Technological University of Panama

Sciences and Technology Faculty

Chiriquí Regional Centre

Degree in Bilingual Executive Communication

CUSTOMER SERVICE

Professor:
MBA Frederick Guerra

The Differentiation Strategy

in Customer Service

Students:
Cristian Batista 9-743-394
Héctor Rodríguez 2-746-1475

Due Date:
May 4th, 2021

Semester I
 INDEX

CONTENT PAG

Introduction…………………………………………………………………………………….3

1. Differentiation strategy in customer service concept………………………………4

1.1 Advantages………………………………………………………………………..4
1.2 Disadvantages………………………………………………………………….....5
2. Creation of market strategy…………………………………………………………..5
2.1 what to be known for?………………………………………………………........5
2.2. Target Audience………………………………………………………………….5

3. Development of differentiation strategy into Customer Service…………………...6

3.1 Market Research………………………………………………………………….6

3.2 Business Research areas………………………………………………………..6

3.2.1 Competition…………………………………………………………………...7

3.2.2Customers…………………………………………………………………….7

3.2.3Opportunities………………………………………………………………….7

3.2.4 Forecast……………………………………………………………………….7

3.3 Customer needs…………………………………………………………………..7-8

3.4 Offers for different segments…………………………………………..................9

3.5 Identification of channels to promote……………………………………………..9

3.6 Company Philosophy…………………………………………………………..…...9

3.7 Brand Image…………….…………………………………………………………...9

Conclusion……………………………………………………………………………………...10

Bibliography…………………………………………………………………………………….11

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 INTRODUCTION

As the market grows, the need for products with a unique value consolidates, and
perhaps, declines or ends. Marketing strategies must evolve accordingly in response to
the change in market mentality, customer philosophy, technological evolution or the
service and the level of competition faced. Consumers are the main causes of the need
to innovate and meet their needs with a differentiation strategy that allows maintaining
the loyalty of buying, using and recommending the product to other users. What will
make you different from everyone else then? A good internal (in-company) or external
analysis (market) and good advertising could be the option to this need to find solutions
with the aim of offering good quality with a striking message to your customers. The
message must be unique, to stand out among so many. That is why this work will deal
with the techniques and advantages offered by the differentiation strategy to increase
the competitiveness, effectiveness and reliability of the company's brand to satisfy
customer demand.

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 Differentiation Strategy in Customer Service

1. Concept

A differentiation strategy is an approach Hotel Seminole Hard

businesses develop by providing Rock
customers with something unique, different
and distinct from items their competitors
may offer in the marketplace. The main
objective of implementing a differentiation
strategy is to increase competitive
advantage. A business will usually
accomplish this by analysing its strengths and weaknesses, the needs of its customers
and the overall value it can provide. It Involves creating marketing campaigns that
appeal to two or more segments of their target audience. It helps companies improve
brand recognition, reach a wider audience, meet customers’ needs, and increase
revenue.

Business differentiation is what gives your brand the upper hand; it's how you
distinguish yourself from your competitors in a way that piques interest and keeps
customers happy.

It's important to know how to differentiate yourself from your competitors so that your
brand stands out from all the rest in a positive way. If you find a way to distinguish your
business from the next one that does something similar, you're already on track for
better success.

1. 1This strategy has the following advantages:

 the opportunity to clarify the actual needs and expectations of your customers;
 the chance to choose clients based on your brand's capabilities;
 offering the appropriate products to the right people;
 exploring the market and the position of your competitors within it;
 efficient use of company resources;

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  increased revenue;
 fulfilled needs of customers

1.2 Disadvantages of differentiated marketing include:

 increased costs on advertising to reach each market segment;

 customers may respond differently;
 limits in your business growth that may occur when targeting small groups of
customers;
 a high level of competition among companies that provide consumers with
products at a lower cost.
2. To create this target market strategy, consider several steps:

2.1Decide what you want to be known for: You must have an idea of your expertise
in your business. You’ll need to evaluate what is important to you and your business
and the areas your organization succeeds in. This way, you will be able to provide a
narrow differentiator to your customers. Write down the strengths and weaknesses of
your overall brand or specific product.

2.2 Determine your target audience. The most essential step is to define who your
main customers are. For this purpose, you need to single out the main traits of your
customers such as their age, location, gender, marital status, employment, income, and
all the necessary information that can help you segment them into groups.

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Customer research focuses on understanding your customers by focusing on exploring
their attitudes, needs, motivations and behaviour as the relate to your business. This
ultimately helps you better identify, understand, analyse and retain your customers.

The more you understand your customer the better you’re able to market to them,
create products and services that meet their needs, gain competitive intelligence,
proactively identify shifts in purchasing intent and behaviour, and increase your chances
for success.

3. Development the differentiation strategy into our business customer

service

3.1 Market research is defined as the process of evaluating the feasibility of a new
product or service, through research conducted directly with potential consumers. This
method allows organizations or businesses to discover their target market, collect and
document opinions and make informed decisions.

3.1.1Primary customer research includes: Online surveys., Mail surveys., Face-to-

face surveys, Ethnographic, Sales data. When conducting primary customer research,
you can gather two basic types of information: qualitative or quantitative.

3.1.2Secondary research typically measures consumer attitudes, product and brand

preferences, media consumption habits, and demographic and lifestyle characteristics.

Market research is one of the most effective ways to gain insight into your customer
base, competitors, and the overall market. The goal of conducting market research is to
equip your company with the information you need to make informed decisions.

It is especially important when small

businesses are trying to determine whether
a new business idea is viable, looking to
move into a new market, or are launching a
new product or service.

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3.2 Look at below to know how market research can help small businesses in
different areas:

3.2.1COMPETITION According to a study conducted by Business Insider, 72% of small

businesses focus on increasing revenue. Conducting research helps businesses gain
insight into competitor behaviour. By learning about your competitor’s strengths and
weaknesses, you can learn how to position your product or offering. In order to be
successful, small businesses need to have an understanding of what products and
services competitors are offering, and their price point.

3.2.2CUSTOMERS Many small businesses feel they have an understanding of their

customer, only to conduct market research and learn they had the wrong assumptions.
By conducting research, you can create a profile of your average customer and gain
insight into their buying habits, how much they’re willing to spend, and which features
resonate with them. Additionally, and perhaps more importantly, you can learn what will
make someone use your product or service over a competitor.

3.2.3OPPORTUNITIES Potential opportunities, whether they are products or services,

can be identified by conducting market research. By learning more about your
customers, you can gather insights into complementary products and services.
Consumer needs change over time, influenced by new technology and different
conditions, and you may find new needs that are not being met, which can create new
opportunities for your business.

3.2.4FORECAST A small business is affected by the performance of the local and

national economy, as are its’ customers. If consumers are worried, then they will be
more restrained when spending money, which affects the business. By conducting
research with consumers, businesses can get an idea of whether they are optimistic or
apprehensive about the direction of the economy, and make adjustments as necessary.
For example, a small business owner may decide to postpone a new product launch if it
appears the economic environment is turning negative.

3.3 Define the unique needs of your customers.

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Customer needs analysis is the
process of identifying a customer’s
requirements for a product or
service. It’s used in all kinds of
product and brand management
contexts, including concept
development, product development,
value analysis, and more. With the
help of surveys, for example, find
out what products your customers prefer and what services help them deal with their
problems. Additionally, use analytics tools to track your consumers’ buying habits to
figure out which products they purchase regularly.

Here are just a few examples of customer needs that your analysis might turn up.

 Price
The item is affordable and appropriately priced for the quality

 Convenience
Saves time and effort

 Image and status (as in an item of clothing or technology)

Looks good, impresses others, makes the customer feel good about themselves

 Durability and lifespan

Built to last, dependable, and won’t break

 Packaging type
Resalable, refillable, recyclable, or all of the above

 Support and aftercare

Customer knows they can get questions answered and problems solved

 Effectiveness
Gets the job done

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  Formulation
Free from unwanted ingredients or materials, containing desirable elements (for
example gluten-free, or containing active friendly bacteria)

3.4 Create offers for different segments. Now that you know the needs of your
customers, it’s time to provide them with your unique offers. For example, imagine one
of your target segments prefers to purchase organic food. Keeping this in mind, and you
can develop a special offer for this segment.

3.5 Identify the promotional channels you want to use. To reach your customers,
you need to select the appropriate ways to promote your products. For example, if your
target groups most often use social networks then give a thought to developing
promotional and advertising campaigns for social media channels.

3.6 Company Philosophy: Evaluate your

mission, vision and values, and you’ll be
able to craft an overall story about what sets
you apart, which turns your target audience
into customers. Telling your story to your
target audience is best executed with a bio
section on your company website. Whether
formally or informally, every business
develops a certain character, which affects what it’s like for a customer to do business
with them. Make sure this culture, and how you express it, ties in with what your target
customers actually want. It is worth embedding certain values in your company culture,
writing a mission statement, and ensuring all marketing communications ring true with
how you want to present yourself as a business.

3.7 Create a brand image: Implement your strategy and create a brand image by
ensuring better quality. Try to be creative and rebrand, if necessary, to capture new
clients and customers within your target audience.

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 CONCLUSION

The key to the success of a company is its essence as such. In a market where many
offer the same services, it is necessary to innovate and promote the characteristics of a
product or service in an original way where it has to bring different tastes,features,
forms, and supply needs that consumers may be attracted to. The quality of customer
service depends on a company that knows how to use its resources in the best way,
projecting an image that is appealing to a population, that satisfies a problem and that
becomes part of the life of each of its consumers. Thus, businesses would increase
their capital by having more loyal buyers. The differentiation strategy is the medicine for
those which are not growing and have a low leadership. It’s not cheap, but it is not a
luxury either, any business can implement growth strategies in a certain time by
analyzing the changes and demands that have an impact on differentiating itself from
the competencies and maintaining dominance.

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 BIBLIOGRAPHY

Business.com. (s.f.). Obtained from https://www.questionpro.com/blog/what-is-market-

research/

Customer Communications GRoup, Inc. (s.f.). Obtained from

https://www.customer.com/blog/retail-marketing/customer-research/

Gestiopolis. (s.f.). Obtained from https://www.gestiopolis.com/etapas-crecimiento-

mercado/

Indeed career guide. (s.f.). Obtained from

https://www.indeed.com/career-advice/career-development/differentiation-
strategy

Qualtrics XM. (s.f.). Obtained from

https://www.qualtrics.com/experience-management/research/customer-needs-
analysis/

Questionpro. (s.f.). Obtained from https://www.questionpro.com/blog/what-is-market-

research/

Sendpulse . (s.f.). Obtained from https://sendpulse.com/support/glossary/differentiated-

marketing

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