GNT #031: What’s the point of positioning?

Read time: 3.5 minutes
 

Last week I was talking with a new business owner.

Let's call him, Calvin.

Calvin posed a question that probably nags many business owners and founders.

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Q: I keep hearing that I need to focus on positioning. But I don't get what that means or how to go about it.

Where do I start with this?

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Calvin had every reason to feel confused.

If you've ever scratched your head over the concept of positioning - OR - if you've never even heard of it, you're not alone.

Even the most seasoned marketing experts find it tricky.

However, if you don't consider positioning, your customers won't know WHY they should choose you.

So, let's break it down today and understand what positioning is all about - and how to use it to create that "click" moment with your ideal customer.

(and close more sales, faster)

And don't worry, I got you... I'll wrap it into a simple step-by-step framework and worksheet to help you get it right and put it to work.

Let's do this.
 

What is Positioning, Anyway?

Positioning is like setting up a signpost for your business that tells people who you are, what you offer, and why you're special.

Think of it like organizing a shelf – you want your product to be in the right spot, where the right people can see it, and know why it's there.

Positioning is NOT:

- Your brand story
- Your messaging
- Your tagline
- Your vision
- Your 'why'

OK. So what IS IT?

Here's how positioning expert, April Dunford, explains it:

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‍”Positioning defines how your product is a leader at delivering something
that a well-defined set of customers cares a lot about.”

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Positioning IS:

- Occupying a distinct/desirable place in your customer's mind
- ↑this↑ + compared to your competitors
- Targeting a specific buyer
- Influence with information

Positioning is kind of like the opening scene of a movie.

It sets the stage and answers the big questions for your buyer.

Why is positioning important?

Good positioning  =  kicks off powerful assumptions that are true. (who you compete with, features you should have, intended user, what it should cost)

Bad positioning = kicks off powerful assumptions that are NOT true. (leaves unanswered questions or different responses from different people)

Getting back to my discussion with Calvin...

Colleen: "A small shift in positioning can completely transform how buyers view your business. It can be the difference between a sale and wasted time."

Calvin: "Well that's a lot of pressure. Can you give me any advice?"

The following is what I shared with Calvin...

Common Mistakes to Avoid

Before we cover how to do it, let's go over what not to do.

1. April recommends NOT starting with a template positioning statement fill in the blank exercise like. "Our product is a ____ that does _____, which enables ______ for ______, unlike ________." Starting with this assumes there is only one answer for each of the blanks and you "just know" what it is.
2. Don't assume you have to create a new market category here. Existing categories can be just as effective.
3. Don't waste time defining every possible competitor. Only consider competitors that you actually have faced.
    

How to Nail Positioning: A Step-by-Step Framework

So, let's get to it.

How do we engineer the best positioning?

In her book, 'Obviously Awesome,' April lays out a 10-step process for positioning.

(don't worry about defining these now, I've got your worksheet coming up)

1. Make a list of customers who love your product: Identify your happiest customers and understand why they love your product. What is it that makes your product special for them?
2. Form a Positioning Team: Create a cross-functional team with a diversity of perspectives, including sales, marketing, product management, and customer success. Align on the purpose of positioning (Are you running solo? Include your mentors or trusted advisors in the process!)
3. Align Your Positioning Vocabulary: Define key terms
4. List Your True Competitive Alternatives: Rather than focusing on direct competitors, identify the alternatives that customers might consider if your product didn't exist.
5. Isolate Your Unique Attributes or Features: Highlight what sets your product apart from the competitive alternatives.
6. Map the Attributes to Value 'Themes': Connect those unique attributes to the actual value they deliver for the customer. How do they solve problems or make life easier?
7. Determine Who Cares a Lot: Identify the target market segments that will care the most about the unique value you offer.
8. Find a Market Frame of Reference: Position your product within a market category that makes it easy for customers to understand what you do.
9. Position the Solution: Bring everything together in a narrative that includes the competitive alternatives, unique attributes, value themes, target segments, and market frame of reference.
10. Test the Position with Customers: Validate the positioning with real customers to ensure that it resonates and makes sense.

I broke these steps down into an easy worksheet you can use right here.

If you're signed into Google you can hit File > Make a copy.

If you're not signed in go to File > Download.

This worksheet will walk through the action steps of figuring out your positioning and how to apply it.

Takeaway

Positioning is often misunderstood, but you CAN nail it to sell more. Follow the steps above... 

If you want more detail, check out the book Obviously Awesome by April Dunford

As always, I love hearing from you with questions, comments, or feedback.

I'm always rooting for you!

See you next week.

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