Updated: January 9, 2024
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.