Product differentiation is a marketing strategy that businesses use to distinguish their products from those of competitors. This can be achieved through unique features, quality, design, or branding. By highlighting what makes their product special, companies aim to attract specific customer segments and create a competitive advantage in the market. For example, in the smartphone industry, brands like Apple and Samsung differentiate their products through innovative technology, user experience, and design aesthetics. This differentiation helps consumers make informed choices based on their preferences, ultimately influencing their purchasing decisions and brand loyalty.