Product Differentiation

Wikipedia, the free, online encyclopedia, give us:

In marketing, product differentiation (also known simply as "differentiation") is the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as one's own product offerings.

Differentiation is a source of competitive advantage. Although research in a niche market may result in changing your product in order to improve differentiation, the changes themselves are not differentiation. Marketing or product differentiation is the process of describing the differences between products or services, or the resulting list of differences. This is done in order to demonstrate the unique aspects of your product and create a sense of value. Marketing textbooks are firm on the point that any differentiation must be valued by buyers. The term unique selling proposition refers to advertising to communicate a product's differentiation.

Entrepreneurs must demonstrate how something is different than is what is out there. And not just in features, but how it meets a need better than competitors'. As a realtor, I'm continually working to differentiate myself from competitors. I want potential customers to see me as a very different kind of realtor. People want different, not just more of the same.

Anyone interested in the concept should read the entire article and follow its links. And I'm interested in what you have to say, so post a comments.

Entrepreneurship informs everything I do. For my entrepreneurial real estate blog, go to www.yourstopforrealestate.com/blog and for my entrepreneurial writing blog, go to www.hatman2.blogspot.com