Short version: Product positioning defines how a product should be understood in the market and why the right customer should choose it.
It connects the target customer, problem, category, alternatives, benefits, proof, pricing context, and the reason the product is different. Positioning shapes product pages, ads, sales conversations, packaging, onboarding, and product copy.
Strong product positioning is specific. It does not try to make the product sound perfect for everyone; it makes the value clear for the people most likely to care, compare, and buy.
In practice, positioning becomes useful when it changes the words on the page, the sales argument, the product comparison, and the proof customers see.
In practice, this keeps marketing focused when teams compare features, benefits, pricing, and the specific customer problem being solved.
Related terms: Positioning, Product page, and Value proposition.