Product positioning is something that many B2B marketers get wrong. They spend far too much emphasis on product differentiation. And not enough energy on explaining the core value to potential customers.

The Product Marketing Alliance (PMA) defines product positioning as “a strategic exercise we use to find a product or service’s place in the market. Positioning defines what makes your product different from the others on the market so you can focus on messaging and effectively explain its value to potential customers.”

Differentiation is important. But it’s not useful if customers don’t see the value in what you offer. First you need to communicate to customers what your product can do for them. Only discuss how your product is different from others after making the benefits clear.

Here is one of the main reasons the order needs to be value articulation then differentiation. In B2B the biggest competitor is almost always status quo / do nothing. To win a sale, the status quo bias of customers must be “disrupted”. This is how innovation happens.

Status Quo – the real need for product positioning in B2B

There are status quo variants. Such as delayed decision, canceled project, budget reallocation, and projects reprioritized. The net effect is that the customer is not going to be buying your product or service. Note – They are not going to buying the competitors’ product either. 

When you sell B2B SaaS or any innovative solutions you are first selling change. Change is risk. Change is a pain for the buyer, decision makers, and their colleagues. They are already overworked, underpaid and just making it through each day. So, go ahead and tell them again about how your application is better than Salesforce or Oracle. Is that  going to motivate someone to act who is dealing with the above-mentioned issues?

Final thoughts

In conclusion before a customer will buy your innovative product, they first need to buy into the need for change. Firstly you want customers to understanding the value of your product. Afterward you can focus on product differentiation. Marketing needs to focus on getting customers to accept that they need to change the status quo first. Stop pushing product differentiation. You are just adding to your prospects’ stress and that’s not good for anyone.