Differentiation is the way or ways in which a product or company is different.

It’s an evolution of the USP - the Unique Selling Proposition.

Having a differentiator has become a de-factor standard in business. It’s not unusual to be asked: “how are you different”.

Rules of differentiation:

Being different is always relative to something else. The perception of a product, therefore, is shaped by what it is compared to.

Brands can influence what their own product is compared to. This alters its position in the market.

Points in favor of differentiation:

In a crowded market where consumers have lots of similar options to choose between, being different makes you stand out.

Points against differentiation:

Differentiator often centres around creating changes in a product. Instead, companies can focus on being sold in a different place or for to a different market.