Framework
Term

Positioning

The deliberate choice of how a product is described, framed, and compared so a defined customer immediately understands why they should choose it over alternatives. Positioning is the bridge between segmentation and messaging.

Positioning is the act of deciding what your product is to whom and against what alternatives. Done well, it produces an obvious answer to the customer's question "why this, not that?" Done badly, the product feels like a slightly different version of every competitor.

April Dunford's five components

The most-cited modern framework, from Obviously Awesome (2019), defines positioning as:

  1. Competitive alternatives: what the customer would do without you (not just direct competitors — also spreadsheets, manual processes, doing nothing)
  2. Unique attributes: what only you have, that competitors don't
  3. Value: what those attributes enable for the customer
  4. Best-fit customers: the specific segment that values this most
  5. Market category: the frame of reference you want to be evaluated in

Most companies skip step 1 and start from step 5, which is why their positioning sounds generic — the category frame was set before the unique value was understood.

Positioning is a category choice

Choosing the market category is the highest-leverage positioning move because it determines who you're compared against. A product positioned as "customer support software" is compared to Zendesk and Intercom. The same product positioned as "AI customer agent" is compared to nothing yet — and its features look novel rather than incremental. The category choice can change a 5% better feature into a 10× better story.

When to reposition

Reposition when the original frame stops generating wins — when sales cycles lengthen, NPS drops, or feedback shifts to "we already have something for that". Repositioning typically requires changing the homepage hero, the pricing-page anchor, and the elevator pitch in synchronized fashion; piecemeal changes confuse the market.

Related

  • Segmentation — the input that defines who positioning targets
  • ICP — the sharpest target inside the chosen segment
  • Moat — the durable difference positioning relies on

See also

Nearby terms

All terms →