Why Positioning is More Important Than Perfection

We all want to have the perfect product or service. But more often than not, we don’t have the resources or capital to deliver the perfect product or service. But what if I told you that even if you did, no one would notice the specifics. It’s not the features that stand out – it’s the positioning in the mind of the customer.

“But more often than not, we don’t have the resources or capital to deliver the perfect product or service.” 

The Importance of Positioning

One of the most important aspects of marketing your company or product is its position in the market. This is often overlooked because positioning isn’t as sexy as getting Facebook Fans or Twitter Followers. However, it’s the best way to separate yourself from the competition, especially if you are in a crowded space. I have seen far too many companies build their product or service, and then leave the product’s positioning to the marketing department. People rarely pay attention to each of the features and functionalities, but strong positioning always stands out.

So why is positioning so important?

• Competition. It is fair to assume that almost every market that is worth chasing – large or small – will have intense competition. There will always be a product or service with more features, a better price and more functionalities.
• Clutter. Buyers – consumers and businesses – do not have the time to discern the real differences between one product or service and another. In some ways, our greatest competition is not out competitors, it is the clutter that occupies the attention of our potential customers.
• Roadmap Where You Can Win. Unless you clearly define and believe in your positioning, it is difficult to stand out from competitors and to cut through the clutter. It’s not the entire strategy of course, but it does force clarity and focus on market segment and value. And the exercise of devising and revisiting one should create alignment with the team and form a foundation for scaling when the time is right.

if you are going to jump into an industry with well entrenched and better funded competitors, and with buyers having little mindshare for the difference between product X and Y, then you need to position your company in order to have success.

Creating a Positioning Statement

A positioning statement is one of several guiding frameworks I believe should exist in any company. The following is the common outline:

• That… (The value provided by your product to the target segment. Resist the temptation to talk about what the product does or how it works; state why the targeted segment needs it and the value it provides to them. This should capture what your early customers LOVE about using your product or service.)
• For… (Who are you targeting? Think about other actors around them too, but really concentrate on the main persona who will benefit from your offering. It’s hard to be too narrow as a small company, though many entrepreneurs resist this approach because it feels too limiting. If you try to speak to everyone, you end up appealing to no one. Try to think about how your market is segmented and pick one)
• Who are dissatisfied with… (The state that the current alternative has created… the source of pain that they will be willing to address.)
• Our product/solution… (What the product does in language your target segment might use.)
• Unlike… (The current alternative. This will be a direct competitor or some other alternative for addressing their pains.)
• We… (How your approach is different. There may be dozens of reasons why you’re different, but boil it down to the most essential… these should be based on what I call “Defensible Differentiators” – the things particular to your architecture, people or systems that will be difficult to replicate quickly.)