Positioning

Concept

The work of deciding what place a product occupies in a customer's mind, which comes after the target has been chosen.

Why it exists

Customers don't choose by laying out a feature table. The moment they hear a name, they set it beside something they already know, and judge its price and capabilities against that neighbor. If the seller doesn't decide that neighbor, the customer picks one. The neighbor prices the product before anyone reads the price.

Pagedeck ran into it. In a meeting a customer asked whether it was a notes app. Placed beside notes apps, the comparison becomes a free tool for one person, and against that, $10 per person per month looks expensive. Placed beside team document tools, the same price looks cheap.

Positioning is deciding that neighbor first. You settle which shelf the product sits on and what it gets compared against, then pick the one thing only you have in that spot.

How it works

It starts after segmentation, dividing a market into groups with similar character, and targeting, choosing which of those groups to go after. Without a settled target there's no place to decide. Four steps.

  1. List the alternatives. Not just competing products. Everything the customer currently does about the job counts — getting by with a spreadsheet, and doing nothing at all. The last one is usually the strongest competitor.
  2. Pick the one thing that differs from those alternatives. Pick two or more and the customer can't settle what to remember.
  3. Attach the evidence. Support the difference with a capability or a structural fact. A difference with no evidence reads as an advertising line.
  4. Use the same words for that place across every channel. When the landing page, the proposal, and the job posting point at different shelves, no place gets established, and the customer falls back on their own guess.

A place doesn't exist because you declared it; it gets confirmed in the customer's head. So after deciding, you listen in meetings for what customers actually compare you against. That listening is the only measurement this stage has.

How it sounds at work

"Customers see us as a notes app. The positioning hasn't landed."

The place customers assign differs from the intended one.

"Don't list only competitors as alternatives — put the spreadsheet in there."

Everything the customer does about the job is an alternative.

"Targeting isn't finished. We can't do positioning first."

This stage comes after the target is set.

After that meeting, Pagedeck reset the place. They listed three alternatives: personal notes apps, internal wikis, and the current practice of passing documents through chat. What they picked as the difference was that none of the three lets a team confirm together whether each document is current. From the next meeting on, Sofia opened with that place, and the notes-app question stopped coming up.

Easily confused with

TermWhat it isHow it differs
Product positioningThe place one product occupiesThe same work named at the product level
Positioning statementThe sentence holding the conclusionThe output of the activity. A sentence without the activity is something invented in a room
Value propositionThe sentence shown to customersDrawn from the place once it's set. It goes outward, so it's written short

Where to go next

  • STP

    see which sequence this stage closes

  • Segmentation

    see the work that comes before it

Last updated 2026-09-16