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How do you use product positioning tools to differentiate your value proposition?

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Product positioning is the process of defining and communicating the unique value and benefits of your product or service to your target customers. It helps you stand out from the competition and create a compelling message that resonates with your audience. But how do you use product positioning tools to differentiate your value proposition? In this article, we will explore some of the most common and effective product positioning tools and how to apply them to your product strategy.

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Rishabh Gulati

PM @ Latham | MEM @ Duke University | CSPO? | Digital Transformation

1 Value proposition canvas

The value proposition canvas is a tool that helps you map out the fit between your product and your customer segments. It consists of two parts: the value map and the customer profile. The value map describes the features, benefits, and value that your product offers to your customers. The customer profile describes the jobs, pains, and gains that your customers have or want to achieve. By aligning the value map and the customer profile, you can identify how your product creates value for your customers and solves their problems.

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Rishabh Gulati

PM @ Latham | MEM @ Duke University | CSPO? | Digital Transformation
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With extensive experience in product strategy, the value proposition canvas stands as a seasoned guide. Comprising the value map and customer profile, it reflects nuanced insights. The value map showcases a product's features and benefits, a culmination of years of market understanding. The customer profile delves into customer needs, detailing jobs, pains, and gains. The key lies in adeptly aligning these components, discerning the symbiosis between product attributes and evolving customer needs. This strategic orchestration ensures the product becomes a tailored solution, navigating challenges and delivering bespoke value with finesse honed through years of expertise.

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2 Positioning statement

A positioning statement is a concise and clear statement that summarizes your product positioning. It typically includes four elements: your target market, your category, your differentiation, and your reason to believe. For example, a positioning statement for Slack could be: "Slack is a cloud-based collaboration platform for teams who want to work more efficiently and effectively. Unlike other tools, Slack offers a simple and intuitive interface, a rich set of integrations, and a powerful search function that makes communication and collaboration easy and fun."

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3 Perceptual map

A perceptual map is a visual tool that helps you compare your product with your competitors based on two or more dimensions that are important to your customers. For example, you could plot your product and your competitors on a perceptual map based on price and quality, or on innovation and reliability. A perceptual map can help you identify gaps and opportunities in the market, as well as your relative strengths and weaknesses.

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4 SWOT analysis

A SWOT analysis is a tool that helps you evaluate your product's strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors that you can control or improve, such as your features, resources, or capabilities. Opportunities and threats are external factors that you cannot control, but can influence or respond to, such as market trends, customer needs, or competitive actions. A SWOT analysis can help you identify your competitive advantages and disadvantages, as well as potential risks and opportunities for growth.

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5 Product differentiation matrix

A product differentiation matrix is a tool that helps you identify and prioritize the key attributes that make your product different and better than your competitors. It consists of a table that lists your product and your competitors along the rows, and the attributes along the columns. You can then rate each product on each attribute on a scale of 1 to 5, where 1 means low and 5 means high. A product differentiation matrix can help you highlight your unique selling points and focus on the attributes that matter most to your customers.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you use product positioning tools to differentiate your value proposition?

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1 Value proposition canvas

2 Positioning statement

3 Perceptual map

4 SWOT analysis

5 Product differentiation matrix

6 Here’s what else to consider

Product Management

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How do you use product positioning tools to differentiate your value proposition?

1

2

3

4

5

6

1 Value proposition canvas

2 Positioning statement

3 Perceptual map

4 SWOT analysis

5 Product differentiation matrix

6 Here’s what else to consider

Product Management

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