Profit Centre
Engineer systems that enable the capacity to focus time and resources on evolving trade secrets that differentiate you from the competition.
Content
- Positioning
- Product: Developing and managing products to meet market needs
- Marketing: Promoting products and attracting potential customers
- Sales: Directly selling products or services to customers
- Journey: Integrating new customers and ensuring their satisfaction
- Scoreboard
Related
Positioning
Positioning defines how your product is the best in the world at delivering something some value that a well-defined set of customers cares a lot about.
Finding the right positioning and pricing strategy is an ongoing process that requires alignment across the entire organization and careful consideration of market dynamics.
Importance of Positioning
Everyone in your organisation should be crystal clear on how you (intend to) deliver value and how their contribution impacts that cause.
- It's the foundation upon which marketing and sales are built
- Complex and expensive products require a sales force and a trojan horse strategy to build relationships and prove credibility.
- Marketing drives education and repeated sales (retention) for relatively inexpensive consumer goods
- Crucial for standing out in crowded markets with many choices
- Helps customers understand what a product is and why they should care
Components of Positioning
- Competitive alternatives
- Differentiated capabilities
- Value those features deliver
- Target customers who care about that value
Insights
- Pricing and positioning are deeply interconnected
- Pricing isn't just about finding the right price point; it reflects the perceived value of your product in the market.
- Strong positioning is the foundation for effective pricing strategies.
- Positioning is often neglected but crucial
- Many founders focus on building features and neglect positioning, treating pricing as an afterthought.
- Clear positioning differentiates your product in a crowded market and supports your pricing strategy.
- From product-market fit to position-market fit
- Position-market fit is about how your product occupies a specific place in customers' minds.
- Companies like Slack and HubSpot achieved this by creating distinct brand associations.
- Bifurcated outcomes in abundant markets
- In markets with many options, products tend to succeed either as premium choices or cost-effective alternatives.
- There's little interest in middle-ground offerings, making strong positioning crucial.
- Pricing strategies and equilibrium
- Companies operate in a state of equilibrium where all aspects (product, branding, pricing) are aligned.
- Changing one element without adjusting others can disrupt this balance and lead to failure.
Takeaways
- Positioning should drive pricing decisions, not the other way around.
- Successful positioning requires continuous iteration and customer feedback.
- Changes in pricing or positioning need to be holistic, considering impacts across the entire business.
- Achieving the right positioning and pricing is challenging but necessary for sustainable growth.
Questions
How do we make ourselves look different and feel valuable to the people that encounter us?
- What do we stand for?
- What is our critical function?
- Who do we appeal to?
- Who is our target audience?
- Where can we engage with them best?
- How do we present ourselves?
- How do we differentiate ourselves?
Scoreboard
| Discipline | JTBD | Performance | Platform | Protocols | People | Automation |
|---|---|---|---|---|---|---|
| Product | JTBD Research | - | - | - | - | - |
| Product | Development | - | - | - | - | - |
| Marketing | Ideal Customer | - | - | - | - | - |
| Marketing | Competitor Analysis | - | - | - | - | - |
| Marketing | Pricing | - | - | - | - | - |
| Marketing | Content Strategy | - | - | - | - | - |
| Marketing | Publicity | - | - | - | - | - |
| Marketing | Email Strategy | - | - | - | - | - |
| Marketing | Digital Assets | - | - | - | - | - |
| Sales | Validation | - | - | - | - | - |
| Sales | Distribution | - | - | - | - | - |
| Sales | Conversion | - | - | - | - | - |
| Customer Success | Onboarding | - | - | - | - | - |
| Customer Success | Journey Support | - | - | - | - | - |
| Customer Success | Offboarding | - | - | - | - | - |
Identify all processes that impact profits, including any sub-processes that are linked directly to your capability to distribute your products to customers.
- The development or creation of the final product or service
- The marketing of the above product or service
- Customer onboarding and post sales support