What does the difference product mean in international economics?

Differentiated products mean that enterprises change those basically the same products in some way, so as to convince consumers that these products are different and have different preferences. According to the theory of industrial organization, product differentiation is a major factor in the market structure, and the degree to which an enterprise controls the market depends on its success in manufacturing its own differentiated products. In addition to perfectly competitive market (homogeneous product) and oligopoly market (single product), product differences are widespread.

Enterprises have absolute monopoly on products that are different from other products.

Standard differentiated products

Standard differentiated products

This monopoly has built barriers for other enterprises to enter the market or industry, forming a competitive advantage. At the same time, in the process of forming product entities or providing products, enterprises create a particularity different from other similar products to attract buyers, which leads to consumers' preference and loyalty. In this way, differentiated products not only force external entrants to spend huge sums of money to conquer the loyalty of existing customers, causing certain obstacles, but also distinguish this enterprise from other enterprises in the same market and compete for a favorable position in the market competition based on product differences. Therefore, differentiated products are of great significance to the marketing activities of enterprises.

Differentiated products are divided into vertical differences and horizontal differences. Vertical difference refers to producing better products than competitors; Grade difference is to produce products with different characteristics from competitors. In real life, through the alternate use of vertical differences and horizontal differences, there are countless examples of successfully launching their own brands.

For example, everyone is familiar with Procter & Gamble. P&G has six shampoo brands in China. Because P&G skillfully uses differentiated products and designs the personalized positioning of six major brands, it has made impressive achievements in the shampoo industry.

Three reasons

From the perspective of consumer demand, product differences include consumers' different attitudes towards similar products. Therefore, the reasons for product differences include various reasons that lead buyers to decide to buy one product instead of another. tool

Differentiated product analysis instrument

Differentiated product analysis instrument

The reasons for the difference between body and product can be summarized as follows:

① Quality or design reasons;

② Reasons for information occlusion or incompleteness. That is, the differences caused by consumers' ignorance of the basic performance and quality of the products to be purchased (such as durable goods that are not often purchased or have complex designs);

(three) the seller's promotion behavior, especially the difference of brand, trademark or enterprise name caused by advertising, promotion and service;

(4) Regional differences of similar enterprises.

Although the reasons for product differentiation are various, the reasons for product differentiation in different industries are different.

For example, consumers are easily tempted by advertisements because of their blocked information, and advertisements play an important role in producing product differences, especially in soap, cigarettes and wine. The difference between electrical appliances and cars is mainly the difference in product design. At the same time, the researchers also found that the product differences in the consumer goods industry are greater than those in the raw materials industry, because in the latter industry, consumers know a lot about the quality and technology of the products they buy, and many products are standardized, so there are not many tangible differences in products. Obviously, in agriculture, forestry, aquaculture and mining industries, product differences are negligible, while in wholesale, retail, service, construction and transportation, product differences are very large.

4 implementation strategy

Generally speaking, enterprises can achieve differentiated products through the following strategies:

(1) research and development; D strategy. In order to distinguish their products from those of similar enterprises.

Analysis of differentiated products

Analysis of differentiated products

To establish competitive advantage, we must vigorously carry out research and development, strive to change the quality, style and shape of products, and constantly introduce new products to meet the needs of customers.

(2) Geo-strategy. The choice of the place of origin and sales of enterprise products is based on geographical convenience, which brings benefits in location and transportation. This regional difference plays an important role in saving costs and attracting customers.

(3) Promotion strategy. Product differences are of special significance to consumers' preferences, especially for products that are rarely purchased, and many consumers do not know their performance, quality and style. Therefore, enterprises should leave consumers with preferences and subjective images through advertising, promotion, packaging attraction and public relations activities.

(4) service strategy. In modern marketing concept, service has become an important part of products. Enterprises can provide quality services to consumers through well-trained employees, shorten the checkout process and meet the reasonable different needs of consumers. In fact, many consumers are not only willing to accept quality service, but also willing to pay for the information and training contained in the products.