Why positioning matters
Positioning answers the critical question:
"Why should a customer choose this product over anything else?"
Without clear positioning:
- Customers misunderstand the product.
- Sales cycles become longer.
- Marketing campaigns fail to resonate.
For example, an IT company that builds a cloud monitoring tool might struggle if customers perceive it as "just another dashboard." However, with proper positioning that highlights it as a real-time anomaly detection platform for DevOps teams, the value becomes clearer, and adoption is faster.
What positioning is (and is not)
- Positioning is not: branding, messaging, pricing, or product vision.
- Positioning is: the deliberate act of defining how your product is the best choice for a specific set of customers in a specific context.
Think of positioning as the lens through which customers view your product. If you fail to define it, the market will create its own assumptions—often incorrectly.
The Five (+1) components of positioning
There are five essential elements (plus one optional) that make up effective positioning.
- Competitive Alternatives
- What would customers do if your product did not exist?
- Example: If your IT company offers a project management tool for developers, your alternatives might be Jira, Trello, or spreadsheets.
- Unique Attributes (Features)
- The distinct capabilities that your product offers.
- Example: Your monitoring tool uses AI-based anomaly detection instead of static alerts.
- Value (Benefits)
- The benefits customers derive from your features.
- Example: AI anomaly detection reduces downtime and frees engineers from manually watching dashboards.
- Target Market (Who cares the most)
- The customer segment that gets the most value.
- Example: Mid-size SaaS companies with DevOps teams and frequent deployments, rather than large enterprises with dedicated NOC centers.
- Market category (frame of reference)
- The context customers use to understand your product.
- Example: Framing the tool as an "AI-powered DevOps platform" instead of a "general monitoring tool" puts it in a higher-value category.
+1. Trends (Optional)
- Associating with relevant industry shifts can strengthen positioning.
- Example: Linking your platform to the growing "shift-left DevOps" movement emphasizes its relevance.
The positioning process
There is a 10-step process to deliberately craft or refine positioning:
- Identify competitive alternatives.
- List your product’s unique attributes.
- Connect attributes to clear value.
- Determine which customers care the most.
- Define your market category.
- Create a catchy positioning statement.
- Test positioning with sales, marketing, and customers.
- Translate positioning into messaging.
- Roll it out across all teams.
- Revisit positioning as markets evolve.
Common positioning mistakes
- Trying to be everything to everyone leads to generic, forgettable messaging.
- Focusing on features rather than benefits.
- Defining positioning internally without validating with customers.
- Positioning only against competitors, rather than claiming a clear, unique space.
Practical examples for IT companies
- Example: SaaS backup solution
- Poor Positioning: "We store your backups securely."
- Better Positioning: "We are the only backup platform that guarantees recovery from ransomware in under 15 minutes for small and mid-sized SaaS businesses."
The second example highlights the competitive alternative (manual backups), the unique attribute (fast recovery), and the target market (SMBs).
- Example: Developer collaboration tool
- Poor Positioning: "A place for developers to share code snippets."
- Better Positioning: "The collaboration platform for remote software teams that reduces code review times by 40%."
This reframing shows measurable value for a defined audience.