competitive differentiation

Contributor(s): Rachel Lebeaux

Competitive differentiation is a strategic positioning tactic an organization can undertake to set its products, services and brands apart from those of its competitors.

In order to make an offering compelling in the marketplace, an organization must clearly articulate to consumers the benefits of a product, service or brand and contrast its unique qualities with other competing products. The goal of competitive differentiation is to have the customer perceive an organization's offering as being superior when compared to other similar offerings. 

Differentiation can be achieved through packaging, marketing campaigns and after-market product support. Startup companies often develop products or services in niche markets in order to competitively differentiate themselves around a specific consumer need. A positioning statement can provide a basis for competitive differentiation, defining specific advantages a particular offering provides.

See also: unique selling point

This was last updated in August 2013

Continue Reading About competitive differentiation

Dig Deeper on Leadership and strategic planning



Find more PRO+ content and other member only offers, here.

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.


File Extensions and File Formats