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Differentiation: It's not "a thing", It's "the Thing"

A primer on differentiation and its relationship to innovation.

Click Play below to watch this video briefing.


Summary


  • Differentiation is crucial to winning in the market by offering unique characteristics.

  • It can be functional (unique product features) or nonfunctional (brand, customer support).

  • Nonfunctional differentiation is often more sustainable than functional differentiation.

  • Innovation does not always lead to successful differentiation.

  • Overemphasis on innovation can be counterproductive if it doesn’t create value.

  • Differentiation must be actively managed and aligned with go-to-market strategies.

  • Aligning product teams and sales on differentiation is key to success.

  • Market demands should drive differentiation, focusing on what customers value most.

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