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- ♖ The Positioning Lesson That Changed Everything
♖ The Positioning Lesson That Changed Everything
The Moat | Issue 027

Hi Friends,
In 2019, my CEO pulled me aside: "Ali, you own positioning at Mercatus now."
I nodded confidently. Walked back to my desk. Panicked.
I had zero clue what positioning actually meant. So I read every book on the subject (spoiler: there weren't many).
One book changed everything: Obviously Awesome by April Dunford. It’s one of the first books I read that was a step-by-step manual on exactly what I needed to accomplish.
I worked through every chapter. Completed every framework. When I got stuck, I'd DM April on LinkedIn. She responded to every question thoughtfully and generously.
Six years later, positioning is the lens I use for every strategic decision.
Today's issue: I'm breaking down what positioning means, why it’s important, and giving you the framework to use on Monday.
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Why I Think About Schweppes Way Too Much
David Ogilvy, The Mad Men legend himself, wrote "How to Create Advertising That Sells". It’s one of my favorite articles ever written. It has 38 timeless lessons.
What’s lesson #1?
Positioning.
Here's what he wrote:
01: The most important decision.
We have learned that the effect of your advertising on your sales depends more on this decision than on any other: how should you position your product? Should you position Schweppes as a soft drink or as a mixer? Look before you leap.

Every time I walk through a grocery store, I always take a moment to glance at where Schweppes sits: the mixer aisle, not the soda aisle.
I wonder what bold executive made that choice nearly a century ago? They sacrificed the massive soda market to own a smaller, riskier, and eventually more profitable category.
That's positioning.

My Favorite Definition on Positioning
In her book, April gave a positioning definition that has been my north star:
“The act of deliberately defining how you are the best at something that a defined market cares a lot about."
"Best at something" means be the undeniable 'shark” at something.
"Defined market" means go after a “little pond”.
Most companies drown trying to be a medium fish in the ocean.
Here's the 2x2 positioning framework I have etched in my brain (and hopefully yours):

Lost at Sea: Nobody in a crowded market. 90% of startups stay here.
Crowded Waters: You're competing with giants. Rare to win.
Emerging: Building strength in a niche. Keep going until you own it.
Best Spot: You dominate a segment. Best-fit customers recognize you.
Be the big fish in a little pond.
The uncomfortable truth? Great positioning alienates people.
Your best-fit customers think: "Holy shit, they get me."
Everyone else thinks: "This is really dumb."
That's perfect. That's how you know it's working.

The 5-Question Positioning Framework
Not too long ago, I applied April’s positioning framework to 5-Hour Energy, one of my favorite positioning stories.
It was my first 100,000 view Linkedin post and led me to two paid consulting opportunities. I provided an editable version of the PDF below you can download and edit.
Here are the 5 positioning questions:
1. What would customers do if we didn't exist?
(Your true alternatives, often "manual processes," not direct competitors)
2. What do we have that alternatives don't?
(Your unique capabilities)
3. What value does that enable?
(The differentiated value unlocked)
4. Who cares most about that value?
(Your best-fit customers who care deeply)
5. What market category makes our value obvious?
(The frame that helps prospects immediately understand why you're best)

Takeaway
This week, as I’m thinking a lot about Pricing I/O's positioning, I keep reminding myself:
Positioning isn't magic.
It's just deliberate choices about what you're best at and who cares most.
The hard part? Most companies never make those choices.
Don't be most companies.
'Til next time,
Ali
P.S. What's the clearest positioning you've ever seen? Hit reply and tell me.


About Me: I'm Ali, Head of Growth at Pricing I/O. I write about building winning teams and growth strategies to scale businesses. Based in Houston, father of two, and so glad basketball season started. Go Rockets!

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