This book presents, in a clear and detailed style, state-of-the-art methods of characterizing inner product spaces by means of norm derivatives. It brings together results that have been scattered in various publications over the last two decades and includes more new material and techniques for solving functional equations in normed spaces. Thus the book can serve as an advanced undergraduate or graduate text as well as a resource book for researchers working in geometry of Banach (Hilbert) spaces or in the theory of functional equations (and their applications).