Product differentiation is a marketing strategy that businesses use to distinguish their products or services from those of competitors. It involves highlighting the unique features, benefits, and qualities that set a product apart, such as superior quality, innovative design, advanced technology, or exceptional customer service. Differentiation can be achieved through various means, including branding, pricing, packaging, and functionality. Effective product differentiation helps businesses attract specific target audiences, reduce price sensitivity, and build brand loyalty, ultimately leading to a stronger market position.