In business strategy, what term is used to describe making a product distinct from competitors?

The term used to describe making a product distinct from competitors is differentiation. This strategy involves creating unique attributes or features of a product that set it apart in the market, allowing a company to appeal to a specific segment of consumers. Differentiation can be achieved through various means, such as product design, quality, branding, technology, or customer service. By effectively differentiating its products, a business can build customer loyalty and reduce direct competition, often allowing for premium pricing.

In contrast, cost leadership focuses on becoming the lowest-cost producer in the industry, which does not inherently involve distinguishing a product. Focus strategy concentrates on serving a specific market segment but may not necessarily involve differentiation; it could also emphasize cost advantage. Segmentation involves dividing the market into distinct groups of potential customers but does not directly relate to distinguishing the product itself. Thus, differentiation clearly aligns with the intention of creating a unique market presence.