What does market positioning refer to?

Market positioning refers to the strategic process of establishing a particular image or perception of a product in the minds of consumers relative to competing products. By creating a unique position in the market, a brand can differentiate itself from competitors and appeal to the target audience in a way that meets their needs and preferences. This process involves identifying the characteristics that make the product distinct and communicating those effectively through branding, messaging, and marketing strategies.

Creating an image involves understanding consumer perceptions and values, and then working to align the product's attributes with those factors. Effective market positioning can influence consumers' purchasing decisions by fostering brand loyalty and recognition.

In contrast, lowering product prices to gain market share primarily focuses on competitive pricing strategies rather than establishing a perceived value or image. The physical location of a product's sale relates more to distribution logistics than to positioning in the market. Lastly, deciding on distribution channels is concerned with getting the product to consumers rather than shaping how the product is viewed in the marketplace. Thus, the correct choice clearly encapsulates the essence of establishing a product's identity through consumer perception, making it the most appropriate representation of market positioning.