What does it mean to "differentiate" in a marketing strategy?

In marketing strategy, to "differentiate" refers to the creation of a unique approach to services or products, setting them apart from competitors. This uniqueness can come from various elements, such as product features, quality, branding, customer service, or technology, that add value and appeal to a specific target audience. Differentiation is crucial for building competitive advantage in the market because it helps businesses to stand out and attract customers who are looking for something distinctive. This strategy ultimately aims to fulfill specific needs or desires of consumers that are not adequately met by other products, thereby positioning the business uniquely in the minds of consumers.