Positioning is an essential part of product management. It helps you to differentiate and market your product or service so that it stands out from the competition. To understand positioning, consider a real-life example. A few years ago, a software company released a product that was intended to be the “Microsoft Access killer”—but in the end, it barely sold 200 copies. The reason? Poor positioning. Let’s take a look at how to craft an effective positioning strategy so your product can succeed.
Components of Positioning
Positioning consists of four key elements: competitive alternatives, differentiated features/capabilities, value for customers, and target customer segmentation & market category. It is important to understand these components in order to create an effective positioning strategy for your product or service.
Competitive Alternatives
The first step in positioning your product or service is to understand the competitive landscape and analyze what other products are out there that are similar to yours. This will help you identify any potential competitors and their offerings so that you can gain insight into what features they have and how you can differentiate yourself from them.
Differentiated Features/Capabilities
Once you’ve identified your competitors, it’s time to look at the features and capabilities of your own product or service. What makes yours unique? These are the aspects that will help you stand out from the crowd and give customers a compelling reason to choose your product over others on the market.
Value for Customers
Once you’ve determined what sets your offering apart from its competition, it’s time to think about how those features translate into value for customers. Ask yourself questions like: What problem does my solution solve? How will my solution make life easier for customers? How much better is my solution than existing solutions on the market? Answering these questions will help you determine if there is enough value in your offering to convince people to buy it over similar ones on the market.
Target Customer Segmentation & Market Category
Once you have identified what sets your offering apart from its competition and how customers stand to benefit from using it, it’s time to think about who exactly should be using it—and where they can find it! Different products have different target audiences based on their features/capabilities; by understanding who should be using your product as well as which market categories (e.g., software tools) are relevant for it, you can more effectively position it in front of potential buyers.
Conclusion: Why Positioning Matters in Product Management
Positioning is an essential part of successful product management because it helps set your offering apart from its competition while also making sure that customers know why they should choose yours over all others on the market! By understanding how positioning works as well as how each component contributes towards crafting an effective strategy, companies can maximize their chances of success with their products or services by getting them out there in front of exactly who needs them most! Knowing how to properly position a product or service is key when launching any new venture—so take some time now before launch day arrives to ensure that yours stands out from the pack!
