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62 Examples of Product Differentiation

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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
Definition
The unique value of a product relative to other products on the market.
Related Concepts
Next: Product Quality
More about product differentiation:
Market Differentiation
Price Differentiation
Product Benefits
Product Differentiation
Product Features
Product Functions
Product Positioning
Product Quality
Product Variety
Service Quality
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