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45 Examples of Market Differentiation

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Market differentiation is the process of giving brands, products and services a unique position in a market that is valuable to customers. In a crowded market, products that don't stand out with a unique value proposition are unlikely to sell well. The following are common types of market differentiation.
Brand legacy – history and lore attached to brand
Brand recognition, awareness & image
Build quality
Color selection
Customer experience
Customer perceptions
Customer service levels
Customization options
Design quality
Doing good
Emotional appeal
Figure of merit – a measurable performance metric customers care about
Guarantees and warranties
Local sourcing
Loyalty programs
Materials quality
Number of customers – e.g. a busy nightclub
Patents and intellectual property
Premium / exclusive features
Pricing model – e.g. all you can eat
Product design
Product features
Product functions
Product performance
Product selection
Rarities – one of a kind things such as the only hotel on an island
Reducing risks for the customer
Service excellence
Service features
Social proof such as endorsements
Social status
Solving a customer problem
Terms and conditions
Uniqueness – e.g. an appellation
Visual identity
Keep in mind that over-positioning can occur where you make your product perfect for too small a market.
It makes sense to position in the way that is most valuable to customer needs for a particular product. For example, if customers don't care much about quality for a particular product, high quality may be pointless.
Next read: Examples of Product Differentiation
More about market differentiation:
Competitive Position
Brand Legacy
Figure Of Merit
Customer Convenience
Peak Experiences
Customer Experience
Product Benefits
Pull Strategy
Product Differentiation
Service Differentiation
Visual Identity
More ...
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