Positioning at different stages of PMF is crucial for startups to establish their presence in the market and achieve growth. It helps clarify the role and relevance of the product in a specific category and identifies a space that the startup can own in the customer's mind.

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Hatched by Glasp

Jul 09, 2023

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Positioning at different stages of PMF is crucial for startups to establish their presence in the market and achieve growth. It helps clarify the role and relevance of the product in a specific category and identifies a space that the startup can own in the customer's mind.

At the early stage of PMF, positioning is about making choices regarding the product and the go-to-market (GTM) strategy. It is not about claiming ownership of a category, but rather about understanding the product's potential to disrupt an existing category or way of doing things. It is important to stay flexible and open to market input during this stage and not become too attached to the initial positioning.

However, as the startup progresses and expands, challenges may arise. The product may be used for different use cases, but broader adoption is not seen. The sales team may encounter difficulties in expanding the customer base, or marketing efforts to expand may fail. These symptoms indicate that the positioning needs to be reevaluated.

In such cases, it is necessary to revisit the original hypothesis, vision, and mission of the product and ask critical questions. Does the product fully meet the needs of the current persona? How do the functional limitations of the current persona impact the product's adoption? The focus should be on finding the entry point to the market, rather than making the wedge the entire market.

If it is determined that the product never had a strong fit or if the GTM approach is not aligned with the product's strengths, quick action is required. Time becomes the enemy, and it is important to go back to the drawing board and engage with customers and prospects to understand their needs and preferences. If the GTM strategy is not suitable, adjustments need to be made to ensure alignment with the product's complexity and onboarding process.

Throwing money at the problem by increasing demand generation does not solve the growth problem. Positioning the startup itself is critical for early-stage startups. It establishes their presence in a category and allows them to be seen and heard for their unique perspective. Even if the startup has a varied product line, positioning the startup first is the initial step, as the vision, mission, and strategy of the startup set the stage for the product.

In conclusion, positioning is a continuous process that evolves as the startup progresses through different stages of PMF. It requires flexibility, adaptability, and a deep understanding of the customer's needs and preferences. To ensure successful positioning, startups should consider the following actionable advice:

  1. Continuously evaluate and reevaluate the fit of the product and the GTM strategy. Stay open to market input and be willing to make adjustments when necessary.

  2. Engage with customers and prospects to understand their needs and preferences. Regularly communicate with them to gather feedback and insights that can inform the positioning strategy.

  3. Focus on establishing the startup's presence in a category before expanding the product line. Positioning the startup first allows for a clear and cohesive message to be communicated to the market.

By following these actionable advice, startups can navigate the challenges of positioning at different stages of PMF and increase their chances of achieving sustainable growth and success.

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