The Difference Between Product Features and Benefits
“Voila! Matches provide convenience. When you need a fire but aren’t near a hearth, reach for a match.”
The next slide showed a confused woman in a ripped toga.
“These matches also provide safety. Our matches will guide you home safely each night.”
The next slide showed the happy woman using a match to navigate through the dense Olympian forest.
“Finally, matches provide peace-of-mind.” The last slide showed a serene-looking man patting a bulge in his toga pocket. “A carton of matches in your pocket means heat and light are only a flick away.”
“A product with benefits is a differentiated product, right?” Marka asked.
“Yes,” Lucy replied. “And now that we’ve created differentiation for these matches, we can figure out how well they should sell.”
Numo turned his attention from his flickering match and said, “And once we know that, we can figure out how to get back our investment.”
“The next step is setting price,” Lucy continued.
“I say we make the matches $400 a piece,” Zoot joked. “That way we only have to sell a couple boxes.”
No one laughed at the rare comedic flop by Zoot.
Now that FEI had figured out its core competencies, position within its targeted marketplace and product differentiation, more strategic activities such as setting price could begin. It was like Prometheus once said, “Know what you’re selling, or no one will buy it!”
Today’s FIRE! Point
Benefits create product differentiation and eliminate commodity-like pricing pressures. When marketing your product, focus on how it helps solve problems and generally make life easier for those in your target market.
FIRE! In Action
Five Guys Burgers and Fries Makes a Quality Product and Succeeds: It Really is That Easy
The chain offers fresh, 80 percent lean meat burgers and water-boiled Idaho potato fries. This no-gimmick burger experience has generated $500 million of revenue and more than 436 locations.