Final answer:
Adidas AG and Nike, Inc. use differentiation positioning to distinguish their products in the athletic shoe market. They aim to capture the same customer base by emphasizing unique features through product innovation, branding, and marketing strategies.
Step-by-step explanation:
In the athletic shoe market, Adidas AG and Nike, Inc. practice differentiation positioning since both companies vie for the same customers with technologically advanced products. Product differentiation is the strategy used by businesses to highlight the unique features and benefits of their products compared to competitors.
Through a variety of measures such as advancements in technology, superior design, marketing strategies, and brand reputation, both Adidas and Nike have successfully differentiated their products in the market. This allows them to attract consumers and establish loyal customer bases even though they are targeting similar demographics.
Firms create differentiated products by altering the physical aspects of the product, the location from which the product is sold, intangible aspects like reputation for high quality or services offered, and shaping the perceptions of the product through advertising and branding efforts.