Differentiation in marketing is a strategy used by businesses to distinguish their products or services from those of their competitors. It involves identifying the unique qualities that set one product apart from other similar products and using those differences to drive consumer choice. Differentiation can help companies stand out when a product isnt perceived to be much different from a competitors. It can also involve focusing on a niche market.

There are several ways in which companies can differentiate their products or services, including:

• Price: Selling products at a lower price than those offered by competitors.
• Value: Providing more value than competitors.
• New markets: Creating new markets for products that were previously unsold.
• Features: Adding new functional features to a product or redesigning packaging.
• Advertising: Launching a new advertising campaign or other promotions.
• Customer focus: Focusing on customers wants and needs, and providing unique features or qualities that delight them.

Differentiation can help organizations improve their competitive advantage by differentiating themselves from competitors in their target market. It can also help businesses develop a strong brand that potential customers will recognize, increasing the likelihood theyll pick their product over a generic or undifferentiated product or service.

To be successful, a differentiation strategy should tap into what a brand does best and then communicate those advantages to potential customers. The differentiation strategy a business chooses will depend on its industry.