What does "product differentiation" primarily involve?

Product differentiation primarily involves distinguishing a product through unique features. This concept is central to marketing and business strategy, as it allows a company to set its offerings apart from competitors in the marketplace. By highlighting unique characteristics, qualities, or benefits—such as superior quality, innovative design, or enhanced functionality—businesses can attract specific customer segments and create a competitive advantage.

This approach not only helps to appeal to consumer preferences but also fosters brand loyalty since customers may become attached to the unique attributes that differentiate a product from similar items. In a saturated market, product differentiation is vital for standing out and achieving sustained success.

The other options focus on different strategies that don't directly relate to product differentiation. For instance, offering products at the lowest price focuses on a cost-leadership strategy rather than unique features. Rebranding existing products involves changing how customers perceive a product but doesn't inherently add unique features. Standardizing product features across the market means creating uniformity rather than distinction, which goes against the essence of product differentiation. Thus, focusing on unique features is key for any business aiming to differentiate itself effectively.