A History of Marketing / Episode 50
Fifty episodes felt like a milestone worth marking. So I wanted a guest who was, well, obviously awesome.
April Dunford is the authority on positioning for B2B tech companies and the author of the updated and expanded edition of Obviously Awesome. Iâm a huge fan of Aprilâs work and frequently reference her book, her blogs, and her frameworks in my daily work as a marketer.
Aprilâs premise is provocative: positioning cannot live in the marketing department alone.
She argues that if the CEO, sales, and product leads arenât in the room providing input, marketing is left guessing about what makes the product special and who it is actually for. Without their buy in, marketing will inevitably lose the âbattle of opinions.â
In this conversation, we discuss:
* Building on Ries & Trout: The positioning pioneers defined the concept in their 1981 book, but they didnât give a how-to manual. April does.
* The death of the âpositioning statementâ: Why filling out a template is not a methodology.
* Blind men and the elephant: How sales, product, and marketing departments each hold a different piece of the puzzle.
* Skip the parts people donât read: April discovered that CEOs donât finish books, so she cut her manuscript in half.
April is one of the most persuasive and grounded thinkers in the field. Hereâs my conversation with April Dunford.
Listen to the podcast: Spotify / Apple Podcasts
Special Thanks to Xiaoying Feng, a Marketing Ph.D. Candidate at Syracuse, for reviewing and editing transcripts for accuracy and clarity.
The Origin of April Dunfordâs Positioning Framework
Andrew Mitrak: I have a confession to make. Every time I join a new company, among the first things I do is I visit aprildunford.com and I enter my new email address and I download one of your positioning templates. You probably have several of my old corporate email addresses cluttering your mailing list. Sorry about that.
April Dunford: I appreciate you jacking up my newsletter subscription numbers.
Andrew Mitrak: And a big fan of your work and I want to say congrats on the updated and expanded edition of Obviously Awesome.
April Dunford: Thanks. Iâm super excited to get it out there.
Andrew Mitrak: For this conversation, I wanted to start back before you became the go-to expert on positioning, and when you were coming up in your career, when did you first encounter the concept of positioning?
April Dunford: Thatâs a good question. Pretty early, actually. My first real job in tech was at a little startup and I was brand new and junior, they assigned me to a product and the thinking was that product wasnât doing very well and the plan was to shut it down. This is why I got assigned to it as the product marketer.
We didnât end up shutting it down. What we ended up doing was looking at gathering some feedback from people that were using the product, and then we got an idea to reposition it. We didnât know it was called positioning, we thought we were doing, weâre just doing a Hail Mary thing to see if we can make this unsuccessful product successful doing something slightly different.
We repositioned it, relaunched it, and it was super successful. Revenue started going up to the right, everybodyâs happy, weâre making a lot of money on that product.
And then we got acquired by a big company in California and the big parent company assigned us a couple of products that werenât doing very well and then said, hey, do that thing you did with the other one. I didnât have really any idea what we did with the other one. I was worried about getting fired, I thought, okay, I better figure this out.
I did a deep dive into positioning. I figured out, A, this is what itâs called. B, I had a lot of conversations with smart marketers asking them about, how do you do positioning? If you were in this situation, what would you do? Do you have a strategy for that or a methodology for that?
I also read a bunch of books. Thereâs the classic positioning book, Positioning: The Battle for Your Mind by these guys Ries and Trout, written in the early 80s, but even back then was considered the book on positioning. And then I took a couple of courses and some post-grad stuff at a couple of universities just learning about positioning.
I dumped into this whole positioning thing pretty early in my career, and I was really interested in this idea, could we get a way to do positioning in a really repeatable manner so that we wouldnât have this problem of, we launched the thing and it didnât work and then now weâve got to try and change it. Could I get to a point where there is a process for us to follow to, first of all, maybe do a better job guessing at what the positioning should be in the first place, and then secondly, if we do need to change it, is there a nice repeatable step-by-step thing we could follow to do that.
Is Product Positioning Intuitive or Learned?
Andrew Mitrak: You initially positioned or repositioned a product without even knowing what positioning was or knowing that it was called positioning that you were doing. And then you went to look at the literature. Whatâs your takeaway from that? Does that reveal to you that the fundamentals of positioning are somewhat intuitive or can be learned, or do you feel it was just dumb luck really? Or do you feel there were parts of it where this is just obviously the right thing to do for the product? How do you overall think about, can positioning sort of just be an intuitive thing, or is it best to look at the literature thatâs out there?
April Dunford: Sometimes it is really intuitive. I would say thatâs true. I would say a lot of the time when I talk to founders, theyâll talk about how they built the product in the first place, and theyâll be, we saw this need, we had this idea, we could do this in a different way than the existing products that are out there.
And we looked at it, we understood what the competition was, we built a thing that was demonstrably different, we understood what the value of that thing was because it was solving our own pain, we understood what kind of customers would want to buy that, and therefore what market we position in. Itâs just, it is what it is, itâs super easy. And I think that happens a lot in the early stages of a company. Not for everybody, but I do think it happens a lot.
However, what also happens a lot is if you fast forward two or three years, the marketâs changed. Maybe your competitors caught up with you and the thing that made you really different isnât different anymore. Or maybe the way people buy or what they want to do has totally changed. Or maybe your competitors did an acquisition and that changes the whole way everybody thinks about this market.
Or maybe you and your product have changed, and you now do a whole bunch of other stuff that you didnât originally do, and that enables you to get at a different kind of customer to deliver a different kind of value. Now how do you position it? Thatâs where people get messed up. Sometimes it can be quite intuitive at the beginning, but then a whole bunch of things change and itâs, okay, now the positioning needs to shift. How do we do that? Because we didnât do anything the first time, it was just obvious. I think that happens a lot.
The other thing that happens a lot is you have this thesis when you launch the product and you said, okay, we saw this problem and this is what itâs gonna be and these kind of people are gonna love us for these reasons and hereâs the competitor. Then we launch it, and it turns out our thesis was incorrect.
We get out there and weâre, man, we launched this thing and we thought banks were gonna love it, but it turns out weâre selling to insurance companies, we didnât really build it for that, but theyâre buying it like crazy. Now weâre in the insurance business, hello. And they love it, but there are some things they donât love so much, and theyâre comparing us to competitors we never really thought about. How do we position this thing because we thought it was gonna be something else.
And this is not unusual, to be honest. We call that a pivot in lean startup language. Itâs not unusual for a company to build something for one market and then get in the market and find out, whoops, the marketâs a little bit different than we thought. People are looking at our product a little bit different than we thought. Weâre getting pulled into another market, so how do we position for that? And again, thatâs when having a methodology for this would be helpful.
The B2B vs. B2C Divide in Positioning
Andrew Mitrak: You did your positioning exercise initially and then went to the books, went to Ries and Trout and the others. Do you find yourself as youâre reading the literature on positioning, was it confirming what you did, oh, thatâs what we did was called, or was it saying, oh, were there things that youâre, oh, I wish I had known that to start, or what was the discovery process for reading?
April Dunford: No. And I was so mad about this. Hereâs how this went. I went and Iâm having all these conversations with people, Iâm talking to all these smart heads of marketing, right? And Iâm saying, how do you do this positioning thing? What do you do? And everybodyâs doing it the way we did it, which was a little bit of trial and error, a little bit of getting some feedback from customers, a little bit of, letâs try this and if it doesnât work weâre gonna adjust. A bit of messing around until you get something that works.
And that feels terrible when youâre the head of marketing because your headâs on the block, man. And if you donât figure it out fast enough, everyoneâs gonna get mad and youâre gonna get fired. And that was unsatisfying.
And then I took some courses and read the Ries and Trout book, which does an amazing job of defining hereâs what positioning is, hereâs why itâs important. And then they give you a whole bunch of examples. But the examples arenât tech, this thing was written before the internet, man. I think they have printers, HP printers or something is the closest thing in there, not even software. And Iâm selling databases, and theyâre talking about repositioning the country of Jamaica, and Iâm, this is different.
Andrew Mitrak: It is also very B2C oriented. I think the examples are Avis or Coors or beer. Do you find that both because of the tech gap with it and maybe the B2C bias that you as a B2B tech company...
April Dunford: The B2C bias is killer in this stuff. I took a bunch of courses too, and it was the same thing in the courses. All the examples were shampoo and toothpaste and makeup, and Iâm, again, Iâm selling 200 grand worth of database stuff to really smart technical people. I donât think this is the same. Itâs selling a vacuum cleaner. And I thought the B2C bias is terrible.
The other thing that you get in B2B tech that you donât get in consumer is think about it. If I got toothpaste and Iâm selling that toothpaste or hair shampoo to people that have dry hair or people that have dyed hair or something like that, right? And then if I decide Iâm going to do a shampoo for babies or a shampoo for old ladies or a shampoo only for people with very, very curly hair, usually what youâd do is you wouldnât take the same product and try to evolve it into that market. You would launch a whole different product and say, Iâve got this other thing, and thatâs for the curly hair people, and this oneâs for babies, and this oneâs for people that dye their hair, whatever.
Whereas in tech, it is very normal for us to launch a product in one market and then reposition it a whole bunch in the future. Letâs take Salesforce. When Salesforce first launched, they were aimed at the very, very bottom end of the market. Their initial deal was they were focused on companies that had sales teams of less than 10 people and the first three seats were free. And why were they doing that? Because the top part of that market was absolutely dominated by a great big competitor, and they didnât want to go compete there. So they started at the bottom.
But guess what? They inched their way up, and by the time they got to the mid-market, the big competitor had self-destructed and they were gone, and the top end of this market was wide open. And if you look at Salesforce right now, would you say thatâs a product for very, very small businesses? No way, man, too expensive, too complicated, too everything. We just donât have that in consumer products where youâre, it used to be this thing and now itâs this other thing and now itâs this other thing.
The other thing that youâve got in B2B is that the positioning matters a lot because the stakes are really high. Especially if Iâm looking at enterprise software, the stakes are huge. Youâre going to make a recommendation to your boss to buy 200 grand worth of software. You make a shortlist. You donât just walk into the store and pick the thing off the shelf and say, oh well, if I got it wrong, I just wonât buy that one again. Youâre going to get fired if you make the wrong choice. You got to make a shortlist, and itâs positioning that makes or breaks whether or not youâre going to get on that shortlist.
And then once youâre on the shortlist, you got to survive long enough for them to take a real good look at your stuff. And if you get eliminated because often the shortlist is five, six companies these days or more, depending on whose data you believe. But letâs say thereâs a shortlist of six, seven companies, you got to make it to top two. Otherwise, you donât get considered. Your positioning is really important in that because the company hasnât done a big deep dive into all your stuff yet. We just donât have this in consumer. We donât go out and buy a pair of shoes and make a shortlist and have a six-month process to figure out which one weâre gonna buy. We go out and we buy it and if it stinks, we just donât buy that one again.
Navigating the B2B Buying Committee
Andrew Mitrak: One of the other elements as well from B2C versus B2B is often in B2B the buying decision maker or the buying committee is not the end user of the product, right? And thereâs this abstraction between that. And thatâs the other element is how do you market to both the end user and the decision maker.
April Dunford: Yeah, that happens a lot in B2B. The economic buyer is often distinct too, right? What you have is this committee of people and youâve got someone whoâs what we would describe as the champion. And that champion, usually itâs their boss or someone that said, look, we gotta buy a new accounting package, buddy, go figure it out. You go figure it out, look at all the accounting packages and tell us which one to build, which one to buy. And then that champion is gonna go do their homework, so your positioning really matters for that person.
But the champion also has all of these stakeholders around them that have to agree, otherwise the deal doesnât get done. If the champion, letâs say the champion is on the business side and weâre buying technology, usually they got to go to IT and make sure IT is okay with it. IT canât make the deal happen because theyâre not in charge of selecting, but they can kill a deal by saying, oh I donât like it, itâs too hard to manage, it doesnât integrate with the stuff we have now, it doesnât meet our compliance regulations, whatever, whatever, right?
Same thing with end users. Often the end user is not an end user making this purchase decision, but they can have a big influence in that. If they look at it and say, well the UI is this and this is terrible, weâre never going to get people to be able to use this thing, weâre going to kill it. Or sometimes theyâll do a pilot with some end users, and if the end users give it the thumbs down, then itâs no good.
And then you got to run it up to the economic buyer, which is generally another person too. And a lot of companies get really messed up with that and theyâll say, well the person that signs the check is the CRO, so thatâs the buyer. And itâs, yeah, but the CRO assigned the whole purchase process figuring out who to buy to somebody underneath them. So you better figure out who that is because the CRO just says yes to whatever that other person suggests.
We donât have that again in B2C. This isnât it. Sometimes in B2C stuff where itâs complicated, letâs say youâre buying insurance or youâre buying a car or youâre buying a house. Maybe thereâs a spouse involved, maybe thereâs a financial planner involved, maybe you get a little advice, but itâs nothing like what a typical enterprise B2B purchase process looks like. It is way more complicated.
The Critical Distinction Between Branding and Positioning
Andrew Mitrak: When you write about positioning, you make a hard distinction between branding and positioning, and youâve written that youâre not a fan of the term brand positioning, which is a phrase you hear sometimes. Why do you draw a line between the two or how do you make this distinction?
April Dunford: Well, hereâs what I think. I think marketers like to make stuff up. I think marketers like to just redefine something for the sake of redefining it. And branding is probably the most poorly defined marketing term I can think of. When you say branding, you really gotta say, okay, what do you mean when you say branding?
At most of the enterprise B2B companies that I worked at, when we talked about branding, the brand of the company was a lot about how we showed up in the market in terms of, what was our tone of voice? What was our iconography look like? It was a bit like what was the vibe of us when we showed up? What were the fonts and the colors and the pictures we used, and the way we did messaging and text, tone of voice stuff. That was all kind of branding, which is very different from positioning.
Positioning is an input to that. If the big value of, letâs say I sell security software to banks, right? My branding should convey a lot of trust and solidness and authority because thatâs what weâre trying to convey. If Iâm selling software for daycares, maybe I can get a bit more playful because Iâm talking about kids and moms and things. And I could use different colors and more playful images and maybe a bit more casual tone of voice and all that kind of stuff.
And so in my opinion, positioning should inform what the branding looks like. But now Iâve seen other people define branding in a way that it includes all the things that I would call branding, and it also includes positioning, and weâre going to just kind of munge those two things together. Thatâs okay, if thatâs the way you want to define it, but I still see those two things as being distinct. You got to do the positioning thing first, and then the branding thing flows from that.
Why Positioning Must Go Beyond the Marketing Department
Andrew Mitrak: And is this somewhat related to how you argue that positioning should not just be a marketing exercise? That if the CEO and sales leads arenât in the room, that the positioning wonât stick. Is that tied to why positioning is different than branding, is that itâs beyond marketing?
April Dunford: Definitely, itâs definitely not just marketing, right? What weâre trying to do with our positioning is we are trying to define why should a customer pick us versus the other guys. And we need to think about, first of all, who are the other guys? Whatâs the alternative to what we do? And we should all be in agreement on that. Sales should understand that, marketing should understand that, CEO, product should understand that. We should all understand what makes us distinct and the value we can deliver to a business that no one else can.
We need to get that in marketing, product management needs to understand that, sales needs to understand that. And then we all need to understand whoâs a good fit for that, which is what are the kinds of companies weâre trying to target and therefore whatâs the market that we intend to dominate. That is a strategic set of decisions in a way, and itâs very easy for teams to get out of alignment on that.
Itâs very easy for sales to decide, weâre just going to sell to these big companies because we like doing these big deals, man. We need to decide, is it worth chasing those big deals? Are we actually going to win them? Or are we more likely to win if weâre chasing a deal in the mid-market, for example? Again, I think this is, we get this distinction between B2B and B2C. In B2B, when Iâm selling a big ticket thing and thereâs a shortlist of companies to look at, we really need to understand what makes us stand out and what makes us different so that we can help the whole buying team understand what that is and move this deal along.
If Iâm just selling toothpaste, or makeup or a T-shirt, it often has nothing to do with the product and it has more to do with pure branding, right? This thing is going to make you look rich or, the Kardashians wear this thing so you should too or something.
Whereas, itâs not like itâs all totally rational when weâre buying enterprise software, we donât, thereâs often quite a bit of irrationality in there in that the champion is worried about making a bad choice. The champion will often default to a really safe choice because itâs not going to get them in trouble. Or if the champion has an opportunity to look like a hero, they might take that too because itâs good for them personally.
Itâs not like itâs all totally rational, but at the end of the day, they do have to make a case to their boss. And that case has to say, look, we looked at the other things and we picked this thing for these reasons, and the reasons are narrow. This is either going to help you make money or is going to help you save money and thatâs about it. We got to make that stuff super, super clear. Whereas, youâre buying a T-shirt with your own money, itâs fine. Maybe if youâre a teenager you gotta complain to your mom, but⊠[Laughs]
Andrew Mitrak: [Laughs] Totally.
The Conflict Between Sales, Product, and Marketing in B2B Tech
Andrew Mitrak: So Iâve also spent most of my career in B2B tech and on marketing teams, and whenever I run through positioning, I do find that thereâs this issue where we have a number of stakeholders in product, and they tend to be biased towards product-led growth or if there is some land-and-expand model or some freemium model, they are biased towards what product can influence as far as growth is. And sales almost always is not interested in land-and-expand. They want big-ticket deals. They donât hit their quotaâ
April Dunford: I think it feels good to land a big deal if youâre in sales. I think that feels good.
Andrew Mitrak: Exactly, exactly. And they want marketing to support that positioning. Marketing, we have our own ideas and customer research as well on what we think.
April Dunford: Well, we like the onesâwe like the market thatâs the easiest to respond to our marketing stuff, which is often terrible leads too.
Andrew Mitrak: Right. Thatâs an issue.
April Dunford: We love time waster leads. We love those. It looks good in our metrics and weâre like, I donât get whatâs wrong in sales. They donât ever convert any of our beautiful leads.
Andrew Mitrak: Yeah, exactly. I feel like a lot of dynamic can be summed up to either: Sales wants more leads, okay, then marketing will get more leads.
But then sales says, âNo, not those leads. We want better leads. Those arenât high quality enough.â And then marketing adjusts and then gets fewer leads.
I feel like thatâs a cycle that a lot of companies find themselves trapped in.
April Dunford: It really helps to have a clear definition of what a best-fit customer is and why. Not just that we think this is a best-fit customer because we wish we were doing deals like that. It should be: âThis is a best-fit customer for us because we are the only ones that can deliver this specific value.â If you look at us versus the other things that a customer is going to compare us with, we are the only ones that can deliver this specific value, and these are the kind of people that really care a lot about that. Thatâs what we really need to get at the root of. And it shouldnât just be that we like those companies because theyâre bigger and they have bigger budgets. Well, guess what? If theyâre bigger and they have bigger budgets, then that means weâre going to run into these competitors that can handle that. Do we actually serve that customer better, or are we better at something else? And so getting everybody together in a room to get really clear on that is going to help us with all those problems when sales says, âWell, we donât like these leads.â Itâs like, letâs sit down and talk about what an excellent lead looks like and why. It should tick these boxes because we are very likely to win those deals for these reasons.
Andrew Mitrak: In the dozens or hundreds of companies youâve consulted with that have implemented positioning successfully, is it an equal split between partly marketing, sales, and product? Are they all like equal one-third owners of the process? Is it usually best if one is the owner of it and the other two are stakeholders? Does it need to be the CEO who is on top of it on the exercise? Whatâs the best model, or is there one right solution or ways to make multiple versions work?
âMarketing Never Wins the Battle of Opinionsâ
April Dunford: This is actually a great question. So Iâm a big fan of doing a cross-functional exercise because, just in my own experience when I was in-house and working as a head of marketing, if I didnât get everybody in the room together, I couldnât go have a conversation with sales and think I had it and then take it to product because then theyâd rip all that stuff apart and say, âNo, thatâs all wrong, itâs this.â Then you take it to the CEO and the CEO has got their own opinions and you end up with something else. So itâs just way more efficient to get everybody in the room together.
But if youâre going to get everybody in the room together, we canât just have everybody in the room together just say, âOkay, why does everybody love our stuff?â then thatâll just be a battle of opinions, and marketing never wins the battle of opinions. So the way my process works is we start with this conversation around competitive alternatives. Now, whatâs funny about that is the question is: if we didnât exist, what would a customer do? At that step, I think salesâ opinion on this matters more than anybody elseâs. But it doesnât stop everybody else from having an opinion, but everybody elseâs opinion is generally wrong.
Sales vs. Product Perspectives on Competition
April Dunford: So Iâll give you an example. Often what weâve got, like when you go to product management and you say, âWho do we compete with?â they generally give you a way longer list of companies than sales does. Because product management is living a little bit in the future, right? Theyâre thinking about the roadmap, theyâre thinking about where weâre going, and theyâre looking at the superset of who could compete with us and who should compete with us. What they are not looking at is who does. Sales knows that. Sales knows that.
Now, if I go to sales and I say, âIf we didnât exist, what would a customer do?â they can tell me exactly who lands on the short list. They can tell me whoâs causing us pain out in the market right now. They generally wonât consider the status quo as a competitor because a good salesperson, if they lose to status quo, they will say, âWe lost to no decision.â And in the minds of a good salesperson, that is not a no; thatâs a ânot yet.â Weâre going to get them someday, just not this week, man. And so if youâre doing this exercise, you have to pull that out of the sales team, but itâs very important for the product team to hear what the sales team has to say. Because the product team is thinking about a different set of competitors, which is fine, by the way. Because theyâre building for the future, they need to be looking at that.
But when weâre talking about positioning right now, if the competitor is not causing us any pain, they may never cause us any pain. We donât do a very good job of predicting the future that way. And the reality is if they do cause us pain next year or the year after, weâre going to adjust the positioning to take that into account. So step one, when Iâm talking about competitors, I think salesâ opinions matter more.
And then we didnât even talk about marketing. Marketing, if you say to marketing, âWho do we compete with?â theyâll list the people that are spending the most money on marketing. Thatâs who they worry about because thatâs who theyâre fighting for keywords and everything else. And they go, âOh my god, these guys, theyâre everywhere! We see them everywhere. Oh my god, they have the biggest booth. Oh my god, theyâre all over the place.â But again, if theyâre not causing us any pain in sales, well, maybe youâve got some competitors burning a lot of money on pretty s**t marketing that isnât doing anything.
The other thing you get is the CEO will have this opinion. Often the CEO was really involved in sales at some point, but maybe itâs been a couple of years. Or maybe they only see certain kinds of deals in certain situations, so theyâre biased towards that. Again, sales understands the reality on the ground. So when we go to step one, personally, salesâ opinions matter more, but weâve got to get everybody on the same page.
Then we get to step two: okay, if we didnât exist, this is what a customer would do, this is what weâve got to position against. Now we get to step two, and step two is all about: what have we got that the other guys donât have? Who knows that the best? Product management, by a mile. Sales doesnât know. They donât even pitch stuff they donât understand. Marketing doesnât know because thereâs lots of stuff the product does that marketing thinks is useless or they donât understand or whatever. The only people that can really give you the straight deal on âwhat have we got that the other guys donâtâ is product management. A good product management team knows all about that. So again, other people in the group might think they know the answer to this; product management knows the answer to it.
Then we get to the third step, which is value. This is where marketing comes in a little bit because only marketing understands even the concept of what value is. So theyâre helpful in that respect. But here itâs a little bit interesting. Sales knows what a customer thinks is valuable and what they donât. So theyâre a good litmus test. If we come up with a value prop, sales is a good litmus test: does this sell? Sales can tell you generally because they know customers, theyâve been selling to customers, they know what flies and what doesnât. Marketing understands what value is, so they know what a good value prop looks like and what it doesnât. So this is where we see a lot of sales and marketing. But again, everybodyâs got to agree on what this is.
Then weâre going to get to this segmentation, which is: okay, weâre the only people on the planet that can deliver this value, but not everyone cares the same about it. So what are the characteristics of a good-fit account? And that is kind of a little bit of everybody chiming in on: okay, if the value looks like this, what needs to be true about the account in order for that to resonate? Are they bigger accounts or smaller accounts? Is there something in their tech stack that makes them more likely to make that more appealing to them or not? Is there something about their business model or something about the team weâre selling into thatâs different? Thatâs a group conversation with everybody. So we have this team together. We obviously need the CEO in the room, and the CEO needs to believe that this is important work and sponsor this thing. But when I run one of these exercises, everybody needs to chip in, and everybodyâs opinion is important at different steps in the exercise. This is why this is so difficult to do when itâs not a team exercise. Itâs like that old picture of everybody wearing a blindfold and theyâre all touching a different part of the elephant. The guy on the tail says, âItâs a snake,â and the guy on the leg says, âItâs a tree.â Itâs a bit like that. Sales knows something, product management knows something, marketing knows something, the CEO knows something, support knows something. Weâve got to pull all of that out together and then synthesize it into something we can all agree on, and weâre all singing the same song, and then we move forward.
Evaluating Positioning Success from the Outside vs. Inside
Andrew Mitrak: As an outsider, I like to evaluate a companyâs positioning or try to understand their positioning. But if positioning is this strategic foundation and itâs not branding, itâs not messaging, itâs not even just marketing, how do you go about evaluating somebodyâs positioning from the outside? How do I tell if a companyâs positioned well or if they just have a really talented copywriter?
April Dunford: Iâm glad you asked this because sometimes what Iâll seeâand this bugs me a lotâI think Iâve been guilty of doing this in the past when I didnât know any better. But sometimes what Iâll see, and I see this a lot on LinkedIn or social media, a random person like me will pull up some B2B website and say, âIsnât this terrible? Who could understand what this is? Look at all that jargon! Look at all that stuff. Oh, this is terrible. This should be more B2C-like. This should be really easy and it should be exciting.â
And the first time I saw one of these that I thought was really funny, this was a company that was growing 200% year-on-year on about $100 million revenue. And Iâm like, my dudes, it is working just fine. So hereâs the thing: it is very difficult for you to assess how good copy on a homepage is working if you are not the target buyer and you donât even know who the target buyer is. If Iâm selling something toâI was working with a company that does this stuff with airlines and Iâm selling a very technical thing to people that do maintenance on airplanesâlike yeah, man, youâre not going to understand what that website is talking about. And thatâs okay. What really matters is: is it working with a customer, and is it doing the job we want the website to do? So thatâs one thing.
The second thing is, like you say, thereâs copywriting and thereâs positioning. If I look at a companyâs copy, I donât necessarily understand the strategy behind it. I donât know exactly how theyâve defined a best-fit customer, for example. So I donât know exactly who they think their competitors are. Therefore, I canât tell: is it doing a good job of differentiating them from those competitors? Because I donât know them, I donât know their competitors, I donât know who their buyers are. It would be very hard for you from the outside to figure this out. And so I donât think doing a homepage teardown is a particularly good way to understand someoneâs positioning. I get this a lot where a company will send me a link to their homepage and theyâll say, âCan you just tell us if our positioning sucks or not?â and Iâm like, âNo! Because I donât know anything about it. I donât know who your target market is, I donât know who your competitors are, I donât know anything.â And so itâs really hard from the outside to assess that.
Identifying the Signs of Weak Positioning
April Dunford: Now, on the inside, poor positioning shows up in a set of very distinct ways. So the way I used to assess itâletâs say I got hired as the Vice President of Marketing and then everybody wants me to just spin up a bunch of campaigns, and Iâm like, âOkay, but letâs make sure the positioning is good before we do that because otherwise Iâm pouring water into a leaky bucket.â So letâs have a look at positioning.
How I would assess that is I would walk over to salesâbecause Iâm always working with enterprise companies that have sales peopleâand Iâd be listening in on first-call conversations. Now, this is really easy because everybody records it with Gong, so you just listen to the Gong calls. But first-call conversation, weak positioning shows up like this: the customer shows up, the rep is there, and the repâs doing their thing and theyâre saying, âHey, let me tell you something about us, and weâre this, that, and the other thing, and we do this and that for companies like you, blah blah blah.â And you can see the customer just getting super confused, like making this face: âWhat the heck are you talking about, man?â And usually what youâll get is a few minutes in, and the customer will go, âStop, stop, stop. Just back up. Back up. Go back to the beginning. Iâm not sure I got it. Go back, say it again.â And the repâs got to go back and repeat it again. Or theyâll get halfway through and the customer will ask a question, and the rep will be like, âOh my god, the customer didnât understand a thing I was talking about.â If youâve got happy existing customers but a new customer is coming in that confused, that is usually a positioning problem.
The other one youâll get is prospects comparing you to things they shouldnât be comparing you to. That is a clear sign of bad positioning. So theyâll come in and say, âSo youâre like a CRM, right?â and youâll be like, âNo, no.â Or theyâll be like, âOh, so youâre just like Workday?â âNo, weâre nothing like Workday, what are you talking about?â And then the rep has to back up and do it again. So this idea that the customer thinks they know what box to put you in, but youâre actually living in a different box, thatâs a sign of weak positioning.
And then the other one youâll get is a customer coming in and saying, âI get it, I get what you do, I get it. But I just donât get why anybody would pay for that. Canât I just do that with my accounting package? Canât I just do that in a spreadsheet? Why would I just hire a couple of teenagers to come in and do that? That doesnât seem...â and then in that case, what the problem is, your value is not clear and compelling. So inside we can assess it; outside, I donât know.
The Pitfalls of Tech-Forward Positioning
Andrew Mitrak: Itâs very tempting to be one of those LinkedIn people from the outside, but on the other hand, I was at a unicorn B2B freight tech startup. It was in the trucking industry and won a bunch of awards, raised a whole lot of money, and our marketing was greatâeveryone thought our marketing was great. But at the underlying thing, the positioning was often wrong. It was very tech-forward: AI, automate your freight, Uber for trucking type messaging. Everyone was like, âOh, this is a no-brainer, letâs do this.â And Iâd listen to Gong calls in sales and hear somebody pitching all this tech to a supply chain manager at a company in the Midwest, and itâs like speaking two different languages. The startup ultimately folded in a pretty dramatic way. But underlying it, there was just the wrong positioning. Itâs easy to say this looks bad or great from the outside, but really you have to get inside the company before you really pass judgment on it.
April Dunford: Fundraisingâs not revenue, right? Fundraisingâs not revenue. But we are in crazy times right now where thereâs so much excitement about certain parts of the market where things are emerging, like all this AI stuff is so cool and the potential for this stuff is so big. We see this with pricing models changing, and now weâre looking at usage-based pricing versus subscription pricing. It makes it a lot more difficult to figure out if this company is actually successful or not.
Positioning During Rapidly Changing Markets
Andrew Mitrak: Do you have principles for running a positioning exercise through a period of rapid change? It can feel like youâre building the foundation with positioning, but itâs moving so fast itâs like building the foundation on quicksand.
April Dunford: I have some opinions about this. Stuff is changing really quickly, but I think companies are going to have to be very clear in their messaging and positioning about whatâs real and what we can deliver today versus what is vision and a direction, and where we want to go, and frankly, hype. Weâre building the market. Because I think if youâre building an AI company right now, youâve got to do both. Youâve got to hype the hell out of stuff that doesnât entirely work today, that doesnât do exactly what we know itâs going to be able to do in the futureâand we might not even be sure whenâbut we also have to sell whatâs on the truck that a customer can buy right now.
Those two things are often different. If you look at the one I think is the most remarkable to look at, itâs the vibe coding tools. If you look at what influencers from these vibe coding tools are talking about on LinkedIn and social media, it is super inspirational. Youâre like, âWow, that is so cool. Look at all the stuff weâre going to do.â Right now, thereâs a bit of panic in the markets, like, âOh my gosh, are we just going to be able to vibe code accounting software? Why should we even have accounting software? Weâre going to vibe code a CRM. Sell Salesforce, man, that stuffâs just going to go away.â But then you go to their website, and their website doesnât say they do that at all. Their website says, âBuild a nice prototype,â because thatâs what theyâre actually selling today.
Now, theyâve got investors and whatever, and right now itâs very difficult to be heard in the noise without being super hypey about this stuff, so theyâve got to do the other piece too. Theyâve got to show the vision. Theyâve got to show where this is going. Theyâve got to show it in order to justify the valuations. They want people to be mucking around with it now with the idea that we should start doing some stuff with this now because in the future weâre going to do way more stuff with this. So thereâs this balance, I think, between where youâre at and what you can sell today, and being clear about that when youâre in a sales process. Youâve got to balance that with this other half, which is hyping the hell out of it. When I say it, I mean the future, So, Iâm hyped hell out of where this is going and what itâs going to be able to do and whatâs happening in the future and all that stuff. The hype stuff changes very rapidly. What weâre selling and what customers are actually doing with it changes about the same as everything else. Youâre going to have to check in on it in six months and see if itâs different or not, but in less than six months, your positioningâs probably okay. If I look at the vibe coding tools, those sites havenât changed much at all in the last year.
Andrew Mitrak: So overall, the act and the role of positioning doesnât change in a period of rapid technical change. There might be new vectors for positioning; there might be new ways you can position within a new category.
Balancing Todayâs Reality with Future Vision
April Dunford: What you should expect is to be very careful, and you should be watching your positioning, and you should be very ready to adjust it when it needs to be adjusted. In a normal market, when I was in-house as the VP of Marketing, we would do a check-in on positioning every six months. That was more than enough, and it was rare that we would check in and have to change it if the positioning was less than a year old or even less than two years old. Itâs pretty rare we would do the six-month check-in and say, âWhoops, need to adjust somethingâ. These days, especially if youâre in this AI world, you might want to do that quarterly, and you should be very ready to make the adjustment if you think that itâs needed. But do I think your positioningâs going to change quarterly? No, I donât. But it wouldnât surprise me if you changed it within a year. That wouldnât surprise me at all.
Applying Positioning Principles to Your Career
Andrew Mitrak: I want to ask about how youâve positioned yourself and positioned your own book. It feels like youâve been very deliberate about your own positioning. You focus primarily on B2B tech, which is where you have your experience. Do you think that marketers should be applying these same positioning rules to their own careers?
April Dunford: Maybe. I donât know if Iâm a great person to give career advice, but it certainly worked out for me. When I was working in-house, youâre applying for jobs as the VP of Marketing and youâre up against everybody else, and youâve got to answer the question, âWhy me and not the ten other people youâre interviewing?â In order to have a clear answer to that, you have to be able to say, âWhat am I better at? What have I done more than the other people? Whatâs my edge over everybody else?â
For me, because I had done a lot of positioning stuff early, that kind of became my edge. I could talk about that in a deeper way. By the time I was at a company and then we got acquired, I had positioned a bunch of things at the acquired company. So by the time I came out of that one, I had positioned five or six products. Thatâs a lot, really. A senior marketer could go their whole career without repositioning anything if the positioning is working. So I thought I had that as an edge. In the later part of my career, if you hired me as the VP of Marketing, you hired me because you thought maybe you had a positioning problem. I could talk intelligently about how we were going to fix it, and thatâs why you brought me on.
I wouldnât be applying to jobs where what they were really looking for was something really outside of that and it wasnât really in my deep skill set. Yeah, I know a lot about lead generation, and yeah, I know a lot about email marketing. Yeah, weâre doing SEO and whatever; I know a lot of stuff about that. But am I going to get that job versus the person that comes in and says, âI managed this ginormous Google Ad budget at the last thing and all we did was SEO and Iâve been doing SEO for 15 years, Iâm going to yak your ear off on thatâ? Iâm not going to win that job. So Iâm trying to focus on applying to jobs that are a fit for my stuff and then making sure Iâm positioned in there as the best person for that job.
Thatâs worked out pretty well for me. As a consultant, Iâm trying to do the same thing. Iâm trying to stay in my lane. I get tons of calls from companies that are B2C, or theyâre B2B but they donât have a sales team, or what they actually do is professional services. Iâve done a few services companies, but only if they tick the boxes. Iâm pretty serious about who makes it through my filter, and thatâs because I want to make sure weâre really, really successful. If itâs outside of my wheelhouse, I donât know, Iâm just kind of guessing. So I try to stay right in my zone of excellence so that if you make it through all my filters, then I feel pretty confident that weâre going to get a good result because Iâve done 300 other companies that look just like you. And youâre probably going to pay me more money to do that because Iâve done 300 companies that look just like you. Everybody else youâre talking to has done a little of this and a little of that, and itâs not like they donât know what theyâre doing, they do, but they donât quite have the experience level in the little box that I do. So I try to stay in my little box where I can look you in the eyeball and say, âIâm probably the best person in the world to do this.â Not this, not this, not that, not this other thingâjust in this little box right here. I think Iâm the best in the world.
The Strategy Behind Positioning âObviously Awesomeâ
Andrew Mitrak: Did you apply your positioning frameworks and methodology to your own book, Obviously Awesome, and could you share a little of that process?
April Dunford: Yeah, so I was really clear when the book came out on what I was positioning against. What I was positioning against was, first of all, the old positioning book, which is the book that came out in the â80s by Al Ries and Jack Trout. Again, I love that book, and I think that bookâs really good at defining positioning. What it doesnât do is give you a how-to: step one, step two, step three. So I positioned mine against that and said, âLook, we are very much in alignment, Ries and Trout and my stuff. We agree on the definition of positioning, we agree what it is, we agree why itâs important. Iâm giving you the how-to; they are not.â Thatâs why you need my book and not theirs.
I was also positioning against the âpositioning statement,â which was a common sort of folklore way of doing positioning inside a company. A lot of companies, if I went and said, âHave you done positioning?â and they said, âYes,â what theyâd done is filled out a positioning statement, which isnât a methodology at all. But it was just kind of the thing that everybody did. So I was positioning against that as well. In the book, thereâs a mention of the Ries and Trout book and the reason why I was frustrated that it didnât have a how-to, and then it talks about the positioning statement and why I think thatâs not a good way to do positioning. So Iâm positioned against that.
When I look at what Iâve got that the other guys havenât, itâs a methodology. Itâs one, two, three, four, five, six. Nobody else has a methodology. Iâm going to give you a methodology. I am sure there are other ones now but one, two, three, four, five, six. The value of that is being able to do it in a repeatable way. Even if youâve got to muck with the process, even if this is just a starting point, you at least got something.
Designing Content for the CEO Mindset
April Dunford: Then the âwho it was aimed atâ was primarily CEOs of companies, but also, I would say my primary audience was the CEO of a tech company, but also at a secondary level, heads of product or heads of marketing. I did a lot of research with CEOs as I was writing the book about how they buy books, how they find out about books, and how they read books. That was super fascinating. The actual product of the book looks and feels the way it does because of that research. I talked to 50 or 60 founders, and hereâs what I found out.
How do you find out about books? You find out from your friends, other CEOs. Itâs all word of mouth. Nobody goes to the bookstore and says, âWhat am I going to read today?â and browses the stacks. That never happens. They get a recommendation, people start talking about it, itâs word of mouth. So youâve got to figure out how youâre going to spark some word of mouth on this book.
The second thing that I thought was surprising is the CEOs donât actually read books; they read half-books. Almost everybody told me this. I said, âHow do you read?â and theyâll say things like, âWell, Iâll get on the plane, Iâll do my email for an hour, and then Iâve got two or three hours left in the plane ride, Iâll pull the book out and Iâll read and get to the end of it.â Theyâll basically say, âI pull the book out and I read.â And I said, âBut wait, you only got two or three hours, thatâs only half a book. What happens?â And they say, âWell, if thereâs bits I can skim, Iâll skim it and skip forward. You know, these business books are full of fluff. Sometimes thereâs a whole chapter I can skim, or if they have a case study or something, Iâll skip that. You more or less get the gist of it in the first half of the book anyways because these books are so fluffy. So basically, I never read the back half of a book.â
So I decided, âAll right, Iâm not writing a typical business book thatâs 80,000 words or 90,000 words that takes you six, seven, eight hours to read. Iâm writing a book thatâs half that, and you can get through it in three or four hours.â Then Iâm going to make the bits that you could skim, like the case studies and things like that, very obvious. Iâm going to put them in a shaded box so that if you want to skip it, skip away. So itâs obvious what the core stuff is and what the stuff is you could skip. Weâre going to make it like In-Flight Magazineâthatâs what I kept telling the book guys âThis is the inflight magazinesâ. I thought that worked pretty well. The number one feedback I got on the book after I put it out was CEOs would come to me and theyâd say, âOh my God, it was so good. I finished it in one sitting.â And I loved that. Part of the reason they finished it in one sitting is my original manuscript was like 70,000 words and we hacked at that thing until it was half the size. So yeah, I did use my process for that book.
Andrew Mitrak: Thatâs so cool. Well, thanks for taking me behind the scenes of that. Congrats on the book and its success, and congrats on the updated and expanded edition of Obviously Awesome. I hope listeners, if any listeners enjoyed this conversation, they definitely enjoy the book; itâs available to order right now. Also, I highly recommend your podcast, Positioning with April Dunford. Iâve been listening to it to catch up and research prior to this interview and enjoyed it a lot. Itâs super inspiring. I already mentioned your website, aprildunford.com, which has a lot of great resources as well. Is there any other place youâd recommend where people should connect or follow you? It seems like youâre everywhere.
April Dunford: I feel like I used to be everywhere and now Iâm not. I donât do a lot of social media these days, for example. Occasionally Iâm inspired to post something on LinkedIn, but itâs not very often. The best way to follow my stuff is the newsletter, the podcast, the booksâthese are the main things. If you go to aprildunford.com, you see links to all that stuff.
Andrew Mitrak: Theyâre all great. Iâll link to it in the blog that accompanies this post. April Dunford, thanks so much and congrats again.
April Dunford: Okay, thanks.
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