AMA: Amazon Head of Product Marketing, AWS OpenSource Analytics, Kate Hodgins on Competitive Positioning

This is a great question! I must admit, the recently resurfaced Coke vs. Pepsi ad with the young boy standing on two coke cans to purchase Pepsi is pretty entertaining. However, it was banned. I call this out because it highlights that there is a need to really think through not only how you develop competitive positioning, but how that positioning gets translated into messaging and marketing strategies. While these campaigns may be a bit older; I find they still provide a good north star for competitive messaging. The first example is Appple’s “I’m a Mac, I’m a PC” campaign. This campaign cleverly highlighted the simplicity and coolness of Macs without completely putting down PCs (and it was memorable). Similarly, Salesforce showcased its cloud-based CRM as a game-changer for businesses, focusing on its innovation and the need for companies to move to the cloud rather than criticizing traditional systems. A more recent example is Disney+ and Netflix. The subscription-based content market is a fiercely competitive space. However, I think each of these businesses showcase their unique strengths through distinct messaging. Disney+ emphasizes its family-friendly content with a focus on beloved (and nostalgic) franchises while Netflix highlights its library of original shows. Both have binge-worthy content, but I know which service to go to for what is important to me and my family. To strike this balance yourself, I recommend focusing on what makes your product or service unique and valuable. Rather than pointing out competitors' flaws, emphasize how your offering benefits customers and how you’re making their experiences better. Use respectful language, stick to the facts, and when you can use real-world examples or customer stories to demonstrate why you’re the best choice. It's hard to argue against what customers are saying is true! This approach allows you to be bold and stand out without making your brand seem petty.

I can think of several common mistakes companies make when trying to differentiate their product. However, I'm going to focus on a few key ones: 1. Overemphasizing features instead of benefits. AI is a great example of this. We hear a lot of buzzwords like "AI-enhanced" and "AI-powered." AI is a feature, not the end goal. Customers aren't really interested in the technology itself per se; they care about how it helps them. If your messaging doesn’t clearly articulate the tangible benefits—how your product solves their problems or meets their needs—you’re missing the mark. The focus should always be on the value your product delivers, not just the flashy features. 2. Neglecting the customer perspective. It is so easy to get caught up focusing on what we believe sets our company or product apart, without truly understanding what customers value most. This can create a dangerous misalignment between what you’re offering and what your customers are actually looking for. Don't just rely on analyst reports, the news, or other third party sources - your competitors are using those sources too. Talk to your customers - and those you want to be your customers. Take the time -it will pay dividends. 3. Look alike messaging: As consumers or business evaluators, we often visit different companies’ websites and find that their messaging all sounds the same. To stand out, it’s crucial to identify and clearly communicate your unique value proposition. Make sure it’s front and center in all your external channels. Ask yourself, "Why us? Why now?" If your answers could apply to your competitors (or vice versa), it’s a sign that more work needs to be done to differentiate your message. 4. Competing on price trap. Sure, being price competitive matters, but if your primary differentiator is being the cheapest option, you risk turning your product into a commodity. This approach can erode your brand’s value and severely impact your long-term profitability. Instead of just focusing on price, it's important to highlight the unique value and benefits your product offer. 5. Failing to adapt over time. Markets shift, and customer needs evolve. If your differentiation strategy remains static, you risk becoming irrelevant. To stay competitive, continuous innovation and adaptation are essential. This also involves staying aware of what your competitors are doing and how they’re responding to your messaging—not to obsess over them (we should obsess over customers!), but to stay informed and be ready to adjust your approach as needed. 6. Underestimating the importance of emotional appeal. Differentiation isn’t just about logic; it’s also about the story and connecting with customers. Strategies that evoke positive emotions and resonate deeply with customers tend to have a much stronger impact. As you move forward and evaluate your current differentiation strategy, it comes down to a few key points: engage with your customers, refine your approach, and ensure you’re setting yourself apart in a way that truly matters. Stay flexible, stay competitor-aware and customer-focused.

Customer-facing teams are important CI efforts because they give real-time, on-the-ground feedback and insights. They’re talking to customers daily, so they have a firsthand look at what’s working, what’s not, and how competitors are stacking up. This kind of direct insight helps us understand market trends and customer needs better. Here’s why this matters: 1. Real-Time Feedback: They give us the latest intel on what customers are saying and what competitors are doing, so we can make better decisions on things like roadmaps, messaging, and campaigns. 2. Understanding Customer Issues: They can point out specific problems or desires customers have that we might not see from other data sources. Fixing these issues can give us a big edge. 3. Validation: Their feedback helps us check if our assumptions are right or if we need to rethink our strategy based on actual customer experiences. To make the most of their insights: 1. Set Up Feedback Channels: Create easy ways for these teams to share their feedback, like regular catch-ups or dedicated communication tools. 2. Include Insights in Reports: Make sure their feedback is part of our competitive intelligence reports and analysis so we get a complete picture. 3. Involve Them in Strategy: Get customer-facing team leaders involved in strategy meetings to see how their insights can shape our approach. 4. Keep Improving: Regularly review their feedback to tweak our strategy and stay aligned with what customers need and expect. By bringing in insights from the folks who interact with customers every day, we can make sure your competitive strategy is relevant to what’s actually happening in the market.

When it comes to sharing competitive info with your sales team, it’s key to think about where they’re already active and how they get their updates. It’s also smart to chat with sales leadership to figure out the best timing and methods so that the info is useful, not overwhelming. Here are some practical tips that have worked for me: Communication Channels: Keep your team in the loop with a variety of communication methods. Set up regular meetings or briefings, like monthly community calls, lunch-and-learns, or even competitive podcasts—just remember to record them! Send out newsletters that highlight key updates and strategic tips. For major changes or events, email alerts can be really effective. Use tools like Slack or Microsoft Teams to create channels for real-time updates and strategy discussions. These platforms are great for crowd-sourcing knowledge and staying connected. Enablement Channels: Regular training sessions on competitive intel can help everyone use the info effectively. Create bite-sized learning materials that your sales team can access on their own time. Add competitive insights to sales playbooks or guides for easy reference during pitches. Quick executive summaries and infographics can also help make complex information more digestible. Tools & Resources: Set up an online portal or intranet site where your team can find the latest reports and analysis. Integrate competitive data into the sales tools they already use so they can access it in real time. Share battle cards with key details about competitors and use comparison charts to show how your product stacks up. Some tools companies I have been have used are Highspot, Klue, Crayon, Seismic. Track Impact: Monitor what’s working and refine your approach based on feedback. Set up systems where your team can share what’s useful, what’s not, and where there might still be gaps. Make sure reps can easily share their experiences and insights. Use this feedback to adjust your strategies—stop what’s not effective and double down on what’s making a difference. Remember, there’s no one-size-fits-all solution for sharing information. Think about your organization’s needs, where your team currently gets their info, and don’t be afraid to test and tweak your approach.