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Product Positioning Framework
April Dunford's "Obviously Awesome" methodology: a structured, repeatable process for defining how your product is the best in the world at delivering something a well-defined set of customers cares a lot about. Positioning determines what customers compare you to, which features they notice, and ultimately whether they buy.
Core Principle
Positioning is not messaging. Positioning is context.
Positioning defines the context within which customers evaluate your product -- what category they place you in, what alternatives they compare you against, and how they judge your value. Customers always evaluate relative to alternatives; there is no absolute product perception -- a product that seems expensive in one context seems cheap in another. Deliberately choose the context that makes your unique strengths obvious: get it right and messaging, sales, and pricing become dramatically easier; get it wrong and no amount of clever copywriting will save you.
Scoring
Goal: 10/10. Rate any product's positioning 0-10 using the bands below, and always state the current score with the specific improvements needed to reach 10/10.
| Score | Description |
|---|---|
| 0-2 | No clear positioning; customers can't explain what the product is or who it's for |
| 3-4 | Vague: category unclear, differentiation weak, target customer is "everyone" |
| 5-6 | Partial: some components clear, others missing; team members describe the product differently |
| 7-8 | Strong: all five components defined, team aligned, customers generally understand the value |
| 9-10 | Exceptional: every component reinforces the others; customers immediately get what it is, why it's different, and why they should care |
The Positioning Canvas
The 10 outputs of positioning, captured in one place. Steps 1-5 build the top five; the rest are derived from them. Every team member should fill this out and arrive at the same answers -- divergence signals misalignment.
| Component | Fill-in Question | Example Answer |
|---|---|---|
| Competitive Alternatives | What would customers use if we didn't exist? | Spreadsheets, consultants, doing nothing |
| Unique Attributes | What do we have that alternatives don't? | Real-time collaboration on financial models |
| Value Themes | What value do those attributes enable? | Save 10 hours/week on financial reporting |
| Best-Fit Customers | Who cares most about that value? | Mid-market CFOs managing 3+ business units |
| Market Category | What market frame makes our value obvious? | FP&A software |
| Relevant Trends | What market dynamics create urgency now? | Remote finance teams need real-time collaboration |
| Positioning Statement | For [target], we are the [category] that [key value] | "For mid-market CFOs, the FP&A platform built for real-time collaboration" |
| Key Proof Points | What evidence shows our claims are true? | Case studies, usage data, third-party benchmarks |
| Sales Narrative | How do we tell this story in a sales conversation? | Problem -> old way -> new way -> our solution -> proof |
| Messaging | What external headline derives from positioning? | "Financial planning that keeps up with your business" |
See references/positioning-canvas.md when filling out the canvas for a real product -- it has the blank template plus three fully worked examples (B2B SaaS, consumer app, professional services).
The 5-Step Positioning Process
Step 1: Identify Your Competitive Alternatives
Core concept: Understand what your best customers would do if your product vanished tomorrow -- not just direct competitors, but any way they solve the problem today: manual processes, spreadsheets, hiring someone, or doing nothing.
Why it works: Customers always evaluate products relative to alternatives, so "differentiated" only has meaning against the real alternatives in your customer's mind.
Key insights:
- Interview 15-20 existing happy customers, not prospects -- they can tell you what they actually switched from
- The most common alternative is often not a product -- it's a spreadsheet, a manual process, or the status quo
- "Do nothing" is your biggest competitor in many markets
- Group similar alternatives ("general-purpose spreadsheets" rather than Excel, Sheets, Numbers)
- Different customer segments may have different alternatives
Product applications:
| Context | Application | Example |
|---|---|---|
| New product launch | Interview early adopters on what they used before | "70% used spreadsheets, 20% a generic PM tool, 10% hired contractors" |
| Repositioning | Survey churned and retained customers | Retained customers compared you to consultants, not software |
| Competitive analysis | Map alternatives by segment | Enterprise compares to Salesforce; SMBs to spreadsheets |
Copy patterns:
- "Unlike [competitive alternative], [product] does [unique thing]"
- "Stop using [painful alternative] for [job]"
- "You've outgrown [alternative]. Here's what comes next."
Ethical boundary: Base alternatives on actual customer research, never assumptions or wishful thinking.
See references/competitive-alternatives.md when preparing or running the customer interviews -- it has the full question script, the five alternative types, clustering, and "do nothing" analysis.
Step 2: Identify Your Unique Attributes
Core concept: List every attribute -- feature, capability, company characteristic, or approach -- that you have and your competitive alternatives don't. They must be both unique AND true.
Why it works: Unique attributes are the raw material of differentiation: if it isn't unique it can't differentiate you, and if it isn't true you'll lose trust.
Key insights:
- Look beyond features: architecture, business model, team expertise, integrations, community
- "Better" is not unique -- "10% faster" doesn't qualify; "a fundamentally different algorithm enabling real-time processing" might
- Every attribute must survive the "only we" test: "Only we [attribute]"
- Attributes are facts about your product; benefits are what customers get from them -- don't confuse the two
- Cluster related attributes into groups (they become value themes in Step 3)
Product applications:
| Context | Application | Example |
|---|---|---|
| Feature launch | Check if it creates a unique attribute | "The only PM tool with built-in time-zone-aware scheduling" |
| Competitive response | Re-verify uniqueness after competitor updates | Quarterly attribute audit against top 5 alternatives |
| Acquisition | Identify which acquired attributes are unique | "Their NLP engine processes medical terminology -- no other EMR does" |
Copy patterns:
- "The only [category] that [unique attribute]"
- "Built from the ground up to [unique capability]"
- "No other [category] can [unique thing] because [reason]"
Ethical boundary: Never claim attributes that aren't genuinely unique -- if a competitor has it, it's table stakes.
See references/unique-attributes.md when running the attribute-discovery workshop -- it has the elicitation process, the "only we" verification, and clustering into themes.
Step 3: Map Attributes to Customer Value
Core concept: For each unique attribute, apply the "So what?" test repeatedly until you reach a value customers actually care about, then group related values into two or three value themes.
Why it works: Customers buy outcomes, not features -- an attribute is meaningless until you articulate why it matters in the customer's terms. Value themes give your positioning narrative structure and make it memorable.
Key insights:
- The "So what?" chain: Feature -> Advantage -> Value ("Real-time collaboration" -> "finance teams work simultaneously" -> "close the books 3 days faster each quarter")
- Express value in the customer's language, not internal jargon
- Most products support 2-4 value themes -- more means unfocused positioning
- Back every theme with proof points: case studies, data, testimonials
- Themes usually cluster around saving time, saving money, reducing risk, enabling growth, or improving quality
Product applications:
| Context | Application | Example |
|---|---|---|
| Messaging development | Build hierarchy from value themes | Primary: "Close books 3x faster." Secondary: "Eliminate version-control errors." |
| Sales enablement | Talk tracks per theme | Each theme becomes a pitch section with proof points |
| Content marketing | Content pillars from themes | Blog series, whitepapers, webinars organized by value theme |
Copy patterns:
- "[Value outcome] with [product], powered by [unique attribute]"
- "Our customers [measurable outcome] because [unique capability]"
- "[Number]% of customers report [value] within [timeframe]"
See references/value-mapping.md when running the "So what?" chain on attributes -- it has the full Feature->Advantage->Value walkthrough and proof-point creation.
Step 4: Define Your Best-Fit Target Customers
Core concept: Identify the characteristics that make someone care the most about the value only you deliver -- the tightest possible definition of who your product is perfect for right now, not your total addressable market.
Why it works: Best-fit customers buy fastest, churn least, refer most, and expand most; nail positioning for them and it expands outward naturally. Their testimonials and case studies are also the most compelling.
Key insights:
- Characteristics must be identifiable before you talk to the customer: job title, company size, industry, tech stack -- not psychographics
- Work backward from your happiest, most successful existing customers
- "Everyone" is never a valid target -- even horizontal products have best-fit segments
- Best-fit is not necessarily the biggest market -- it's the most reachable, convincible, and retainable
- Define negative criteria too: what indicates someone is NOT a fit
Product applications:
| Context | Application | Example |
|---|---|---|
| Go-to-market strategy | Launch to the best-fit segment first | "Series B-D SaaS, 50-500 employees, dedicated RevOps person" |
| Sales qualification | Score leads on best-fit criteria | +20 RevOps title, +15 SaaS industry, +10 for 50-500 employees |
| Product roadmap | Prioritize best-fit requests | "Best-fit customers all ask for Salesforce integration -- build it next" |
Copy patterns:
- "Built for [specific customer type] who [specific situation]"
- "If you're a [role] at a [company type], you know [pain point]"
- "Purpose-built for [segment], not a generic tool adapted for everyone"
Ethical boundary: Best-fit definition is about focus, not exclusion -- never denigrate other segments.
See references/target-customers.md when defining best-fit criteria -- it has the actionable-segmentation tests, negative criteria, personas, and how best-fit differs from TAM.
Step 5: Choose Your Market Category
Core concept: Select the market frame of reference that makes your unique value most obvious. Three strategic options: compete head-to-head in an existing category, create a subcategory, or create a new category.
Why it works: The category triggers assumptions in the customer's mind about what your product does, who it competes with, and how it should be priced -- the right category leverages those assumptions in your favor; the wrong one fights them.
Key insights:
- Head-to-head: claim "best" in an established category customers already understand; you inherit all its assumptions and competitors
- Subcategory: redefine how a slice of an existing category is evaluated ("CRM for real estate") -- built-in awareness with shifted criteria
- New category: only when genuinely unlike anything existing; you pay an "education tax" teaching customers the category before they can evaluate you
- Changing category changes everything: competitors, evaluation criteria, pricing and buyer expectations
- Test the choice: do prospects "get it" in the first 30 seconds of a conversation?
Product applications:
| Context | Application | Example |
|---|---|---|
| Startup positioning | Choose initial category | "AI writing assistant" (existing) over "content intelligence platform" (new) |
| Market expansion | Shift category as product matures | "Email marketing tool" -> "customer engagement platform" |
| Competitive response | Reframe when competitors flood your category | "Project management" -> "product development workflow" |
Copy patterns:
- Existing: "The best [category] for [best-fit customers]"
- Subcategory: "[Modifier] [category] -- [category] reimagined for [specific need]"
- New category: "Introducing [new category]: [one-sentence definition]"
Ethical boundary: Don't create a new category purely to avoid competition -- only when your product genuinely can't be understood within existing frameworks.
See references/market-category.md when choosing between head-to-head, subcategory, and new category -- it has the decision framework and the education-tax analysis.
Market Reference Points
Trends act as tailwinds: a real, widely acknowledged trend that connects directly to your unique value makes positioning feel timely and inevitable rather than arbitrary. Use trends as supporting evidence, never the core of your positioning. Example: "As finance teams go remote, real-time collaboration isn't a nice-to-have -- it's essential."
Warning signs of trend abuse: your positioning only makes sense in light of the trend; the trend connects to no unique attribute; the trend is aspirational rather than actually happening.
Team Positioning Exercise
Positioning requires cross-functional alignment: include founders (vision), product (unique attributes), sales (objections and alternatives), marketing (category and messaging), and customer success (best-fit evidence). Run it in three parts: pre-work gathering customer research and win/loss data (1-2 weeks before), a 2-3 hour workshop walking all five steps to consensus, and post-work documenting the canvas and aligning customer-facing materials. The most important output is alignment -- everyone describing the product the same way.
See references/team-exercise.md when facilitating the workshop -- it has the minute-by-minute agenda, pre-work checklist, and remote adaptations.
Common Mistakes
| Mistake | Why It Fails | Fix |
|---|---|---|
| Positioning for everyone | Dilutes differentiation; no one feels it was built for them | Tighten best-fit definition to the segment that cares most |
| Confusing positioning with messaging | Words without strategy sound good but don't resonate | Do the positioning work first; derive messaging from it |
| Listing features instead of value | Customers buy outcomes; feature lists overwhelm | Apply the "So what?" test until you reach customer value |
| Copying competitor positioning | Invites direct comparison on their terms | Build positioning from attributes only you can own |
| Changing positioning too frequently | Confuses customers, sales, and market | Commit for 6-12 months; adjust messaging more often |
| Creating a new category prematurely | Pays the "education tax" without resources to educate | Start in an existing category or subcategory; create new only with traction and resources |
| Ignoring competitive alternatives | Differentiation exists in a vacuum | Run the Step 1 happy-customer interviews about what they used before |
Quick Diagnostic
| Question | If No | Action |
|---|---|---|
| Can every team member describe the product the same way? | Positioning isn't aligned | Run a team positioning exercise |
| Do prospects understand what you do in under 30 seconds? | Category is wrong or unclear | Re-evaluate your market category choice |
| Can you name 3 things you do that no competitor does? | Weak unique attributes | Deep-dive attribute discovery with customer input |
| Do you know what customers would use if you didn't exist? | Unknown competitive alternatives | Run the Step 1 happy-customer interviews on alternatives |
| Can you articulate why best-fit customers choose you? | Value themes are unclear | Run the "So what?" mapping exercise |
| Is your best-fit definition specific enough to target proactively? | Target is too broad | Analyze best customers for common actionable characteristics |
See references/case-studies.md when you want a worked precedent to model a real engagement on -- it walks through repositioning wins, niche discovery, and category creation end to end.
Further Reading
- Obviously Awesome by April Dunford — The definitive guide to product positioning
- Sales Pitch by April Dunford — How to translate positioning into a winning sales narrative
About the Author
April Dunford is a positioning consultant who has worked with over 200 companies, including Google, IBM, Postman, and Epic Games, after 25 years as a startup VP of Marketing. Her book "Obviously Awesome" (2019) codified the repeatable positioning methodology that became the industry standard; the follow-up "Sales Pitch" (2023) extends it into sales conversations.
