Heather, simply put, differentiation is clarifying the unique characteristics of your product/service as it relates to customers as it compares to your competitors. On the other hand, in real life, differentiation is not a topic, but more or less an objective. There are a few key point to consider: 1-Know your products better than the competition. Often times rookie marketers tend to focus more on the competitors product during this objective more than their own product. 2-Know your current customer base as well as being able to define your prospects. In doing so, your differentiation will come naturally - more of a bi-product rather than a focused topic.