Final answer:
Procter & Gamble differentiates its brands from others through product differentiation, which includes changing physical aspects, sales location, and consumer perceptions to create a unique market space.
Step-by-step explanation:
When Procter & Gamble is differentiating each of its brands from the other company brands and from those of competitors, it is engaging in product differentiation.
This process involves any action that firms undertake to make consumers perceive their products as distinct from competitors'. Procter & Gamble may achieve differentiation through various methods such as altering the physical aspects of the product, changing the location from which the product is sold, modifying the intangible aspects of the product, and influencing consumers' perceptions of the product.
These strategic moves are essential in markets characterized by monopolistic competition or in developing a competitive edge in an oligopoly, where the recognition of brand names plays a significant role in consumer decision-making.