Positioning anchors. Why is this critical in establishing an effective product positioning?

THE INTRODUCTION

Hello 👋 Marketing Context Fam!! Welcome to this week’s edition.

In todays edition of startup marketing deep dive we unpack a critical startup marketing process of “defining your positioning anchor”. We will cover:

• Why positioning anchors matters for startup marketer

• Unpack the core concepts

• Look at an example

• Resources

THE CONTEXT

The above statement by April Dunford is spot on and I will take a leaf out it while taking about positioning anchors for very early startups.

Startup positioning is never easy forget the market, the internal turbulence and uncertainty is enough to detail a well defined plan. And the sentence, "Great positioning rarely comes by default" could not have been more true for early startups.

So what makes positioning anchors necessary and also so challenging for early startup and how do we overcome this challenge.

Why it matter?

Positioning anchors for early startups is the foundational step to build a strong positioning within your target market. Therefore, startups should invest in it as early as possible.

This will help in testing and anchoring your communication for:

1. Market and audience:

   • Early validation and stand out from the crowd

   • Build clarity and focus with targeted marketing

   • Develop stronger relationships by shaping user perception

2. Growth:

   • Attract early adaptors

   • Attract investor confidence: Often not talked about and even treated as a taboo and not to be thought of beyond the user yet super critical to scale. 

THE DEEP DIVE

Cracking the core

The DNA of a good positioning anchor is deeply embedded in the needs of the user and your ability to understand their behaviour, environment as well as their process better.

In order to validate the above your positioning anchor has to be framed based on the "As-is" situation of the user in relation to the market

Lets run though the process:

Step-1:

Address the question: Is this the perfect user with the problem that your product can best solve?

Once you have defined this you have arrived at your ICP, then lets move to the next step

Step-2:

Define what is the "as-is" situation of this user. Are they aware of this need/problem?

1. If they are aware of this need what is the "as-is" situation? ( how are they solving their current need? What are the competitor product being used?)- Alternate value positioning ( problem solution led)

2. If no, then is there a need to create a new category or market?. For example launch of phone camera. This was an unaware user need which was created to plug in a feature to a product category which addressed an separate user need: that is to make calls and communicate)- Category creating positioning ( benefit led & technology differentiator)

Once the ideal user and their "as-is" situation has been identified. It is time now to invest on defining the building blocks you positioning anchor

The analysis of the as-is situation and the ICP should provide the answers to the below elements which are the building blocks of your positioning anchor

1. Problem statement

2. Current solutions or lack of it

3. Who are the solution provider ( Existing)

4. The current benefits derived from these solution

5. Gap

6. Sum up what makes you the best alternative

7. What would your positioning anchor be? ( Category creator positioning or alternative value positioning )

Mastering the art.

Once you have identified the "As-is" situation, it is now time to define your anchor

I like to classify the  Anchors in three categories:

• Problem-Aware, Alternative Value Positioning: This applies to situations where the target audience is aware of the problem they face and might already use basic solutions. Your product offers a superior alternative with significant benefits.

• Category Creation Positioning: Breakthrough Innovation: This applies to situations where your product introduces a completely new concept and solution to an existing problem. There are no direct competitors, and you're defining a brand new category.

• Category Creation Positioning: Unrecognized Needs & Education: This applies to situations where the target audience might not even realize they have a problem or the consequences of neglecting it. Your product offers a solution and educates the market about the importance of addressing the underlying issue.

Once you have arrived at the anchor, you can now select one the three ways to lead your product positioning:

1. Problem-solution led

2. Benefit led

3. Technology differentiator or innovation.

Lets illustrate with an example

Consider an early staged  startup in social media management. The platform is designed for busy solopreneurs and small businesses. They are operating in a crowded market with the target audience aware of their problems.
 

Step 1: Understand the Market & Audience

• Problem: Small businesses struggle to manage their social media presence effectively (limited time, resources).

• Competition: Existing social media management tools might be complex or lack specific features.

Step 2: Analyse the "As-Is" Situation

• Problem Aware: Small businesses are aware of the need for social media management but lack the resources.

• Current Solutions: Basic scheduling tools, manual content creation, limited engagement strategies.

Step 3: Choose Your Positioning Anchor

Since small businesses are aware of the need but struggle with existing solutions, we can leverage Problem-Aware, Alternative Value Positioning."

Step 4: Craft Your Positioning Statement

Let's craft a statement that highlights the specific benefits for solopreneurs and local shops. Here's an option:

"Stop social media overwhelm. Our AI-powered tool simplifies scheduling, content creation, and engagement for busy solopreneurs and local shops. Get back to what matters most, growing your business."

The above statement:

• Addresses the problem of feeling overwhelmed by social media management.

• Positions the tool as a superior alternative to existing solutions.

• Focuses on the benefits of simplified scheduling, content creation, and audience engagement.

• Targets the specific audience of busy solopreneurs and local shops.

STRATEGIES IN ACTION

Dissecting the leading startup and their positioning anchor

Understanding user needs, existing solutions, and market conditions is crucial for crafting a compelling brand position. Let's explore how three tech startups leveraged different positioning anchors to create unique value propositions and stand out in the market.

The below examples will showcase how:

• Dropbox used a Problem-Aware, Alternative Value Proposition to address the well-known issue of limited storage with a more convenient and secure cloud solution.

• Airbnb created an entirely new category with Breakthrough Innovation by offering homestay rentals, catering to traveler’s seeking unique and affordable experiences.

• Peloton educated the market about unrecognised needs with Category Creation: Unrecognised Needs & Education. They positioned their interactive fitness bike as a revolutionary solution for engaging home workouts.
  

RESOURCES ON SPOTLIGHT

Resources to understanding positioning for startups

• Positioning for startups: https://review.firstround.com/positioning-your-startup-is-vital-heres-how-to-do-it-right/

• Obviously Awesome by April Dunford: https://a.co/d/adRY1IT