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Differentiation is what characteristics you are promoting to the consumer that makes your product different and/or of higher value than your competitors products offerings.

Positioning generally comes next and relates to the position in the market your are targeting. i.e. low cost, middle ground or higher end price brackets. basically who in the market your product will be targeted at. (segmentation)

In the example of a beer product the differentiation may be that your beer is all natural with no added extras and your positioning strategy may be that your product is aimed at the higher priced end of the spectrum or people of a higher socio-economic standing in soiciety.

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Q: What is the difference between differentiation and positioning?
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