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This article examines two common marketing terms: product positioning and product differentiation. Many authors use these terms interchangeably, yet most marketing texts treat product positioning and product differentiation as two separate concepts. This article attempts to identify the underlying concepts of both product differentiation and product positioning. Product differentiation is shown to be a special case of product positioning; therefore, it is suggested that marketers may want to abandon the concept of product differentiation in favor of product positioning.

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