Which of the following actions demonstrates effective market positioning?

Targeting niche markets demonstrates effective market positioning because it involves focusing on a specific segment of the market that may have unique needs or preferences. This strategy allows a business to tailor its products or services more closely to the desires of that particular audience, which can lead to increased customer loyalty and a stronger brand identity within that niche. By understanding and catering to a specific group, companies can differentiate themselves from competitors who may be offering more generalized products or services, thereby enhancing their competitive advantage.

Other actions such as restructuring the entire workforce, limiting product offerings, or reducing marketing efforts do not inherently contribute to effective market positioning. While restructuring might improve efficiency, it does not directly connect to positioning within a market. Limiting product offerings could also narrow customer options and reduce appeal, whereas reducing marketing efforts may lead to decreased visibility and awareness, hindering the establishment of a strong brand presence. Therefore, targeting niche markets stands out as the most effective strategy for positioning in a competitive marketplace.