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In this chapter, we have illustrated a variety of product differentiation and versioning strategies that have been used by businesses. The key points are the following:
This chapter has illustrated the various ways firms have used to differentiate their products and services in order to compete effectively in contemporary markets. There are three general categories for differentiation. They are the high-end Midas products and services, the mass-appeal Atlas products and services, and the low-end Hermes products and services. There are identifiable revenue benefits for using a product differentiation strategy, but there are also R&D implications. As noted earlier, offering several products permits a company to conduct economic experiments that will help delineate trends in the marketplace and to actually create new markets.