What does the term product positioning refer to?

Product positioning refers to the place a product occupies. A product offering occupies in consumers' minds on important attributes relative to competitive products.

For example, grocery stores will put products they want you to buy in a prominent location, so you are more likely to buy them. For example, they will put the most expensive cereal at eye level. Another tactic of product positioning is putting products they know children will want on a level where they appeal to children. So the next time you are at the grocery store, and your child is begging for candy that they can easily grab, you can blame the store's product placement.