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Product differentiation

Product differentiation is the process of advertising a product so it appears to have a competitive edge over others in the same category. Different types of product differentiation include vertical, horizontal, and mixed.

  • Vertical product differentiation: This includes objective measurements like ranking a product on a scale of 1–5.
  • Horizontal product differentiation: This includes subjective measurements like giving an opinion about a product.
  • Mixed product differentiation: This includes an amalgamation of both objective and subjective measurements like buying a product based on past customer reviews (rank and detailed opinions).

Brands often use mixed product differentiation in retail marketing strategies to attract a wider target audience, ultimately boosting user engagement, brand recognition, and overall brand growth.