is successfully differentiated, there is a reason for potential buyers to prefer it to an alternative product, and the seller usually gains the ability to raise the price without sacrificing sales. Sellers use a variety of techniques to differ-entiate products. The most common techniques include location, service, physical characteristics, and subjective images.
Location and availability of a product may make it more con-venient for buyers to purchase. This is why fast food outlets have "drive through" lanes, and why certain products are clustered near cash registers in supermarkets. Any aspect of service may be used to differentiate a product -- whether it be in-store sales service, a money back guarantee, or a sound warranty. Any physical charac-teristic, such as materials used, product features, or durability, may become the focus of differentiation. Subjective images may be based on actual product traits (this product cuts grease) or hypothetical concepts (this cleans better because it is white). Sellers attempt to create subjective images through the use of brand names, packaging, and advertising messages.
A seller may attempt to differentiate a product based on a single attribute, or any combination of attributes. Many products are differentiated in more than one way. The purpose of differen-tiation is to "cater to different types of buyers," and differen-tiation is usually found "in the presence of buyer and seller diversity." The American consumer marketplace is highly differ-entiated because of diverse consumer interests and numerous compe-titors. Consider a single product, toothpaste -- there are brands especially for children, smokers, coffee drinkers, competing on the basis of taste, cleaning ability, whitening ability, breath fresh-ening ability, and abilities to fight cavities, germs or plaque.
Advertising frequently increases product differentiation by communicating product features, assumptions and m...