Cited from real sources 6 min read Updated August 2026

A framework by April Dunford

April Dunford's Positioning Process: The 10-Step Template

April Dunford's positioning process is a five-component template run as a ten-step team exercise. Define the competitive alternatives, isolate the capabilities those alternatives lack, cluster them into two or three value themes, name the customers who care most about that value, and only then pick the market category. The order is the method: every component is judged against the one before it, which is why the category you compete in gets decided last rather than first.

The whole template in one number

5

components, in a fixed order. Alternatives, capabilities, value themes, best-fit customers, market category. Most teams start at the last one and work backwards.

April Dunford Lenny's Podcast Watch at 27:28

The framework

Five components, and the order is the method

Positioning, in Dunford's method, is five things you have to state about your product. What are the alternatives. What can you do that they cannot. What value does that unlock. Who cares a lot about that value. And what market context makes the value obvious to those people. Messaging, brand and the pitch deck are all downstream of it.

The dependency chain makes the order load-bearing. A capability is only differentiated relative to a real alternative. Value only counts if it traces to a capability. Best-fit customers are defined by the value they care about, not by headcount. The category goes last because it is the only component you can judge: the right one makes your value obvious to the people you just defined.

Most teams run it backwards: open with the category argument, land on "the AI-native CRM for revenue teams," then back-fill the value. Dunford is blunt about that:

the last piece of positioning of course is Market category and so again a lot of people will just start with Market category and then try to back up which I think is crazy
Dunford on why category comes last Watch at 26:43

The objection is about measurement. Pick the category first and nothing tells you whether it was a good pick, because what makes a category good has not been defined yet. Which puts the weight on step one:

I actually think the first step in a good positioning exercise is to really understand what do we have to position against
Dunford on step one Watch at 23:26

Her shorthand for it is blunter: what do I have to beat in order to win a deal. Note that step one is not a competitor list. It is what a buyer would do instead of buying you, which in B2B almost always includes the status quo: a spreadsheet, a manual process, an intern, or nothing. That distinction gets its own page oncompetitive alternatives.

How to apply it

How do you run the ten-step positioning exercise?

The five components are the output. These ten steps get a team there; the skipped ones are the first three and the last two.

Phase 1 · Set the table

  1. 1

    Start from the customers who already love you.

    Best-fit customers rave about you and refer you. What they nearly bought instead is the raw input for everything downstream.

  2. 2

    Form a positioning team, not a marketing project.

    Marketing sees the messaging, sales the objections, customer success the value delivered. Positioning written by one of the three misses the other two.

  3. 3

    Align the vocabulary and drop the baggage.

    Old category language drags the room back to where it started. Agree on what the words mean before anyone fills a blank.

we get the gang together right so I want a representation from sales marketing product customer success CEO everybody in a room together
Dunford on how the exercise is staffed Watch at 34:04

Phase 2 · Fill the five blanks

  1. 4

    List the true competitive alternatives.

    Two sets: the status quo the customer uses today, and whatever else lands on the shortlist. You have to beat both.

  2. 5

    Isolate the capabilities the alternatives lack.

    Not your best features, your different ones. If an alternative can claim it too, it is table stakes.

  3. 6

    Ask "so what for the customer," then cluster.

    The answers group into two or three value themes. Stop at three; a fourth dilutes the rest and nobody remembers any of them.

  4. 7

    Define best-fit customers by who cares a lot.

    Look for the account characteristics that make a buyer care disproportionately. Firmographics describe a segment; value fit describes a buyer.

  5. 8

    Choose the market frame of reference last.

    Pick the context that puts your strengths at the centre of the buying criteria. The category decides which questions you get judged on.

quite often those value buckets or value themes are different than what I would have gotten if I got all the smart people in my company together and said hey why does everybody love our stuff
Dunford on why the themes surprise the room Watch at 25:52

Phase 3 · Make it usable

  1. 9

    Layer on a trend carefully, or not at all.

    A relevant trend adds urgency. A borrowed one makes the positioning about the trend, which is all the buyer remembers.

  2. 10

    Capture it so it travels, then turn it into a pitch.

    The document is a starting point for messaging, not the finish line. Stop there and everyone reverts to old language.

Dunford's test of whether the exercise landed is whether sales can tell the story. If they cannot tell it they cannot pitch it, which is why the process ends in a narrative, covered on the sales pitch framework page.

Worked example

The template, filled in for Help Scout

Dunford walks the process for Help Scout on Lenny's Podcast. Their market looks unwinnable on paper, which is why order matters.

1. Competitive alternatives
Zendesk and the other help desks on the shortlist, plus the quieter one: plain email or a rudimentary shared inbox.
2. Differentiated capabilities
A service-oriented shared inbox so nothing gets missed. Customers assigned a person, not a ticket number. A chat widget that appears only when a human is free.
3. Value theme
Support that deepens the customer relationship instead of deflecting them into the cheapest channel.
4. Best-fit customers
Direct-to-consumer and e-commerce brands, where support is one of the few real touchpoints and is treated as a growth driver. A phone company running a call centre as a cost centre is not.
5. Market category
The context where service as a growth driver is the obvious buying criterion, so the comparison stops being a feature count against Zendesk.

Top to bottom, the last row is forced by the four above it. Bottom to top, you are only picking a label.

Boundary conditions

When does the process fail?

Works best when

  • Customers already love the product and can say what they nearly bought instead
  • Sales, marketing, product and customer success can be in one room
  • You are entering an existing market where buyers compare you to something

Fails when

  • The category is chosen first and the other four are back-filled to fit
  • One team runs it alone, so the output reflects one view
  • The product is too new to show patterns, so tightening now guesses

The contested part is step eight. Dunford's guidance: position inside an existing category unless you can afford to educate a market. Roughly 90 percent of tech companies that went public did exactly that. She is blunt about the trade:

creating a category is not the only way to create a legendary business because the vast majority of legendary businesses did not create the categories that they're in so Google did not create search Facebook did not create social network
Dunford on category creation Watch at 48:56

Not everyone agrees. Kim and Mauborgne's Blue Ocean argument is that the real opportunity is uncontested market space, making comparison irrelevant, the opposite of starting from alternatives. Moore lands closer to Dunford: mainstream buyers need a familiar frame of reference. Blue Ocean suits companies that can afford to educate a market; most startups should dominate a subsegment first, the logic behind Moore's beachhead market.

The sources

Where Dunford discusses this

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