I am rather slow with writing lately. I keep being busy at work, working extended hours weekly to get stuff done and I seem to want less screen time in my life at the moment. That being said, I missed writing about my marketing thoughts. I try to not forget what I already know and keep my marketing knowledge up to date as much as possible, even if I am not going to be working for some time. The last thing I did before I switch off my work PC was my Pendo product-led certification, which I passed with flying colours. I mainly took that course as my impostor syndrome has been questioning every single thing I did because of all the work turmoil we had the past couple of months. Nearly the whole marketing department were made redundant and there has been plenty of gaslighting and office politics during that phase but also during the year. Very disruptive behaviour from seniors overall, concerning in the overarching company context.

One of the things that I see people struggling with at my current workplace is product positioning. They tend to forget about it or confuse it being “just a marketing tag line”. Marketing for them is all about tactics and colours and anything strategy related should be handed over to everyone else BUT marketing. And I can give ample examples that can demotivate even the most stone-cold, goal-oriented, results-focused marketer out there. When I started this product marketing job in September 2022, I wanted to initiate a group discussion between product, sales, customer success, operations, and project delivery so we can nail down our value proposition and product positioning. Asking people individually in meetings, they all had different answers to my questions on what we do, why we do it, and who is our primary user. The questions I wanted answers to so I would be able to compile the product positioning and the value proposition included:

• What does our company stand for?
• What makes our product valuable in the eyes of the customers? (based on customer feedback)
• What is our differentiator? (usually based on the 7Ps)
• Who needs our software? What are their titles and what ICP tier can we divide them into?
• What is our market category and what are the contenders within the same market?
• What are the consequences of not having our software?
• What are the alternatives of not having our software? (could be competitor software, bespoke internal solution, or even doing nothing)

Unfortunately, the meeting never took off, mainly because of the product manager. I found it great that she was eager to chair the meeting, even if she blindsided me by not informing me she was keen and I found out by being cc’ed in a random email. Unfortunately, she never did much to bring it to fruition – or maybe she did but didn’t involve or inform me. This meant that, up until I created my sales playbook that gave some sort of basic structure around the product messaging and positioning, everyone kept selling our software in various ways depending on who they were selling to with no consistency between new and existing customers. And the results of inconsistency were evident in the new business won over 12 months – zilch.

Understanding product positioning

The success of a product hinges not only on its features but how well it’s positioned in the market – the way it is perceived by the customer when they hear your product’s name. At its core, product positioning is the strategic process of defining and communicating a product’s unique value proposition. It’s about creating a distinct identity that resonates with the target audience. Positioning guides how a product should be perceived in comparison to competitors, influencing the customer’s perception and decision-making process. Product positioning is not a standalone activity; it’s woven into the fabric of the software product development cycle. From ideation to launch and beyond, effective positioning informs the product’s design, features, and overall strategy. It ensures that development efforts align with market needs and customer expectations. And because product positioning is the responsibility of a product marketer, they need to be included from the ideation stage of the product/feature and not at the end of the creation process, just before the launch. The product marketer will ask all the questions necessary to understand the reasons why things are done and/or created the way they are and, marrying the commercial research with those answers, will compile the product positioning for the commercial strategy moving forward. The product manager and/or technical lead and sales will be pivotal in the consultation of the product positioning creation, nevertheless, the responsibility of it remains with the product marketer. And this will give us the foundation for successful GTM strategies.

Distinguishing software features, benefits, and capabilities

To navigate product positioning effectively, it is essential to differentiate between features, benefits, and capabilities. Features are the functionalities of a product, benefits convey the value these features or functionalities bring to the customer and capabilities represent what the product can do as a whole for the user. A robust positioning strategy effectively communicates these aspects clearly, focusing on the tangible advantages that set the product apart.

As April Dunford, a renowned expert in product positioning, aptly puts it: “Positioning is where your product fits in the competitive landscape – how it relates to and differentiates from other products on the market.” This succinctly captures the essence of why a well-thought-out positioning strategy is crucial for success.

Funny work story related to the above: myself and the other 2 product marketing managers in a company that I worked for wanted to simplify and standardise the way we talk about all our software solutions. In order to do that, we went through the exercise of defining what a product, a module, a feature, a capability, and a solution is. We found it easy as, based on our previous experiences and the market definitions, we all agreed to the definitions. Saying that, we talked to our product managers on what their definitions of the above are, so that we can confirm that we are all on the same page. The other product managers were fine with the definitions we presented, apart from the product manager I collaborated with. She said that there are schools of thought that do not agree with those definitions and that the business has not given her specifically a steer into any definition for the above, therefore, she cannot comment on them. I kept asking her for her own definitions so I can go back to the other PMMs and argue her case, to the point she said that asking those questions were antagonising and defining those things are not my business and I should not be involved at all with anything that has to do with product or business decisions. Unfortunately that behaviour was rather standard practice in that team, both product and sales. Discussing that incident with the other PMMs we decided to push back to the business on a C-suite level the request for official definitions, a request that was neither started nor communicated. This meant that everything we had to do as a group for all product lines was pushed back. Don’t know about you but for me lack of agreement that delays marketing work and, consequently, doesn’t bring much-needed change that will help us increase revenue and market share makes me totally demotivated.

Explaining product positioning to non-marketers

In my own experience and words: product positioning is how someone talks about your product when you are not present. It is like crafting a unique identity for your product in the market, like a baby name that doesn’t exist yet but will intrigue people enough to wanting to talk and find out more about it. It involves determining how your offering stands out from competitors’ and how you want customers to perceive it. Think of it as the strategy that guides how your product is seen and understood by your target audience (by the way: different audience tier, different perception as there are different needs and problems e.g. between an engineer and a facilities manager of train stations). By effectively positioning your product, you are essentially able to create a clear and compelling story that hopefully helps internal stakeholders understand and back up the product while communicating to external shareholders what makes it special and valuable to customers. It’s the roadmap for how we want our product to be known and chosen in the market. Because the product marketing manager is the one responsible for the positioning and messaging of the product in the market, it is of the outmost importance for them to take part in the starting meetings of what is being built alongside the product manager, product owner, technical owners, delivery managers and software engineers. That way they can not only give their professional opinion with market facts but also ensure that whatever is built will (or at least should) sell.

The top 5 principles I focus on when compiling product positioning for software:

1. Messaging Clarity:
   • Some believe that clear messaging is just a communication strategy; it is not. It is a foundational element that influences how customers perceive and engage with your product. The quicker they understand the message, the better. It builds trust, aids decision-making, and forms the basis for effective and successful marketing efforts. A muddled message can lead to confusion and missed selling opportunities, especially when you have managed to compile a clear message and no-one follows it because “they don’t like how it is explained” and “they know better”.
2. Job-to-be-Done Framework by April Dunford:
   • This “Job-to-be-Done” framework was explained in the past as “sell for value, not price”. It encourages businesses to focus on the job their product does for customers rather than just its features. If you focus on features, then it becomes a price war between similar software and, if you are on an enterprise level, it probably won’t be good news. Selling the value, the aspiration of how things will change for the better after the implementation of your software, also helps product teams with focusing on their vision of the product and not just customer feature requests during their sprints (if the product manager is not junior and has a valid strategic vision for the product). I mean, prioritising a feature for the biggest paying customer is a strategy, just not a scaleable one.
3. Competitive Alternatives:
   • As mentioned above briefly in the list of questions, we need to question and find out answers not only on direct competitor products but also on the alternatives customers might consider, including the option of doing nothing. This helps in crafting a more persuasive value proposition for our software.
4. Positioning components:
   • To create a banging product positioning, you need as a marketer and as a team (product, sales, operations, customer success) to understand and articulate clearly your target market, the category you represent, your distinctiveness – or else what makes you unique in that market and category -, your value proposition, and your competitive alternatives. Me and the other PMMs at work call this “the basics”: what is it that you sell, who it is for, why would they care, why should they buy. Many companies, including the one I work for, allow sales to dictate to marketing the message they want so it can fit how they sell, regardless of whether they are successful in generating revenue or not. This is the wrong way to go about it as the product positioning and messaging needs to complement and match the brand positioning, especially when your brand equity has the biggest market share in the industry you occupy.
5. Messaging success:
   • The way we communicate that product positioning should be structured in a way that addresses customer needs and concerns at different levels, from the most basic to the more niche. Will you still sell features? Sure! Will there be an explanation on how they work? Of course. BUT! Without the aspiration of the deployment aftermath, and with generic wording like “increase profitability” or too niche wording like “manual train decoupling”, you will alienate the people who hold the budget. Trust me, most of the times the people you create the features for are not the ones who have the money! Structuring the message based on problem solving and aspiration fits nicely with the different target audience (or ICP) tiers, so let’s do a messaging matrix! (anyone who knows me knows I love making and reading matrices, straight to the point and a very succinct sales tool)

The difference between product positioning and value proposition

Let’s dive into the heart of what makes a product truly shine – the seamless dance between its value proposition and positioning. It’s like crafting a story that not only resonates but sticks with your audience, making your product the hero they’ve been searching for.

1. Defining Terms:
   • Positioning: This refers to the way a product is perceived in the minds of the target audience. It is the star of the show. In previous businesses, I used to ask everyone “if your product was a celebrity, who would it be?” and people found it interesting (yes, I have unconventional methods of working things out but they work, it is what I excel at). That way it is clear that the product has its own personality, a distinct image that lingers in the minds of our audience. Crafting this product persona involves highlighting our product’s unique attributes, showcasing its strengths, and carving out a space that’s uniquely ours in the market dance floor.
   • Value Proposition: This is the unique set of benefits or values that a product or service promises to deliver to customers. Picture this as the beating heart of your product. It’s the unique melody your product sings, promising a symphony of benefits and values to your customers. It’s that soul-stirring answer to the question: “Why should customers choose our product over others?” This is where we showcase the magic that sets us apart, the secret sauce that makes our product an irresistible choice.
2. Alignment:
   • Here’s where the plot thickens. The value proposition isn’t just a standalone hero; it’s the guiding star that shapes how our product is positioned in the market. The benefits and values we proudly proclaim become the North Star, guiding our overall positioning strategy. It’s like building a roadmap where every twist and turn is deliberate, leading our audience to a destination they’re excited to explore.
3. Communication:
   • Communication is the megaphone that amplifies our product’s voice. The value proposition takes centre stage, communicated directly to our customers through marketing messages, advertising, and those attention-grabbing promotional materials. It’s like telling a captivating story that leaves our audience eager for the next chapter.
4. Consistency:
   • In the world of branding and brand equity, consistency is the cornerstone. The promises we make in our value proposition should seamlessly weave into our positioning. It’s about building a trustworthy brand image, where what we say aligns flawlessly with what we deliver. Consistency is the glue that binds our brand story together, creating an unbreakable bond with our audience.
5. Customer-Centric Approach:
   • Both the value proposition and positioning are sculpted with an intimate understanding of our customers. It’s about addressing their needs, understanding their preferences, and soothing their pain points. The value proposition caters to their specific desires, while positioning tailors these benefits to create a captivating narrative that speaks directly to them.

In the grand scheme of things, the interplay between the value proposition and positioning is what turns a product into a memorable performance. It’s not just marketing; it’s storytelling with a purpose, inviting our audience to be part of an unforgettable experience. And not everyone from other departments understands that, or wants to understand that – which is why people don’t get what is so special about positioning and they confuse it with “just another marketing tag line”.

What to look out for when creating product positioning

Focusing solely on features or adopting an undefined competitive positioning can be counterproductive.

Feature-Centric Positioning

Pitfall: Positioning that overly emphasises product features without connecting them to customer needs or problems can lead to a disconnect. Customers may not see the direct relevance of these features to their challenges or requirements.

Solution: Instead of highlighting features in isolation, effective positioning aligns them with the solutions they provide to customer problems. This involves clearly articulating how each feature contributes to addressing specific pain points or fulfilling customer desires.

Failure to Address Customer Problems

Pitfall: Positioning that neglects to address customer problems can result in a lack of resonance. Customers are typically more interested in solutions to their challenges than in a laundry list of features.

Solution: Successful positioning identifies and communicates the ways in which the product directly addresses customer pain points. Understanding the specific problems your target audience faces allows you to tailor your positioning to showcase your product as a solution.

Undefined or Broad Competitive Positioning

Pitfall: Attempting to position a product against an undefined or overly broad set of competitors can dilute the message. Without a clear understanding of who the main competitors are, the product’s unique advantages might not stand out.

Solution: Clearly define and understand the competitive landscape. Identify direct competitors and alternatives that customers might consider. This allows you to position your product more precisely, focusing on the aspects that set it apart in a meaningful way.

Inconsistency Across Marketing Channels

Pitfall: Inconsistency in messaging and positioning across different marketing channels can lead to confusion. Customers may receive conflicting information, causing a lack of clarity about the product’s identity.

Solution: Create a unified messaging strategy that ensures consistency across all marketing channels. This involves aligning the language, tone, and key messages to present a cohesive brand image, reinforcing the product’s positioning.

Neglecting Market Dynamics and Trends

Pitfall: Failure to adapt positioning to changing market dynamics and trends can result in outdated messaging. Industries evolve, and customer preferences shift, making it essential to reassess and update positioning strategies.

Solution: Stay attuned to market changes, emerging trends, and shifts in customer behaviour. Regularly evaluate and update your product positioning to ensure it remains relevant and resonates with the current market landscape.

A fresh perspective on creating product positioning

Rather than a one-time endeavour, effective positioning is a continuous cycle of testing, gathering feedback, and making refinements. This iterative approach recognises that markets, customer perceptions, and industry landscapes are subject to change, necessitating ongoing adjustments to maintain a product’s competitive edge.

The Stages of Iterative Positioning

1. Initial Positioning Framework:
   • The process begins with the establishment of an initial positioning framework. This involves defining the target audience, identifying key differentiators, and crafting a compelling value proposition. However, this initial positioning is not set in stone; it serves as a starting point for further refinement.
2. Market Testing:
   • Armed with the initial positioning, it’s crucial to test these strategies in the market. This could involve launching pilot campaigns, gathering customer feedback, and closely monitoring how the audience responds. This phase is akin to a trial run, allowing for the identification of what resonates and what may need adjustment.
3. Feedback Collection:
   • Continuous feedback collection is a pivotal aspect of the iterative process. This feedback comes from various sources—customer surveys, market research, sales data, and even social media interactions. Understanding how the audience perceives the product’s positioning provides valuable insights for enhancement.
4. Analysis and Evaluation:
   • The gathered feedback is then meticulously analyzed and evaluated. This analysis seeks to uncover patterns, identify areas of strength, and pinpoint aspects that may require modification. It’s a critical step in gauging the effectiveness of the current positioning strategy.
5. Refinement and Adjustment:
   • Based on the insights gained from the analysis, strategic adjustments are made. This might involve refining messaging, repositioning the product in response to market shifts, or tweaking the target audience focus. The goal is to enhance the alignment between the product’s identity and the evolving needs of the market.
6. Reiteration:
   • The refined positioning is reintroduced to the market, and the iterative cycle continues. This process is not a linear progression but a continuous loop of testing, learning, and adapting. Each iteration builds on the lessons learned from the previous ones, creating a positioning strategy that becomes increasingly attuned to market dynamics.

The Importance of Continuous Adaptation

In a dynamic market, stagnation is a significant risk. The iterative process acknowledges that what worked yesterday may not work tomorrow. The very essence of agility and iterative methodologies within software development aligns seamlessly with the demands of a marketing strategy. Embracing an iterative process within marketing doesn’t just parallel the continuous learning culture advocated in DevOps, it amplifies its impact. Markets are dynamic, competitors are relentless in their innovation, and customer preferences are ever-changing. Just as in agile software development, where adapting to user feedback is paramount, marketing, too, benefits from a constant feedback loop and a willingness to pivot based on real-time market insights.

In the realm of product positioning, being agile isn’t just an optional strategy; it’s a necessity. Instead of treating positioning as a static endeavour, envision it as a dynamic process that mirrors the iterative development cycles of agile methodologies. If your organisation is undergoing an agile transformation or already champions an agile culture, extending these principles into your marketing team shouldn’t be a challenge, it should be a natural progression. By the way, agile is not creating feature after feature with the excuse of lack of direction either from the business or from the product director, just to clarify once and for all.

Just as agile methodologies allow software teams to pivot based on user feedback, a similarly dynamic approach in product positioning permits marketers to pivot based on real-time market feedback and emerging trends. It’s not just a matter of staying ahead of the curve; it’s about actively shaping that curve through continuous adaptation. By infusing adaptability into your product positioning strategy, you not only differentiate yourself but also showcase a commitment to consistently meeting and exceeding customer expectations in an industry that demands perpetual innovation.

Instead of viewing product positioning as a static strategy, consider it as a dynamic process that evolves based on real-time market feedback and trends. This approach ensures that your product’s positioning remains relevant and resonates with the ever-changing needs and perceptions of your target audience. Embracing adaptability in product positioning can set you apart by demonstrating a commitment to staying ahead of the curve and consistently meeting customer expectations. Continuous adaptation is your agile in this overly saturated software world.

So, is positioning “just another tag line”? Maybe the way we try to communicate it can be, however, positioning is much more than that. It is rocket science level stuff; dense, in-depth, intricate, and delicate. And it is best if people follow the rocket experts (aka product marketers) and let them take care of it instead.

Thank you for taking time to read my blog, I appreciate it.  If you have any comments, please, leave them below. If you want to send me some feedback on this piece or want to discuss anything else in private, you can email me here.