Positioning

As persons, our “Positioning” is the place in the mind of our friends and parents. We are all defined by the perceptions the others have of us. The same happens with products. An example of product positioning is: “Software3.0 is [the] [most] advanced and easy to use Optimization Tool [for desktop applications].”

Product Positioning statements use the definite article [the] to put the product in a given, unique place in mind of the market. The superlative feature [most] places the product at the top of your category. Last, the statement defines the target market segment [for desktop applications].

Example of a clear positioning statement:

“EDEM is [the] world’s [first] general-purpose CAE tool [for the simulation of particles]“.

Being the #2

Avis proudly says “We’re number two – we try harder” (than Hertz).  Pepsi is the number-2 cola, even though “Nothing Else Is A Pepsi”.

There are many #2 software companies, though on press releases you rarely find “ACME Corporation, second-leading provider of …”.

Each market segment hosts many players and one “number one”. Therefore, within the majority of software companies, there is a gap between the position they want and the position they hold. Nothing personal, friends.

Conservatively

In theory, the level of competition is proportional to market size and market size is proportional to competition.

Anyone can be tempted by entering a market with an intense competition. A common business plan statement is: “market size is estimated at $100 Millions, we assume conservatively to get $1 Million”.

Never conservative enough, I think. Top players have marketing budgets matching their size, and newcomers-business will be hardly profitable.

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