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Product Differentiation: What Every Product Manager Needs to Know

Christina Gkofa
Agile Insider
Published in
6 min readMay 20, 2019
Photo by Franki Chamaki @unsplash

Product Differentiation Defined

Edward Chamberlin originally coined this concept in The Theory of Monopolistic Competition. Simply put, it refers to the introduction of unique, original aspects or features to a product which establish its unique selling proposition (USP).

The distinctness we can expect to see can be something concrete, such as speed or a perception of ephemeral quality, or it could be something like being perceived as a cooler brand than your competition.

Product differentiation serves as a catalyst in a consumer’s purchase decision-making process, setting one product apart from the rest.

Why is Differentiation Vital?

Well bluntly stated, because it’s a necessary prerequisite for your product’s survival. In essence, it translates the product’s facets into key benefits which further helps your customers understand why they should eventually invest in your product. Besides that, it also increases the natural recall value of the product.

Differentiation is a fundamental marketing process that is of crucial economic importance to all enterprises. It can basically…

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Christina Gkofa
Christina Gkofa

Written by Christina Gkofa

Product addict in the tech industry since 2014 (OLX, Metro Markets, StepStone, trivago). Respect great UX and retention. Cuisine and wine explorer, pug lover

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