When your product offering is differentiated from the offerings of your competitors, the term used for this is product differentiation. You define unique values of your product to make it more appealing to your target audience.
Product differentiation is important for the following reasons:
1. If you follow a product differentiation strategy, you get an edge over your competitors.
2. Your customers know what is in store for them.
3. Since your product is different it is remembered easily by the target audience.
4. It creates a buzz around your product which may lead to increased brand exposure.
5. It gives a sense of exclusivity to the consumers.