Question

Difference between market positioning and differentiation

Answer 1

Positioning is your strategy for conveying what makes your company or products bigger, different or better than those offered by competitors. 
Differentiation is essentially the way you carry out your positioning by promotion distinct attributes or benefits that you offer.

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Answer 2

Differentiation and positioning considerations are relevant to each element of the marketing mix as well as to onground and online marketplaces. The small business should be working toward a competitive advantage

Product differentiation and market segmentation are two distinct, important marketing strategy concepts. Product differentiation refers to the basic need to have product-related qualities that set your brand apart from the competition. Market segmentation is the breakdown of a large target audience into smaller, more homogenous groups of customers.
Positioning is your strategy for conveying what makes your company or products bigger, different or better than those offered by competitors.