Product Differentiation
Product differentiation is a marketing and business strategy where a company distinguishes its products or services from competitors' offerings to make them more attractive to a target market. It involves creating unique features, benefits, or brand perceptions that set a product apart, often to justify a premium price or gain market share. This concept is fundamental in competitive markets to avoid commoditization and build customer loyalty.
Developers should understand product differentiation to align technical decisions with business goals, such as when building features that provide a competitive edge (e.g., unique user interfaces, proprietary algorithms, or integration capabilities). It helps in prioritizing development efforts on aspects that enhance marketability, such as in software products where differentiation might come from performance, security, or user experience, ensuring the product stands out in crowded markets like SaaS or mobile apps.