Question

Topic: Strategy

Positioning Strategy For High-tech B2b Company

Posted by Anonymous on4/14/2009 at 1:21 PM ET 500 Points
My company sells software to big companies. We are a small vendor with <1% market share in a niche category. We specialize, whereas most of our competitors are huge and well-known and offer lots of other products. The cornerstone of our brand is that we specialize. We do not compete based on price - "we specialize, our products are better."

In our struggle for awareness and attention in our niche space, we developed special messaging to position and differentiate us from the competition. HOWEVER, we still need to make our market aware that we EXIST - we need to be found where they're looking. When they think of our category, we need them to think of us.

What is the best strategy to increase awareness and also differentiate ourselves from the competition? Can both be done at once?

As you might imagine, our competitors often include software like ours as part of a bigger sale - it's just a line item in an existing relationship. So positioning for us seems mandatory; if we're perceived to be just like the big vendors, there's no advantage to choosing us.

We've been profitable for the more than 15 years we've been in business. But from a marketing standpoint, how do we really break through? How do we message and position and create awareness?

Any advice is very much appreciated.
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RESPONSES

  • Posted byFrank Hurtteon4/14/2009一28点 Member
    It would be much easier to provide feedback if we knew what specific type of software product your provide.

    I have a number of ideas but rather than just spew, why dont you provide a bit more detail.
  • Posted on4/14/2009 at 1:37 PM Author
    Sure. We provide capacity management software - software that helps IT organizations make the best use of their IT infrastructure and aids in the planning and delivery of IT services. Our strongest segment is the financial industry, where they are so reliant on IT to provide services to customers. We target director-level roles primarily; much higher, we rarely get attention and much lower, we limit our deal size.

    If you need more, say the word. Thank you!!
  • Posted bymgoodmanon4/14/2009 at 5:45 PM Accepted
    Because you are playing in such a [relatively] small niche market, you need to zero in on a problem/solution and benefit that will really resonate with your target audience, implying that any other company that isn't so narrowly focused can't serve them as well as you can.

    We've been involved in positioning projects very much like this, and it's really a question of understanding how your target audience thinks, what they value, how they make purchase decisions, the words they use, the issues they're dealing with, etc. You need to come across as the only people who really understand your niche in depth. Often it's because you have done the market research and "live their issues" every day ... not distracted by other businesses or product elements (like your competitors).
  • Posted byTraceyon4/14/2009 at 5:50 PM Accepted
    This sounds like a consultative sale to me. I think you would want to position your company as the expert in your niche. That kind of positioning requires marketing tactics such as webinars (where you offer free expert information, to generate leads -- not product demos), white papers, case studies, and the like. PR, and in particular speaking opportunities, is very important.

    In order to effectively position your company as the expert, branding is also important -- making sure you have a succint, consistent message about who you are and what you do. This should come before the tactics. Hope that helps!
  • Posted bytelemoxieon4/16/2009 at 11:09 AM Accepted
    One of the challenges of selling specialized software is that sometimes the software solves a problem that the prospect does not know they have. First, you need to educate the prospect so that they can see that they have a problem. Only then can you suggest a solution to the problem. If the customer does not know they have a problem, they probably will not be looking on the Internet for a solution.

    How would you know when you have a prospect for your solution? What kind of difficulties would a potential user of your software be facing?

    I cut my teeth selling specialized mainframe system software many years ago, and I would be more than happy to set aside some time to talk about this in more depth by phone.

    Without knowing too much about your situation, I would ask if you have considered offering a sort of pilot program with limited capabilities, so that your prospects can get a taste of your solution without a major commitment.
  • Posted on4/20/2009 at 5:46 PM Author
    Thank you all for the insightful responses! I very much appreciate your effort to help us out. This is an ongoing struggle for us, but we now have some new ways to look at the issue and new tactics to try.

    Thanks again!
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