By Tom Kuhr
Startups fail for many reasons, but one of the biggest —and least talked about— is (poor) product positioning. It’s not flashy, and it’s not technical. But, it’s the difference between scaling and stalling.
Product positioning (and more forward-thinking market positioning) shapes how your customers see you. If you don’t get it right, no amount of coding or innovative features will help you break through the noise. Positioning is the invisible force behind every success story—and the reason why so many startups with brilliant products struggle to grow.
Let’s get one thing straight: positioning is not your tagline. It’s not your brand story, your vision, or your “why.” And, it’s not the same as messaging. It’s definitely not some “fluffy stuff” that some CEOs think that marketing teams cook up.
Positioning is the fundamental basis for sales and marketing success.
At its core, positioning defines how your product will become the leader in delivering something that a very specific set of customers care deeply about. You can think of positioning as the lens through which customers understand your product’s value and relevance.
Positioning is like setting the scene for your product, just like the opening scene of a movie—it’s the part that tells the audience where they are, what’s happening, and who’s involved. Without this context, nothing else makes sense. The same goes for your product. If people don’t understand where your product fits in their world, why should they care about the details?
Common Founder Mindsets: Why So Many Founders Get Positioning Wrong
Many tech founders focus so heavily on the product itself—features, code, design—that they forget the most critical questions: Who is this for, and why should they care?
Founders assume a great product will naturally find its market because they find value in it. But that rarely happens. In fact, without clear positioning, even the most impressive technology won’t get the attention or traction it deserves.
A feature-first mindset leads to products that might be brilliant but end up being misunderstood, underappreciated, or even completely ignored by the very customers they were designed for. Founders often realize (too late) that positioning isn’t something you tack on at the end; it’s something that drives everything — from product development to messaging, marketing and sales. Here are a few quotes I’ve heard from founders:
“We Can Serve Everyone”
In an attempt to attract more customers, many founders cast too wide a net, thinking broader appeal equals broader adoption. But when your message tries to speak to everyone, it resonates with no one.
Instead of showing how your product is the perfect fit for a specific group of people with a burning problem, you end up with a vague, confusing message that lacks focus—because you can serve everyone. Positioning helps you find a starting place to grow. It’s about focusing on only the benefits you provide that really matter, and talking to the customers who will truly care — those who need your solution now, not someday in the future.
“Our Competitors Have Inferrior Products”
Founders often fail to analyze how their competitors are already positioned in the market. They either mimic the same tired narratives or fail to differentiate their product enough to stand out. Or, think their superior tech will stand on its own.
If your positioning doesn’t clearly explain why you’re the better choice, customers will default to what they already know. And sometimes, that’s doing nothing and keeping the status quo. Successful positioning makes it obvious how you’re different (and better), and why switching to your solution (which requires internal change) is worth it.
“B2B Buying Is Logical”
Positioning isn’t just about logic and facts. Good positioning is deeply emotional. Founders who focus solely on product specs and features miss the human element. Emotions drive buying decisions more than logic. While facts and figures support those decisions, the buyer needs to feel like they are making a good decision that they can bet their job on.
In B2B, founders don’t’ realize how much painting a picture of the future matters. Or, how much customers need to trust that your company won’t go out of business in a year. Customers don’t just buy a product because it works; they buy because they trust it, relate to it, and believe it will solve their problem better than any other option. They’re betting their reputation — and sometimes their job—on your company’s ability to deliver. Ignoring this emotional aspect of decision-making is a surefire way to miss out on building a connection with your audience.
Even the Smartest Founders Struggle with Positioning
The truth is, many of the best founders can’t crack positioning alone. Why? Because they’re too close to the product. When you’re deep in the code or obsessed with the next feature release, it’s nearly impossible to see your product from the outside-in — the way customers do. That’s why expert guidance isn’t just helpful — they’llit’s essential.
So, how do you get your positioning right? Well, it starts by answering five key questions. Sounds simple enough, right? The challenge, of course, is getting the “right” answer to each one.
1. Competitive Alternatives
First things first: What would a customer do if your product didn’t exist?
Alternative options always include NOT buying a product. And, when looking for a product or service, buyers don’t always turn to a direct competitor. Sometimes it’s an entirely different approach to solving the same problem—or even doing nothing at all. Knowing what your customers use now is important because it sets the standard they will compare you to. If you’re not crystal clear on what their alternatives are, how will you know what makes your product truly stand out?
2. Differentiated Features or Capabilities
Once you’ve nailed down the possible alternatives, ask yourself: What do we have that the alternatives don’t? Why is that so compelling?
It doesn’t have to be some groundbreaking feature that no one else in the world has. Sometimes your edge is in your setup process, your white-glove customer service, your “starter package”, or the way you deliver your product. The goal is to find the things that make your product better, easier, cheaper or faster than what’s already available. Highlight where the competition falls short and where you excel.
3. Value for Customers
Here’s where many founders trip up: just because your product has great features doesn’t mean customers will value them the way you think.
The real magic is understanding what those features really mean to your customers — how they solve their problems, save them money or make their jobs easier. Sometimes, people buy products to enter into a new market, and sometimes the buyer wants to be a hero. It’s all about how your product makes them feel or how it drives their success. The more you can zero in on what drives emotional and practical value for a group of similar customers, the better positioned you’ll be to win them over.
How do you determine customer value? Customer interviews. If you don’t have customers, then you need to interview potential customers. The more interviews, the better. After a few dozen interviews, you’ll have a great idea of the problems that are really worth solving and how valuable that solution is to the customer. What you won’t have, however, is the price they’ll actually pay.
4. Target Customers
Here’s a hard truth: you can’t be everything to everyone. And that’s 100% okay.
Just because your TAM is $2 billion doesn’t mean you need to go after that entire market. Many founders try to boil the ocean. You need to succeed with one small area of that market to get a foothold and really understand who your primary buyer is and why they found your solution so compelling.
Focus is the most challenging part of positioning because it means deliberately narrowing your audience and target market. Not all customers will care about your value proposition equally. You need to find the segment of the market that has a big problem you can solve, is willing to pay for it and doesn’t have a long procurement process. That’s your ‘best fit’ customer profile for your current stage of growth. Over time, as you get more customers and data, you’ll refine or expand your target market. But start by focusing on those prospects most likely to convert immediately.
5. Market Category
Finally, we need to answer the question: What market category do we fit into?
This is about giving customers a reference point — something familiar they can relate to. If you’re completely new, you’ll spend a lot of time and money educating the market. It’s much easier (and faster) to position your product within an existing category where your value is immediately clear. But you just do X better. Think of it like this: you want to be similar enough to existing solutions in a category that customers understand what you do, but different enough to show why they should choose you.
The Wallet Test: Will Customers Actually Pay, and How Much?
Positive feedback is great, but it doesn’t pay the bills. Customers might say they love your product, but will they actually go through the pain of selling their peers and boss on it? And if they do, how much is solving that problem really worth to the budget holder?
This is where positioning directly influences your pricing strategy. Value-based pricing reflects how essential your product is compared to other priorities your customers face. If your product solves a major problem, they’ll pay more. But if it’s seen as a “nice-to-have,” it will be much harder to justify a premium price. Proper positioning helps you understand exactly where your product fits into your customers’ priorities and how much they’re realistically willing to spend to solve the problem.
Pricing also shapes your buying process and your go-to-market strategy. For example:
- Under $100/month: customers can quickly buy with a credit card — no sales team required. You only need inside sales to troubleshoot. Your buying process is entirely automated.
- Over $500/month: your buyer will likely need departmental approval, adding a few weeks to the buying process. You’ll need a team and process to nudge these customers along.
- Over $25,000: You’re selling a more complicated product and will need to negotiate pricing and contracts with procurement and legal teams. This can take 2 to 3 months longer. You’ll need a salesperson to push every deal.
- Over $100,000: You’re probably getting more than two department heads to agree and earmark a budget. Deals like this can take a year or more and need an enterprise-class sales team.
In short, your pricing must align with both your product’s perceived value and the customer’s purchasing behavior. The right positioning makes that alignment clear.
Positioning is the Foundation for Scaling
The right positioning doesn’t just help you sell — it helps you scale.
When you’re clear on who you are, who you’re for and what makes you different, everything else falls into place. Your marketing becomes more targeted, your sales efforts more effective and your product development more aligned with what customers actually need. It’s the foundation on which you build everything else.
Why Positioning Isn’t a DIY Job
While the steps may seem straightforward, executing them properly is where most startups fall short. It’s not because you’re not capable— it’s because you’re too close to your product. When you live and breathe every feature, you lose the objectivity to see how customers view your creation. It’s hard to conduct an unbiased customer interview, and if yu’ve build good customer relationships, your interviewee might want to withhold the full truth.
That’s where a product marketing professional can help. They can provide the fresh perspective and structured process you need to avoid falling into common traps — like overselling features no one cares about, eliminating biase from interviews, or failing to get at the heart of why customers really buy.
Unlocking Your Growth Potential
Many startups face challenges with positioning, and can’t figure out why they can’t grow faster. The great news is that it’s absolutely solvable — andwith the right guidance. If you’re working to define where your product fits or looking to gain more traction, you’re in good company. Every successful business refines its positioning regularly, and you can do the same. Once you get it right, you’ll set your startup on the path to sustainable, long-term growth.
If you’re ready to move from uncertainty to clarity and start scaling with confidence, let’s connect. I’ve helped dozens of startups like yours fine-tune their positioning and accelerate their success. Let’s make sure yours is next.
About Tom Kuhr
Tom Kuhr is a revenue-driven Chief Marketing Officer with decades of experience in positioning, pricing, and go-to-market execution. Tom has helped both startups and established companies to fine-tune their messaging, identify their ideal customers and break through competitive markets. His strategic approach drives faster revenue growth by aligning positioning with actionable sales and marketing tactics. If you’re looking to build a foundation for scalable success, Tom is the expert you want in your corner. Tom@kuhrstrategies.com.