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What does product differentiation mean?

Looking for the meaning or definition of the word product differentiation? Here's what it means.

Noun
  1. (economics) Perceived differences between the product of one firm and that of its rivals so that some customers value it more.
  2. (economics) The process of creating such differences.
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Examples
Indeed, in the case just postulated, product differentiation would be an open invitation to entry and to competition.
We are now trying to introduce high-end innovative products before others do because product differentiation among brands is narrowing.
The sachet was an innovative stroke of marketing genius that reduced product differentiation and changed the dynamics of the detergents market.
Traditionally, medical product companies have relied on product differentiation to achieve market position.
We all kind of knew that, but when you relate it back to branding, product differentiation, and innovation, that's powerful.
For a marketing manager, product differentiation becomes a key to gaining a degree of monopoly power in a market.

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