Ensuring that products and services have a unique element to allow them to stand out from the rest .

Differentiation can be a key role in creating competitive advantage. Market research into a niche market may result in altering a product to improve differentiation, the changes themselves however are not differentiation. Marketing or product differentiation is the method of outlining the differences between products or services, or the subsequent list of differences. This process is carried out in order to demonstrate the exclusive aspects of a company’s product and create a sense of value.

See also:
Brand
Brand extension 
Brand image
Brand value
Brand personality
Merchandising
Proprietary name