Final answer:
Companies determine the features and benefits that differentiate their offerings through market research and customer insights, considering factors such as market power, product similarity, entry barriers, and competition basis.
Step-by-step explanation:
Companies determine the features and benefits that differentiate their good, better, and best offerings through market research and customer insights. They consider factors such as the market power possessed by each firm, the similarity of their products to those of other firms, the difficulty for new firms to enter the industry, and whether firms compete on the basis of price, advertising, or other product differences. By analyzing these factors, companies can make informed decisions about how to position their products and create differentiation.