Product Differentiation

Filed Under » ,
Dictionary Says

Definition of 'Product Differentiation'

A marketing process that showcases the differences between products. Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products. Successful product differentiation creates a competitive advantage for the seller, as customers view these products as unique or superior.
Investopedia Says

Investopedia explains 'Product Differentiation'

Product differentiation can be achieved in many ways. It may be as simple as packaging the goods in a creative way, or as elaborate as incorporating new functional features. Sometimes differentiation does not involve changing the product at all, but creating a new advertising campaign or other sales promotions instead.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Marketing

    The activities ...
  2. Competitive Advantage

    An advantage ...
  3. Parity Product

    A brand of good ...
  4. Pricing Power

    An economic term ...
  5. Porter's 5 Forces

    Named after ...
  6. Value Added

    The enhancement ...
  7. Augmented Product

    A commodity that ...
  8. Halo Effect

    The halo effect ...
  9. Prophet's Reputation Management Index

    An index created ...
  10. Product Placement

    A form of ...

Articles Of Interest

  1. Competitive Advantage Counts

    What's the best indicator of a company's future success? Its ability to succeed when others fail.
  2. Lead The Charge With Product Development

    If you like to keep your finger on the pulse of the market, this could be the career for you.
  3. Industry Handbook

    In this feature, we take an in-depth look at the various techniques that determine the value and investment quality of companies from an industry perspective.
  4. Advertising, Crocodiles And Moats

    Memorable advertising is a brick in the fortress that keeps competitors at bay.
  5. Economics Basics

    Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!
  6. 4 Types Of Home Renovation: Which Ones Boost Value?

    You think your updated house looks great, but potential buyers may not feel the same way.
  7. In Small Business, Success Is Spelled With 5 "C"s

    Incorporating these steps will help your business thrive in a competitive market.
  8. 5 Steps To A Small Business Marketing Plan

    Here are some tips for marketing your small business.
  9. 6 Tips For Spinning A PR Nightmare

    One of the most readily available measures that organizations can employ to either avoid or reduce negative publicity is to aim for transparency.
  10. How Companies Create A Brand

    We take a hands-on approach to creating a brand, and see what it can mean as an investor.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center