Final answer:
The two major types of product positioning are head-to-head and differentiation. Head-to-head positioning competes on similar attributes, whereas differentiation makes products stand out through various physical, locational, or intangible aspects, impacting customer perceptions and preferences.
Step-by-step explanation:
The two major types of product positioning referenced in the question are: head-to-head and differentiation. Head-to-head positioning involves competing directly with competitors on similar product attributes or benefits, targeting the same market segments. On the other hand, differentiation involves making a firm's products distinctive from competitors through various ways like the physical aspects of the product, location from which it is sold, intangible aspects like brand perception or guarantees, and shaping customer perceptions through advertising.
Differentiated products offer a variety in styles, flavors, locations, and characteristics, which contribute to monopolistic competition as opposed to a perfectly competitive market where products are largely undifferentiated. Intangible aspects such as a guarantee of satisfaction, a reputation for high quality, or services like free delivery can significantly impact product differentiation and influence customer preference, even when intrinsic product differences are minimal.