Final answer:
Terry's is positioning their orange-flavoured chocolate using occasions, specifically Christmas, to create an association between their product and the festive season, which is a strategy to differentiate their product and increase its appeal during that time. The correct answer is option C.
Step-by-step explanation:
When Terry's promotes their orange-flavoured chocolate as a Christmas treat, they are using occasions as a way to position their product. This positioning strategy focuses on connecting the product to specific times or events, in this case, Christmas.
By doing so, Terry's intends to create a mental association between their orange-flavoured chocolate and the festive season, making it a more attractive purchase during that time. Product positioning can involve various strategies, such as focusing on price leadership, specific attributes, product class, or occasions.
In this example, Terry's is capitalizing on the holiday spirit to differentiate their product from other offerings in the market. Event-based positioning, like promoting a product for a holiday, plays on the intangible aspects of marketing, which can effectively differentiate a product in the minds of consumers.
The goal is for the target audience to perceive the product as an integral part of the holiday experience, thereby increasing its appeal and potential for sales. The correct answer is option C.