Final answer:
The relationship between product positioning and market attractiveness is mutually influential, where the attractiveness of a market can affect product positioning strategies, and simultaneously, how products are positioned can influence the perceived attractiveness of the market.
Step-by-step explanation:
The relationship between product positioning and market attractiveness is mutual and interdependent. Product positioning describes the process of determining the image and identity of a product in consumers' minds relative to competitors, and it is certainly affected by how attractive the market is, which can include factors like market size, growth rate, and profitability. Conversely, market attractiveness can also be influenced by the cumulative effect of individual product positions that shape the competitive landscape.
For example, an attractive market with high demand and profit potential will influence how firms position their products to capitalize on that attractiveness. But the products' positions can also contribute to the market's perceived attractiveness by influencing competition levels, customer preferences, and thus shaping the market structure which includes considerations such as market power among firms.
Therefore, option c) Product positioning and market attractiveness influence each other, accurately describes the dynamic interplay between these two concepts.