Product Differentiation Task

A Product Differentiation Task is a business task of distinguishing a product from competitor products by highlighting unique features and value for customers.

Context:
- It can be a Strategic Marketing Process that involves analyzing Competitor Products and identifying potential Value Propositions.
- It can be an Innovation Process of designing and developing Products with unique features and attributes.
- It can be a Brand Positioning Process of associating a Brand with specific values and meanings.
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Example(s):
- Apple uses a User Experience Design Process to differentiate iPhone through exceptional ease of use and aesthetics.
- Mercedes Benz relies on an Engineering Design Process to differentiate vehicles via performance, luxury and safety.
- Coca-Cola employs a Brand Marketing Process focused on its secret formula, iconic branding, and refreshment.
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Counter-Example(s):
- A Generic Product Development Process with no differentiated attributes exhibits no Product Differentiation.
- A Cost Leadership Business Strategy focused on operational efficiencies and Price reflects little Product Differentiation.
See: Product Development, Brand Management, Pricing Strategy, Target Market, Customer Pain Point, Differentiation Business Strategy.

References

(Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/product_differentiation Retrieved:2016-10-28.
- In economics and marketing, product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products. The concept was proposed by Edward Chamberlin in his 1933 Theory of Monopolistic Competition.

http://www.investopedia.com/terms/p/product_differentiation.asp
- QUOTE: Product differentiation is 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 product's seller, as customers view these products as being unique or superior.
  Product differentiation can 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.
  Product differentiation determines what sets one product apart from other similar products, and it uses that difference to drive consumer interest. Product differentiation is often subjective, aiming primarily at altering customer perspective on one item when compared to another, even if the actual differences are minuscule or entirely aesthetic. Ideally, it demonstrates that the product cannot only do everything the competitor items can, but that there is an additional benefit, such as additional features, higher overall quality or a lower cost.