Product_differentiation Product_differentiation

Product differentiation - Definition and Overview

Related Words: Alteration, Analysis, Approximation, Atomization, Change, Characterization, Definition, Denomination, Denotation, Description, Deviation, Difference, Differencing, Disclosure, Discrimination

In marketing, product differentiation is the modification of a product to make it more attractive to the target market by differentiating it from competitors' products.

The changes are usually in minor; they can be merely a change in packaging or also include a change in advertising theme. The physical product need not change, but it could.

The objective of this strategy is to develop a position that potential customers will see as unique. If your target market sees your product as different from the competition's, you will have more flexibility in developing your marketing mix. A successful product differentiation strategy will move your product from competing based primarily on price to competing on non-price factors (such as product characteristics, distribution strategy, or promotional variables).

The disadvantage of this repositioning is that it usually requires large advertising and production expenditures.

See also


Example Usage of differentiation

newsdx: Strategic Solutions To Small Business Problems differentiation http://newsdx.com/articles/20803/
Gatowag: @Zapp4078 So... that could have used a bit more implicit differentiation. And I didn't see you there... (x) where x = sad face
ZainabA: Shadism -used to refer to skin color differentiation w/ in racialized communities where there is often a privileging of lighter skin tones.
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