Question

1) Except for differentiation on product physical characteristics, what other dimensions for differentiation are possible?

Provide some examples of each - in the context of trying to position a new brand of hybrid car.

2) Many firms target lead users or innovators with their new products, with the assumption that their adoption will trickle down to influence the broader market. Others disagree with this approach and contend that the most efficient and quickest route is to target the broader or even mass market directly.

Take one of the two positions and defend it.

Answer 1

Part 1

Dimensions which caters differentiation are follows

1. Performance: for example BMW car will definitely have more performance than normal corolla car or chevrolet.
2. Durability:Depends on wear and tear consider an Hummer and BMW,Hummer will be easily climbing mountains as it's and off road vehicle whereas BMW is not durable to do that
3. Reliability:Take case of Airbus aircraft 380 Why customers choose it?because it's safe and reliable
4. Service:This is intangible in case of breakage there should be right person to be in evidence to able to fix issues easily.

• For a new Hybrid car
• It's performance in city will matter most,how much efficient it is and how user friendly it will be .
• Durability :will it survive bumps and bad road patches or the surface of car will touch ground?
• Reliability:Does it include safety features like air bags will customers trust it?
• in case of breakdown is it easily accessible to fix by local mechanic?

Part 2

I would agree with first case because lead innovators are market leaders, take case of Apple they have latest innovation in technology and people have trust on them as well as reliable for their service as well.

So this is why they target leads to gain market attention ,that is Pull strategy in Supply chain management that Apple uses pulling customers to buy their product because it has built faith and customer loyalty amongst customers.

Hope this helps,do comment if you have any query