Final answer:
Small businesses can enhance market share through creative product differentiation, including strategies like attractive packaging, which helps to establish a brand identity and distinguishes their products from competitors.
Step-by-step explanation:
Small businesses can often gain market share through creative product differentiation, which encompasses various strategies including attractive packaging when marketing their products. The term refers to any action that firms take to make consumers think their products are different from their competitors.
When considering place product packaging, which is a concept where the physical landscape and architecture of a store contribute to its brand image, businesses can entice customers to visit and return by offering a consistent and familiar experience. For new chains, this strategy is important as they build a customer base and establish a brand identity.
Factors like a product's physical aspects— whether it's an 'unbreakable bottle' or 'freezer-to-microwave' capabilities — and the firm's location, such as a gas station at a busy intersection, contribute to product differentiation. While these aspects and location can create a competitive edge, innovative packaging can also significantly contribute to distinguishing a product in the marketplace.