The superpower of Product Positioning
What is Product Positioning?
Every user has a mental map of the world around them, shaped by their experiences and habits. As product managers, our job is to figure out where our product fits in this mental map. Ideally, a product should occupy an existing space in the user's mind, or in some cases, boldly try to create a new one. As you can imagine, creating a new space is tough but potentially rewarding—if it works.
Positioning happens across various dimensions. Take, for example, a standard banking app. Users expect to log in using authentication, transfer money, and check their account statements. But what if a company created a banking app that delivers printed statements to your home, collects cheques, and authenticates users with signatures? How would users classify this product? Is it a quick-commerce app like Blinkit or Zepto, or is it a banking app like ICICI iMobile or HDFC Now?
Creating a new mental category is possible, but it takes time to shift user behavior. For startups with limited resources, it’s often better to use an existing mental space rather than trying to create one from scratch.
Another dimension of product positioning is how users compare your product with competitors. For example, if a user frequently uses UPI payments through PhonePe or GPay, they expect quick transactions, sharable details with recipients, and possibly some rewards. Meeting these expectations is crucial for positioning.
Single vs. Multi-Feature Products: Why is Positioning So Important?
Positioning is as important—if not more important—than the product itself. Before a customer even touches your product, they’ve already formed an impression of it through marketing and recommendations. This perception frames their experience. If the product delivers on the promise, you solidify that position, resulting in an "aha!" moment. But if the experience doesn’t align with the positioning, it can lead to abandonment or, worse, bad reviews.
How to Position a Multi-Faceted Product?
In the real world, no product does just one thing. The challenge is positioning a product that has multiple features, across different user expectations. It's like solving an n2 (n-squared) problem.
This is where the USP (Unique Selling Proposition) comes into play. Every successful product starts with one clear thing it stands for. For example:
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These products all began with a clear USP and then expanded into “super-brands.” The key is that the expansion happened only after the core positioning was firmly established.
What Does This Mean for a Product Manager?
If you haven’t yet crystallized your thoughts around your product’s positioning, you need to do it now—before it’s too late. You may come up with plenty of growth hacks to boost certain metrics, but unless your product’s positioning is clear in your users’ minds, user retention will always be a challenge. You’ll find yourself stuck in a loop, constantly trying to “fix” engagement without addressing the root issue: your product’s unclear position.
What Does This Mean for a Product Marketing Manager?
If you’re running campaigns without a solid product positioning, you’re essentially fighting a losing battle. Effective communication drives user engagement and repeat behavior—but only if users know what your product stands for. That’s why it’s crucial to work closely with your product and business teams to clarify positioning before launching any meaningful customer communications.
In the words of legendary marketer David Ogilvy, “What you say in advertising is more important than how you say it.” Make sure what you’re saying is clear, purposeful, and true to your product’s core.
Conclusion
Whether you're a product manager trying to nail down your product's core identity, or a marketing manager crafting the perfect messaging, product positioning is the compass guiding your efforts. Without it, you're just throwing ideas at the wall to see what sticks. Get your positioning right, and everything else will fall into place.