can also produce zero results. When you’re working with something that is very specific, the number of sales generated within the market may be minimal. Even if you’ve specifically designed a product or service to meet a specific need with a demographic, the reputation of the brand may not be strong enough to attract enough attention to it.
DIFFERENTIATION FOCUS STRATEGY
Focused differentiation strategy requires offering unique features that fulfil the demands of a narrow market. Firms using this type of strategy focus their efforts on a particular sales channel, such as selling over the internet and others target a demographic group. For example, a resort that carters for couples only without children. Its call about offering unique features that appear to a variety of customers and the need to satisfy the small segment of the market means perusing uniqueness of the product or service being offered.
Examples
Whole food market focuses on selling natural and organic products and a sizable number of consumers are willing to pay premium in order to feel better about the food they are buying.
Mercedes Benz is dedicated to proving cutting edge technology, stying and safety innovations and this has made the firms vehicles prized by those who are rich enough to buy them.
Requirements
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Strong brand image
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High differentiated product, the actual product itself though brand image
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Knowledge of nurse market

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Ability to innovate
Benefits
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Little compaction
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Ability to make high profits margins
Cost
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Relatively few sales
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Incurs high boundary market research staff training
To Attain Defferentiation
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Provide utility to the customers
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Provide innovation
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Increase performance
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Set the price of product based on features and customers purchasing power
Create a brand image by ensuring better quality services and custmers satisfaction.
CONCLUSION
Executives must select their firm’s source of competitive advantage by choosing to compete based on low-cost versus more expensive features that differentiate their firm from competitors. In addition, targeting either a narrow or broad market helps firms further understand their customer base. Based on these choices, firms will follow cost leadership, differentiation, focused cost leadership, or focused differentiation strategies.

REFERENCES
◆ https://cio-wiki.org/wiki/Differentiation_Strategy
◆ https://www.strategy-formulation.24xls.com/en531
◆ https://www.marketingtutor.net/what-is-competitive-strategy/
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