Why Global positioning matters so much#
Clarke Ricks School of Business,
Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
May 7, 2022
Why Global positioning matters so much#
First and foremost, product positioning can directly affect sales. A product with poor
positioning is unlikely going to generate sufficient sales due to misunderstood messages or
missed opportunities. This could potentially even damage a company’s reputation.0
On the other hand, a well-positioned product shows a good understanding of customer needs
and conveys a clear message which leads to more satisfied users and, eventually, to more
upselling opportunities.0
The process of positioning is also valuable for0product marketing0teams to help them
understand where the product is now and where it should go, thus influencing future product
development and marketing strategies.
Is your product already positioned well? Let’s find out.#
Establishing whether a product is positioned well isn’t easy. Many product teams make the
mistake of keeping the analysis in-house, adopting the “if we get it, then our users will get it,
too” mentality.0
But the best way to truly determine the effectiveness of your product’s positioning is to ask
your customers directly.0
Collecting0contextual customer feedback—from all touchpoints within the user journey—
allows you to gain valuable insights into what the customer is thinking and feeling during their
interaction with your product. This will also help you better understand how your users perceive
your product.
You can start by asking these questions:
1. Do your customers truly understand your product’s purpose?0
2. Is it clear what problems and pain points your product solves?0
3. Are your customers aware of all the benefits they could get?0
4. Is your product set apart from the competition clearly enough?
5. Why should the users choose your product over competitors?0
Remember, customers aren’t as intimately acquainted with the design and development of
your product as you are. So, if they answer positively to these questions and they can clearly
articulate the difference between your products and competition, you’ve done a good job with
positioning.
If not, in addition to talking to customers, you can also analyze the product usage data to gain
valuable insights. And, you can try asking your product team the same questions, but be sure that
everyone is as objective as possible.0
By0asking the right questions0and using quantitative or qualitative research to seamlessly
implement user feedback throughout the product lifecycle, you can ensure that your product
positioning stays in line with your brand values.
Easily build no-code in-app surveys to collect contextual and targeted user feedback. Try for
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Benefits your SaaS business can gain from product positioning#
There’s a reason product positioning is considered one of the most critical aspects of0product
marketing—it gets tangible results.0
For a SaaS business, effective product positioning leads to:0
Generating more0highly qualified leads
Prioritizing your leads more effectively
Creating more detailed0user segmentation
Improved product adoption rates
Increased user retention rates
Another important outcome you’ll see from carefully thought-through product positioning
efforts is0communicating the right message to the right people, at the right time. This is
especially relevant if you serve different audience groups (e.g. individual users and enterprise-
level customers).
How to do it right: 5 steps to an effective product positioning strategy#
Step #1: Conduct market research#
A key aspect of product marketing is knowing where your product stands within the market.
The first stage to developing an effective product positioning strategy is to evaluate your market
as a whole through market research.0
Understand:
Where does your product sit within the market?0
What demand is there for your product?0
Who are your main competitors?0
Are they above or below you in terms of market share?0
What trends exist within the space and how your product fits?
Step #2: Analyze competition#
Once you’ve established the0product-market fit, it’s time to take a closer look at your
competitors.
Look at:
Their product offering (are there different pricing plans, access levels, feature upgrades,
etc.)
Who their target customers are0
Which marketing channels they’re using (i.e. social media, Google Ads, etc.)0
How similar is their offering to yours0
What their reputation is like (authority, quality, customer service, etc.)
Step #3: Define your target audience#
Next, review any existing customer data if applicable and draw up a list of traits for your
ideal customer persona. Define your target audience demographically and identify possible
wants, pain points, and needs they might have.0
Establish:
Age
Location
Gender0
Income
Educational level
Try also to determine their existing knowledge about your product’s niche, as well as their
interests, habits, attitudes, and opinions.
Step #4: Determine your competitive advantage#
After analyzing your competition, identify how your offering differs. Define your unique
value proposition (UVP) and tailor it to your target customers. Make this the focus of
your0marketing campaigns.0
Include:
Price points
Ease of use (design, level of knowledge required, etc.)
Innovative features0
Upgrade potentials0
Compatibility0
Industry-specific solutions
Step #5: Craft your key messaging statements#
Now that you know who your ideal customers are, what solutions they’re looking for, where
your product sits in the market,0and0what your competitors are doing, it’s time to pull this
information into your messaging statements.0
To effectively position your product, you need to focus on its unique selling points. The
template below serves as a helpful guide to build on.
You don’t have to follow this word for word, and you don’t have to name competitors
individually. Try to find a unique angle, keep your audience in mind, and incorporate the core
elements into your statement.0
Here’s an example of what this might look like, using Chameleon as the product.
“Are you a B2B SaaS company looking to boost engagement and help your users get the
most of your product? Chameleon’s no-code builder enables you to create custom onboarding
flows that fit your user journeys and integrate seamlessly into your product. You'll stand out
from the crowd while your in-app messages blend into your environment to quickly drive users to
their "aha!" moment."
How to write compelling product messaging statements#
You can start with the template above, but keep in mind that there’s no one-size-fits-all
approach to writing compelling messaging statements. It’s important to incorporate your brand
voice and style to fit the message’s purpose. Here are five key messaging statements you need to
nail for effective product positioning, and how to do it.
Unique value proposition#
Your unique value proposition should appear prominently on your home page and in every
marketing campaign you put out. This is a statement that describes the unique benefits your
product offers and how it solves customer pain points. Use this to showcase what makes you
different (and better!) than competitors.
To make an effective UVP:0
1. Make it clear: Identify the key benefits of the product and describe what makes them so
valuable.0
2. Keep it relevant:0Identify your target audience’s main pain point and illustrate how your
product solves it.0
3. Set yourself apart: Highlight your unique selling points (e.g. price, features, authority,
social proof, etc.) and explain why customers should pick you over your competitors.
Mission statement#
Your mission statement is the backbone of your company and something your product teams
can rely on as a source of guidance. It should, in simple terms, explain the company’s purpose—
its why.0
To write a clear mission statement:
1. Focus on illustrating values: Define how your product aligns with your ethos.0
2. Keep it specific:0Always tie it back to your business goals and operations.
3. Make it short:0Say what you need in one or two simple sentences.
4. Look to the future:0Keep it open enough to encompass long-term goals.0
5. Avoid buzzwords and jargon: Make it instantly understandable with plain language.
Vision statement#
While your mission statement describes what the company does and why, the vision
statement should cover the desired long-term results of your business efforts. It focuses on what
you hope to achieve and how you envision your future position in the market. For example,
Microsoft’s early vision statement was: “A computer on every desk and in every home.”00
To create a compelling vision statement:
1. Orient it toward a benefit:0Explain the added value you provide your customers with.0
2. Keep it simple:0A vision statement needs to be clear and aligned with your values.
3. Don’t get too visionary:0Keep a realistic, achievable, and measurable goal at its core.
Tagline/Slogan#
If crafted correctly, your tagline or a slogan could be the one message
that’s0forever0connected to your product. It needs to make an impact. A tagline should leave your
audience (and a wider auditorium) with a lasting positive impression, and it should be easy to
remember. Just think of Nike’s “Just do it”, KFC’s “It’s finger-lickin' good,” or L'Oréal Paris'
“Because you’re worth it.”0
To craft an impactful tagline:
1. Focus on what makes you unique:0It’s often how users will recognize your brand.0
2. Make it timeless:0Your tagline should be as relevant now as in 20 years’ time.0
3. Keep it short and punchy:0Make your point while keeping it within 3-5 words.
Elevator pitch#
Short, persuasive, and under 30 seconds. These are the characteristics of an effective elevator
pitch. It should explain what your company does, what problems your product solves, why that is
important, and how it’s different from anything else on the market—all that within a time of an
average elevator ride.0
To write a persuasive elevator pitch:00
1. Explain what you do and how you do it.0Keep it simple and clear, and avoid overly
technical language.
2. Identify what makes your product unique.0Set yourself apart from the competition in a
way that’s memorable—by focussing on your UVP.0
3. Back it up with data.0If you have short, digestible figures or statistics, use them.
Best product positioning examples for your inspiration#
Let’s take a look at some of the SaaS brands with masterful value propositions and product
positioning done right.
Example #1: Mailchimp#
The website home page of the marketing automation and email software0Mailchimp0is an
excellent example of product positioning. It’s a lesson on how to convey your message to users
efficiently. Simple, yet effective, it leads with a key USP — the ability to combine marketing
and commerce tools under one application. Immediately they’ve set themselves apart and gone
straight to the heart of what they offer and used empowering language to boot.
Example #2: Segment#
As a customer data platform,0Segment0uses social proof to excel in product positioning. This
is an incredibly powerful tool if you’ve got the data to back it up. By clearly articulating what the
product offers (i.e. the ability to collect, clean, and control customer data), along with their
popularity (i.e. 20,000+ users) Segment is demonstrating authority and backing up the claim that
they’re “the leading customer data platform.” Who’s going to argue with them and 20,000 other
businesses?
Example #3: Stripe#
Another example of social proof combined with clear and concise messaging offers the
online payment processor0Stripe, this time with “millions of companies of all sizes.” Imagery is
an often underused aspect of product positioning but one Stripe takes full advantage of.
Demonstrating the product in action and giving a glimpse at the UI, Stripe gives website visitors
an insight into the product’s ease of use. If there’s any doubt, their concise statement of what the
product does, who it’s for, and what functionalities it offers should clear things up.
Stay on-brand throughout your product development process#
Product positioning isn’t a practice reserved only for the pre-launch phase. Integrate it into
your product development process to ensure your product teams are familiar with positioning
efforts. This will help you adjust your messaging to every stage of your product growth.
Here are some specific tactics to follow as your business grows.00
Align positioning efforts with your product marketing strategy
Product positioning helps you define how your product differs from others in the same
market, while an effective0product marketing strategy0can help bring your product to that
market and deliver on its promise. In other words, positioning efforts will help your marketing
team keep the core values closely tied to the target audience, identify key channels for brand
promotion, and craft effective marketing collateral for0lead generation.0
Ensure positioning is part of your go-to-market strategy
Think of positioning as the first step in your go-to-market strategy. But don’t stop there. As
your product grows, your messaging will evolve. The last thing you want is to launch a product
that doesn’t resonate with your prospective users or—even worse—a product that comes out
with a contradictory message. The same goes for each new update you release and every0new
feature you announce.
Include product positioning in your product-market fit evaluation
If you plan to expand to new markets and reach new audiences, make sure to revisit your key
messaging statements. Is your mission still the same? Do you need to rephrase your value
proposition? Should you craft a second one that will resonate with your new audience? What
about your elevator pitch—does it still explain what problems you solve, or should you iterate?0
Use on-brand messaging for all your in-product communications
Once your product is well-positioned, make sure to stay consistent with your brand voice
across all channels. These, of course, include your website, social media profiles, advertising
campaigns, sales pitches, and customer support emails, but don’t forget in-product messages.
Meet your users where they are by delivering the right message at the right time, whether you
choose to enrich the onboarding flow with on-brand0product tours, new feature announcements,
or custom-made0in-app surveys.
