What is over positioning?

In marketing, positioning is saying what your product is and who it is for. As an example, if you launch a new brand of shampoo, you need to say something about it to make it special, to separate it from the thousands of other shampoo brands out there.

Over positioning is when your marketing makes the product too special, so the potential customer group becomes too small. As a (poor) example, if you market your shampoo as perfect for left-handed people with red hair, there may not be enough people matching the description to make a profit on selling to them.