Digest

This episode of the Knowledge Project podcast features a conversation with April Dunford, a positioning expert, who delves into the intricacies of positioning and its impact on business success. The episode begins by defining positioning as the foundation upon which all marketing and sales efforts are built, emphasizing that it's not just about messaging or a tagline but rather a strategic approach to defining how a product is the best in the world at delivering a specific value that a well-defined set of customers cares about. The conversation then explores practical examples of positioning, using the analogy of a muffin versus a cake to illustrate how context can dramatically alter customer perceptions and purchasing decisions. April highlights the key differences between B2B and B2C positioning, emphasizing that in B2B, value is typically measured in terms of making or saving money, and decisions are often driven by fear of making a bad choice. The episode delves into common positioning mistakes, including not deliberately positioning a product, treating positioning as a marketing exercise, and attempting to create a new category when a product fits into an existing one. April stresses the importance of understanding the customer's perspective and addressing their specific needs. The conversation explores the importance of customer discovery and identifying pain points, highlighting the Lean Startup methodology and emphasizing the need to validate assumptions about the market before developing a product. April outlines the key components of positioning a product on a webpage, including identifying competitive alternatives, understanding differentiated capabilities, defining the value those capabilities deliver, and identifying the target audience that cares most about that value. The episode discusses how digital transformation has impacted positioning, emphasizing the need to be succinct about a product's value, target audience, and differentiation. April addresses the challenge of evaluating product positioning, arguing that traditional methods like the "Grandmother test" are not effective in B2B, where products need to resonate with specialized buyers. The conversation challenges the traditional view that positioning is solely a marketing function, arguing that it's a cross-functional effort involving product marketing, sales, customer success, support, and even the CEO. April discusses how to differentiate between a positioning problem and a larger business problem, suggesting that a good positioning strategy should result in happy customers who are willing to be references. The episode explores the role of storytelling in B2B positioning, criticizing the traditional "hero's journey" framework for not adequately addressing the competitive landscape. April advocates for a storytelling approach that highlights the market context, the company's unique position, and the trade-offs involved in choosing different solutions. The conversation emphasizes the importance of a CEO's point of view on the market, suggesting that CEOs should be willing to articulate a unique perspective that helps customers understand the problem they're solving and why their solution is valuable. April discusses the importance of defining vocabulary in emerging markets, arguing that companies creating new categories need to establish a clear and concise language that helps customers understand the problem and the value of their solution. The episode explores the role of independent bodies like industry analysts in positioning, acknowledging that these bodies can be influential in some markets, but their impact varies depending on the industry and the buyer's needs. April highlights some of the most interesting positioning mistakes she's observed, emphasizing the importance of a realistic and customer-centric approach to positioning. The conversation criticizes the traditional focus on consumer package goods in marketing education, arguing that B2B marketing requires a different approach due to the considered nature of purchase decisions, the involvement of buying committees, and the challenges of overcoming indecision. April discusses the importance of understanding customer indecision in B2B, highlighting research that shows a significant percentage of B2B purchase processes end in no decision, often due to fear of making a bad choice. The episode concludes with a discussion about success in life, reflecting on April's career as a VP of marketing and her current role as a consultant. She emphasizes the satisfaction she finds in helping companies develop effective positioning strategies and the sense of magic that occurs when a company's position clicks with its target audience.

Outlines

00:00:00

Defining Positioning and its Importance

This chapter defines positioning as the foundation for all marketing and sales efforts, emphasizing that it's not just about messaging or a tagline but rather a strategic approach to defining how a product is the best in the world at delivering a specific value that a well-defined set of customers cares about.

00:01:06

Introducing April Dunford, Positioning Expert

This chapter introduces April Dunford, a positioning expert, and highlights her book, "Obviously Awesome," which has significantly influenced the speaker's thinking about positioning in business.

00:01:59

Positioning in the Real World: Practical Examples

This chapter delves into practical examples of positioning, using the analogy of a muffin versus a cake to illustrate how context can dramatically alter customer perceptions and purchasing decisions.

00:21:51

B2B vs. B2C Positioning: Key Differences

This chapter explains the key differences between B2B and B2C positioning, emphasizing that in B2B, value is typically measured in terms of making or saving money, and decisions are often driven by fear of making a bad choice.

00:26:57

Common Positioning Mistakes and Their Impact

This chapter identifies common positioning mistakes, including not deliberately positioning a product, treating positioning as a marketing exercise, and attempting to create a new category when a product fits into an existing one.

00:31:51

Customer Discovery and Identifying Pain Points

This chapter explores the importance of customer discovery and identifying pain points, highlighting the Lean Startup methodology and emphasizing the need to validate assumptions about the market before developing a product.

00:33:54

Positioning a Product on a Page: Key Components

This chapter outlines the key components of positioning a product on a webpage, including identifying competitive alternatives, understanding differentiated capabilities, defining the value those capabilities deliver, and identifying the target audience that cares most about that value.

00:37:23

The Impact of Digital Transformation on Positioning

This chapter discusses how digital transformation has impacted positioning, emphasizing the need to be succinct about a product's value, target audience, and differentiation.

00:40:59

Evaluating Product Positioning: Beyond Traditional Methods

This chapter addresses the challenge of evaluating product positioning, arguing that traditional methods like the "Grandmother test" are not effective in B2B, where products need to resonate with specialized buyers.

00:45:05

Positioning as a Cross-Functional Effort

This chapter challenges the traditional view that positioning is solely a marketing function, arguing that it's a cross-functional effort involving product marketing, sales, customer success, support, and even the CEO.

00:48:00

Differentiating Positioning Problems from Larger Business Problems

This chapter discusses how to differentiate between a positioning problem and a larger business problem, suggesting that a good positioning strategy should result in happy customers who are willing to be references.

00:49:46

Storytelling in B2B Positioning: Beyond the Hero's Journey

This chapter explores the role of storytelling in B2B positioning, criticizing the traditional "hero's journey" framework for not adequately addressing the competitive landscape.

00:55:56

The Importance of a CEO's Point of View on the Market

This chapter emphasizes the importance of a CEO's point of view on the market, suggesting that CEOs should be willing to articulate a unique perspective that helps customers understand the problem they're solving and why their solution is valuable.

00:57:22

Defining Vocabulary in Emerging Markets: Establishing a Clear Language

This chapter discusses the importance of defining vocabulary in emerging markets, arguing that companies creating new categories need to establish a clear and concise language that helps customers understand the problem and the value of their solution.

00:59:43

The Role of Independent Bodies in Positioning: Understanding Influencers

This chapter explores the role of independent bodies like industry analysts in positioning, acknowledging that these bodies can be influential in some markets, but their impact varies depending on the industry and the buyer's needs.

01:02:24

Interesting Positioning Mistakes and Their Lessons

This chapter highlights some of the most interesting positioning mistakes observed, emphasizing the importance of a realistic and customer-centric approach to positioning.

01:04:42

What Schools Get Wrong About B2B Marketing: A Different Approach

This chapter criticizes the traditional focus on consumer package goods in marketing education, arguing that B2B marketing requires a different approach due to the considered nature of purchase decisions, the involvement of buying committees, and the challenges of overcoming indecision.

01:08:15

B2B Decision Making and Customer Indecision: Addressing Fear

This chapter discusses the importance of understanding customer indecision in B2B, highlighting research that shows a significant percentage of B2B purchase processes end in no decision, often due to fear of making a bad choice.

01:10:39

Success in Life: Reflections on Positioning and its Impact

This chapter concludes with a discussion about success in life, reflecting on April's career as a VP of marketing and her current role as a consultant. She emphasizes the satisfaction she finds in helping companies develop effective positioning strategies and the sense of magic that occurs when a company's position clicks with its target audience.

Keywords

Q&A

• What is positioning and why is it important?

  Positioning defines how your product is the best in the world at delivering something of value that a specific set of customers cares about. It's the foundation for all marketing and sales efforts, helping to set the right context for your product and resonate with your target audience.

• What are the key differences between B2B and B2C positioning?

  In B2B, value is typically measured in terms of making or saving money, and decisions are often driven by fear of making a bad choice. Incumbents have a significant advantage in B2B because they represent a safe and familiar option. In B2C, value can be more emotional and irrational.

• What are some common mistakes companies make when it comes to positioning?

  Common mistakes include not deliberately positioning a product, treating positioning as a marketing exercise, and attempting to create a new category when a product fits into an existing one. It's crucial to understand the customer's perspective and address their specific needs.

• How can companies effectively position their products on a webpage?

  Companies should identify competitive alternatives, understand their differentiated capabilities, define the value those capabilities deliver, and identify the target audience that cares most about that value. They should communicate these elements clearly and concisely.

• How has digital transformation impacted positioning?

  While the fundamentals of positioning remain the same, the increased competition and information overload make it more crucial than ever to establish a clear and concise position. Companies need to be succinct about their product's value, target audience, and differentiation.

• Who should be involved in developing a positioning strategy?

  Positioning is a cross-functional effort involving product marketing, sales, customer success, support, and even the CEO. It's important to have a shared understanding and alignment on positioning across the organization.

• How can companies determine if they have a positioning problem or a larger business problem?

  A good positioning strategy should result in happy customers who are willing to be references. If a company is struggling to generate leads or close deals, the problem may lie in sales execution or lead generation rather than positioning.

• What role does storytelling play in B2B positioning?

  Storytelling should highlight the market context, the company's unique position, and the trade-offs involved in choosing different solutions. It should address the question of why a customer should choose a particular product over its competitors.

• Why is it important for CEOs to have a point of view on the market?

  CEOs should be willing to articulate a unique perspective that helps customers understand the problem they're solving and why their solution is valuable. This can be a powerful tool for driving sales and building brand awareness.

Show Notes