How is Differentiation used in business?

Differentiation is used for: Product strategy, Marketing messaging.

strategy

What is Differentiation?

The process of distinguishing a product or service from competitors to make it more attractive.

Detailed Explanation

Differentiation is a strategy where a company aims to distinguish its products or services from competitors. Differentiation can be based on features, quality, price, service, brand, or other factors. Successful differentiation creates perceived value that justifies premium pricing or drives preference. CI helps identify differentiation opportunities by revealing competitor gaps.

Real-World Examples

Feature differentiation through unique capabilities

Service differentiation through customer support

Price differentiation through value positioning

How It's Used

Product strategy

Marketing messaging

Pricing strategy

Brand development

Related Terms

Competitive Positioning

How a company differentiates itself from competitors in the minds of customers.

Competitive Advantage

A condition or circumstance that puts a company in a favorable position over competitors.

Put Differentiation Into Practice

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