Final answer:
Positioning maps are based on location and physical aspects of a product to develop a "product space" picture of the market. Businesses use these maps to understand how their product relates to the market and make strategic decisions based on factors such as location and product attributes.
Step-by-step explanation:
Positioning maps are based on location and physical aspects of a product to develop a "product space" picture of the market. These maps help businesses understand the relationship between their product and the market by analyzing factors such as proximity to customers, competition, and unique attributes of the product. For example, a gas station located at a busy intersection would have an advantage in selling more gas than a station in a less trafficked area. By considering both location and product characteristics, businesses can strategically position themselves in the market.