62 Examples of Product Differentiation

John Spacey, updated on August 20, 2023

Product differentiation is a product's unique value on the market. This includes anything that gives a product appeal to customers including quality, branding, cost and features.

Brand	Build quality
Capabilities	Capacity
Colors	Comfort
Compatibility	Complementary products & services
Configurability	Convenience
Country of origin	Customer experience
Customer service	Customization options
Durability	Efficiency
Endurance such as battery life	Exclusivity
Features	Figure of merit
Flavors	Functions
Good for people & planet	Guarantee
Health & wellness	Inclusivity
Language support	Local sourcing
Low maintenance	Materials quality
Natural ingredients	Packaging
Performance	Price
Privacy	Product information
Product name	Ratings & reviews
Reliability	Repairability
Reputation	Safety
Security	Sense & sensation
Service experience	Size & space
Smell	Speed
Storytelling	Styles
Taste	Technical quality
Ties to culture & tradition	Time-saving features
Upgradability	Usability
User interfaces	Variety of product versions
Versatility	Visual appeal
Visual branding	Warranty

A figure of merit is a number that customers intensely care about in a product category. For example, the range of an electric car in miles.

A way to think about differentiation is in terms of the crowded shelves of a supermarket. If you look at a particular section, such as coffee, you'll see that each product stands out in some way such as branding, organic certification, country of origin, flavor and price. Buyers for a supermarket will typically only buy products that offer something unique to their shelves.

In a commoditized industry, establishing differentiation is difficult or impossible as customers see commodity products as all the same. Industries with strongly differentiated products such as luxury goods tend to support high margins.

Overview: Product Differentiation
Type	Marketing Economics
Definition	The unique value of a product relative to other products on the market.
Related Concepts	Commodity Brand Identity