Admark’s Weblog

RMT – 3

Posted on: August 29, 2008

The only bad thing with differentiation is that it presupposes homogeneity. Just ponder –

Otherwise of what use is mass differentiation. Everyone being unique is just another way of being “homogeneous”.

!!Amen!!

-Egghead

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6 Responses to "RMT – 3"

A basket of fruits isnot homogeneous. Thus having a market of different product does not make the market homogeneous. The only homogeneity in it is the fact that all the products are ‘different’ or at least claim to be.
Make any sense?

Imagine a marketplace of 100 products catering to the same need, all claiming to be so different but in the mind of a consumer who has only so much mental capability, he/she will equate these offerings to the same.
My point being differentiation taken to the heights of being mass is no differentiation at all.
Care to argue?

ok what happened to my subsequent argument?

My thought goes like this (visual depiction in terms of colours) –
First stage of differentiation –
2 shades of orange – one very dull and one very bright
Second stage of differentiation
There crop up intermediate shades of orange but still the user can distinguish the colours.
Mass differentiation stage –
There are innumerable shades of orange (like the ones we see while colouring the fonts in MS Word – which gives grades of colours). Just imagine a really large number of colours so much so that the user loses the ability to distinguish between.
Metaphor – Colour is the product, and mass differentiation is useless.
Am I talking sense here?

sure you are making sense but now what does my consumer who wants a lighter shade of orangish yellow with specks of blue in it do? In a new market scenario he finds it. so in a perfectly differentiated market you will have innumerable niches. Which is fine as long as everyone is making money. And if they arnt they will die off leading to a leaner market moving closer to equilibrium.

Absolutely bang on; if the product exists its okay. What I am contending here (or may be guessing) that the lighter shade that you say, would become so many, in the future, that probably s/he wouldn’t care much.
Innumerable niches which are so close to each other (but infinitesimally apart) that I cannot differentiate. The colour metaphor works well here and as you say such an innumerable niches cannot exist I guess and the markets will retreat to a middle order differentiation stage.

Anyways … nice discussion … butt in as you please …

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