What is positioning?

Written by Madalena Rugeroni, founder of Mazo · Updated 15 September 2026

Positioning is the context a company sets around its product so the right buyers immediately understand what it is, what it replaces and why it is better for them. In B2B SaaS it rests on five choices: the competitive alternatives, your unique capabilities, the value they create, the customers who care most, and the market category.

The five components, in order

April Dunford's process in Obviously Awesome works through them in a specific sequence:

Competitive alternatives: what customers would do without you — including "a spreadsheet" and "do nothing". The customer's list, not your competitor list.
Unique attributes: what you can do that those alternatives can't.
Value: those attributes translated into two or three themes stated as customer value.
Who cares most: the segment for whom that value is urgent — which loops back to your ICP.
Market category: the frame that makes the value obvious, chosen last.

Founders who start with "what's our category?" are doing it backwards.

Worked example

A fictional tool that automates supplier-invoice chasing for accounting firms:

Alternative: a bookkeeper, an email inbox and a spreadsheet.
Unique attribute: reads invoices from the inbox and follows up with suppliers automatically.
Value: two days a month back per bookkeeper.
Who cares most: 10–50-person firms that just took on new clients.
Category: accounts-payable automation.

Positioning sentence: "We're accounts-payable automation for growing accounting firms who need invoices chased without adding a bookkeeper."

Positioning vs messaging

Positioning is the set of decisions; messaging is how you say it. Andy Raskin's strategic narrative, for example, turns positioning into a story that starts with a shift in the world, not with the product. Messaging built on unclear positioning just says the wrong thing more persuasively.

Why positioning matters from €0 to €1M ARR

Pre-revenue: write the sentence and test it on prospects: can they repeat it back after hearing it once?
Around €10k MRR: check the homepage. If a first-time visitor can't tell in ten seconds what you replace, they can't tell why to switch.
€50k+ MRR: losing deals to "do nothing", or buyers comparing you with the wrong tools, are positioning problems — not sales problems.

Mazo's rule of thumb: before €1M ARR, compete in a category buyers already understand and name the alternative you replace. Write one sentence: "We're a [category] for [ICP] who need [outcome] without [the alternative's problem]." If a prospect can't repeat it back after hearing it once, it isn't finished.

Common positioning mistakes

Inventing a category too early. Christopher Lochhead's category design is a later-stage play; below about $2M ARR, niche down an existing category instead.
"We have no competitors." Usually it means no budget line.
A homepage that speaks to everyone.

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FAQ

What is the difference between positioning and messaging?

Positioning is the underlying set of decisions: who you are for, what you replace, why you are better and which category you compete in. Messaging is the words you use on the homepage, in decks and in sales calls to communicate those decisions.

What is a positioning statement template for SaaS?

A simple one: "We are a [category] for [ideal customer] who need [outcome] without [the problem with the alternative they use today]." Test it by checking whether a prospect can repeat it back.

When should a startup reposition?

When buyers consistently compare you with the wrong alternatives, can't explain what you do after a demo, or deals stall because the value isn't obvious — not simply because the website copy feels stale.

Who wrote this

Madalena Rugeroni built Mazo. She's an ex-Googler, a startup advisor and investor, and runs a portfolio of internet companies. Before that, as Head of Growth at Amplemarket, she scaled a B2B SaaS to $10M ARR. LinkedIn

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Further reading. Operators and books referenced: April Dunford (Obviously Awesome), Andy Raskin (strategic narrative), Christopher Lochhead (Play Bigger). These are published methodologies credited to their authors; Mazo is not affiliated with or endorsed by them.