Strategy

The Mid-Market Positioning Trap

By Marcus Vehl October 24, 2023 5 min read

Consider Apex Industrial Components, a mid-market manufacturer of precision fasteners. Their sales deck is a laundry list of virtues: "We offer the highest quality, the best relationships, and the most responsive service."

Apex is not alone. This is the most common positioning statement in the mid-market. It is also the most dangerous. It is not a position; it is a description of a generic commodity. It tells the customer nothing about who Apex is, who they are not, or why they should pay a premium.

Strategic positioning analysis
The Definition

What a Position Actually Is

A market position is a promise to a specific customer segment about a specific benefit. It is a declaration of what you will do and, crucially, what you will not do.

When you define a position, you are implicitly ruling out entire categories of business. If you position as "The Fastest in the West," you are ruling out "The Lowest Cost." If you position as "The Most Reliable," you are ruling out "The Most Innovative." This clarity is not a limitation; it is the engine of focus.

The Traps

Three Ways to Fail at Positioning

01

The "Everything Store"

Trying to be everything to everyone. This results in a diluted value proposition that appeals to no one. You become a commodity, competing on price rather than value.

02

The "Me-Too"

Copying the positioning of the market leader without the scale or resources to back it up. You are a smaller, weaker version of the incumbent.

03

The "Internal"

Positioning based on internal capabilities rather than customer needs. "We have the best engineering team" is not a position; "We engineer for the toughest environments" is.

Diagnostic

Four Questions to Reveal Your Position

Who do we say "no" to?

If you cannot name a customer segment you do not want, you do not have a position.

What is the one metric we own?

Is it lead time? On-time delivery? Cost per unit? If you don't own a metric, you are not differentiated.

What is the one competitor we beat?

Identify the one player you consistently outperform. That is your anchor.

What is the one customer segment we dominate?

Do you own the aerospace vertical? The mid-sized OEMs? Specific geography?

Execution

Repositioning Without Losing Customers

Repositioning is rarely about abandoning your existing customer base. It is about shifting the narrative to attract the customers you actually want to serve.

The key is sequencing. First, communicate the new position to your existing customers as an evolution of your service, not a rejection of their needs. Then, use the new messaging to filter out low-value prospects. Finally, double down on the segments that align with the new position.

Real-world examples of positioning in action.

Map Your Position with Vexis

Stop competing on generic virtues. Define a defensible position that drives growth and protects margins.