A PM should know the difference
Recently, during a product strategy class session, someone raised a question:
“What’s the difference between value proposition and positioning?
Are they not the same?
Why not just use value proposition?”
It’s a good question that gets to the heart of go-to-market strategy. While these terms are often used interchangeably, they serve distinct purposes. Getting this distinction right can mean the difference between resonating with your market and getting lost in the noise.
If I say the name “Tom Cruise”. What do you think of?
Action Hero.
That is positioning.
There are two fundamental truths in marketing that everyone should know :
1. There is a lot of noise.
Too many players, Conflicting messages.
Try searching for a CRM software. You will be bewildered. And I was a PM in a CRM company. A few months ago, I was at the RSAC conference in San Francisco. There were about 1000 vendors booths. All selling Cybersecurity solutions. For the life of me, I could not distinguish one booth from the the other. Same words. Same language. “we help secure your enterprise from bad actors”
2. People think in boxes.
I learnt about this in the classic book “Positioning” by Jack Trout. Highly recommended.
He says that people have compartments for everything.
Founders will get this. When you explain your product to an investor, they sometimes retort back “oh, so your like X”.
That’s boxing.
They want to place you in a box.
No matter how hard you try to say “No, No, we are different”.
But the reality is, for a human mind it is easier to comprehend something that fits a box that already exists vs creating a new box for them. It’s OK to be in a box. It gives you the opportunity to truly differentiate. It’s easier to differentiate in a box than to create a new box in the minds of people.
A Simple Analogy: Coffee Shops
Before diving into B2B examples, let’s start with something everyone understands: your local coffee scene.
Starbucks Value Proposition: “The perfect coffee experience, wherever you are that reminds you of cafe in Europe where you can have the best coffee, relax and connect with friends.” (consistent quality and convenience)
Starbucks Positioning: “The premium coffee chain” (positioned above fast-food coffee, below artisanal coffee shops) or “Get the European cafe experience”
When someone sees that European reference, it evokes visuals or memories of their own cafe experiences in say Paris or Vienna. They don’t talk about the great coffee yet. Thats positioning. Once you are in that box, now you can compare the coffee types or ingredients etc.
Local Artisan Coffee Shop Value Proposition: “Discover exceptional single-origin coffee crafted by expert roasters, using organic material sourced from ethical practices in 3rd world countries” (superior taste and craftsmanship)
Local Artisan Coffee Shop Positioning: “The authentic alternative to corporate coffee” (positioned against chains like Starbucks)
See the term “corporate coffee”. What does that evoke in you?
Bland, boring, cookie cutter. So the local coffee shop is positioning against all that and give you a real authentic coffee experience. That’s positioning.
What Is a Value Proposition?
Your value proposition is the promise of value you deliver to customers. It’s the specific benefit or outcome your product creates, articulated in terms your customers care about.
A strong value proposition answers: “What valuable outcome will customers achieve by using our product?”
Value Proposition Examples:
Slack: “Slack is where work flows. It’s where the people you need, the information you share, and the tools you use come together to get things done.”
Salesforce: “Grow your business faster with the world’s #1 CRM.”
Zoom: “Video communications empowering people to accomplish more.”
Notice how each focuses on the customer outcome – improved workflow, business growth, or enhanced productivity.
What Is Positioning?
Positioning is how you want your product to be perceived relative to alternatives in the customer’s mind. It’s about claiming a specific spot in the competitive landscape and in your buyer’s mental framework. Remember the box.
Positioning answers: “How should customers think about us compared to other options?”
Positioning Examples:
Monday.com: “The work OS that lets you shape workflows, your way” (positioned against rigid project management tools)
Notion: “One workspace. Every team.” (positioned as the all-in-one alternative to fragmented productivity tools)
Airtable: “Part spreadsheet, part database, and entirely flexible” (positioned between Excel and complex databases)
Salesforce: “No Software”
Each claims a unique space relative to existing categories and competitors.
When to Use Each
Lead with Value Proposition When:
Launching new products where you need to establish clear customer value
Creating marketing copy for landing pages, ads, or sales materials
Training sales teams on how to articulate customer benefits
Conducting customer interviews to validate problem-solution fit
Developing pricing strategy around delivered value
Lead with Positioning When:
Entering crowded markets where differentiation is critical
Competing against established players and need to carve out unique space
Messaging to analysts and press who need to categorize your solution
Building brand strategy for long-term market presence
Fundraising conversations where investors need to understand your competitive moat
How They Work Together
The magic happens when value proposition and positioning reinforce each other. Your positioning should make your value proposition more credible and compelling.
Example: Figma
Value Proposition: “Build better products as a team” (collaborative design outcome)
Positioning: “The collaborative interface design tool” (positioned against single-user design tools like Sketch)
The positioning (collaborative) directly supports the value proposition (team-based product building).
Common Mistakes to Avoid
Mistake #1: Making them too similar Your value prop shouldn’t just restate your positioning. “We’re the leading CRM” (positioning) vs. “Increase sales by 30%” (value proposition).
Mistake #2: Positioning without substance Claiming to be “innovative” or “best-in-class” without clear differentiation from alternatives.
Mistake #3: Value prop without proof Promising outcomes you can’t deliver or measure.
Mistake #4: Ignoring the customer’s frame of reference Your positioning means nothing if customers don’t understand the category you’re positioning against.
Practical Next Steps
I am not an expert on positioning and highly recommend you follow people like April Dunford and Anthony Pierri.
But at a high level.
Audit your current messaging: Can you clearly distinguish your value proposition from your positioning?
Map your competitive landscape: What alternatives do customers consider? How do you want to be different?
Interview recent customers: What outcomes did they achieve? How do they describe you to others?
Test both independently: Does your value proposition resonate even without competitive context? Does your positioning make sense to someone unfamiliar with your product?
Align your team: Ensure everyone from product to sales understands both and when to use each.
The companies that win in B2B don’t just have great products – they have crystal-clear value propositions that resonate with customers and sharp positioning that cuts through market noise. Master both, and you’ll find your go-to-market strategy becomes significantly more effective.
Positioning and value proposition definitions are all part of a PM job. Don’t relate that to marketing. Yes, they may work on the copy, language, style but you have to work with them to determine how you position your product vis a vis the competition and the customer mindset.
