Part 3 - Positioning Frameworks
This is a four-part series on how early stage B2B software companies should approach product marketing. Part 1 is about the role of product marketing at the early stage, Part 2 describes a process for identifying positioning that I like to use, Part 3 describes my favorite frameworks for documenting positioning and Part 4 is a summary and commentary on the most effective frameworks I know for pricing and packaging.
In Part 2 of this series, I outlined my process for running a positioning exercise to identify a compelling value proposition for your product. This post lists a few frameworks I’ve found useful over the years for documenting positioning internally which is critical for widespread adoption within your org, providing a common reference for downstream assets like web pages, slide decks, internal enablement content and more. It also provides a single source of truth for your PMM team and if you treat it as a living document, it allows you to update positioning methodically.
Most marketing textbooks will suggest that the output of a positioning exercise should be a positioning statement, which typically takes the following form:
“For [customer persona] in [industry], [product or service], unlike [primary competitor] provides [top 3 benefits] so that they can [top 3 value propositions].”
I’m not a fan of the positioning statement, or for that matter any method of capturing positioning that provides a rigid template. I think it obscures the complexity of the task and breeds lazy thinking, turning positioning into a glorified exercise of fill-in-the-blanks.
You should get creative with the format and structure (if you have the time) to find one that works for you. What really matters is diligently writing it down after getting buy-in from your stakeholders.
Otherwise, here are some formats that I’ve found really effective:
1. PR/FAQ
The PR/FAQ involves writing a mock press release (PR) for the product and a FAQ section to elaborate on aspects of the strategy and execution that can’t be added to the press release. By asking the product owner to imagine announcing the product before it’s built, it forces them to place the customer’s problems before the technical details of the product, instead of building something first and then finding customers to buy it.
This format was first practiced by Amazon as part of their internal philosophy of ‘working backwards’ when coming up with new products, and widely adopted at Twilio over the years.
This Quora post has more detail, but the format is essentially as follows:
Heading - Name the product in a way the reader (i.e. your target customers) will understand.
Sub-Heading - Describe who the market for the product is and what benefit they get. One sentence only underneath the title.
Summary - Give a summary of the product and the benefit (in the first paragraph). Assume the reader will not read anything else so make this paragraph good.
Problem - Describe the problem your product solves.
Solution - Describe how your product elegantly solves the problem.
Quote from You - A quote from a spokesperson in your company.
How to Get Started - Describe how easy it is to get started.
Customer Quote - Provide a quote from a hypothetical customer that describes how they experienced the benefit.
Closing and Call to Action - Wrap it up and give pointers where the reader should go next.
While primarily used as a product management framework, I think it has tremendous value as a positioning framework as well.
2. CTP
Another format from Amazon, the CTP or communicable thought process is more strategic in nature, but is nonetheless a great format for articulating your positioning. They started using it as a replacement for PowerPoint decks containing hundreds of slides that were extremely popular 20 years ago. It’s a lot shorter than a deck (maximum 6 pages long) and requires complete prose instead of bullet points. Decks make it easy to hide gaps in your logic or understanding between the bullet points. There’s nowhere to hide within a CTP. It typically has the following format, but in my experience what matters more is following its spirit (are you covering all your bases) rather than strictly adhering to the format. I’ve seen CTPs as short as two pages and as long as ten pages. A shorter CTP is better for documenting positioning.
Background statement.
Define the customer problem.
Analyze all existing solutions to the customer problem.
Articulate why your solution is the best, using data, analysis, anecdotes and other supplementary evidence.
Optional appendix containing supporting analysis and research.
3. Audience, Pain Points and Value Proposition
The simplest and most flexible framework listed here, it quite literally involves articulating your positioning by defining your audience, their pain points and your value proposition relative to alternatives as accurately as possible.
I prefer to use it if I need a quick and dirty way to come up with some positioning, which can be very useful if your understanding of the market is evolving quickly or you need to position a relatively minor feature or enhancement.
4. SCIPAB
I first discovered this framework in a design thinking class in graduate school and have found it very useful especially when I need to present an idea (in this case product positioning) to a group.
It stands for:
Situation: Discuss the background, context and customer problem
Complication: List additional factors that might complicate the situation
Implication: What does this mean for the customer?
Position: What is your take on the scenario defined by the situation, complication and implication?
Action: How is your action i.e. building this product going to address this scenario?
Benefit: How will your actions benefit the customer?
When using this framework, it’s important to keep each section short. Ideally your document shouldn’t be more than 2 pages long.
5. Positioning Map
Frameworks 1 to 4 tend to get text-heavy. If you’re looking for a more visual format, using a positioning map can help. It typically takes a tabular format and summarizes key details that you’ve identified about your positioning. It can also include more strategic elements like your ‘Mission’ and ‘Vision’ that should typically come from the founders or executive team.
In part 4, I’ll discuss a few frameworks for pricing and packaging I’ve found useful over the years.
Meanwhile, if you want to go straight to the source of some of these ideas I’m discussing, check out these books!