Final answer:
Product differentiation is the process of distinguishing a product from competitors' products by highlighting unique attributes such as physical appearance, selling location, intangible benefits, and brand perception shaped by advertising.
Step-by-step explanation:
The process of identifying the attributes that make a good or service dissimilar from other products that compete to meet the same or similar customer needs is known as product differentiation. This can be achieved through several means, including the physical aspects of the product, the location from which it is sold, intangible aspects such as guarantees or reputation, and the perceptions of the product formed by advertising, which can encourage strong brand preferences even in the absence of noticeable differences. An example of this would be how people may have strong preferences for certain brands of ketchup or beer, despite not being able to tell the difference in a blind taste test, due to advertising and past habits.