4 Ps of marketing differentiate in :

  • product
  • price
  • place - distribution channels
  • promotion

advantages to differentiation

  • higher prices since product is distinctive
  • brand awareness
  • improves product placement, you get more distributers
  • adds value to good or service
  • prevents competition from entering
  • competitive advantage, market leadership and dominance disadvantages
  • expensive
  • mass production is cheaper than niche, which is more likely to have usp
  • unnecessary/wasteful competition (i.e. excessive packaging)