Product Differentiation


Product Differentiation
A marketing process that showcases the differences between products. Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products. Successful product differentiation creates a competitive advantage for the seller, as customers view these products as unique or superior.

Product differentiation can be achieved in many ways. It may be as simple as packaging the goods in a creative way, or as elaborate as incorporating new functional features. Sometimes differentiation does not involve changing the product at all, but creating a new advertising campaign or other sales promotions instead.


Investment dictionary. . 2012.

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  • Product differentiation — In economics and marketing, product differentiation (also known simply as differentiation ) is the process of distinguishing a product or offering from others, to make it more attractive to a particular target market. This involves… …   Wikipedia

  • product differentiation — A source of competitive advantage that depends on producing some item that is regarded to have unique and valuable characteristics. Bloomberg Financial Dictionary * * * product differentiation product differentiation ➔ differentiation * * *… …   Financial and business terms

  • product differentiation — Mktg a marketing technique that promotes and emphasizes a product’s difference from other products of a similar nature. Product differentiation is one of the aspects of Michael Porter’s generic strategy theory and it has been described by Anita… …   The ultimate business dictionary

  • product differentiation — /ˌprɒdʌkt dɪfəˌrenʃi eɪʃ(ə)n/ noun the process of ensuring that a product has some unique features that distinguish it from competing ones ● We are adding some extra features to our watches in the interest of product differentiation …   Marketing dictionary in english

  • product differentiation — noun a) Perceived differences between the product of one firm and that of its rivals so that some customers value it more. b) The process of creating such differences …   Wiktionary

  • product differentiation — The creation of a distinction between products that fulfil the same purpose but are made by different producers and therefore compete with each other. The distinction may be real (i. e. one product is better than others) or largely illusory.… …   Big dictionary of business and management

  • functional product differentiation — /ˌfʌŋkʃən(ə)l prɒdʌkt dɪfərenʃiˌeɪʃ(ə)n/ noun the process of ensuring that a product has some functional features that distinguish it from competing ones …   Marketing dictionary in english

  • differentiation — dif‧fe‧ren‧ti‧a‧tion [ˌdɪfərenʆiˈeɪʆn] noun [uncountable] the process of showing or seeing that one thing is different from something else ˈproduct differentiˌation MARKETING when a company shows how its products are different from each other… …   Financial and business terms

  • Differentiation — may refer to: Differentiation (mathematics), the process of finding a derivative Differentiated instruction in education Cellular differentiation in biology Planetary differentiation in planetary science Inductive reasoning aptitude in psychology …   Wikipedia

  • Differentiation (economics) — Differentiation is a concept used in business strategy and describes one of the three ways to establish competitive advantage. Differentiation advantage occurs when a firm delivers greater services for a non unlimited higher price than its… …   Wikipedia


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