Positioning is the deliberate choice of where a product sits in the customer’s mind relative to the alternatives. It defines who the product is for, what it is best at and why it is different, and it shapes every message the company sends.
What it means
Customers rarely evaluate a product in isolation. They compare it with what they use today, with competing products and with doing nothing. Positioning sets the frame for that comparison. A product positioned as the fast option is judged on speed, while the same product positioned as the affordable option is judged on price.
Where the term comes from
The idea was brought into mainstream marketing by Al Ries and Jack Trout in their 1981 book Positioning: The Battle for Your Mind. A more recent and practical treatment for technology companies is April Dunford’s Obviously Awesome, which breaks positioning into components such as competitive alternatives, unique attributes, value and target customers.
Main components
- Competitive alternatives: what customers would use if the product did not exist.
- Unique attributes: capabilities the alternatives lack.
- Value: the benefit those attributes create for the customer.
- Best fit customers: the people who care most about that value.
- Market category: the frame of reference that tells customers how to think about the product.
Common mistakes
Trying to appeal to everyone produces a message that persuades no one. Another mistake is describing the product by its features alone, which leaves the customer to work out why they matter. Founders also sometimes borrow the positioning of a bigger competitor and end up competing on terms they cannot win.
In launch work
On a launch platform, positioning appears in the tagline and the first lines of the description, which are often all a visitor reads. A clear position helps a listing stand out among many similar entries and attracts the right kind of early user.
Related entries
See Value proposition, Jobs to be done, Landing page conversion and Customer discovery.
Positioning is part of Launching a product.