Which of the following best describes the concept of differentiation?

The concept of differentiation primarily involves making a product or service stand out in the marketplace in ways that appeal specifically to a target audience. This can include unique features, superior quality, innovative design, or exceptional service that addresses the specific needs and wants of consumers. By emphasizing these characteristics, a business can create a distinct identity for its offerings, enabling it to compete more effectively against rivals and thereby potentially enjoy higher margins and customer loyalty.

In contrast, enhancing operational efficiency focuses on improving processes to reduce costs and increase productivity, which is not directly related to product appeal. Lowering prices to attract customers involves competing primarily on cost rather than on product uniqueness or quality. Lastly, standardizing products caters to a broad market without specific appeal to individual segments, which does not align with the concept of differentiation that seeks to create unique value.