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It can also help you limit the initial product scope, so you can go to market faster. To come up with positioning for your new product, you can focus on a specific customer segment or niche that you think will be easier to market to or that you think is underserved by existing offerings. It will help you reach the right customers and ensures that customers remember you when they look for a new product to try. Especially if you are entering a crowded market, this allows you to better communicate the key benefits and features you have to offer. What does successful positioning mean for software products? It can mean identifying a unique angle to focus on so you can stand out with your product among other products and competitors. Positioning will allow you to better focus on a specific market segment to target, it makes it easier to build a clearer and stronger message to reach customers, and it helps develop the initial product vision and feature set. We were in exactly this situation when we initially thought about building and marketing our new test management tool.
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Thinking about product positioning (and matching branding) is especially important if you build a product for a crowded market with many established competitors (and there are many reasons why this can be a good idea).
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This is a guest post from serial software entrepreneur Dennis Gurock.