Marketing Strategy and Competitive Positioning pdf ebook

Differentiating the core and expected product
Differentiation of the core product or benefit offers a different way of satisfying the same 
basic want or need (see Figure 10.7). It is typically created by a step-change in technology, the 
Figure 10.6 
Levels 
of product/service 
offering
The potential offer
The augmented offer
The expected offer
The generic or
core offer
The basic offering
Additional
benefits
normally
provided
with the
core offer
Additional
benefits not
normally
provided but
serving to
differentiate
from
competitors’
offers
Additional
benefits not
currently
offered but
that could be
considered
as ways of
augmenting
the offer

---

265
ACHIEVING DIFFERENTIATION
application of innovation. Calculators, for example, offered a different method of solving the 
basic ‘calculating’ need from the slide rules they replaced. Similarly, the deep freeze offers a dif-
ferent way of storing food from the earlier cold stores, pantries and cellars. A new strain of grass 
that only grows to 1 inch in height but never wears out could replace the need for a lawnmower.
However, it is at the core product level that the most radical differentiation is now 
occurring, often at the hands of disruptors making full use of significant breakthroughs in 
technology. Examples include downloadable and streamed music (Apple, Spotify), driver-
less cars (Tesla) and smart watches (Apple). Such differentiation can also be the result of 
applying different strategic thinking. The advent of the sharing economy has led to new 
business models, such as those followed by Uber (‘getting a ride’), Deliveroo (take-away 
delivery), Airbnb (a room for the night) and many more.
Figure 10.7
Product/service 
differentiation
The potential offer
The augmented offer
The expected offer
The generic or
core offer
New ways of delivering
the basic benefits
Improvements
on expected
features such
as warranties,
packaging,
quality, service
New benefits
not normally
offered such
as credit
facilities,
additional
features,
branding,
delivery, etc.
Anything
else that
could be
used to
differentiate
from existing
competitors’
offerings
Source: BAS CZERWINSKI/EPA-EFE/Shutterstock, as featured in ‘Deliveroo delivers back-
up police in long-time missing persons cases’, Amsterdam, Netherlands (30 Apr 2019).

---

266