So What? Mastering the Art of Product Positioning

Introduction

In the competitive arena of product management and development, the strategic positioning of your product isn't just beneficial—it's imperative. April Dunford's seminal work, "Obviously Awesome," serves as a beacon for executives and product leaders navigating these waters. With her deep-seated expertise in marketing and product positioning, Dunford provides a roadmap for articulating a product's unique place in the market. Today, we delve into a critical exercise I've dubbed the 'So, What?'—an exploration aimed at refining our approach to product messaging, grounded in Dunford's methodologies and extended by practical applications in objection handling to empower sales teams.

Before we jump into that, let’s get some basics down:

Company Marketing vs Product Marketing

Company marketing is a holistic approach that focuses on building the brand and corporate identity of the entire organization. It's aimed at a broad audience, encompassing current and potential customers, stakeholders, investors, and even employees. The goal here is to establish the company's position in the market, create brand awareness, and foster a strong, recognizable corporate image.

Product marketing, on the other hand, is much more focused and targeted. It involves strategies and efforts directed toward promoting and selling a specific product or product line. The aim here is to reach specific customer segments who are most likely to benefit from and be interested in the particular product.

Now that we’ve got that out of the way, let’s talk product!

Understanding the Essence of Product Positioning

Product positioning, as April Dunford eloquently puts it, is akin to art – it's about creatively carving out a unique space in the consumer's mind. It’s not just about where the product fits in the market, but how it is perceived in terms of its value and relevance. Effective positioning transcends mere visibility; it ensures that the right customers not only notice the product but also grasp its unique value proposition. This understanding is crucial in making them see why this product stands out from the myriad of alternatives available. It involves a narrative that connects with the customers' needs, desires, and challenges, making the product not just a commodity but a key solution to their specific problems.

The Five Components of Successful Positioning

Dunford’s framework for successful positioning revolves around five key components. First, identifying the 'Target Customer' is about understanding who the product is for and their unique needs. Next, the 'Market Category' helps in positioning the product within a specific market, making it easier for customers to understand what the product is. The 'Unique Attributes' highlight what sets the product apart from competitors. The 'Value' aspect focuses on the benefits that these unique attributes bring to the customer. Lastly, understanding the 'Competitive Alternative' gives insight into how customers currently solve the problem that the product aims to address. This comprehensive approach ensures a holistic understanding and strategic communication of a product's place in the market.

Which brings us to the heart of the matter....

Differentiation through Unique Attributes and Value

Differentiation is the key to standing out in a crowded market. This section delves into how to pinpoint and highlight the unique attributes of a product that are not just different but are of real value to the customer. 

I really enjoyed reading her take on the Attribute - Benefit - Value Framework. 

Identifying Unique Attributes:

• Start with a thorough analysis of your product to identify features or aspects that differentiate it from the competition. These could range from technological innovations, design elements, user experience, customer service, or even the brand story.
• It's important to view these attributes from the customer's perspective. What might seem like a minor technical detail to you could be a game-changer for the customer. Therefore, engaging with customers through surveys, feedback, or direct conversations can uncover insights into what they truly value.

Linking Attributes to Customer Benefit:

• Once you've identified your product's unique attributes, the next step is to explicitly link these attributes to the benefits they provide to the customer. For instance, if your product uses a more advanced technology, explain how this translates into a better user experience, increased reliability, or cost savings for the customer.
• This step requires translating technical features into benefits that resonate emotionally and logically with your target audience. For example, "Our product’s battery lasts twice as long as our leading competitor's" translates to "Enjoy uninterrupted usage all day without the hassle of recharging."

Articulating the Value Proposition:

• Your value proposition is a clear statement that summarizes why a customer should choose your product. It encapsulates the unique value your product offers, directly addressing the customer’s needs, problems, and desires.
• A compelling value proposition is concise, specific, and focused on benefits. It tells the customer exactly what they will gain by choosing your product over others. Crafting this message requires a deep understanding of your target audience’s motivations and how your product’s unique attributes meet those needs.

Articulating these differences in a way that resonates with the target audience, showcasing how these attributes address their specific needs and desires more effectively than competitors is the next step, using a combination of branding, storytelling, and showing.

Differentiating Through Branding and Storytelling:

• Beyond the product itself, differentiation can also be achieved through branding and storytelling. A strong brand identity and a compelling narrative can make your product memorable and build emotional connections with customers.
• Storytelling involves weaving your product's unique attributes and value into a narrative that aligns with your customers’ values or aspirations. This could involve sharing the inspiration behind the product, the challenges overcome in its development, or how it’s made a difference in the lives of other customers.

Communicating and Demonstrating Differentiation:

• Effectively communicating your product's differentiation and value is crucial. This can be achieved through various marketing channels such as social media, content marketing, advertising, and packaging.
• Demonstrations, free trials, and customer testimonials can also serve as powerful tools to showcase the unique benefits of your product. They provide tangible proof of the value proposition and help potential customers visualize the difference your product can make in their lives.

So What?

As I worked with Marketing to refine our product messaging, I embarked on a reflective exercise, scrutinizing our current strategy through the lens of Dunford’s insightful framework. The self-audit was revealing; it highlighted that, like many in our field, I had fallen into a few common traps. Predominantly, I had been emphasizing the features of our product rather than its benefits to the customer.  

To address these issues, I continually asked myself So What? So what does this matter to the customer? So how does this help the customer save time, save money, etc.

Building on the Foundation

To bridge these gaps and enhance our approach, I expanded upon Dunford’s original framework by integrating a new component: objections and objection quashers. This addition was designed to equip our sales team with a robust playbook, transforming challenges into opportunities for deeper engagement.

The inclusion of objections in our playbook was strategic. By anticipating and understanding the potential reservations or concerns our customers might have, we could prepare targeted responses. These objection quashers were not mere rebuttals but thoughtful explanations that tied back to the benefits of our product, effectively turning skepticism into confidence.

This refined strategy aimed to move beyond the traditional feature-focused sell. It recognized the importance of speaking directly to how our product could solve real problems, improve workflows, or enhance the quality of outcomes for our customers. By addressing objections head-on, we could dismantle barriers to acceptance, fostering a deeper understanding and appreciation for the unique value our product offered.

Conclusion

For product managers and executives, the 'So, What?' exercise underscores the essence of ongoing reflection and refinement in our communication strategies. It's a testament to the need for alignment with our customers' language and needs, ensuring our product's value proposition remains compelling and relevant.

April Dunford's methodologies, coupled with a practical approach to handling objections, offer a comprehensive playbook for navigating the complexities of product positioning. By embracing this iterative process of evaluation and adaptation, we can ensure our products not only stand out in a crowded marketplace but also resonate deeply with our target audiences, driving success and innovation in an ever-evolving landscape.

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