Product Positioning - How Your Product Fits in the Market

 

The next step in your product strategy is product positioning.

Product positioning means defining where your product fits in the marketplace. So rather than doing anything to the product itself, positioning represents the messaging - how you want your audience to perceive your product.

To be able to position your product you will need to determine your target market first, which we explained in the previous article. According to that, you’ll be able to figure out what kind of message you want to send to them, and where you’ll be sending it.

Once you know the group of people you’re creating the product for, and once you have your customer persona, you’ll be able to translate their core values and needs into the product benefits that will sound most appealing to them. And you’ll be able to create the message that really resonates with them.

However, there is one important detail you need to keep in mind. No matter how you position your product, you need to make sure to deliver on the promise. Because at the end of the day, positioning is not what you say about your product, it’s how your audience perceives it.

If you have several audience segments, you’ll also need to adjust your messaging, since different audience segments may see different benefits from your products. Aside from that, you’ll also need to adjust your messaging depending on the channel you’re using. For example, your style will have to be completely different when you’re sending an email, writing a Facebook post or creating a banner.

 

Creating Your Product Positioning Statement

Ultimately, your positioning statement should define your target audience, the unique features that set your product apart from the competition and the benefits that the users will have from it. According to the famous organizational theorist and management consultant, Geoffrey Moore, a product positioning statement formula should look something like this:

For (target customer) who (has a specific problem or a need), our product is a (product category) that (provides this key benefit/solves this problem/fulfills this need). Unlike (primary competitive alternative), our product (provides this unique value).

For Infinity, this statement could translate to:

For a product manager who has a framework but doesn’t have a tool to support it, Infinity is a flexible solution that allows him to build his own system and organize every aspect of the product lifecycle. Unlike other tools in this space which have a fixed system, Infinity gives them the ability to create their own product management system.

Don't forget that product positioning is all about crafting a compelling message that resonates with your target audience. Once you do that, it will serve as the foundation for your product management strategy. 

 

Product Positioning Matrix

To help you visualize your product compared to your competitors, it’s a great idea to create a product positioning matrix. Using this method you will be able to realize which product aspects are the most valuable in your product and how does that make your product stand out from the rest.

Product positioning matrix should have two axes, both representing an important value in your market - quality and price are the most common ones, but you can use anything else that’s relevant to your product. In the example of Infinity, product positioning matrix looks like this:

Example of product positioning matrix

 

 

How to Define Product Positioning in Infinity

Just like all other parts of your product strategy, product positioning should also be visible for you and your team at all times. That's why it's important to include it in your product management framework. Here's how you will add this part to infinity:

  • Step 1: Open Product Positioning subfolder located in Product Strategy folder.
  • Step 2: Remove the product positioning statement in the first column and write your own.
  • Step 3: Before you create your visual product positioning matrix (like the one in the above section), you'll need to define the main categories and main competitors you want to include in it. So in this step, choose about 5-10 main competitors and pick your two axes. In our example, it is Structure (Expansive - Simple) and System (Flexbile - Fixed).
  • Step 4: Delete our example product positioning matrix and add your own. Click on this item, find the Image attribute where you will delete our image and upload a new one. 
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