Product Differentiation

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A source of competitive advantage that depends on producing some item that is regarded to have unique and valuable characteristics.

Product Differentiation

Any marketing strategy that seeks to highlight differences between products. That is, in addition to advertising the lowest price for a product, a company may differentiate its products by advertising that is has the best quality, the most convenience, or even the best packaging. Product differentiation is especially important where competition is stiff and companies cannot afford to charge much less than they do. See also: Brand Loyalty.

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