QS Study

Differentiation strategy: Differentiation strategy Approach under which a firm aims to develop and market unique products for different customer segments. Usually employed where a firm has clear competitive advantages and can sustain an expensive advertising campaign. It is one of the generic marketing strategies that can be adopted by any firm.

Differentiated business Strategies are, of the two basic types of competitive strategies companies can use to distinguish them in the market. The other general category of competitive strategies is the low-cost strategy. In essence, companies can either compete to become the low-cost provider in an industry or take advantage of one of the many possible ways to differentiate themselves from competitors to drive business.

In a differentiation strategy, a firm seeks to be unique in its industry along with some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceived as important and uniquely positions it to meet those needs. It is rewarded for its uniqueness at a premium price.

Product differentiation: 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 seller, as customers view these products as unique or superior.