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Marketing vocabulary · Marketing Strategy

Differentiation

Meaning in marketing, with examples

/ˌdɪfəˌrenʃiˈeɪʃn/nounCommon term

In marketing, differentiation means: Making a product or brand clearly different from competitors in ways that customers value, such as quality, design, service or experience.

In Turkish: farklılaştırma, farklılaşma

How it is used

A central idea in strategy and positioning. In strategy textbooks it is often contrasted with cost leadership, which means competing on low cost. Brands look for points of differentiation, and the verb is “differentiate from” competitors.

Example sentences

  1. In a crowded market like bottled water, differentiation is very hard.

  2. Our main point of differentiation is 24-hour customer service.

Common collocations

  • product differentiation
  • point of differentiation
  • differentiation strategy
  • lack of differentiation
  • positioningDeciding what clear place a brand or product should hold in customers' minds compared with its competitors, and shaping its message around that idea.
  • competitive advantageSomething that lets a company serve customers better or more cheaply than its rivals, such as lower costs, better technology or a stronger brand.
  • unique selling propositionThe one clear benefit or feature that makes a product different from and better than its competitors, in a way that customers care about.
  • premium pricingSetting prices higher than competitors on purpose to signal quality, exclusivity or status, so that the high price becomes part of the brand's appeal.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Marketing Strategy

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