THE incorrect market positioning of second generation cordless telephones (CT2s) was the reason behind Chevalier (Telepoint)'s appointment of a new advertising agency to its $10 million local advertising account earlier this month. Chevalier, the second company to bring CT2s into Hongkong - Hutchison was the first a year ago - intends to reposition the category and take the leadership role in promoting CT2s as a cost-effective mobile communication method. The new agency, J. Walter Thompson Enterprise, has already produced one reminder advertisement of Chevalier's coverage on the MTR and KCR and is working on a pre-run print campaign for launch this week. A new television commercial will break in May, aimed at the product's 18-to 29-year-old male target group. In the process of repositioning, Chevalier will go head-to-head against Hutchison, whose combined paging and mobile phone advertising business, worth $40 million, has just been won by Ogilvy & Mather. ''Our present customers understand the CT2 service but potential customers have misconceptions about it,'' said Mr Neil Montefiore, managing director of Chevalier (Telepoint). ''We will spend money on advertising CT2 in the way we think it should be positioned in Hongkong, as a phone box in your pocket and a complement to your pager,'' he said.