The Voice of Demand

Posts Tagged ‘positioning’

Studeo

As B2B technology companies leave the early stage of incubation and product development they often struggle with identifying the best market for their offering.   Misalignment between a company’s solution and the needs of the market is the number one reason for failure.   In Tim Draper’s recent post on why startups fail many of the reasons had to do with understanding the market.

  • They aim too high.  A successful start up identifies a narrow niche and expands.
  • They go after too small a market
  • They don’t charge enough, i.e. the benefit isn’t compelling
  • They get broadsided by incumbents, i.e. the point of differentiation isn’t clear

To succeed companies need to simultaneously answer three critical questions:

  1. Who is our customer?
  2. What do they need that we offer?
  3. Why is our answer distinct and better than other options?

In a nutshell it comes down to positioning and branding - the art and science of defining the best opportunity for success.   This is what we as marketers do.

Studeo

Know When to Create a Category

February 27th, 2009 - By Anthony

As an agency, we’re often presented with products that are looking for help in finding their voice.   There are several ways this may show itself:

  1. It may come across as another ‘me too’ product, or
  2. It tries to fight the incumbents on pre-established terms and ground rules, or
  3. It thinks it is the answer for everyone, or
  4. It doesn’t clearly know where it fits.

Most of the time a brand can work within an existing category through positioning and appropriate messaging.  Because consumers prefer some choice there’s almost always room for a strong number 2 or 3.

But sometimes the product appears to be something new and different - deserving of the chance to create a category all its own.   But what are the elements that drive a successful category?   How can we identify a potential category-creator?   There are three elements we look for:  Ideas, Insights and Innovation.

  • Idea:  The product is new or different; it defies easy comparison to established brands.  “It’s close to ____ but not really.”   It does something different than what we would expect for the category, e.g. Curves or Online Law Schools.
  • Insight: The difference has real value to a group of people.   And this group isn’t likely who we thought at first.  “You know who really needs this, its __________”.   The ah ha moment where the right audience becomes clear; e.g. ‘law school is not just for lawyers’.
  • Innovation: The functionality, delivery mechanism and business model have to be different; or at least 2 out of 3.  If not, the 800# gorilla will make their category bigger by swallowing the product up.   It must be painful for incumbents to compete.

These three elements often present a challenge to established brands and companies.   New companies are much better suited to find their niche; although they may be challenged to execute.   Established brands can execute but their legacy retards change.