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Differentiation is a business decision made at the highest levels about the company's positioning and values - how the company adds value to a customer relationship. There are many ways a company can make those decisions, and many different approaches to doing so. The most successful companies adopt a positioning that offers sustainable competitive advantage - a way of adding value that competitors cannot easily duplicate. Developing appropriate differentiation can be a challenge for business-to-business marketers, and for good reason.
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