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MGMT 305 week 1 DB

The second type of competitive strategy is product

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The second type of competitive strategy is product differentiation. This model focuses on trying to separate a product from its competitors and highlight its advantages that the others may not have (Laudon & Laudon, 2012). Businesses may divert their customers’ attention to the performance of their product and how it compares with their rivals, or even highlight the product’s aesthetics and make that their primary selling point. This strategy does not focus on just one type of market, but attempts to attract a broad customer base that can range from, but are not limited to, age, sex, and profession. Unlike product differentiation, where there is no specific market type, the target market strategy (or market niche, as it is more commonly known) focuses on a specific group of customers. These individuals have certain needs that most others do not, and the businesses that follow this strategy provide the products or services that would accommodate their needs. Because of the high concentration on one market segment, the prices for the products or services may be above the market value. Rogaine for Men is an example of a business that concentrates on a certain market segment. They provide hair growth supplements for balding men. And because of the
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