The process of convincing the potential customer that a company's product differs significantly and in some superior way to that of other products seeking to meet customer needs within the same market segment.
refers to how a firm will try to make their product seem different from those of their competitors through such things as style, shape, size, color, texture, quality, location packaging, advertising, and service
In marketing, product differentiation is the modification of a product to make it more attractive to the target market. This involves differentiating it from competitors' products as well as one's own product offerings. In economics, successful product differentiation leads to monopolistic competition and is inconsistent with the conditions for perfect competition, which include the requirement that the products of competing firms should be perfect substitutes.