Is it necessary for marketers to avoid commoditization?

This same question I was asked during my exam a few weeks ago.

Before answering that question first let me tell you about commoditization.
Commoditization occurs when products or services become indistinguishable from each other in the eyes of consumers, leading to fierce price competition and decreased brand loyalty.

I think it is often necessary for marketers to avoid commoditization because this can erode profit margins and undermine long-term sustainability for businesses.

During my e-commerce journey, I have faced commoditization as my competitors sell the same products with inferior quality and consumers often get confused with the pricing and quality, creating questions about brand loyalty. So as a marketer, I have applied these strategies to avoid commoditization in the market.

1. Brand Building

Invested in building a strong brand identity through content on social media and positioned above the competition that resonates with consumers and creates emotional connections by fostering the purpose of a business because a strong brand can command premium pricing and promote loyalty even in competitive markets.

2. Customer Experience

Provided an exceptional customer experience at every touchpoint, from pre-sales interactions to post-purchase support. A well-built customer feedback loop can create value beyond the product itself and differentiate a brand in the minds of consumers.

3. Market Segmentation

Identified specific needs and tailored marketing efforts to address them effectively. This allows me to avoid direct competition with commoditized offerings and focus on delivering unique value to targeted audiences.

4. Product Differentiation

Highlighted the unique features and benefits of the product that set it apart from competitors by including superior quality and innovative design.

By implementing these strategies and consistently delivering value to consumers, marketers can mitigate the risk of commoditization and maintain a competitive advantage in the marketplace.

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