This is one that people often mix up, and for good reason! A parody is a type of satire. Satire is the umbrella term, and involves a wide range of satirical techniques. There’s no such thing as a “parodical” technique. I guess in this sense, you could be excused if you call a parody a satire, because technically that would be true, but specificity is a hallmark of true knowledge. If someone showed you a picture of a flounder and asked you if you knew what it was, and you said “yes, it’s a fish”. Well …
So, the difference? Well, the commonly accepted difference is that a satire is more subtle. How? It’s sort of like the difference between metaphors and symbols. A metaphor is explained and made clear in the very sentence it is introduced. A symbol is never explained and thus open to interpretation. Similarly, a parody is always self-evident. The best examples are parody movies like Scary Movie, Vampires Suck and Meet the Spartans. You know straight away what they’re imitating; it’s blatant and exaggerated, and it’s precisely that hyperbole that creates the humour.
But a satire? A satire is subtle. It’s the gentleman of the mocking genre. Often, the uninformed will not even realise the text is a satire and will just read the surface as if it were a story on its own. The example that comes to mind here is Animal Farm, a classic by George Orwell. It is a criticism of communism and its failings, and identifies the nature of greed and megalomania as inherent personality flaws that will always undermine any attempt at equality. Of course, there’s more to the story than just that, but those are the main overarching themes. However, the uninformed would just presume it was a story about animals on a farm that ended up trying to run the place by themselves and live like humans. A funny little fiction, but not something as deep as political and sociological commentary.
If you’re familiar with any of the texts I’ve mentioned, you should be able to identify a key difference between parodies and satires. While both engage in ridicule, the method by which they do so is different. If we were to classify the humour as a point of reference, parody would be slapstick. It’s in your face; it uses hyperbole to blow things to ridiculous proportions and it’s meant to be lighthearted. Satire on the otherhand is clever, witty, intelligent humour. It uses references, symbols, themes and similarity to create humour, but the humour is more of a dark chuckle when you get it. It’s not lighthearted, it’s usually something heavy and deep, the kind of stuff that makes you question the intelligence of your leaders in politics or the nature of human society or our shortcomings as a species. It’s a sad moment of realisation that causes the laugh. Sometimes, there’s no humour at all; just realisation.
Notice I’ve mentioned similarity and imitation. Here’s another key difference, one that’s far easier to remember for you guys to keep in mind. A parody will mimic something blatantly. The characters and plot will be very similar (if not exactly the same). If you’ve seen the underlying text, there’s no way you’d not realise it’s a parody. Even if you haven’t most of the time things are so overblown that you’d realise it was a parody anyway. Satires don’t mimic things; at least not blatantly. They copy scenarios and concepts but replace everything so that only the underlying skeleton remains. Take Animal Farm for example. You’d never be able to tell a bunch of talking animals who want things on the farm to be more fair to everyone were actually representative of communist society. At least not unless you read very deeply into it.