Define product positioning. What are two approaches to product positioning? Give an example of each approach.

Product positioning refers to the place a product occupies in consumers' minds based on important attributes relative to competitive products. There are two major approaches to positioning a product. Head-to-head positioning involves competing directly with competitors on similar product attributes in the same target market. For example, Dollar Rental Cars competes head-to-head or directly with Avis and Hertz. Differentiation positioning involves seeking a smaller market niche that is less competitive in which to locate a brand. Companies also follow a differentiation positioning strategy among brands within their own product line to seek a less-competitive, smaller market niche in which to locate a brand. Whole Foods, for example, differentiates itself from large supermarket chains with its "wholesome" and organic selection of products, unique store design, local ambiance, and promotion of a "greener" lifestyle.