Mastering Strategy, Vision, and Positioning

Summary

In this episode of the Positioning Show, April Dunford discusses the key distinctions between vision, strategy, and positioning in marketing. She explains that vision is a long-term picture of the future, strategy is the plan to overcome obstacles and get there, while positioning focuses on winning in the market today. April emphasizes the importance of understanding these differences, especially when pitching to investors versus customers, and how positioning evolves as a company progresses. She also shares insights on how startups often blend investor pitches with customer-focused strategies, potentially causing confusion.

Takeaways

• 😀 Vision is about the future and the big picture of what you want to achieve, but it doesn't exist yet.
• 😀 Strategy defines the path from where you are today to where you want to be in the future by overcoming obstacles.
• 😀 Positioning is about the present – how you win in the market today and how you're different from competitors.
• 😀 The key distinction between vision, strategy, and positioning is that each serves a different purpose for different audiences.
• 😀 Investors care mostly about your vision and your ability to achieve it, with little focus on your current positioning.
• 😀 Customers, on the other hand, are primarily interested in the value you can deliver right now, not in your long-term vision.
• 😀 Startups need to be careful not to mix the vision story for investors with the positioning pitch for customers.
• 😀 Positioning can change over time as your strategy evolves and as you move through different stages of growth.
• 😀 A classic strategy used by tech companies is the bowling pin strategy, where you focus on a lead segment and then expand to adjacent segments.
• 😀 There is no need to create a narrative around your strategy; strategy is simply a plan to overcome obstacles to achieve your vision.

Q & A

What is the key difference between vision, strategy, and positioning as discussed in the script?

Vision is the picture of the future that doesn’t exist yet, defining where a company aims to be in the long term. Strategy outlines the plan to overcome obstacles and get from where the company is today to the vision in the future. Positioning, on the other hand, is about how a company wins in the market right now by defining its unique value and competitive advantage.

Why is positioning considered important for B2B companies?

Positioning is crucial for B2B companies because it defines how the company can deliver unique value in the market today, how it differentiates itself from competitors, and who its ideal customers are. This helps businesses win deals in the present and build their reputation in the market.

How does positioning differ when pitching to investors versus customers?

When pitching to investors, the focus is on the vision and long-term potential of the company, as investors are betting on the future. However, when pitching to customers, the focus is on the current value the company can provide and why it is the right fit for their needs today.

What role does strategy play in a company’s growth?

Strategy defines the steps a company will take to overcome obstacles and transition from its current state to its desired vision. It acts as a roadmap for the company’s growth, guiding decision-making and resource allocation along the way.

What is the 'bowling pin strategy' mentioned in the script?

The bowling pin strategy refers to the approach of focusing on one specific, easy-to-win customer segment first (the lead pin). Once that segment is successfully targeted and won, the company can move on to adjacent segments and expand gradually.

Why do customers care more about what a company offers right now rather than its vision?

Customers are interested in the immediate value a product can deliver today, especially in B2B purchases. They need solutions to their current problems and are unlikely to commit to a product that won't deliver results until much later in the future.

Can positioning change over time, and why is this the case?

Yes, positioning can and often does change over time. As companies grow and move through different stages of their strategy, their positioning needs to adapt to target new customer segments, markets, and product offerings.

What example does the speaker give about changing positioning during a company's growth?

The speaker shares an example from their time at Janice Systems, where the company initially positioned itself as a CRM for investment banks. As they gained traction in that segment, they shifted their positioning to target retail banking and then expanded further to financial services before aiming for the enterprise CRM market.

Why is it important to distinguish between vision, strategy, and positioning for startup companies?

It’s important for startups to distinguish these concepts because mixing them up can confuse internal and external stakeholders. Clear differentiation ensures that each audience (investors, customers, and the internal team) understands the company’s immediate goals, long-term vision, and strategy for success.

What concern does the speaker express about marketers and their approach to strategy and storytelling?

The speaker is concerned that marketers may sometimes overemphasize storytelling, thinking that crafting elaborate narratives about the strategy will somehow drive the company’s direction. The speaker emphasizes that the strategy should be a clear plan to achieve goals, not a story, and that marketing shouldn't assume central responsibility for all company narratives.