Differentiation as a Marketing Strategy

Introduction 

In the foreign and local business environment, organizations and marketing experts utilize various marketing approaches to allow them promote or convey a particular message regarding a certain brand or product. Marketing approaches are usually designed in such a manner that they establish focus as well as a comprehensive strategy for a marketing campaign. The common marketing approaches comprise of differentiation, cost leadership, and focus. Companies lay emphasis on these approaches to allow them to gain access to the foreign markets. Nonetheless, it is crucial to note that the strategies to not work well for all firms. In this case, it is crucial for a company to lay emphasis on the approach that works well for it to allow it realizes successes while operating in a foreign market (Newton, 2017) . Thus, the paper will discuss differentiation as a typical marketing approach that allows firms, especially Starbucks, to establish effectively in foreign markets.

Understanding Differentiation 

Differentiation serves as one of the major typical strategies that firms utilize to allow them gain access and realize successes in foreign markets. It is an a marketing approach that allows a firm to realize particular needs of distinct market segments through creating differ product versions or offers as opposed to focusing on covering all sectors while relying on a standard product. Additionally, plays a critical role when it comes to allowing organizations stand out against their rivals in foreign markets by depicting their unique advantages. Thus, for a company to establish a string differentiation, it needs to lay emphasis on the features that rivals cannot replicate easily. It can realize such by laying emphasis on various attributes, including employing highly creative and skilled personnel, focus on being a leader in scientific research, have a strong reputation for innovation and quality, as well as have a strong sales force (Saint-Leger, 2017) . Doing so allows firms to compete effectively in foreign markets.

Features of Effective Differentiation 

In realizing successful differentiation strategy in foreign markets, a company needs to lay considerable emphasis on several elements. These comprise of performance, price, convenience, and quality. When it comes to differentiation a product via price, a company gains the capacity of marketing a broad variety of products, ranging from budget to luxury ones. In establishing distinct price versions, firms might offer a similar product in different packaging, distribute the same product while utilizing different channels, or provide discounts in the event of multiple purchases. When it comes to service marketing, firms can offer different versions of a similar service while charging distinct fees for each service level the customers prefer (Saint-Leger, 2017) . In this case, different strategies for pricing assist companies in positioning themselves to a particular market effectively.

Regarding convenience, firms can differentiate the products they offer based on the level of convenience they offer. For instance, relocating an enterprise to a town center, for instance, would make it convenient for consumers to visit. A firm can also consider offering home deliveries to boost convenience while utilizing online marketing tools allow clients to place their orders at any time. Here, when a company differentiates a service of product via convenience, it would also manage to charge differing prices (Newton, 2017) .

On quality, it is considered a vital differentiator, especially in the event of business-to-business sectors. In the event of manufacturers for instance, they are reliant on components’ quality as well as the guarantees that other suppliers offer concerning quality. Firms have the capacity of differentiating their products by receiving accreditation of international standards, which allow them to charge premiums as well as allow them to realize increased competitiveness over rivals. Firms can also differentiate themselves by establishing service standards that rivals would not be able to match (Saint-Leger, 2017) .

Example Company Successful in Differentiation Strategy 

An example of a company that has laid emphasis on differentiation to allow it emerge successful in foreign markets is Starbucks. The major competence of Starbucks has mostly revolved around its capacity of leveraging its key product differentiation approaches in an effective manner. It does so by providing premium product combination of snacks and beverages. The brand equity of Starbucks revolves around selling finest quality coffee as well as associated products while at the same time offering every consumer a unique “Starbucks Experience” which comes from exceptional customer service, well-maintained and clean stores, that reflect on culture of the societies it undertakes it operations. In this manner, the company has managed to establish significant customer loyalty while at the same time receiving tremendous following in different parts of the world. The other area that Starbucks has excelled in its differentiation strategy is on the values that the human resource management adopts to build strong external and internal relationships with its suppliers, which plays a critical role in driving successful implementation of its business approach of organic expansion to foreign markets. Moreover, through horizontal integration characterized by alliances and smart acquisitions, the company is able to sustain long-term strategic objectives to serve as one of the most respected and recognized brand globally (Team, 2016) .

Conclusion 

In conclusion, excelling in foreign markets demands firms to devise marketing approaches that can allow them to gain foothold in them. The differentiation approach is one of the measures that firms can deploy. With differentiation, a company can leverage on areas such as price, convenience, and quality. In the event of a company, such as Starbucks, it has managed to deploy a successful differentiation strategy in foreign markets by laying considerable emphasis on such areas and others. Thus, it is apparent that differentiation serves as one of the marketing approaches that can allow a company to succeed in foreign markets.

References

Newton, C. (2017). Difference between differentiated marketing strategy and concentrated marketing strategy. Retrieved from http://smallbusiness.chron.com/difference-between-differentiated-marketing-strategy-concentrated-marketing-strategy-30462.html

Saint-Leger, R. (2017). Pros & cons of differentiation strategy. Retrieved from http://smallbusiness.chron.com/pros-cons-differentiation-strategy-21452.html

Team, T. (2016). Starbucks is maintaining its competitive edge. Retrieved from https://www.forbes.com/sites/greatspeculations/2016/10/13/how-is-starbucks-maintaining-its-competitive-edge/#1e08edf9759c