Final answer:
A positioning strategy involves differentiating a product or service in the market based on price, distribution, promotion and advertising, and product features. It is also informed by product differentiation, market analysis, and the competitive market structure.
Step-by-step explanation:
A positioning strategy is a marketing approach that involves how a company differentiates its product or service from competitors and where it sits in the marketplace. The correct answer from the provided options is c. a specific set of options for a product based upon four main dimensions of marketing: price, distribution, promotion and advertising, and product features. These dimensions are crucial for establishing a unique market position that caters to a target segment's needs, preferences, and expectations.
Product differentiation is a fundamental aspect of positioning strategy, where firms take action to make consumers think their products are distinct compared to competitors'. Examples of these actions can be seen through physical aspects of a product, such as an 'unbreakable bottle' or a 'nonstick surface', which are commonly highlighted in advertisements. Additionally, the location of a firm can contribute to its advantage, such as a gas station at a heavily trafficked intersection likely selling more gas.
Ultimately, positioning strategies are informed by market analysis and an understanding of market structure, which includes how competitive the industry is and how much market power each firm holds. The goal is to establish a product image and value proposition that resonates with customers and stands out from the competition.