Positioning Strategy

Overview

Develop clear market positioning through category design, differentiation, and compelling messaging

Steps

Step 1: Understand positioning fundamentals

Build foundational understanding of positioning:

What positioning is:

The place your product occupies in customer minds
Relative to alternatives they could choose
Based on meaningful differentiation
Simplified for easy comprehension

What positioning is NOT:

Taglines or slogans (those come from positioning)
Marketing messages (built on positioning)
Product features (positioning is the “so what”)
What you wish customers thought

Positioning components:

Competitive alternatives: What would customers do if you didn’t exist?

Direct competitors (same category)
Indirect competitors (different approach)
Status quo (doing nothing / manual process)

Unique attributes: What do you have that alternatives don’t?

Features, capabilities, approaches
Business model differences
Team, expertise, process

Value delivered: What do those attributes actually give customers?

Benefits, not features
Outcomes, not capabilities
Emotional + functional value

Target customers: Who cares most about that value?

Not everyone, specific segments
Those who value your differentiation
Identifiable and reachable

Market category: What frame of reference helps customers understand?

Existing category you compete in
Adjacent category you draw from
New category you create

Positioning statement format: “For [target customer] who [need/want], [product] is a [category] that [key benefit]. Unlike [alternative], we [key differentiator].”

Step 2: Identify competitive alternatives

Map what customers would do instead of using you:

Alternative types:

Direct competitors:

Same category, same customer
Feature-for-feature comparison
Customer knows they’re choosing between you

Indirect competitors:

Different approach to same problem
May not be obvious competition
Customer solving problem differently

Status quo:

Doing nothing / living with problem
Manual workarounds
Good enough existing solution

Internal solutions:

Build vs buy
Existing tools repurposed
Spreadsheets, email, etc.

For each alternative, document:

Who they target
Their positioning/messaging
Their strengths and weaknesses
Why customers choose them
Why customers leave them

Customer research for alternatives:

Ask: “What would you do if we didn’t exist?”
Ask: “What were you using before?”
Ask: “What else did you consider?”

Competitive frame matters:

Who you’re compared to shapes perception
Being compared to $10 product vs $1000 product
Category choice determines competitive set

Step 3: Identify unique attributes and capabilities

Find what makes you genuinely different:

Attribute categories:

Product attributes:

Features no one else has
Approach to solving the problem
Technology or methodology
Integrations and ecosystem
Performance characteristics

Business model attributes:

Pricing structure
Delivery model
Support approach
Terms and contracts

Company attributes:

Team expertise and background
Company values and mission
Geographic presence
Partnerships and relationships

Customer experience attributes:

Onboarding and implementation
Customer success approach
Community and ecosystem
Long-term relationship

Finding true differentiation:

Ask best customers:

“Why did you choose us?”
“What would you miss if we didn’t exist?”
“What do you tell others about us?”

Analyze patterns:

What do happy customers have in common?
What problems do they mention most?
What features do they use most?

Differentiation criteria:

Provable: Can you demonstrate it?
Valuable: Does the customer care?
Unique: Do competitors have it?
Defensible: Can you maintain it?

Warning: Features that everyone has are not differentiators Warning: What you think is unique may not matter to customers

Step 4: Map attributes to customer value

Translate features into benefits:

Feature to benefit translation:

Feature: What it is
Advantage: Why it’s better
Benefit: What customer gets
Value: Why customer cares

Example progression:

Feature: AI-powered scheduling
Advantage: Automatically finds optimal times
Benefit: Save 5 hours per week
Value: Focus on important work, not coordination

Value types:

Functional value:

Does the job better/faster/cheaper
Solves a specific problem
Measurable outcomes

Emotional value:

How it makes customer feel
Confidence, security, status
Peace of mind, reduced stress

Social value:

How it makes customer look to others
Professional credibility
Team/peer perception

Economic value:

ROI and cost savings
Revenue impact
Time savings monetized

For each unique attribute:

List the functional benefit
Identify the emotional benefit
Quantify the economic value
Understand the social value
Rank by importance to target customer

Value hierarchy:

Primary value: The main reason to buy
Secondary value: Important supporting reasons
Tertiary value: Nice-to-have extras

Step 5: Determine category strategy

Decide how to frame your product in the market:

Category strategy options:

Compete in existing category:

Well-defined market with incumbents
Customers understand the category
Easier to explain what you do
Must differentiate within category

Example: “A better CRM” Pros: Clear buyer, established budget Cons: Compared to leaders, feature wars

Create a new category:

Define a new problem/solution space
Be the only one in your category
Shape how market thinks about problem
Requires more education

Example: “Conversational marketing platform” Pros: Own the category, no direct competition Cons: Must explain and validate category

Subcategory differentiation:

Take existing category and narrow it
Own a specific segment
Clear who it’s for and not for

Example: “CRM for real estate agents” Pros: Clear differentiation, specific value Cons: Smaller market, limited growth

Adjacent category:

Borrow credibility from known category
Add a new dimension
“X for Y” or “X meets Y”

Example: “The Slack for customer support teams” Pros: Quick understanding, clear comparison Cons: May be too limiting, depends on reference

Category selection criteria:

Does target customer use this category?
Is the category growing or shrinking?
Can you credibly compete or lead?
Does it highlight your differentiation?
Is there budget allocated to this category?

Category creation criteria:

Is the problem big enough?
Can you educate the market?
Will others follow (validating the category)?
Can you be the clear leader?

Step 6: Craft positioning statement

Create formal positioning statement:

Positioning statement template:

For [target customer] who [has this problem/need] [product name] is a [category] that [key benefit/promise]. Unlike [primary alternative], [product name] [key differentiator].

Component guidelines:

Target customer:

Specific and identifiable
Not “everyone” or too broad
Who values your differentiation most

Problem/need:

Specific pain point or goal
In customer’s words
Validated as real and important

Category:

How customer would classify
Familiar or clearly explained
Sets competitive frame

Key benefit:

Primary value proposition
Outcome, not feature
Compelling and differentiated

Primary alternative:

What you’re compared against
Most relevant competitive frame
What triggers the comparison

Key differentiator:

Why you’re better for this customer
Provable and defensible
Meaningful to target customer

Example positioning statements:

Slack: For teams who need to collaborate effectively, Slack is a messaging platform that brings all communication together. Unlike email, Slack makes work communication faster and more organized.

Stripe: For internet businesses who need payments, Stripe is a payment infrastructure that handles complete commerce. Unlike traditional payment processors, Stripe provides developer-first tools that work globally.

Refine until each word earns its place.

Step 7: Develop messaging framework

Build messaging for different audiences and contexts:

Message architecture:

Core message:

One sentence that captures essence
Works everywhere, always true
Memorable and repeatable

Supporting messages:

3-5 key proof points
Each addresses different value
Each has evidence/example

Objection responses:

Common concerns addressed
Competitive comparisons
Risk mitigation messages

Audience-specific messaging:

For economic buyers (executives):

Business outcomes focus
ROI and strategic value
Risk and credibility

For users (practitioners):

Functional benefits focus
Ease of use, productivity
Day-to-day experience

For technical evaluators:

Capabilities and specifications
Integration and security
Technical proof points

For influencers:

Industry credibility
Innovation and vision
Peer proof and social proof

Context-specific messaging:

Website homepage:

Clear category and value prop
Quick differentiation
Path to learn more

Sales pitch:

Customer problem first
Solution fit
Proof and credibility
Clear next step

Elevator pitch (30 seconds):

Hook with problem or outcome
Simple explanation of solution
Key differentiator
Memorable close

PR and media:

Trend or news angle
Big picture impact
Quotable statements

Message testing guidelines:

Does it resonate with target customer?
Is it differentiated from competitors?
Is it believable and provable?
Is it memorable and repeatable?

Step 8: Validate and refine positioning

Test positioning with real customers and market:

Validation methods:

Customer interviews:

Share positioning, get reactions
“Does this describe us accurately?”
“What would you add/change?”
Watch for confusion or disagreement

Sales conversation testing:

Use new messaging in sales calls
Track resonance and objections
Measure close rate changes
Gather feedback from sales team

Landing page testing:

A/B test headlines and value props
Measure engagement and conversion
Heat maps and session recordings
Exit surveys for clarity

Market testing:

PR and analyst reactions
Social media reception
Competitive responses
Industry feedback

What to look for:

Signs positioning works:

“That’s exactly what we need”
Customers repeat your positioning back
Sales cycles shorten
Win rates improve
Less confusion in market

Signs positioning needs work:

“What does that mean?”
Customers describe you differently than you describe yourself
Frequent competitive confusion
Features questions before value questions
Long sales cycles due to education

Refinement process:

Collect feedback systematically
Identify patterns in reactions
Adjust language, not substance
Test refined versions
Document winning versions

Positioning should evolve:

As product capabilities change
As market understanding grows
As competitive landscape shifts
As customer needs evolve

But core positioning should be stable:

Don’t change frequently (confuses market)
Major repositioning is multi-year effort
Refinement vs. repositioning are different

When to Use

Launching new product or company
Entering new market or segment
Repositioning existing product
When sales and marketing messages are inconsistent
When customers don’t understand your value
Facing new competitive threats
After significant product changes
During rebranding efforts

Verification

Positioning is based on real customer feedback, not internal assumptions
Differentiation is genuine, provable, and defensible
Category choice helps customers understand quickly
Messages are consistent across all touchpoints
Positioning resonates with target customers
Sales and marketing teams can explain positioning clearly

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