Final answer:
Head-to-head positioning is used by firms to compete directly with competitors on similar product attributes within the same target market, as opposed to differentiated positioning.
Step-by-step explanation:
A firm that competes directly with competitors on similar product attributes in the same target market is engaging in head-to-head positioning. This strategy involves matching products and services very closely with those offered by the competition to compete for the same customers.
Unlike differentiated positioning, where a firm tries to distinguish its products through unique features such as physical aspects, location, intangible aspects, and perceptions, head-to-head positioning means directly confronting competitors where there is significant overlap in product characteristics and market segments.