What is the difference between product diversification and product differentiation?

Product diversification means that you will have several different types of products for sale, such as selling school supplies as well as toiletries.

I think product differentiation means that you will have several different types of the same product available, such as the same Baseball hat in several colors or with different team logos. Here's how about.com defines "product differentiation"--"Developing unique product differences with the intent to influence demand".