Product Differentiation Strategy:

Product differentiation strategy goes together with market aggregate strategy.

Customers perceive the product as differentiated and distinguished from the competitors' brands in the same aggregate market. Hence the firm creates the perception that its products are better than the competitors' brands.

A marketer differentiates his/her products in the following ways:-

• By changing the appearance of some features of the product, eg. colour, package, etc
• By using promotional appeal which stresses some differentiating features or claims, eg. claiming that the brand is the most effective product in market.