SOFTWARE PRODUCT

POSITIONINGHarris Hunt

UCI Institute for Innovation – Lunch and LearnSeptember 18, 2015

Positioning tells a compelling, attention worthy story – a story that resonates with your audience.

Why is positioning so important?

■ ...for a pitch deck

■ ...for the market

■ ...for the ecosystem

■ …for your employees

■ Positioning relies upon the natural ability of the human brain to simplify and summarize

■ Positioning fills your audience (of brains) with one thing that sticks – a phrase, sentence, jingle or slogan

■ So they remember exactly how to value your company and product

Positioning■ Al Ries and Jack Trout, in their book Positioning: The

Battle for Your Mind, introduce the subject by saying: "[P]ositioning is not what you do to a product. Positioning is what you do to the mind of the prospect.

– That is, you position the product in the mind of the audience.

■ With or without your input, your audience will position your product – perhaps based on faulty perceptions or information from competitors. Clear, concise meaningful product positioning will help you cut through noise in the marketplace, to be heard, accepted and acted upon.

For a Pitch Deck

■ Investors want to hear a one or two sentence value proposition

■ They want to quickly understand the problem your product solves, uniquely, for an addressable market

■ By concisely articulating your value, your solution and your market you are establishing the foundation of a business opportunity

For the Market

■ Buyers want to know who you are and what you’ll do for them

■ They need a reason to listen to you and a reason to believe

■ So, what have you done that’s new, different and compelling ?

■ Now, tell them your story and make it stick !!

For the Ecosystem

■ Enable cooperation

■ Reduce confusion

■ Support pricing

Circa 2010

For your Employees

■ Alignment

■ Belief

■ Marketing Reinforcement

STRA

TEGYEXECUTION

The market-drivenmodel for managing and marketing technology products

Pragmatic Marketing Framework™

STRA

TEGYEXECUTION

The market-drivenmodel for managing and marketing technology products

Pragmatic Marketing Framework™

Product Positioning

Market Problems

Market Definition

Distinctive Competence

Distribution StrategyPricing

Product Portfolio

Competitive Landscape

The better you understand your market and know your competitors, the better you will be at positioning your product

Product Positioning

■ Describe the unmet need your product addresses and how it does so– What is your product or service and what does it do?– What makes your approach compelling and unique?■ Differentiate your product– What has the market missed? What have competitors overlooked?■ Address buying criteria– Speak to the value to be enjoyed by the buyer and user■ Articulate key product characteristics■ Demonstrate key beliefs and goals of the company

Product Positioning

■ Describe what your software and services will do to assist your customers to overcome their problems, improve their operations and meet their goals and objectives

– In other words, what is the "value proposition" of your software and services

■ Establish the category or type of product, and the class of product■ Cover the unique and significant features and benefits of the product

with respect to the target audience's expectations■ Create differentiation from other market participants and competitors,

or■ Define your new market and educate your customers, partners and

employees

Positioning Characteristics

■ Meaningful and Important■ Differentiating and Focused■ Credible and Believable■ Sustainable and Scalable

Positioning Strategies■ Against a Competitor: Positioning your product directly against a competitor’s typically

requires a specific product superiority claim. A memorable example is Avis Rental Cars’ We’re #2. We try harder.

■ Away from a Competitor: Positioning yourself as the opposite of your competitor can help you get attention in a market dominated by another product. A famous example is 7-UP calling itself the Uncola.

■ Benefits: This strategy focuses on a benefit your product provides to your target audience. Examples include Volvo’s emphasis on safety and Crest toothpaste’s focus on reducing cavities.

■ Product Attributes: Highlighting a specific attribute of your product can also be compelling. For example, Ritz Carlton hotels focus on luxury; Motel 6 focuses on economy. 

■ Product Categories: Comparing your product to a product in a different category can be an effective way to differentiate yourself. In a soap-compares-itself-to-lotion example, Palmolive dishwashing liquid claims that it softens you hands while you do the dishes.

■ Usage Occasions: This kind of positioning stresses when or how your product is used by your target audience. Jeep’s focus on off-road driving is an excellent example.

■ Users: Focusing on the unique characteristics of specific users can also be effective. The “____ For Dummies” series of instruction books are attractive to people who want to learn about a topic from a source that doesn’t assume any prior knowledge on the reader’s part.

Source: otmmarketing.com

Positioning Samples■ Houzz is the new way to design your home– We are a platform for home remodeling and design, bringing homeowners

and home professionals together in a uniquely visual community

■ IBM Watson is a cognitive system enabling a new partnership between people and computers

■ Kareo. When your practice runs better, your patients feel it.■ RelayRides is the Airbnb of Car Renting■ Etsy is the eBay for creative goods■ Expedia is an online travel agency■ CrunchBase. The Business Graph, at its core, is the web of

connections between business activities and the people involved in them.

Positioning Samples

■ Pitching and Positioning fun in the Movies – Argo Positioning

A few good books…

■ Positioning: The Battle for Your Mind - Al Ries & Jack Trout■ The 22 Immutable Laws of Marketing – Al Ries & Jack Trout■ The 22 Immutable Laws of Branding – Al Ries & Laura Ries■ Made to Stick – Chip Heath & Dan Heath■ Lead With A Story – Paul Smith■ The Perfect Company – Richard Gallagher■ The Breakthrough Company – Keith R. McFarland

Thank You!

Time for Q&A…