Issue: Too Much Competitive Noise
Positioning your product is key to fostering a unique connection with your customers. When a product or brand is positioned well, it’s easy to point out. There’s no confusion around what the product does, it makes it clear how it differs from its competitors, and when new products are launched, everything feels succinct and connected. And when customers are ready to buy, that clarity is what will drive them to choose your product over any competitors.
However, instead of creating an overarching market position, companies often rely on product features to position themselves as more valuable to the competition. This is a mistake as competitors can simply launch new features and continue to beat you with the same approach - an unending game of feature catch-up continues. Customers won’t be able to understand the difference and will get confused about what solution they should turn to for help.
Traditional Way: Positioning with Product Features
It’s likely that you’ve studied various best practices when it comes to product positioning, including Harvard Business School Professor Michael Porter’s definition.
Michael Porter defined a competitive position in his 1985 book Competitive Strategy as a way of achieving competitive advantage. Porter identifies four different competitive positions based on broad or narrow market focus and product cost or product feature differentiation.
Cost Leadership Position
A cost leadership position means that you are targeting the broad market, but you have lower costs than your competitors. So you can generate more profits with higher margins, or you can lower your prices to customers and take more market share. Walmart is an example of this. They are known for low prices.
Cost Focus Position
Porter's cost focus position is when you focus on a narrow or niche market with a low-cost product, such as Huawei.
The Differentiation Leadership
The differentiation leadership position is when you satisfy needs with your product differently than your competitors in the broad market. Apple’s iPhone is a great example of this.
Differentiation Focus Position
The differentiation focus position is when you satisfy needs with your product differently than your competitors in a narrow or niche market.
Although this breaks down the different approaches, how do you execute on this positioning method? How do you apply this to your market and your product?
You are probably already using industry best practices to lower your costs. But because you and your competitors are likely using the same best practices, lower costs on their own are likely not enough to lead you to success unless you are in a true commodity market. So your focus should be on differentiating your product’s value. Unfortunately, Michael Porter doesn’t tell you how to do this. He also doesn’t explain how you should determine if you should target the broad market or the narrow market.
JTBD Way: Focus on the Job Steps
The key difference in JTBD positioning is that you don't use the product features to position the brand or product. Instead, you look at the steps a customer takes to get a job done and you focus on those steps.
In order to identify the best competitive position, you need to first identify the underserved customer segment using needs in the job. Who is struggling the most with this particular JTBD? After that, you’ll break out the job steps within the JTBD and identify the underserved job steps with unmet customer needs. Focusing on those specific unmet needs in the job steps is where you can begin to create a unique position.
Benefit: Generate Growth from Consistent Positioning
JTBD makes it easier to generate growth out of new products because it helps companies avoid being stuck in a "product-focused position". Companies often fear launching and selling a new product because it may confuse their brand position with customers. For example, retailers might say they could never provide a service because customers don't know them for that.
If you make yourself known for a job or steps within a job then it's easier for the team to believe they can release a totally new product and easier for customers to buy into it.