Market differentiation is the process by which a company distinguishes its products or services from those of competitors. This can be achieved through unique features, quality, branding, or customer service. By highlighting what makes their offerings special, businesses aim to attract specific customer segments and create a competitive advantage. Effective market differentiation helps consumers understand why they should choose one product over another. For example, a company like Apple differentiates its products through innovative design and a strong brand identity. This strategy not only enhances customer loyalty but also allows companies to potentially charge higher prices for their unique offerings.