What is Product Differentiation?

What makes your product or service different and more appealing to customers than other options in your category? Product differentiation gives you a competitive advantage in your market. Product differentiators can include better quality and service, as well as unique features and benefits.


Company A may differentiate its smartphones by promoting a high-quality camera system with advanced photography features, appealing to photography enthusiasts. Meanwhile, Company B may focus on battery life, offering smartphones with long-lasting battery performance targeted at users who prioritize battery longevity.

By emphasizing these unique features, each company creates a distinct value proposition for its smartphones, catering to different segments of the market and attracting customers with specific preferences and needs. Product differentiation allows companies to compete effectively in crowded markets by offering unique value propositions that resonate with their target audience.

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