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How to Create a Product Positioning Map That Wins Markets

MaxVerdic Team
November 10, 2024
7 min read
How to Create a Product Positioning Map That Wins Markets

Great products don't sell themselves—great positioning does. A well-crafted positioning map helps you visualize where you stand in the market, identify opportunities, and communicate your unique value clearly.

What is a Product Positioning Map?

A positioning map (also called a perceptual map) is a visual representation of how customers perceive your product relative to competitors across key dimensions. It's a strategic tool for finding differentiated market positions.

Why Positioning Maps Matter

For Strategy:

  • Identify underserved market segments
  • Visualize competitive gaps and opportunities
  • Guide product development priorities
  • Inform pricing decisions

For Communication:

  • Simplify complex competitive landscapes
  • Align internal teams on positioning
  • Create compelling sales narratives
  • Design targeted marketing campaigns

The Positioning Map Framework

Step 1: Select Your Dimensions

Choose 2-3 dimensions that matter most to your target customers. These should be:

  • Meaningful: Directly impact buying decisions
  • Differentiating: Clear variation across competitors
  • Measurable: Can be objectively assessed
  • Relevant: Important to your ICP

Common positioning dimensions:

Feature-Based:

  • Ease of use vs. Power/Flexibility
  • Price vs. Quality
  • Speed vs. Accuracy
  • Simple vs. Comprehensive
  • Self-service vs. Full-service

Value-Based:

  • Enterprise vs. SMB focused
  • Technical vs. Business user
  • Vertical-specific vs. Horizontal
  • Innovation vs. Reliability
  • Cost-reduction vs. Revenue-growth

Market-Based:

  • Market leader vs. Challenger
  • Premium vs. Value
  • Niche specialist vs. Generalist
  • Traditional vs. Disruptive

Step 2: Map Your Competitors

Identify 5-10 key competitors to include on your map. Consider:

  • Direct competitors (same solution to same problem)
  • Indirect competitors (different solution to same problem)
  • Substitute products (alternative approaches)

Research their positioning:

  • Analyze their website messaging and value props
  • Review customer feedback and reviews
  • Study their pricing and packaging
  • Examine their marketing materials
  • Identify their target segments

Step 3: Plot Position Accurately

Use real data to position each competitor on your map, not gut feelings.

Data sources:

  • G2/Capterra reviews for feature and pricing data
  • Customer interviews for perception insights
  • Analyst reports for market positioning
  • Website analysis for messaging and focus
  • Pricing pages for cost positioning

Example: Project Management Tools

High Complexity
        |
        | Jira
        | (Enterprise, Complex)
        |
Monday  |        Asana
(Mid-market) |  (Mid-market)
        |
   ClickUp |
(Affordable)  | 
        |________Trello______
Low Price        (Simple, Basic)        High Price

Step 4: Identify White Space Opportunities

Look for areas on the map with:

  • No direct competitors: Underserved segments
  • Customer concentration: High demand areas
  • Migration paths: Where customers move from/to
  • Emerging trends: Shifting customer priorities

Questions to ask:

  • Where are competitors clustered?
  • Which quadrants are empty or underpopulated?
  • Are there customer segments being ignored?
  • What combinations haven't been tried?
  • Where do customers wish solutions existed?

Step 5: Choose Your Position Strategically

Your position should be:

  • Defensible: Based on real capabilities
  • Desirable: Addressing significant market needs
  • Different: Meaningfully distinct from competitors
  • Believable: Credible given your company's story

Positioning strategies:

Head-to-head (Direct)

  • Compete directly with market leaders
  • Requires deep resources and patience
  • Best when you have a clear advantage

Flanking (Adjacent)

  • Target underserved segments
  • Serve customers leaders ignore
  • Lower competition, faster growth

Guerrilla (Niche)

  • Dominate a narrow segment
  • Become the category expert
  • Build deep moats in focused areas

Blue Ocean (New Category)

  • Create new market category
  • Educate customers on new approach
  • Highest risk, highest reward

Advanced Positioning Techniques

Multi-Dimensional Mapping

For complex markets, use 3D positioning or multiple 2D maps:

Map Set Example: CRM Software

Map 1: Price vs. Complexity

  • Shows market segmentation (SMB to Enterprise)

Map 2: Industry Focus vs. Generalization

  • Reveals vertical-specific opportunities

Map 3: Sales Focus vs. Marketing Focus

  • Identifies functional positioning gaps

Dynamic Positioning Over Time

Map how positions shift as markets evolve:

Stage 1: Early Market

  • Emphasis on innovation and vision
  • Clustering around new capabilities

Stage 2: Growth Market

  • Feature differentiation emerges
  • Price tiers develop

Stage 3: Mature Market

  • Consolidation and market leaders emerge
  • Focus shifts to service and reliability

Segment-Specific Maps

Create separate maps for different customer segments:

  • Enterprise customers value different attributes than SMB
  • Technical buyers have different priorities than business buyers
  • Different geographies may have unique preferences

Common Positioning Map Mistakes

1. Choosing the Wrong Dimensions Don't map what's easy to measure—map what customers care about.

2. Wishful Positioning Plot where you actually are, not where you want to be. Be honest about your capabilities.

3. Too Many Competitors Keep maps focused on your closest 5-10 competitors. Too many clutters the insight.

4. Static Maps Markets change. Update your positioning maps quarterly at minimum.

5. Internal-Only Exercise Validate your maps with customer interviews. Your perception might differ from theirs.

How MaxVerdic Validates Your Positioning

Theoretical positioning maps are helpful, but real-world validation is essential. MaxVerdic helps you:

  • Analyze customer language from reviews and social media to understand how they describe solutions and priorities
  • Identify unmet needs by tracking complaints and feature requests across competitor products
  • Validate demand for your chosen position by measuring conversation volume and urgency
  • Test messaging by analyzing which value propositions resonate most in your target market

Validate your positioning strategy →

Putting Your Positioning Map to Work

For Product Strategy

  • Feature prioritization: Build capabilities that strengthen your position
  • Roadmap planning: Move deliberately toward your desired position
  • Partnership decisions: Partner with companies in complementary positions

For Marketing Strategy

  • Messaging framework: Emphasize your differentiated attributes
  • Content strategy: Educate buyers on dimensions where you excel
  • Competitive battlecards: Highlight your advantages clearly

For Sales Strategy

  • Qualification criteria: Focus on prospects who value your position
  • Discovery questions: Uncover needs aligned with your strengths
  • Demo structure: Showcase differentiating capabilities first

Real-World Positioning Examples

Example 1: Notion

  • Initial Position: "All-in-one workspace" (vs. point solutions)
  • Dimensions: Flexibility vs. Simplicity
  • Strategy: Flanking attack on rigid enterprise tools
  • Result: Created new "connected workspace" category

Example 2: Zoom

  • Initial Position: "It just works" (vs. feature-rich but buggy)
  • Dimensions: Reliability vs. Feature Complexity
  • Strategy: Guerrilla attack focusing on video quality
  • Result: Dominated video conferencing during critical moment

Example 3: Figma

  • Initial Position: "Collaborative design" (vs. desktop-only tools)
  • Dimensions: Collaboration vs. Traditional Workflows
  • Strategy: Blue Ocean creating new category
  • Result: Redefined how design teams work

Your Next Steps

  1. Select your dimensions - Choose 2-3 attributes that matter most to your ICP
  2. Map your competitors - Plot 5-10 key alternatives on your dimensions
  3. Identify opportunities - Find white space where demand exists but supply doesn't
  4. Validate your position - Use MaxVerdic to confirm customers care about your chosen dimensions
  5. Align your execution - Ensure product, marketing, and sales reflect your position

For more insights on competitive positioning, check out our guides on competitive advantage identification and blue ocean vs red ocean strategy.

Ready to identify white space opportunities in your market? Try MaxVerdic and discover where your positioning can win.

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