Parody, as a literary genre, is an imitation of a particular writer, artist or a genre, exaggerating it deliberately to produce a comic effect.
Parody imitates or exaggerates a subject directly to produce a comical effect. Satire, on the other hand, makes fun of a subject without a direct imitation. Moreover, satire aims at correcting shortcomings in society by criticizing them.
Literary Examples of Parody
Shakespeare's “Sonnet 130” parodies the Petrarchan conceit.
My mistress’ eyes are nothing like the sun;
Coral is far more red than her lips’ red;
If snow be white, why then her breasts are dun;
If hairs be wires, black wires grow on her head.
Unlike Petrarch's Laura, Shakespeare's "Dark Lady" does not have starry eyes, coral lips, or a snow-white complexion. Poking fun at the Petrarchan clichés, Shakespeare breathed a new life into the English language.
Swift’s Gulliver’s Travels