Final answer:
Brand repositioning is the process by which marketers change consumers' perceptions of a product in response to shifting tastes, involving strategic alterations in the marketing mix. This often relates to a company's efforts at product differentiation, which is essential in a competitive market to maintain relevance and consumer interest.
Step-by-step explanation:
If consumers' tastes shift, marketers may need to change how these consumers think about a product in a process known as brand repositioning. This strategic move involves altering the marketing mix to update a product's image or characteristics in the minds of consumers, adjusting it to be more aligned with current demands and preferences.
For instance, consider a product life cycle where a toothbrush is well-loved until it needs replacement.
However, upon returning to the market, the consumer finds that the toothbrush has been updated or changed in style. This is a result of the company's efforts at product differentiation, which is any action that firms take to make consumers think their products are different from their competitors'.
With continuous shifts in consumer preferences, companies often push for innovation to maintain their market position, which can sometimes involve rethinking their products to prevent market stagnation and economic downturns.