Competitive Positioning in Crowded Markets

"We're like Salesforce, but for [industry]."

If this is your positioning, you've already lost.

In crowded B2B markets, most companies make the same fatal mistake: they position themselves as "better" versions of the market leader. Faster. Cheaper. Easier.

But here's the problem: "better" is not a position. It's a claim.

And in a buyer's mind, claims are skepticism triggers. "You say you're better. So does everyone else. Prove it."

True competitive positioning isn't about being better. It's about being different in a way that matters to your ideal customer.

According to Bain & Company's 2025 B2B Buyer Behavior study, 76% of B2B buyers say most vendors in a category "sound the same." The companies that break through are the ones with a clear, differentiated position—not a louder version of the same message.

Let me show you how.

What Are the Most Common Positioning Traps?

Most B2B SaaS companies fall into one of these positioning traps:

Trap #1: "We're Better"

"Our platform is faster, more reliable, and easier to use than [competitor]."

The problem: Every competitor says this. Buyers tune it out.

Trap #2: "We Do Everything"

"We offer CRM, marketing automation, analytics, customer support, and AI-powered insights—all in one platform."

The problem: If you're for everyone, you're for no one. Generalists lose to specialists.

Trap #3: "We're Cheaper"

"Same features as [market leader], but 50% less expensive."

The problem: You're competing on price, which means you'll lose the moment someone undercuts you. Race to the bottom.

Trap #4: "We're the Startup"

"We're nimble, innovative, and customer-focused—unlike those slow, legacy competitors."

The problem: Buyers want solutions, not startup theater. "Innovative" isn't a differentiator; it's table stakes.

Data point: According to Gartner's 2025 Tech Buying Behavior Survey, only 14% of B2B buyers consider "innovation claims" a meaningful differentiator when evaluating vendors.

How Do You Build the Right Positioning Strategy?

The best positioning strategies combine two frameworks:

How Does Jobs-to-Be-Done (JTBD) Improve Positioning?

The insight: Customers don't buy products—they "hire" them to get a job done.

Example:

• ❌ Weak: "We're a CRM for sales teams"
• ✅ Strong: "We help sales teams stop losing deals in the chaos—so every customer relationship, conversation, and commitment stays in one place."

The job: Stop losing deals because of disorganization.

The position: The CRM for chaos-prone sales teams.

This approach aligns directly with how the best product marketers translate features into customer value—starting with the outcome, not the technology.

How Does Category Design Create Competitive Advantage?

The insight: If you can't win in an existing category, create a new one.

Example:

• HubSpot didn't say "we're better than Salesforce." They created "inbound marketing."
• Drift didn't say "we're a better live chat tool." They created "conversational marketing."
• Gong didn't say "we're better call recording." They created "revenue intelligence."

The playbook:

1. Identify a problem the market leader ignores
2. Name the problem (and the solution category)
3. Own the category through thought leadership and market education

Data point: According to Harvard Business Review research, companies that successfully create new categories capture 76% of the total market capitalization in that category.

What Are the Four Competitive Positioning Strategies?

When positioning against competitors, you have four strategic options:

Strategy #1: Head-to-Head (High Risk, High Reward)

What it is: Directly compete with the market leader on their turf.

When it works:

• You have a clear, provable advantage (10x better, not 10% better)
• You have the resources to fight a war of attrition
• The market leader is vulnerable

Example: Zoom vs. WebEx (better UX, more reliable, easier to use)

Risk: If you're not CLEARLY better, you lose.

Strategy #2: Flanking (Target an Underserved Segment)

What it is: Focus on a segment the market leader ignores or serves poorly.

When it works:

• There's a large, underserved niche (SMB, vertical, use case)
• Your product is purpose-built for that segment
• The market leader is too big/slow to adapt

Example: Intercom (focused on small, product-led SaaS) vs. Salesforce (focused on enterprise)

Risk: If the segment is too small, you cap your growth.

Strategy #3: Differentiation (Be Radically Different)

What it is: Compete on a completely different dimension than the market leader.

When it works:

• You can identify a dimension that matters to buyers but is ignored by competitors
• You can credibly own that dimension

Example:

• Notion (all-in-one workspace) vs. Evernote (note-taking)
• Superhuman (speed and delight) vs. Gmail (good enough and free)

Risk: If the differentiation doesn't matter to buyers, you're just weird, not differentiated.

Strategy #4: Category Creation (Reframe the Game)

What it is: Don't compete in the existing category—create a new one.

When it works:

• The existing category is saturated and commoditized
• There's a new buyer pain point that existing solutions don't address
• You can educate the market on why this new category matters

Example:

• Slack (team collaboration) vs. email
• Miro (visual collaboration) vs. whiteboards and PowerPoint

Risk: Category creation is expensive and slow. You need capital and patience.

A strong competitive intelligence framework helps you determine which strategy fits your market position—you can't choose the right approach without knowing your competitive landscape.

How Do You Build a Positioning Canvas?

Use this framework to map out your positioning:

1. Who is your ideal customer?

Not "everyone." Pick ONE specific segment.

Example:

• ❌ "Sales teams"
• ✅ "B2B SaaS sales teams selling $50K+ ACV deals with 6+ month sales cycles"

2. What job are they hiring you to do?

What outcome do they want? What pain are they trying to solve?

3. What makes you different?

Not "better." Different. What dimension do you compete on that competitors ignore?

4. Why should they believe you?

Proof points. Customers. Data. Testimonials.

5. What are you NOT?

Define the anti-positioning. What won't you do?

How Do You Test Your Positioning?

Great positioning passes these tests:

Test #1: The Cocktail Party Test

Can you explain your positioning in one sentence at a cocktail party?

Bad: "We're a cloud-native, AI-powered platform that leverages machine learning to optimize enterprise workflows."

Good: "We help sales teams close more deals by automating all the busywork—so reps can focus on selling."

Test #2: The Substitute Test

If a customer says "we're already using [competitor]," can you articulate why they should switch?

Test #3: The Sales Test

Can your sales team explain your positioning confidently and consistently?

Bad: Every rep has a different pitch.

Good: Every rep uses the same core narrative (with personalization for each customer).

If your sales team can't articulate your positioning confidently, that's one of the clearest signs you need a dedicated product marketer.

Test #4: The Competitive Test

If a prospect is evaluating you vs. [competitor], can you clearly articulate why you're the better fit for them—without trashing the competition?

Data point: According to Wynter's 2025 B2B Messaging Benchmark, only 22% of B2B websites pass the 5-second clarity test—meaning visitors can identify what the company does and why it matters within 5 seconds.

What Positioning Mistakes Should You Avoid?

❌ Mistake #1: Trying to Be Everything

You can't be the fastest AND the most feature-rich AND the cheapest. Pick one dimension and own it.

❌ Mistake #2: Positioning by Committee

Great positioning requires a strong POV. If you're trying to make everyone happy, you'll end up with watered-down mush.

❌ Mistake #3: Copying the Market Leader

If you position as "Salesforce for X" or "Stripe for Y," you're implicitly saying the leader is the standard. You'll always be #2.

❌ Mistake #4: Ignoring Customers

Your customers have already "hired" you to do a job. If your positioning doesn't align with why they bought, it's wrong.

❌ Mistake #5: Set It and Forget It

Markets evolve. Competitors move. Customer needs shift. Positioning is not a one-time project—it's a continuous process. AI-powered competitive monitoring can help you track market shifts in real time.

What Do Real-World Positioning Examples Look Like?

Example 1: Superhuman (Email Client)

Market leader: Gmail (free, ubiquitous, good enough)

Superhuman's position: "The fastest email experience ever made"

Why it works:

• Clear differentiation: Speed (not features, not price)
• Target segment: Power users who live in email
• Proof: Keyboard shortcuts, instant load times, <100ms interactions

Example 2: Airtable (Database/Spreadsheet Hybrid)

Market leaders: Excel (spreadsheets), Salesforce (databases)

Airtable's position: "A new category—somewhere between spreadsheets and databases"

Why it works:

• Category creation: Not a better spreadsheet or database, something new
• Visual: Feels like a spreadsheet, works like a database
• Target: Non-technical teams who need structured data

Example 3: Gong (Revenue Intelligence)

Market leaders: Chorus, Call recording tools

Gong's position: "Revenue intelligence—not just call recording"

Why it works:

• Category creation: Elevated from "call recording" to "revenue intelligence"
• Broader value: Not just recording, but insights that drive revenue
• Proof: Integrates with CRM, forecasting, coaching

The Bottom Line

Competitive positioning is not about being better. It's about being different in a way that matters.

The playbook:

1. Pick your battlefield: Choose the segment, use case, or dimension where you can win
2. Be radically specific: Narrow focus beats broad appeal
3. Own a dimension: Speed, simplicity, depth, vertical expertise—pick one and dominate
4. Prove it: Data, customers, and testimonials beat claims every time
5. Stay consistent: Positioning is a marathon, not a sprint

In crowded markets, generalists get crushed. Specialists win.

Find your wedge, own your niche, and then expand from a position of strength.

Once your positioning is locked, the next step is translating it into messaging that converts and launch strategies that drive adoption.