What is meant by the term differentiated? - Edexcel - GCSE Business - Question 7 - 2018 - Paper 1

The term 'differentiated' refers to the process by which a product or service is made distinct from its competitors. This is achieved through various means, such as unique features, branding, pricing strategies, or enhanced customer service. The objective of differentiation is to create a competitive advantage in the market, allowing businesses to appeal to specific target audiences.

In practical terms, differentiation can involve innovating product design, emphasizing quality, or tailoring marketing efforts. By establishing clear distinctions, companies can foster customer loyalty and potentially command higher prices due to the perceived value of their offerings. In summary, differentiation is a key strategy employed by businesses to distinguish themselves in a crowded marketplace.