The Power of Positioning: Lessons from a Marketing Expert on Differentiating Your Business
Ghobash Ghobash
As a Strategic Transformation Advisor with 20+ years of experience, I excel in turning insights into systems that deliver actions.
In a fascinating interview, April Dunford, a seasoned marketing consultant and positioning expert, shared a wealth of knowledge on how companies can effectively position their products to stand out in today's competitive landscape. Drawing from her extensive experience working with B2B tech companies, Dunford provided valuable insights and real-world examples that shed light on the critical role of positioning in driving business success.
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Lesson 1: Positioning is the Foundation
At its core, positioning is about "context setting for products." If everything a company does in marketing and sales is the house, positioning is the foundation upon which that house is built. In other words, positioning is the bedrock upon which all other marketing and sales efforts are based.
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To illustrate this point, consider a simple but powerful example: positioning a chocolate cake as a "muffin." While the product itself remains the same, the way it is framed completely changes the assumptions, comparisons, and value proposition in the customer's mind. By positioning the cake as a muffin, it becomes a breakfast food rather than a dessert, with a lower price point and different competitive set. This highlights how effective positioning puts a product in a context where its unique value is immediately apparent to the target customer.
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Lesson 2: Dominate a Niche, then Expand
For tech companies trying to break into a new market, a focused approach is recommended: find an underserved sub-segment of the market, attempt to dominate that sub-segment, and then push out from there. A illuminating anecdote comes from a CRM company that initially pitched itself as an "enterprise CRM" solution. However, they quickly realized they could not compete head-to-head with the dominant market leader. By repositioning to focus on a specific use case for investment banks, they were able to dominate that niche and use it as a springboard to later expand into other adjacent markets. This story underscores the power of focusing on a specific customer segment where a product's unique value shines through.
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Lesson 3: Articulate Your Unique Value
At the heart of effective positioning lies a deep understanding of a company's differentiated value, meaning the value they can deliver for a customer that no one else can. It's not enough to simply list features or benefits; companies must articulate their unique value proposition in a way that resonates with their target audience.
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Take the example of Postman, a company that created a whole new category of "API development platforms." Rather than just pitching their product, they invested heavily in thought leadership and storytelling to educate customers on why APIs are so critical in today's digital landscape, and why a platform approach is needed to manage them effectively. By developing a unique point of view on the market and sharing it through compelling content, Postman was able to differentiate itself and carve out a leadership position in this emerging category.
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Lesson 4: Avoid Common Positioning Pitfalls
There are several common pitfalls that can undermine positioning efforts. One mistake often seen is companies not deliberately thinking about positioning at all, and just assuming their product's value will be self-evident. Another is treating positioning as a small messaging exercise owned solely by marketing, rather than a foundational, company-wide effort. Finally, there is a temptation to create a new category unnecessarily, when the product obviously fits in an existing market category.
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To avoid these missteps, it's recommended to assemble a cross-functional team to work on positioning, bring in customer input early and often, and rigorously assess whether the intended positioning truly reflects differentiated value from the buyer's perspective. When it comes to storytelling, the focus should be not just on the product itself, but on how it fits into the larger market landscape and stacks up against competitors. Critically, this story must be authentic and grounded in the reality of the product and customer needs.
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Lesson 5: Strong Positioning Makes Everything Easier
When done right, strong positioning makes everything easier, from sales conversations to marketing campaigns. In a recent anecdote, a client nailed their new positioning and saw immediate results: after delivering their pitch, the prospect CEO pulled the client CEO aside and said it was the best sales pitch they had ever seen.
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This kind of feedback is the ultimate reward for the hard work of positioning. When a project concludes and everyone agrees the product is much easier to sell and for customers to understand, that's when you know you've got it right. By investing the time and effort up front to nail the positioning, companies set themselves up for success not just in marketing and sales, but in every aspect of their business. With a strong foundation in place, they can build lasting customer relationships, establish market leadership, and achieve their most ambitious growth goals.
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In today's crowded and noisy market, positioning is more important than ever. As Dunford's insights make clear, it's not enough to just have a great product - companies must also articulate a compelling story and point of view that sets them apart. By following the principles of effective positioning, any organization can cut through the noise, connect with customers, and build an enduring brand. The key is to start with a focused, customer-centric approach, and let that guide every aspect of the go-to-market strategy. With the right positioning in place, the sky's the limit.
You can listen to the full interview in YouTube by following this Link