What term describes when an existing product is repositioned in the market?

The term that describes when an existing product is repositioned in the market is known as Position Innovation. This strategy involves changing the perception of a product or its target market to attract a new audience or meet changing consumer needs. It focuses on altering how the product is viewed in relation to competitors or different market segments, often highlighting new uses, benefits, or attributes that were not emphasized before.

Position Innovation is particularly effective in revitalizing a product’s presence in the marketplace and can lead to increased sales and market share when executed successfully. By repositioning a product, companies can differentiate themselves from competitors and innovate their approach to meet current trends or consumer demands more effectively.

In contrast, the other terms refer to different marketing strategies. Product Diversification involves introducing new products to expand a company's offerings, Brand Extension pertains to launching a new product under an existing brand's name, and Market Penetration focuses on increasing market share for a current product within existing markets. Each of these strategies has its unique purpose and applications in business marketing.