Brand PositioningvsProduct-Market Fit (PMF)
Both are essential business concepts — but they measure very different things.
The Concept
Brand positioning is the deliberate process of occupying a distinct, highly defensible space in the minds of your target market relative to your competitors. It defines exactly who a product is for, what unique value it provides, and why it is objectively superior to the alternatives.
Product-Market Fit is the degree to which your product satisfies a strong market demand. When you have PMF, customers are actively pulling your product from you rather than you pushing it onto them. Marc Andreessen defined it as 'being in a good market with a product that can satisfy that market.' The Sean Ellis test quantifies it: if 40%+ of users say they'd be 'very disappointed' without your product, you have PMF. Before PMF, nothing else matters — marketing spend is wasted, hiring is premature, and features are guesses. After PMF, everything gets easier: organic growth appears, retention improves, and word-of-mouth starts compounding.
The Trap
The deadliest trap is the 'Better' trap—positioning a product as simply a faster, cheaper, or slightly more feature-rich version of the market leader. 'Better' is a weak, easily copied position. You do not want to be 'Better'; you want to be 'Different.'
Founders declare PMF too early based on vanity metrics — sign-ups, press coverage, 'exciting conversations' with potential customers. True PMF means users would be genuinely disappointed if your product disappeared. The second trap: assuming PMF is binary and permanent. PMF exists on a spectrum and can erode as markets shift (Blackberry had PMF until iPhone changed the market). Also: PMF for one segment doesn't mean PMF for another — you might have PMF with startups but not enterprises.
The Action
Write a positioning statement: 'For [target customer] who [statement of need], [your product] is a [product category] that [key benefit], unlike [primary competitor] who [competitor's core weakness].' If you cannot fill in the blanks without sounding generic, your product lacks positioning.
Run the Sean Ellis survey: ask existing users 'How would you feel if you could no longer use [product]?' with options: Very Disappointed, Somewhat Disappointed, Not Disappointed. If 40%+ say 'Very Disappointed,' you likely have PMF. If not, interview the disappointed users to learn what they love, and double down on that specific value. Track the PMF score quarterly — it should improve as you refine the product.
Formulas
Explore more business concepts
Browse all concepts or try our free calculators to apply what you've learned.
Browse All Concepts →