Market Positioning for B2B Companies Between $1M and $15M: Who You're For, What You're Really Up Against, and Why You Win
Market positioning for B2B companies under $15M: the three decisions it comes down to, what skipping it costs, and a check you can run this week.
Market positioning is the first of the four fixes (positioning, messaging, prospecting, sales), and the one almost nobody sells you. I've worked in this order in every revenue role since 1999, and revenue grew in every leadership role I've held, somewhere between 107% and 600%. Here's what positioning decides, what skipping it costs, and a check you can run this week without calling me.
You're probably here for the same reason the CEOs who call me are: you need leads, you're paying for marketing and getting nothing back for it, and you hired an agency and aren't sure what it did.
Add up the ads, the agency, the rep or two, maybe a site rebuilt last year. If your market positioning is wrong, you've paid to tell more of the wrong people, and every dollar you add tells more of them. "We worked harder this year, and made less than last year" is how one CEO put it to me.
Why Market Positioning Has to Come First
Almost everything sold to a company your size fixes prospecting or sales: the agency's leads, the trainer's process, the CRM's view of the pipeline you already have.
Positioning is the fix where somebody has to sit across from you and tell you that who you think you're for, and why you think you win, don't match what your buyers actually do. That's a hard conversation to have and a harder one to sell. Selling you more prospecting is easier, and the invoice is the same size.
I call that an out-of-order fix: paying for a later fix while an earlier one is still broken. The money leaks, and you can't see where. Whoever you hired usually did exactly what you hired them to do: fix prospecting or sales while market positioning was still open.
I fix revenue with the RevenueEngine™: four fixes, always in the same order (positioning, messaging, prospecting, sales), so every dollar goes to the fix that comes next and nothing gets built on one that's broken.
One company I worked for was spending $100,000 a month on digital ads, the only thing its marketing was running. The form fills came in, and sales wouldn't accept them. Positioning was the problem, and the ads were spending on top of it.
I cut $80,000 of it a month, four of every five ad dollars, and the first month was tough. Within a quarter, the pipeline sales accepted as qualified was running at three times its monthly average for the prior 12 months.
I don't promise you the same result. Add up how much of your own spend is running on top of market positioning nobody settled.
What Market Positioning Means at a Company Under $15M
Most guides define market positioning as the distinct space your brand holds in the customer's mind, how customers perceive you relative to competing brands, then list the types of positioning strategy. None of that tells you who's going to buy from you, or why they'd pick you over doing nothing.
So I'd define it by what it decides. Market positioning is three decisions: who you're for, what you're really up against, and why you win. Get one wrong and the message, the marketing strategy, the launch campaign and the rep's pitch all aim at the wrong answer.
A market positioning strategy is the plan for making those three decisions and holding them when the next agency pitch, the next big customer or the next quarter's panic pulls the other way.
Positioning Strategy: The Types You'll Read About, and the Decision They Skip
You'll read that a positioning strategy means picking one type of position and holding it. The usual list:
- Price positioning: the cheapest option.
- Quality: superior quality.
- Use or application: built for one job.
- Attributes or benefits: one key benefit or attribute to be known for.
- Niche: built for one market segment.
- Competitor-based: the alternative to the leader.
At $1M to $15M, the type of positioning strategy is rarely the problem. Most of the CEOs I talk to can name the one they'd like to hold, but not which customers actually buy for that reason. You can pick a type in an afternoon. Which customers buy for it is in the last two years of your deals, and you only find it by reading them one at a time.
Market, Brand and Product Positioning: One Decision, Three Names
At your size, market, brand and product positioning are three names for one decision. Brand positioning is the consumer-side term, where brand image and emotional connection carry most of the weight, product positioning is the product manager's for one product among several, and market positioning is where the whole company sits, and for whom. Under $15M, B2B positioning is a company decision, so it's yours, and handing it to the agency or the new hire won't bring it back settled.
Decision One: Who You're For, Decided by Who Already Pays You
I'd decide who you're for from your deals. A persona worksheet describes the target audience you'd like to sell to. Your deals show who buys.
Finding Your Target Market and Its Customer Needs in Your Own Deals
Pull the last two years: the deals you won, the deals you lost, and the deals that stalled and never decided. For each one, write down who bought, what they were fixing, how long it took and what nearly killed it.
Look at the wins you'd want ten more of. The pattern in them that's missing from the losses is who you're for: your target market. It'll be narrower than you'd like, and it's the version your buyers have already agreed to, by paying.
Brace for the customers you like who aren't in the pattern. Every company I've worked for had a few. Positioning doesn't fire them; it stops your marketing efforts from looking for more of them.
Decision Two: What You're Really Up Against, Including Nothing at All
Your competitor list is the small part. The bigger part is your competitive alternatives: what your buyer does instead of buying from you, and at your size the most common answer is nothing.
Ranking Your Competitive Alternatives
Take the lost and stalled deals that fit the pattern from decision one and write down what each buyer did instead: bought from someone else, kept doing it by hand, or did nothing. Rank the answers; the one at the top is your primary competitive alternative. Then call two of those buyers and ask what it's costing them.
Doing it by hand usually sits near the top with doing nothing. The spreadsheet stays, the intern keeps at it, and the problem gets lived with for another year, because living with it looks cheaper than fixing it.
That whole list is your competitive landscape. A competitive analysis maps you against named rivals on price and quality, calls that your competitive position, and hands you a chart. The chart can't show you the buyer who read everything you sent, agreed with all of it, and did nothing. He's the competitor you lose to most.
A Competitive Positioning Strategy Starts With What Doing Nothing Costs
Your competitive position at your size starts with what that buyer does today, what it costs him, and why he'd change. If you can't say what doing nothing costs your buyer, in his numbers, you don't have a competitive position yet. You have a feature list.
Decision Three: Why You Win, in Reasons That Survive a Buyer Pushing Back
Ask a company why it wins and you'll hear "great service," "we really care," "our people." I've heard some version of them in every company I've worked for, including the ones that were losing. None of them survives a buyer saying "so does everyone else."
Finding the Reasons You Win: A Competitive Edge You Can Check
A reason you win has to pass one test: a buyer pushes back, and it still stands. "Great service" doesn't, and neither does "cutting-edge technology." "Our implementations finish in forty-five days because we don't customize, and here are the last ten" does.
To find yours, take the wins you'd want ten more of from decision one, ask two of those buyers why they picked you over what they'd otherwise have done, and keep the reasons that come up twice and survive the push-back.
The forty-five-day reason is a competitive advantage: it's checkable, it's about the buyer you're for, and the alternatives can't say it. Differentiation at your size is a short list of reasons like that, decided after decisions one and two. Decide it first and you're back to "great service."
Writing a Positioning Statement Your Team Can Say Out Loud
Write the three decisions as a paragraph your sales team can say out loud without reading it: who it's for, what they'd do instead, and why you win. Your positioning statement is that paragraph, and messaging, the second fix, is built from it.
The fill-in-the-blank template fails because it gets filled in before the deals are read, and you've written down what you hope is true. Write it after, and it's what your buyers already told you.
The Check You Can Run This Week, Without Calling Anyone
Ask three people inside your company what you do for customers, and make one of them someone who never talks to a customer. Then ask three customers what you do for them.
If those six answers aren't one answer, positioning is open, and nothing further down the order is your real problem yet.
Most companies I've run this check in fail it the first time, and most CEOs are surprised by which answers differ. It's usually not inside versus outside. It's the person who never talks to a customer describing a company the customers have never met.
What It Costs to Skip Market Positioning
Skip market positioning, and every message after it is aimed at the wrong person. That's not a delay, it's a bill. You pay for the campaign, you pay for the rep's quarter, and then you pay again to redo the work once you find out.
Say your marketing costs $20,000 a month and a third of it reaches buyers who were never going to be yours. That's $80,000 a year telling the wrong people, before the reps' time on the leads it produces and the site you'll rebuild once someone decides who it's for.
The one-third is a stand-in. Run yours: what you spend a month on marketing, times the share reaching people who were never going to buy, times twelve. Then add the reps' time and the rebuild.
In my experience, an out-of-order fix feels like working harder and making less: the activity goes up and the number doesn't.
When Market Positioning Isn't Your Problem
Positioning comes first in the order. That doesn't mean it's what's broken at your company.
If the six answers match and your deals agree, your market positioning holds, and the stall is further down the order. A clear position with every rep telling it a different way is a messaging problem. A clear position and a settled message with no new names in the pipeline is prospecting. All three in place and the deals still not closing is sales.
Not every company I've worked for needed all four fixed. Every one of them needed them in that order.
The sign you've got it backwards is a fix that worked for a quarter. More ads produced more meetings, then the meetings stopped converting. A new rep closed two deals, then stalled on the same objections as the last one. Each fix did its job on top of a broken one, and the leak moved.
When to Reposition
Positioning that held two years ago can stop holding. A competitor lands funding, a buyer's job changes, your product or service grows into a new product category. I'd rerun the six answers twice a year and watch your win rate against each alternative, doing nothing included. When the answers drift apart, rerun the three decisions from the deals.
Who Should Fix Your Market Positioning
Market positioning at your size gets fixed one of six ways. Ask the same two things of each: who reads your deals, and who's still there to use the answer.
You. The three decisions are yours anyway. The cost is honesty: the customers you like who aren't in the pattern, and the "great service" line you'll have to retire. Most CEOs who call me have tried this and stopped at the hard part.
A brand or positioning agency. A workshop and a deck, usually built from the inside out: your team in a room, your opinions and core values on sticky notes. It leaves you a document. In my experience, a position written without the deals read doesn't get used.
A fractional CMO through a network. Someone sells you the engagement and a consultant is assigned, so you don't choose who shows up. Most are sold by the hours a week, so what you're buying is time. The one who reads your deals may not be the one who writes your plan.
Advisory. $3,000 to $4,000 a month, remote, month to month. I read your deals and tell you what I'd decide: who you're for, what you're up against, why you win, and what to fix in what order. You make the call, and your team builds it. Nothing reports to me; I answer to you. Advisory →
Done my way: Fractional CMO. $5,000 to $7,000 a month, remote, month to month, with no minimum term and no notice period, so you can stop after any month. Your marketing team reports to me and I report to you, so marketing has one owner who answers to you. Your head of sales stays my peer and keeps reporting to you.
I'm one person with no bench, so the one who reads your won, lost and stalled deals and talks to your customers is the one who makes the three decisions with you. Then I build the messaging and the prospecting on top of them, in that order, so the position gets used instead of filed.
My top price, $7,000 a month, remote, is where the market's standard range starts, and it isn't sold by the hour, so what you're buying is the three decisions and what gets built on them. Fractional CMO →
A full-time CMO. Answers both questions, once you've found one: the search takes three to six months, and the role costs $310,000 to $410,000 a year fully loaded, plus equity. That low end is more than three years of my top price. And your spend keeps running while the search does, aimed by an answer nobody has checked against your deals. Fractional vs. Full-Time →
Market Positioning Questions, Answered
What Is Market Positioning, in One Sentence?
I'd put it this way: market positioning defines who you're for, what you're really up against, and why you win, decided from the deals you've already won, lost and stalled. At your size, brand, product and competitive positioning are the same decision seen from a different seat.
What Are the Types of Market Positioning Strategies?
The usual list is the six above: price positioning, superior quality, use or application, a key benefit, a niche market segment, and the alternative to the leader. Some lists add premium pricing, customer service, operational excellence or brand personality. Any of them can be an effective positioning strategy once you know which target customer buys for that reason, and that answer is in your deals.
Is a Unique Value Proposition the Same as Market Positioning?
No. Your unique value proposition (UVP) is one line of messaging: the specific benefits your target audience gets that the alternatives can't offer, not a list of unique features. It's built from the third decision, why you win. Write the UVP before the three decisions are made and you get "great service" in a nicer font.
How Is Brand Positioning Different From Brand Identity?
Brand identity is how you look and sound: the name, the logo, the voice, what the brand stands for on the website. Brand positioning is the decision underneath it, about who you're for and why you win. At your size, a brand positioning strategy and a market positioning strategy are the same plan, and the identity should come after it. A new logo on an unsettled position buys a favorable perception from people who were never going to buy.
Do I Need Market Research to Build a Market Positioning Strategy?
Not to start. Market research describes customer preferences and consumer perceptions across a whole market. Your won, lost and stalled deals describe the target audience that already chose, or chose not to. At $1M to $15M, I'd start with the deals. On customer expectations, I'd trust two calls with buyers who chose over a survey of people who never looked at you.
How Do You Know Your Market Positioning Strategy Is Working?
I'd watch three key metrics: the six answers still match when you rerun them, your win rate against your primary competitive alternative holds or rises, and sales accepts the leads marketing sends. That's the continuous monitoring I'd do, twice a year. I'd look for a strong market positioning strategy in your deals before I'd look for it in your brand image.
Is Market Positioning Important in a Crowded Market?
I'd say more there than anywhere. In a competitive market where the competing brands all claim superior quality and great service, the target audience can't tell them apart, and the easiest choice left is doing nothing. The market gaps worth taking are in the deals you lost to nobody, and your competitive position starts with what that costs the buyer.
How Does Market Positioning Change Marketing and Communication Efforts?
It aims every one of them: product marketing, promotional efforts, the website, the launch campaign, and every customer interaction your reps have. That's why market positioning comes first in the order.
Start With the Six Answers
Run the check this week. Ask three people inside and three customers what you do for them, and write the answers side by side before you spend another dollar on leads or another month on a positioning deck.
If the answers match and your deals agree, your growth is stalled lower in the order, in messaging, prospecting or sales, and the sales strategy guide picks up there. If they don't, you've found the first fix, your market positioning, and until it's settled, every dollar you spend on leads pays to tell more of the wrong people.
- 2020Fractional CMO & CROAveraged across clients2–6× · pipeline
- 2018Chief Revenue Officer20-year-old company+300% · 2 years
- 2015VP of Sales & MarketingStartup+107% · 2 years
- 2014EVP Sales & MarketingStartup → Unicorn Status+300% · 1 year
- 2006VP Channel & Business DevelopmentStartup → Unicorn Status+600% · 8 years
- 1999Global Sales DirectorPublic Software Company+400% · 7 years
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