Obviously Awesome - April Dunford

“If you liked the book, you can purchase it using the links in the description below. By buying through these links, you contribute to the blog without paying any extra, as we receive a small commission. This helps us bring more quality content to you!”

BOOK LINK:

CLICK HERE

Here is a summary of the praise for the book “Obviously Awesome” by April Dunford:

• The book provides an easy-to-understand framework for doing positioning work through a 10-step process. It shows how to actually implement positioning rather than just discussing it.

• Positioning is an important but often overlooked aspect of marketing. The book offers clear guidance on how to find and communicate a company’s unique advantages in order to stand out in crowded markets.

• Dunford has decades of experience helping companies improve their positioning and communications, leading to increased revenues and growth.

• She has a unique ability to see how companies will be perceived and offers invaluable insights for founders.

• The book helps companies “allow the scales to fall from their eyes” and improve how they talk about themselves to customers.

• It contains practical advice from Dunford’s extensive work with startups and large companies on transforming how products are viewed in the market.

• Readers will learn how to make their product category work for them instead of against them through better positioning.

• The book provides a “treasure trove” of strategic marketing knowledge in an easy-to-read format.

• Dunford is considered a thought leader and expert in positioning, especially for technology companies, with a proven track record of helping organizations strengthen their positioning.

The passage argues that while positioning isn’t new or trendy, it is still extremely important and forms the foundation for modern marketing and sales tactics. Strong positioning helps all marketing and sales efforts by clarifying for customers how a product or company fills their needs. Weak positioning hinders results.

While the concept of positioning has been around since the 1980s, most companies still struggle with actually implementing an effective positioning strategy. There is a lack of practical guidance on how to properly position products. The author aims to fill this gap by providing a clear, tested process for deliberately positioning products based on strengths and target customers.

The book is intended for founders, marketers, salespeople and executives who want to better connect their products to customers in an oversaturated market. With good positioning, customers can quickly understand a product’s value. Without it, marketing and sales efforts will be less effective. Positioning therefore remains a crucial but often overlooked aspect of business strategy.

• Positioning provides important context that helps customers understand a product’s value and who it’s for. It creates a frame of reference for the product.

• Without good positioning, customers may misunderstand a product and see it as similar to competitors rather than as unique. This can lead to problems like low sales, high customer churn, and inability to charge premium prices.

• Even world-class products can fail if they are poorly positioned and lack the right context. An experiment showed that renowned violinist Joshua Bell was mostly ignored when playing in a subway station, despite his extraordinary talent, because the context did not signal his value.

• Products are exceptional only when customers understand them within their best frame of reference. It is critical for companies to provide clear positioning and context so customers perceive the product accurately and at its highest value. Positioning is worth the effort because it leads to happier customers and better business outcomes.

Product creators often fall into two traps when it comes to positioning their products. The first trap is being stuck on the original intended purpose of the product and not realizing it has become something else. Early ideas evolve through feedback and iterations, but the positioning is not updated to reflect this. The second trap is that markets change but the positioning does not, so the product is no longer well-aligned even if it was well-positioned originally.

Deliberately choosing a positioning context is important because it drives key business decisions like target customers, competitors, pricing, and product roadmap. However, many creators rely on a “default” positioning without considering alternatives. This can lead the product to be misunderstood or overlooked.

The example of a chocolate cake creator highlighted how choosing “cake” versus “muffin” as the framing led to very different business models, even if the product itself was similar. Markets also shift over time in unexpected ways, so an originally well-positioned product could become outdated.

To avoid these traps, product creators need to understand positioning is a deliberate choice that requires reviewing as the product and market evolve. There are likely multiple valid positioning options, not just one obvious “default.” With awareness and a systematic process, creators can stay aligned even as contexts change around them.

• The author was pitching a new product he called “ted Cake 2.0” which is described as a small piece of cake on a stick, making it hand-held and eliminating the need for a fork.

• However, the author acknowledges that positioning it as “cake on a stick” is not ideal and does not highlight what makes the product truly innovative and special. Describing it as cake implies bigger slices, better ingredients and more frosting - qualities it does not have.

• The author says a better way to position it would be as a cake pop or lollipop for adults. This frames it as a snack rather than dessert, and positioning it for coffee-drinking grownups on the go. The stick and ball shape make more sense in this context versus being described as cake.

• In general, the author argues we often fail to deliberately consider alternative, better ways to position our products because we don’t put the distinguishing features and advantages at the center of how we describe it. We need to highlight what truly makes the product special and find the optimal context for how it will be perceived by customers.

• The traditional positioning statement template assumes you already know the answers about how to position your product, but often does not provide useful insights. It reinforces the status quo rather than helping companies think creatively.

• The author provides their own positioning statement exercise that broke it down into 5 components: 1) Competitive alternatives, 2) Unique attributes, 3) Value (and proof), 4) Target market characteristics, 5) Market category.

• Competitive alternatives are what customers would do without the product, like using spreadsheets. Unique attributes are the product’s capabilities competitors lack.

• Value is the customer benefit of those unique attributes, backed by proof like data/reviews. Target market characteristics are qualities of customers who care most about the value.

• The traditional template rarely gets used after completion and is hard to remember. The author’s 5 component framework provides a more useful way to analyze positioning by focusing on the customer perspective and competitive landscape.

• The company is selling a product that greatly reduces the time and complexity of invoicing for small businesses.

• They are running out of cash and need to close deals by the end of the month or face negative consequences.

• The optimal target customers are those that send a significant number of invoices each month, as they will benefit the most from and appreciate the product.

• Characteristics that indicate a customer is more likely to buy include sending many invoices monthly, as the product’s value is greatest for those customers.

• Focusing sales and marketing efforts on customers with those specific characteristics allows the company to be very targeted in finding customers most suitable for and interested in the product.

In essence, the company needs to focus on customers that invoice frequently as those customers will derive the most value from the product’s invoicing functionality. Targeting customers with that specific characteristic increases the chances of closing deals by the deadline.

• Big consumer brands see companies like Amazon as a threat because they have large amounts of consumer behavior data that allows them to quickly gain dominance in new market categories.

• In response, big brands are heavily investing in direct-to-consumer strategies to build their own direct relationships with consumers.

• Sampler, a company that provides direct-to-consumer sampling services, adjusted its messaging to emphasize how it helps brands with their direct-to-consumer initiatives. Specifically, Sampler’s solution helps brands build targeted consumer lists and gain insights about behaviors and preferences.

• When Sampler described itself as a provider of “direct-to-consumer sampling,” brands prioritized Sampler and deals were closed faster. This positioning made Sampler’s solution seem more strategic and relevant to an important initiative for brands.

• As a result of this adjusted positioning, Sampler now works with major brands like L’Oreal, Kimberly-Clark and Unilever to provide direct samples of products to consumers.

• Positioning a product and positioning a company are related but separate tasks. For a single-product company, it may make sense to position the product and company as the same thing for simplicity.

• As a company adds more products, individual product positioning and overall company positioning become more distinct. Product positioning helps customers understand individual products, while company positioning provides a broader understanding of why to consider multiple offerings.

• For a multi-product company, determining whether to start with product or company positioning depends on factors like revenue sources and sales processes. If most revenue comes from a single product, start there. If selling a bundle of products together is more common, start with company positioning.

• Forming a cross-functional positioning team that includes leadership from key departments like marketing, sales, product, and customer success brings diverse perspectives that are important for buy-in and effective implementation of the new positioning. The business owner/leader should drive the team and process.

• The discussion should be facilitated by an experienced external facilitator. Having an outside perspective will make the discussion more productive and ensure all voices are heard.

• Internal discussions about strategic issues can be difficult without an external facilitator to gently challenge assumptions and make sure everyone contributes.

• The facilitator has run many positioning workshops and is often brought in when internal attempts to tighten positioning have failed. Their experience guiding these discussions will be valuable.

So in summary, the facilitator recommends bringing in an experienced external facilitator to lead the positioning discussion. This will help make the conversation more balanced and productive by giving it an impartial perspective.

To understand how customers perceive a company’s strengths and weaknesses compared to alternatives, it is important to understand what alternatives customers would consider if the company’s product or solution did not exist. Simply understanding the customer’s problem is not enough.

Customers naturally group solutions into categories, so asking about problems alone may not reveal the categories that alternatives fall into. To develop an effective product positioning, a company needs to understand what real competitors exist in the customer’s mind, not just those the company assumes to be competitors.

The best way to understand competitive alternatives is to ask customers what they would do if the company’s solution was not available. The alternatives named may not always be obvious or direct competitors. It is important to focus on the alternatives that would be considered by the company’s best customers.

Once alternatives are understood, the company can then isolate its unique attributes, features, or capabilities that differ from those alternatives. These unique strengths should be focused on attributes that are important to customers when initially evaluating options, rather than those only important for customer retention. Mapping these attributes to the specific value and benefits they provide customers in relation to goals or problems helps develop an effective product positioning.

Based on the information provided, here are the key customers that a product might target:

• Small businesses without in-house IT support. They would value solutions that are easy to set up and run without extensive technical skills.

• Companies in regulated industries like healthcare. They would care more about features related to information security, privacy and compliance.

• Organizations with large teams/locations. Features that support collaboration across distributed teams/locations and communication would be of high value to manage large/dispersed operations.

• Customers who send a high volume of invoices. Automated integration with accounting software to reduce manual data entry time and errors would be especially valuable for those processing many invoices.

• Appointment scheduling customers who need to book across multiple locations/services. The ability to find availability and schedule conveniently across an organization’s full service network delivers high value.

In summary, the product would target customers facing specific pain points related to organizational size/complexity, regulatory needs or operational workflows that the product’s features uniquely address and relieve. Focusing on these “best fit” customers is a more efficient sales and marketing strategy.

• Wattpad started in 2006 as a social storytelling platform for people to write and share stories on the web and mobile phones. It grew slowly at first until the iPhone launch in 2007 made mobile reading more popular.

• By 2010, Wattpad experienced rapid user growth as social media sharing increased. But the founders initially focused on community rather than monetization.

• In 2012, the founders realized Wattpad had created many popular stories and could transition into an entertainment company by adapting stories for TV and films.

• A successful 2014 collab with a Philippine TV station to adapt a Wattpad story for a drama series proved this concept. The show was a ratings hit.

• In 2016, Wattpad Studios was launched positioning Wattpad as a global multi-platform entertainment company. They now work with major media brands to source new IP and data-backed approaches to development and production.

• Wattpad transformed its positioning from a story platform into an entertainment company by leveraging its large community and data insights into popular stories and audiences.

Here is a summary of the positioning styles discussed:

• Head to Head: Positioning to directly compete against an existing market leader in a well-defined market category. The goal is to convince customers you are better at delivering the existing solution than the established leader. Requires showing superiority based on the existing evaluation criteria.

• Big Fish, Small Pond: Positioning to dominate a niche segment within a broader market category. The goal is not to take on the overall leaders, but target a subset of customers with unmet needs. Requires defining a clear segment within the broader market.

• Create a New Game: Positioning by creating a new market category altogether. The goals are to first prove the new category deserves to exist, then define its parameters in customers’ minds, and position as the leader within it.

The key advice provided on when to use each style is:

• Head to Head works if you have a strong advantage or the market is in flux, allowing you to displace the leader. Otherwise it’s a risky battle.

• Big Fish, Small Pond is better for startups as it avoids direct competition. Requires validating a niche segment exists.

• Create a New Game takes more work but allows defining the space. Only use it if a genuine new category can be substantiated.

The positioning story example illustrated how shifting from a Head to Head “database” positioning to a Big Fish, Small Pond “data warehouse” focus better targeted an underserved segment within the broader market.

Here are the key points about positioning as a big fish in a small pond:

• Rather than competing head-on with an established market leader, focus on a subsegment of the overall market that has unique needs not addressed by the leader. Break the market into smaller pieces.

• The subsegment should be easily identifiable, like certain industries, company sizes, regions, etc. It must represent a large enough opportunity to achieve business goals.

• Demonstrate that the subsegment has an important, unmet need that the market leader does not adequately address. This need must be clearly defined and important to the subsegment.

• Show how your solution is uniquely positioned to meet this specific need much better than the market leader. Convince subsegment buyers to switch by fully solving their problem.

• Start by educating the subsegment about how the general/mainstream solution fails to meet their requirements. Provide proof points of the value gap.

• Dominating a small piece of the market is easier than competing directly with the overall leader. Gaining traction is easier when targeting a homogeneous group.

• Success in the subsegment can accelerate quickly via word-of-mouth as the segment is a connected community.

Here is a summary of key points for positioning your solution using the “Create a New Game” approach:

• This approach should only be used if you cannot appropriately position your offering within any existing market categories. Your solution must truly enable something new.

• You are not just capturing existing demand, you have to actively spark new demand by defining a new market category.

• This is usually only possible when there have been major technological, economic, political or social changes that create the potential for substantially new capabilities or priorities.

• Often a new category emerges when an enabling technology, shifting customer preferences, and a supporting ecosystem all come together simultaneously.

• Your solution should require both a new way of thinking about boundaries of existing categories and new purchase criteria. Stretching multiple existing categories does not work.

• Creating a new category is extremely difficult. You have to educate customers, media, analysts about why this new category merits consideration as distinct from existing options.

• Focus on holistically illustrating how your offering addresses a newly emerged set of needs, opportunities, or problems in a complete, purpose-built manner unlike any existing solutions.

The key is to position your solution as the natural leader and enabler of a brand new market category you are defining proactively, not as a competitor within existing categories.

• Creating a new category positioning style involves the most “teaching” of customers as it starts with a blank canvas rather than leveraging existing category knowledge.

• To credibly create a new category, the product must be demonstrably different from existing categories. Timing is also important to explain why the category has emerged now.

• Category creation is about selling customers on the problem first before the solution. Customers need to understand there is a problem, its costs, and potential value in solving it.

• This style allows defining the market boundaries and criteria to favor one’s own strengths, but it is difficult due to the extensive effort required to shift customer thinking over the long term.

• Established companies with resources are best suited for this challenge. Startups risk losing leadership if they don’t defend their position as the category leader once the market starts taking shape.

• The case study of Eloqua successfully creating the “demand generation” and later “marketing automation” categories through deep customer understanding and shifting perceptions is provided as an example.

• Layering a relevant trend can help potential customers see the importance and timeliness of the offering, but it is optional and the positioning still needs to stand on its own.

• Aligning your company/products with current trends can help make them look more current and relevant, especially to customers interested in that trend. However, the trend needs to genuinely reinforce your existing positioning.

• Redgate Software successfully positioned itself by linking its “boring” database tools to the growing DevOps trend, highlighting how databases are important for DevOps transformations. This increased customer purchases of multiple products and inbound leads.

• Simply referencing trends without linking them clearly to your market and products can confuse customers. Start with your market/solutions, then show how trends relate.

• Long Island Iced Tea changing its name to Long Blockchain based on hype, with no real blockchain strategy, backfired when the disconnect became clear.

• Not every company needs trends to succeed. Some operate successfully in less “trendy” markets. Only use trends if you can clearly pull them into your positioning.

• Once positioning is defined, share it across the company to inform branding, marketing, sales, products, etc. Capture the positioning in documents detailing each component and its relationships.

• Translating positioning into an effective sales story for the initial customer conversation is important for businesses with complex sales cycles.

Here is a summary of the key points for an actual presentation the sales team could use:

• Define the problem the solution is addressing clearly. Frame the discussion around solving this problem.

• Describe how customers currently try to solve the problem and where existing solutions fall short.

• Paint a picture of the “perfect world” - what the ideal solution would look like.

• Introduce the product/company and position it in the relevant market category.

• Detail each value theme and how the solution enables that value.

• Address common objections and include case studies/customers.

• Discuss the desired next step for prospects.

• Messaging should translate the sales story for marketing materials. Develop a messaging document.

• Positioning may impact roadmap and pricing over time.

• Continually track positioning every 6 months or with major changes to reevaluate.

• Be aware of competitive/regulatory/economic/technological shifts that could change customer needs and priorities. Adapt positioning accordingly.

The goal is for the team to agree on how to frame the problem, current solutions, the gap, and key purchase criteria to present a clear and coherent sales pitch. Consistent messaging and reevaluating positioning over time are also important.

The CIO was excited to show off a small appliance he had purchased from a startup, pointing out its “cool purple lights” - something different from the racks of non-descript server hardware from big companies. Within a year, all companies selling bundled hardware and software started packaging their products in stylish server boxes and talking about “design”, showing how this startup had influenced the industry through its innovative design and presentation of technology.

The conclusion discusses how positioning products strategically is a learnable skill. With experience evaluating what works and doesn’t work, as well as understanding customers’ real alternatives, one can improve at positioning to influence how a product is perceived in the market. Trends can be leveraged but superficial traits alone won’t make a product successful long-term. The book aims to teach marketing professionals a deliberate process for positioning products effectively.