Mastering Differentiation in Product Management | Why it matters?

All people involved in the product development process should come together and understand that their product is different. But just understanding that is not enough. The customers also need to think the same way about the product. 

1. The first step in this process is to grab your customers’ attention. You should generate demand from the market for your product given that there are so many choices, and something that helps you stand out in the market by focusing on the specific features or the attributes that set your product apart from the competition.

2. The second step is to establish your product’s superior value. Product managers should communicate it using various techniques and establish your product’s unique value proposition in the minds of customers. 

3. The third step is to take the focus of the customer away from the price and bring the focus on the value. When you are starting, competing with low prices is not a bad strategy. But it is only sustainable for a short time. The simple reason is that someone with better resources and more money can undercut you very easily. It is also a bad way to enter a market where people compete in price because that is what we call commodity markets. 

The ultimate goal of all the differentiation exercises is to gain a competitive advantage. 

Hence, at its core, differentiation is about gaining a competitive advantage. Product managers can do the same by effectively understanding and communicating their product’s unique value proposition to the target market. This competitive advantage is essential for driving your product’s success and enabling your product to thrive in a crowded and competitive marketplace.