The Knowledge Project with Shane Parrish Episode: The Marketing Expert: A Masterclass in Strategic Positioning | Featuring April Dunford Release Date: August 20, 2024

Introduction

In this enlightening episode of The Knowledge Project, host Shane Parrish engages in a deep dive with April Dunford, a renowned expert in product positioning. April's extensive experience in B2B marketing and her transformative book on positioning have empowered countless businesses to redefine their market stance. The conversation explores the critical role of positioning in shaping a product's trajectory, distinguishing it from mere marketing exercises, and offering strategic insights for both startups and established companies.

Understanding Positioning

Defining Positioning April Dunford begins by clarifying what positioning truly entails. She emphasizes that positioning is not synonymous with messaging or branding but serves as the foundational context for how a product delivers unique value to a specific set of customers.

"Positioning defines how your product is the best in the world at delivering something, some value that a well-defined set of customers cares a lot about."
— April Dunford [04:00]

Positioning vs. Branding April differentiates positioning from branding, illustrating that while branding encompasses the broader perception and identity of a company, positioning specifically targets how a product fits uniquely within the market landscape.

The Importance of Positioning in B2B

April underscores the significance of positioning in B2B environments, where products often cater to specialized needs. She argues that in such settings, it's unnecessary for a product's positioning to resonate with the general public, such as one's grandmother, unless that grandmother is a target customer.

"In B2B, if I'm selling a specialized thing to specialized buyers, it just needs to resonate with them. It's okay if it doesn't resonate with your grandmother."
— April Dunford [00:00]

Common Misconceptions About Positioning

Neglecting Positioning A prevalent mistake April identifies is the oversight of positioning altogether. Many companies operate under the assumption that their market stance is self-evident, leading to a disconnect between the company's perception and the customer's understanding.

Confusing Positioning with Messaging Another frequent error is conflating positioning with messaging or branding. April stresses that while these elements are interconnected, they serve distinct purposes in the marketing strategy.

Strategic Positioning Strategies and Examples

The Muffin vs. Cake Analogy April uses a relatable example from her daily life to illustrate effective positioning. By labeling a double chocolate salted caramel cake as a muffin, a seemingly minor change, she demonstrates how positioning can alter customer perceptions and competitive dynamics.

"The whole context around it is different. The product, however, is the same. So I can choose to position it as a muffin. It's the same product, but the assumptions about that, the competitors are different."
— April Dunford [04:18]

Case Study: Jana Systems April recounts her experience at Jana Systems, where initial positioning as an enterprise CRM led to unmanageable competition with industry giants like Siebel. By repositioning the product specifically for investment banks, Jana Systems avoided head-to-head competition and carved out a dominant niche.

"We narrowed down the positioning and instead of saying we were enterprise CRM, we were CRM for investment banks... Our plan was to absolutely dominate that space."
— April Dunford [12:25]

B2B vs. B2C Positioning

Distinct Value Propositions April highlights the fundamental differences between B2B and B2C positioning. In B2B, value is typically rational—either saving money or making money—whereas B2C can be driven by a myriad of emotional factors.

"In business to business, typically there isn't one person buying. Typically there's a group of people... So there's stakes in a B2B purchase decision."
— April Dunford [20:37]

Emotional Drivers While consumer positioning often leverages emotions like desire or prestige, B2B positioning predominantly taps into fear—fear of making poor choices that could result in professional repercussions.

"In B2B, the granddaddy of emotions is fear. Fear of making a poor choice... Nobody is going to get fired for picking Salesforce at this point."
— April Dunford [22:47]

Storytelling in Positioning

Beyond the Hero's Journey April critiques the typical storytelling frameworks employed in B2B marketing, such as the hero's journey, which often lack a clear depiction of competitors and differentiation. She advocates for a storytelling approach that directly addresses why a customer should choose one product over another.

"The story that we're trying to tell needs to answer this question. Why pick us over the other guys?"
— April Dunford [50:22]

Effective Examples She cites Postman, a company specializing in API development platforms, as an exemplary model. Postman successfully communicates its unique value by educating customers about the importance of high-quality APIs and establishing a distinct market perspective through consistent storytelling.

"They have a graphic novel called the API First World... they've really done an amazing job of storytelling around that."
— April Dunford [54:28]

Role of Influencers and Independent Bodies

Navigating Analyst Influence April discusses the impact of independent bodies like Gartner on B2B positioning. In sectors where such analysts are influential, securing a favorable position in reports can be pivotal for market perception and customer trust.

"In the database market... we spent a lot of time helping Gartner Group understand what our stuff was about."
— April Dunford [60:28]

Identifying Key Influencers Understanding who influences buyer decisions—whether industry analysts, service providers, or experts—is crucial. April emphasizes the importance of building relationships and ensuring these influencers accurately represent the product's unique value.

Common Mistakes in Positioning

Overlooking Deliberate Positioning Many companies either neglect positioning or treat it as a superficial marketing exercise, leading to ineffective sales pitches and customer confusion.

"The biggest mistake is not deliberately positioning... Think about how hard it is to make a purchase decision."
— April Dunford [27:28]

Failed Category Creation Attempting to create a new market category when an existing one suffices can result in customer confusion and positioning failure. April advises aligning with well-defined market segments unless genuinely pioneering an emerging category.

"Companies have attempted to do category creation or pretend that they're doing this new category... customers are just very confused."
— April Dunford [65:13]

Academic Teachings vs. Real-World B2B Marketing

April critiques the traditional marketing education, noting its heavy focus on B2C strategies that don't translate effectively to B2B contexts. She argues that academic teachings often overlook the complexities of B2B decision-making, such as buying committees and high-stakes purchasing.

"In schools, we don't teach enough about B2B... It doesn't apply when you're selling middleware."
— April Dunford [65:24]

April's Reflections on Success

Conclusively, April shares her personal definition of success, rooted in empowering companies to master positioning. She finds fulfillment in transforming complex positioning challenges into clear, market-defining strategies that resonate with customers and drive business success.

"Good positioning. When you look at it afterwards, people will say, well, of course that's what they are... It was really hard for us to get there."
— April Dunford [73:17]

April expresses immense satisfaction in witnessing the immediate positive impact of effective positioning on her clients' sales and customer understanding, solidifying her passion and commitment to her field.

"And so that is the most satisfying thing. And so that is success for me."
— April Dunford [73:25]

Conclusion

This episode serves as a comprehensive masterclass in strategic positioning, offering invaluable insights for businesses striving to carve out their unique space in crowded markets. April Dunford's expertise underscores the necessity of deliberate positioning, especially in B2B contexts, and provides actionable strategies to differentiate products, engage customers effectively, and navigate the complexities of modern marketing landscapes.

For those seeking to enhance their understanding of product positioning and apply these principles to achieve greater market success, this episode is an essential listen.

Notable Quotes:

• "Positioning isn't input. So if you think about it this way, if everything we do in marketing and sales is the house, positioning is the foundation upon which the house is built."
  — April Dunford [04:40]

• "The most fearsome competitor we have in B2B by far, is no decision."
  — April Dunford [68:51]

• "In B2B, the granddaddy of emotions is fear. Fear of making a poor choice."
  — April Dunford [22:48]

Resources & Further Reading:

• April Dunford's Book: Link to Book
• Shane Parrish's Newsletter: FS Blog Newsletter
• Follow Farnam Street on Instagram and LinkedIn.

This summary encapsulates the key discussions and insights from the podcast episode, providing a structured and comprehensive overview for those who haven't listened to the full conversation.