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When using horizontal differentiation, a firm divides itself into subunits based on function, type of business, or Multiple Choice location of the competition, level of difficulty, employee skill-level, geographic area.
What is Horizontal differentiation?
- Horizontal differentiation is used to describe differences in products that are difficult to assess in terms of quality.
- This contrasts with vertical differentiation, where differences between products are quantifiable and based on their individual levels of quality.
What Is Product Differentiation?
- A marketing tactic called "product differentiation" aims to set a company's goods or services apart from those of its rivals.
- Identifying and articulating a product or company's distinctive traits while stressing the key distinctions between that product or company and its rivals are necessary for successful product differentiation.
- Creating a compelling value proposition and product differentiation work hand in hand in order to make a product or service appealing to a target market or audience.
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