Differentiate Commodity Parts with Stefanie Casimir

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๐—›๐—ผ๐˜„ ๐—ฑ๐—ผ ๐˜†๐—ผ๐˜‚ ๐—ฝ๐—ผ๐˜€๐—ถ๐˜๐—ถ๐—ผ๐—ป ๐—ฎ ๐—ฐ๐—ผ๐—บ๐—บ๐—ผ๐—ฑ๐—ถ๐˜๐˜† ๐—ฝ๐—ฟ๐—ผ๐—ฑ๐˜‚๐—ฐ๐˜?

There are many ways to position a commodity product. This list focuses primarily on product marketing, as opposed to value selling:

๐—ฃ๐—ฟ๐—ถ๐—ฐ๐—ถ๐—ป๐—ด
๐—”๐˜ƒ๐—ฎ๐—ถ๐—น๐—ฎ๐—ฏ๐—ถ๐—น๐—ถ๐˜๐˜†
๐—–๐—ผ๐˜‚๐—ป๐˜๐—ฟ๐˜† ๐—ผ๐—ณ ๐—ผ๐—ฟ๐—ถ๐—ด๐—ถ๐—ป
๐—•๐—ฟ๐—ฎ๐—ป๐—ฑ ๐—ฟ๐—ฒ๐—ฝ๐˜‚๐˜๐—ฎ๐˜๐—ถ๐—ผ๐—ป
๐—ฅ๐—ฒ๐—น๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐˜€๐—ต๐—ถ๐—ฝ๐˜€ ๐˜„๐—ถ๐˜๐—ต ๐—ฐ๐—ต๐—ฎ๐—ป๐—ป๐—ฒ๐—น ๐—ฝ๐—ฎ๐—ฟ๐˜๐—ป๐—ฒ๐—ฟ๐˜€


Pricing

Pricing is a critical factor in positioning a product. Is the product you offer a low-cost item? Is it the cheapest option? Is it a premium product?

Figuring out pricing is no easy feat. Price will affect your ability to sell your products, but it also goes a long way in positioning your product in the minds of prospects.

No pricing strategy is necessarily better than another. But if you are trying to price the cheapest component to sell into a luxury car, you may underprice yourself out of the project. On the flip side, if you price a premium component to sell into items with a short lifespan, you probably wonโ€™t beat out low-cost competitors.


Availability

Product availability has always been an essential part of any go-to-market strategy, but since 2020, itโ€™s become a primary consideration for specifiers. If an engineer orders a part for a job with a looming deadline, but the part is stuck in the Port of LA for three months, thatโ€™s going to be an issue.


Country of origin

With global supply chain issues and geopolitical conflicts, a partโ€™s country of origin can also be an important differentiator. Manufacturers with products made and warehoused in the USA now have a greater competitive advantage than in years past.


Brand reputation

The marketing world often throws the term โ€œbrandโ€ around carelessly.

A brand is essentially the amount of trust a company has earned in the market. Long-standing brands like ABB have a clear competitive advantage because they have built years of trust in the industries they serve. When a component is crucial to a multi-million dollar machine, trust goes a long way.

The real advantage of a strong brand is that it helps to insulate large companies from a competitive startup. Unlike more established brands, new companies do not have a long track record of success and the crucial trust that comes with it, making newer companies and startups a risky choice.


Relationships with channel partners

Having channel partnersโ€”such as distributors and vendorsโ€”is also a competitive advantage. Many of the larger component manufacturers enjoy a substantial market share in part due to their robust channel partner relationships.

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