The quickest way to sink the value of your products in a crowded field is to make them a commodity. That is true for products, services and for yourself. Why would a customer pay more for your product if they see nothing different from your competitor’s offerings? Differentiation can be as simple as identifying what really matters to people and finding a way to position yourself differently.
The classic marketing example was Kellogg’s Raisin Bran. What do people want in their raisin bran? Raisins! And whether or not Kellogg’s has more raisins mattered little, because they initially staked out a unique positioning of “Two scoops of raisins.” Is that a lot? Who knows? But by claiming “abundant raisins” as their positioning, they set themselves apart and owned that important category benefit. How can you differentiate in your industry?