Market position refers to the place a company or product occupies in the minds of consumers relative to its competitors. It is determined by factors such as price, quality, and brand perception. A strong market position can lead to increased sales and customer loyalty, as consumers often prefer brands they recognize and trust. To assess market position, businesses analyze their target audience, competitors, and overall market trends. This information helps companies identify their strengths and weaknesses, allowing them to develop strategies to improve their standing. Effective positioning can differentiate a brand, making it more appealing to potential customers.