Definition: What is differentiation?

Differentiation: The process of distinguishing a brand from other brands (e.g., those of competitors) by identifying and highlighting its unique or distinctive attributes

 

Other definitions of “differentiation” from around the web

“What separates one brand from another within the mind of the customer.” – Stealing Share

“The process of establishing a unique market category to increase profit margins and avoid commoditization; a central principle of positioning.” – The Dictionary of Brand, Marty Neumeier (Liquid Agency)

“A marketing strategy that strives to distinguish a company’s products or services from the competition.” – Investopedia (definition for “product differentiation”)

“The process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors’ products as well as a firm’s own products. The concept was proposed by Edward Chamberlin in his 1933 The Theory of Monopolistic Competition.” – Wikipedia (definition for “product differentiation”)

“The process of researching, identifying and marketing unique characteristics of a brand, as compared to those of its competitors.” – OVO

“What makes your product or service stand out to your target audience. It’s how you distinguish what you sell from what your competitors do, and it increases brand loyalty, sales, and growth.” – Mailchimp (definition for “product differentiation”)

“When a firm/brand outperforms rival brands in the provision of a feature(s) such that it faces reduced sensitivity for other features (or one feature). Through not having to provide these other features the firm has an avenue to save costs. The firm benefits from the reduced sensitivity in terms of reduced directness of competition allowing it to capture a greater proportion of the value created by exchange.” – Byron Sharp & John Dawes (2001) What is Differentiation and How Does it Work?, Journal of Marketing Management

 

 

Also known as

• Brand differentiation
• Product differentiation

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