Positioning

Positioning is not a tagline. It's not messaging. It's not what you say about yourself on your homepage.

Positioning is the strategic decision about which problem you solve, for whom, and why you're the best option for that specific buyer. It determines how you exist in the buyer's mind relative to their alternatives.

When positioning is weak, you end up competing on price. Every sales conversation becomes a negotiation. Prospects compare you feature-by-feature against competitors and choose whoever is cheapest. Your marketing sounds like everyone else's marketing because you're trying to appeal to everyone.

When positioning is strong, the right buyers see you as the obvious choice. They understand what makes you different and why that difference matters to them specifically. Sales cycles shorten because you're not fighting misconceptions. You can charge more because you're not interchangeable with alternatives.

Strong positioning makes specific claims for specific buyers. It acknowledges tradeoffs. It might exclude some customers entirely. But for the right buyer, it makes you the clear answer.

This chapter covers how to think about positioning strategically and how to develop positioning that actually differentiates.

Positioning has five components that work together. Miss any one of them and your positioning falls apart.

Competitive alternatives

What would your customers do if you didn't exist? This is broader than your direct competitors. Alternatives include doing nothing, using spreadsheets, hiring someone to do the job manually, or cobbling together multiple tools.

Understanding competitive alternatives matters because positioning is always relative. You're not positioning in a vacuum. You're positioning against the other options your buyer is considering. If you don't know what those options are, you can't differentiate from them.

For some buyers, your main competitor is the status quo. They're currently solving the problem with manual processes or existing tools, and your job is to show why changing is worth the effort. For others, your main competitor is a direct alternative that solves the same problem differently.

Talk to your customers about what they were doing before they found you. What alternatives did they evaluate? What would they switch to if you disappeared? The answers tell you what you're really competing against.

Unique attributes

What do you have that the alternatives don't? These are objective capabilities, features, or characteristics. Not marketing claims, but actual things you can point to.

Unique attributes might include technology or methodology that competitors lack. They might be integrations with specific tools. They might be pricing model differences, implementation speed, team expertise, or depth in a particular use case.

The key word is unique. Features that every competitor also has don't help you position. You're looking for things that genuinely differentiate. These become the raw material for your positioning.

Be honest about what's actually unique versus what you wish were unique. Claiming differentiation that doesn't exist creates positioning that falls apart the moment buyers do any research.

Value those attributes enable

What outcomes do your unique attributes create for customers? This is where you translate features into benefits.

Attributes are what you have. Value is what those attributes do for the buyer. A unique attribute might be "built-in calling within the CRM." The value that enables might be "salespeople never have to switch tools, so they make more calls and log every conversation automatically."

Buyers don't care about features for their own sake. They care about what features let them achieve. Faster results, lower risk, reduced costs, better outcomes, less hassle. Your unique attributes need to connect to value that matters.

Different buyers may value the same attributes differently. A developer might value flexibility and control. A non-technical user might value simplicity and ease of use. The value component of positioning should speak to what your target segment cares about most.

Target segment

Who cares most about the value you deliver? Which buyers have the problem you solve most acutely and would benefit most from your unique attributes?

Strong positioning focuses on a target segment that will see you as obviously the right choice. This is narrower than your total addressable market. It's the segment where your differentiation matters most.

Trying to position for everyone results in positioning for no one. If your positioning resonates equally with small startups and large enterprises, with technical and non-technical buyers, with every industry and use case, it's probably too generic to resonate strongly with anyone.

The target segment in your positioning should align with your ICP. These are the buyers you're optimising for. Others may still buy, but your positioning speaks directly to the segment that will find you most compelling.

Market category

What frame of reference do buyers use to understand what you are? The market category determines which mental box buyers put you in, which competitors they compare you against, and what expectations they bring.

If you position as a CRM, buyers expect certain things. They compare you to other CRMs. They evaluate you on CRM criteria. If you position as a sales engagement platform, the comparison set and expectations shift.

Category choice is strategic. Sometimes you want to compete in an established category because buyers already understand it and are actively looking for solutions. Sometimes you want to create a new category or subcategory because existing categories don't capture what makes you different.

Choosing the wrong category means constantly fighting assumptions that don't fit. If you're positioned as a project management tool but you're really a documentation platform, every sales conversation starts with correcting misconceptions.

There are different ways to position relative to competitors. The right strategy depends on your market, your strengths, and what alternatives you're up against.

Differentiated positioning

Differentiated positioning says: we solve the same general problem but we're better for a specific use case or audience. You're not claiming to be better for everyone, just better for a particular segment.

Pipedream and Zapier both help people automate workflows. But they position differently. Zapier positions for non-technical users who want simple automation without writing code. The interface is designed for ease of use. The messaging emphasises connecting apps without developers.

Pipedream positions for developers who want power and flexibility. You can write code, use npm packages, and build complex logic. The messaging emphasises developer workflows and technical capability.

Neither positioning is wrong. They're both automation tools, but they've chosen different segments to optimise for. A non-technical marketer would find Pipedream overwhelming. A developer would find Zapier limiting. Each product is the obvious choice for its target segment.

Specialist vs platform positioning

Another positioning choice is whether to be a specialist or a platform. Specialists do one thing exceptionally well. Platforms do many things in an integrated way.

Close positions as a CRM built specifically for inside sales teams. It has built-in calling, SMS, and email. Everything is designed around the workflow of salespeople who sell remotely. The positioning is about being purpose-built for a specific type of selling.

HubSpot CRM positions as part of a broader platform. CRM plus marketing automation plus service tools plus content management. The positioning is about having everything in one place, with tools that work together seamlessly.

A sales team that only needs CRM and wants it optimised for their workflow might prefer Close. A company that wants marketing, sales, and service on one platform might prefer HubSpot. The positioning reflects genuinely different product strategies.

Feature breadth vs flexibility positioning

Some products position on doing more. Others position on being more adaptable.

ClickUp positions as the everything app. Project management, docs, whiteboards, goals, time tracking, chat. The promise is replacing multiple tools with one platform that does it all. The positioning appeals to teams who want consolidation and are tired of switching between apps.

Notion positions on flexibility. It's blocks, pages, and databases that you can arrange however you want. Less prescriptive about workflows, more about giving you building blocks to create your own systems. The positioning appeals to teams who want to build custom workflows rather than adopt predefined ones.

Both are legitimate approaches. Neither is objectively better. They appeal to different buyers with different preferences.

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Positioning should be based on reality, not aspiration. It needs to reflect genuine strengths and resonate with actual buyer needs.

Start with your best customers

The best source of positioning insight is customers who love you. Not average customers, but the ones who buy quickly, pay full price, never churn, and tell others about you.

Interview them. What problem were they trying to solve? What alternatives did they consider? Why did they choose you over those alternatives? What would they tell a colleague who was evaluating similar solutions?

Their answers reveal your actual positioning in the market. Not what you want to be known for, but what you are known for by people who chose you.

Identify patterns in why you win

Look for patterns across your best customer interviews. Do they mention the same alternatives? Do they value the same attributes? Do they describe similar problems?

These patterns point to your differentiation. If multiple best customers say "we chose you because of X," that's positioning gold. If they all compared you to the same alternative and chose you for the same reasons, that's your competitive differentiation.

Conversely, look at deals you lost. What did customers choose instead? Why? This shows where your positioning fails to resonate or where you're positioned against alternatives you can't beat.

Be honest about tradeoffs

Strong positioning often involves acknowledging what you're not. If you're built for developers, you're probably not the easiest tool for non-technical users. If you're a specialist, you probably don't have the breadth of a platform.

These tradeoffs are features, not bugs. They help the right buyers self-select and help the wrong buyers filter themselves out. Trying to claim you're the best at everything makes your positioning unbelievable.

When you position as the choice for a specific segment, you're implicitly saying you're not optimised for other segments. That's okay. You can't be the best choice for everyone.

Test with real prospects

Positioning only works if buyers believe it. Before committing to positioning, test it with real prospects.

Share your positioning statement and ask if it resonates. Does it describe their problem accurately? Do the alternatives match what they'd actually consider? Does the differentiation matter to them?

If prospects nod along, your positioning reflects reality. If they look confused or push back, you've got work to do.

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Positioning is a strategic choice. Messaging is how you express that choice. Everything you say about your product should flow from your positioning.

Website and marketing

Your homepage should communicate positioning immediately. Within seconds, a visitor should understand what you do, who you do it for, and why you're different from alternatives.

This doesn't mean stating your positioning statement verbatim. It means your headlines, your descriptions, your visuals, and your proof points all reinforce the same strategic position.

If you're positioned as the developer-first option, your homepage should look and feel like a developer tool. The language, the examples, the technical depth should all signal that this is built for developers.

Sales conversations

Sales teams should understand your positioning deeply. They need to know what alternatives you compete against, what your differentiation is, and which value propositions matter most to your target segment.

When a prospect asks "how are you different from X," your salespeople should have a crisp answer. Not a feature list, but a positioning response that explains who you're built for and why that matters.

Sales conversations also test your positioning. If salespeople constantly hear objections your positioning doesn't address, or if prospects compare you to alternatives you didn't expect, your positioning may need adjustment.

Content and thought leadership

Content should attract and educate your target segment. The topics you cover, the perspective you take, and the depth you go into should all reflect who you're positioned for.

If you're positioned for enterprise buyers, content that addresses enterprise concerns builds credibility with your target segment. If you're positioned for startups, enterprise content may actually undermine your positioning by suggesting you don't understand startup needs.

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Some symptoms suggest positioning problems:

1. You're competing on price. If deals consistently come down to who's cheapest, you haven't differentiated in ways that justify premium pricing.
2. Sales cycles are long and confused. If prospects don't understand what you do or keep comparing you to irrelevant alternatives, your positioning isn't clear.
3. Marketing sounds generic. If your copy could describe any competitor with minor edits, your positioning isn't specific enough.
4. You attract the wrong customers. If customers buy and then churn because the product wasn't what they expected, your positioning is attracting the wrong segment.

Positioning is a choice about who you're for and why you win. It shapes everything downstream: your messaging, your sales approach, your content, your product decisions.

Weak positioning tries to be everything to everyone and ends up meaning nothing to anyone. Strong positioning makes specific claims for specific buyers and accepts that others won't be a fit.

Develop your positioning based on what's actually true about your product and what your best customers actually value. Test it with real prospects. Express it consistently across every touchpoint.

When positioning is right, buyers in your target segment see you as the obvious choice. That's the goal.