One excellent marketing book I recently read is Different: Escaping the Competitive Herd by Youngme Moon (no ref link: http://www.amazon.com/Different-Escaping-Competitive-Youngme...). She believes that going tit-for-tat on adding features and augmentations is a losing game that results in every competitor looking like one another. Instead, you should find your strength, and focus on that while resisting to focus on where your product falls short. The book is also very... poetic. She's quite a quotable writer. Good stuff.
http://www.amazon.com/Different-Escaping-Competitive-Youngme...