What is Differentiation?

Differentiation definition: differentiation – also known as product differentiation – is the process of making a product, service or experience stand out from its competitors.

Differentiation aims to make the product more attractive to its target audience by showcasing the characteristics they care about.

These characteristics often include:

• Price
• Quality
• Sourcing (like “Made in the USA”)
• Specificity (like “Vegan”)
• Availability

Differentiation is also achieved using brand-led methods, such as unique packaging or brand story.

It may occasionally be necessary for brands to use differentiation between similar offerings in their own products.

For example…

MyProtein – a supplement company – needs to use differentiation to highlight differences between:

• Their products and their competitors’
• Their product catalog based on dietary needs (like Whey and Vegan Proteins)

Popularity of the term Differentiation

Concept related to Differentiation

• Competitive advantage
• Marketing mix

Additional resources about Differentiation

• Examples of Differentiation in Marketing
• 6 Ways to Differentiate Your Business from the Competition
• Marketing Success Through Differentiation—of Anything