Professional Documents
Culture Documents
REPAMA Competitive
Intelligence
A guide to interpreting Lustratus
REPAMA competitive studies
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Table of Figures
Figure 1 - REPAMA for sales teams .................................................. 2
Figure 2 - REPAMA for marketing teams........................................... 2
Figure 3 - REPAMA for general management teams ......................... 3
Figure 4 - The REPAMA Reverse Engineered Marketing Elements .... 4
Figure 5 - Example Single Vendor Use Case Example MED Chart .... 5
Figure 6 - Multiple Vendor Use Case Example MED Chart ................ 6
Figure 7 - Example Primary Audience MED ....................................... 7
Figure 8 - Example Direct Geographic Operations MED .................... 8
Figure 9 - Company Profile Categories............................................ 11
Figure 10 - Example Company Profile MED .................................... 12
Figure 11 - Example Offer Category MED ....................................... 13
Figure 12 - Primary Audience Classification .................................... 15
Figure 13 - Example Primary Audience MED ................................... 15
Figure 14 - Example Job Titles MED ............................................... 17
Figure 15 - Example Sales Engagement Level MED ........................ 18
Figure 16 - Example Market Stage MED ......................................... 19
Figure 17 - Example Vertical Market Segmentation MED ................ 21
Figure 18 - Example Channel Approach MED ................................. 23
Figure 19 - Example Implied Sales Methodology MED .................... 25
Figure 20 - Example Geographic Operations MED .......................... 26
Figure 21 - Example Primary Feature/Benefit MED.......................... 28
Figure 22 - Example Value Proposition Approach MED ................... 30
Figure 23 - Example Primary Value Proposition MED ...................... 31
Figure 24 - Example Use Cases MED ............................................. 32
Figure 24 – Example Depositioning focus MED ............................... 34
Figure 24 – Example differentiation strategy MED ........................... 35
Figure 28 – Example perceived threat MED .................................... 36
Figure 25 - Typical Positioning Statement Structure ........................ 37
Figure 26 - Ideal Customer Classification ........................................ 40
Figure 27 - Example PSA For... (Ideal Customer) MED .................... 41
Figure 28 - Example PSA Who...(Pain, Need, Desire) MED ............. 42
Figure 29 - Example PSA Is A... (Product Category) MED ............... 43
Figure 30 - Example PSA That Provides... (Reason to Buy) MED .... 45
Figure 31 - Example PSA Unlike ... (Primary Competitor) MED ........ 46
Figure 32 - Example PSA Our Product... (USP) MED ...................... 47
Tables
Table 1 - Lustratus REPAMA Products and Services ........................ 9
Table 2 - Channel Approach Categories ......................................... 22
Table 3 – Differentiation strategies .................................................. 35
Table 3 - Example Positioning Matrix .............................................. 38
Table 4 - End User Organisation Audience Strata ........................... 50
Table 5 - IMF GDP Rankings........................................................... 51
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Disclaimer
Whilst reasonable care and skill has been taken by Lustratus Research Limited (the company) in the preparation
of this report no liability is accepted by the company (except in the case of death or personal injury caused by
the company's negligence) by reason of any representation or any implied warranty condition or other term or
any statutory or common law duty or otherwise howsoever arising for any direct or indirect general special or
consequential damages or loss costs expenses or other claims (whether caused by the negligence of the
company or otherwise) which come out of the provision of this report or its use.
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What Questions Does REPAMA Answer?
The range of Lustratus REPAMA reports and consultancy services helps sales teams to win more business,
helps strategic marketing teams to build more competitive market propositions and helps marketing execution
teams to generate better sales leads. REPAMA supplies detailed competitive information that examines:
The REPAMA research is used by the sales, marketing and general management functions to understand the
market landscape, tune or re-engineer propositions and to benchmark marketing performance against peers.
powerful advantage.
Will we waste time talking
Does XYZ target the same about our features to a
REPAMA helps sales teams understand the strategies companies, job titles and
Does XYZ use a specific sales
methodology?
techie if XYZ is talking to C
individuals as us? level contacts about business
and tactics that their competitors use in sales value?
Marketing What companies and
vertical markets are my
At what level do my
competitors look to
What is the ideal target
customer for my
competitors targeting
start the sales process? competitors
Whether setting product strategy, empowering sales for lead generation?
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General Management and Equity
Investors How far is my marketing
strategy from the norm for
What strategies are the
most successful vendors in
Why is our marketing
strategy not as successful
the segment? the segment following? as our competitors?
When comparing marketing and sales performance
against competitors it is important to understand the
How does the
differences in approach of the respective organisations. performance of my own How does my marketing How is our marketing
marketing organisation strategy compare with differentiated from the
To do this it is key to map your own performance for a perform compared to its market leaders? competition?
peers?
variety of indicators against those of key competitors.
REPAMA tracks the key marketing strategies of vendors
Do we have the correct
Does the competition Is our competition's sales
in a specific market segment and plots these graphically focus on different strategy radically different
partnership and
geographic coverage
prospects that us? ours?
against each other. By interpreting these indicators, the strategies to compete?
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A Guide to Lustratus REPAMATM
Lustratus recommends that the user of the REPAMA study familiarise themselves first with the concept of
REPAMA competitive intelligence at a high level by reading through this guide. Subsequently the relevant
sections of the guide can be referred to for reference when interpreting the results from a specific Lustratus
REPAMA study. This section of the guide describes the REPAMA methodology, the Marketing Element
Distribution (MED) diagrams, the scoring system and the high-level uses that the research can be put to. Three
further sections provide detailed descriptions of each of the MED studies within the following categories:
A detailed description of the individual studies within each section is provided together with a list of the potential
strategies that may present themselves. The result of each MED is very specific to the segment, the vendors
included and their respective status in the segment. As a result it is not possible to provide definitive generic
strategies that will always be relevant for a specific study. Instead each study should be interpreted in context
and strategies and tactics should be created accordingly using the potential strategies as a guide.
Organisation and market approach
• Company profile ‐ How does the vendor want to be perceived?
• Offer category ‐ How does the vendor describe its offer?
• Primary audience ‐ Who does the vendor target?
• Job titles targeted ‐ Which job titles are targeted?
• Sales engagement level ‐ At what level does the vendor look to start the sales process?
• Market stage – What market stage is suggested by the vendors marketing tactics?
• Vertical market segmentation ‐ Which industries does the vendor focus on?
• Channel approach – What channel strategies does the vendor rely upon?
• Implied sales methodology – Does the vendor appear to rely on a specific sales methodology?
• Tone of voice – What “attitude” does the vendor take when addressing the market?
• Geographic focus – Which countries does the vendor focus on?
Product
• Primary and interpreted feature/benefit ‐ Which features and benefits does the vendor ascribe to its product?
• Value proposition approach ‐ How important is value‐based selling to the vendor?
• Primary and interpreted value proposition ‐ Which value propositions does the vendor focus on?
• Use cases ‐ What uses can the technology be put to?
Positioning
• Reverse‐engineered positioning statement covering the
• ideal customer
• Their main pain, need or desire addressed
• The product name and category
• The main reason to buy
• The primary competitior or alternative
• The unique selling proposition
• Depositioning strategy – How does each vendor deposition the competition or alternative?
• Differneitation strategy ‐ What approach does the vendor take to differentiation?
• Perceived threat ‐ What is the key, implied threat that the vendor fears?
• Positioning Spectrum Analysis – Comparing each element of the positioning statement with each of the other vendors in the study
Marketing Efficacy and Proof
• Use of independent testimony – Does the vendor supply independent proof of its claims?
• News / Blog coverage – What level of coverage has the vendor been able to achieve?
• Press releases ‐ frequency / consistency
• Successful partnerships – Is evidence provided of successful partnerships?
• Independent speakers – Has the vendor been able to field customers to speak at events on their behalf?
• Program mix and frequency ‐ What marketing tactics does the vendor use and how frequent are they?
• Message consistency over time (Boilerplate Delta) – Has the vendor’s messaging been consistent over time?
• Google Ranking – How well is the vendor using search engines to reach their prospects and/or damage their competitors?
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The REPAMATM Methodology
Gaining a comprehensive understanding of a competitor’s marketing strategy is an essential but complex job
for marketing communications, product marketing, product management and sales individuals. Understanding
what techniques a competitor is likely to use when they are generating leads, depositioning your own
organisations to analysts and press or selling against you in a sales situation are essential in building a
successful sales and marketing organisation.
Whilst this is valid in any competitive situation, it is especially true when competitors are either late entrants to a
market or are present in an early market where less intelligence is available to build a full competitive picture.
REPAMA from Lustratus Research is a set of research and consultancy offerings that provide marketing
intelligence on high-tech vendors’ marketing strategy. We are able to document a vendor’s implied strategy by
reverse engineering key marketing elements from the way they engage their prospects, customers,
shareholders, the press and market analysts through their outbound marketing communications.
To facilitate interpretation of this complex analysis, Lustratus represents this information graphically in the form
of a Marketing Element Distribution (MED) diagram. This is a radar chart where each of the marketing elements
from the study is shown on the spine of the radar and the relative rating given in the analysis above is plotted to
show a vendor’s relative commitment or lack of commitment to each of these elements. An example MED
chart is shown below.
Use case 1
Use case 6 Use case 2
Use case 5 Use case 3
Use case 4
Vendor 1
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Interpreting the chart is relatively straightforward and the example above shows that Vendor 1 believes that use
cases 5 and 4 are the highest priorities to stress in their marketing communication with their prospects and
customers. A lesser commitment is made to use cases 1, 2 and 3 with use case 6 being of little apparent
importance to Vendor 1.
Whilst rating the various vendors’ positions Lustratus also computes the market mean. This, as its name
suggests, is a simple average of all of the other vendors’ scores in the MED. The value and importance of the
market mean differs from chart to chart and requires interpreting for each MED. In some MEDs where large
differences exist between the different vendors’ positions, the market mean may not truly represent the “middle”
ground that the vendors take. Instead it may simply be an averaging of significantly different positions.
A significant difference from the market mean represents a significant differentiation in strategy from the other
vendors in the segment. This of course may be a positive or a negative situation depending on the perception
of that difference. In other MEDs, understanding exactly where the common ground lies can help enormously in
building effective competitive strategies.
An example of a multiple vendor MED diagram including the market mean is shown below.
Use case 1
Use case 6 Use case 2
Use case 5 Use case 3
Use case 4
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Figure 6 above shows the different priorities that vendors 1, 2 and 3 place on the use cases they attribute to
their product. The market mean, shown above as the dotted line, shows the mean for the use cases across the
particular segment (vendors 1, 2 and 3). In this example most vendors in the segment cite use cases 1 and 2.
It is also worth noting that only Vendor 2 cites use cases 5 and 6. The significance of this fact depends on the
status and perception of Vendor 2 within the segment.
Other IT Business
IT Technical
In the example above which shows a group of vendors’ likely relative reliance on a specific target audience, we
can see that Vendor 1 leans towards IT Technical as the primary audience (see Table 5 below for a description
of the primary target audience categories). At the same time the analyst notes that Vendor 1 also addresses
the IT Business audience and in a very minor way the Business audience. Now whilst suggesting multiple
primary audiences might be at odds with the term “primary”, it is important to note that the analyst is suggesting
that during the research, Vendor 1 was found to use language or strategies that addressed the IT Business and
Business audiences, but that this was considerably outweighed by the vendor’s commitment to the IT Technical
audience.
Vendor 2 has a similar profile but splits its strategy between the Business and, in a lesser way the IT Business
and IT Technical audiences. We can see that the analysis of Vendor 3’s primary audience was inconclusive. It
appears that Vendor 3 uses strategies and language aimed at multiple audiences. As we will see in the
Interpreting the Results sections below, whilst Vendor 3’s result looks inconclusive, it provides very valuable
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intelligence. A vendor that is using language that attempts to equally address multiple, different audiences;
each of which has very different needs, pains and desires, will likely fail to satisfy each audience constituent and
will therefore confuse their prospects.
Relative focus
Absolute score
Relative Focus
The Primary Audience MED above shows the relative focus scoring system. This allows the analyst to “score” a
vendor’s position out of a maximum of 11 across all of the axes that represent the various marketing elements.
Such charts highlight the value of focus as the 11 points are distributed relatively across the marketing elements
according to the weightings the analyst arrives at during the research.
By spreading the maximum score across each of the categories strong single areas of focus are rewarded with
a higher score and obviously multiple areas of focus (if that’s not an oxymoron), score less prominently on a
single axis.
Absolute Score
The absolute score system as shown below in Figure 8 - Example Direct Geographic Operations MED, allows
the analyst to rate each of the market elements out of a maximum of 11. This differs from the relative focus
system which distributes a maximum score of 11 across all of the axes. In the diagram below geographic
coverage of a particular territory will score 11 if the vendor’s commitment to a territory is total i.e. a presence in
each major country within the territory. In the example below Vendor 3 is shown to have a near total
commitment to each of the major geographic regions.
Africa
Middle‐East Americas
Europe Asia Pacific
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Why is there no scale on the charts?
As mentioned above the REPAMA MED charts are designed to compare multiple vendors’ relative commitment
to various strategic marketing elements. It is not intended as a tool for precisely quantifying the differences
between the various vendors’ strategies. Instead its use is to show the relative differences between vendors’
positions and does not aim to precisely quantify these differences.
REPAMA Segment Analysis Study The REPAMA Segment Analysis Study (SAS) combines the same
process used in the Vendor Analysis Study above but here we
compare the strategies of multiple vendors present in a particular
segment. Importantly we are able to infer a “mean” or average
value for each of the marketing elements in the study. Again this
research is presented graphically through Lustratus’ Market
Element Distribution chart and the results of each study are
interpreted by a Lustratus’ Marketing Analyst.
REPAMA Interpretation Consultancy Lustratus provides consultancy services to help vendors interpret
the details of a REPAMA VAS or REPAMA SAS, to map these
onto the vendor’s specific needs and to build and tune strategies
as required.
For more information on any of these products or services please contact us at info@lustatusrepama.com or via
http://www.lustratusrepama.com.
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Organisation and Market Approach
This section describes the elements of the REPAMA study that relate to the organisation and the way in which it
approaches the market. The individual elements examined are listed below.
•Company profile ‐ How does the vendor want to be perceived?
•Offer category ‐ How does the vendor describe its offer?
•Primary audience ‐ Who does the vendor target?
•Job titles targeted ‐ Which job titles are targeted?
•Sales engagement level ‐ At what level does the vendor look to start the
Organisation sales process?
•Market stage – What market stage is suggested by the vendors marketing
and market tactics?
•Vertical market segmentation ‐ Which industries does the vendor focus
on?
approach •Channel approach – What channel strategies does the vendor rely upon?
•Implied sales methodology – Does the vendor appear to rely on a specific
sales methodology?
•Tone of voice – What “attitude” does the vendor take when addressing
the market?
•Geographic focus – Which countries does the vendor focus on?
The studies in this section provide information on market engagement strategies as well as the tactics that sales
teams use to engage the market. As a result, many of these studies present details that will allow general or
sales management to benchmark their own sales operations against key competitors as well as the market
mean.
When looking to repel competitive threat, sales and operations management can use these studies to build a
detailed go-to-market execution picture of the competitive landscape which in turn allows strategies to be
defined to combat threat, cement market leadership or identify market opportunity.
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Company Profile
What is this?
This study examines what type of leadership position or positions a specific vendor organisation claims to own.
This will typically stem from an internal corporate belief or philosophy that will be widely understood within the
vendor’s organisation. This may or may not be a conscious strategy that the company has embarked upon but
it will be an internally held belief.
When crafting marketing copy the vendor will typically lean toward language that paints the organisation in a
positive light for one of a number of different leadership positions. These leadership positions together with the
claimed qualities and characteristics are shown below:
A strong single leadership position in a single category is the ideal objective for a vendor. Implied claims for
leadership across multiple categories can show an organisation that is confused about its value. By not
focussing on a single leadership position, but instead hedging bets by claiming multiple areas of leadership, the
vendor leaves itself open to be challenged on multiple weaker fronts. An unfocussed approach will also likely
confuse its prospects and fail to gain a single strong brand value for the organisation.
Effective competitive or depositioning strategies can be created by understanding how an organisation would
like to be perceived in the market. Whilst some of these categories are highly subjective, many can be
challenged successfully. Before a competitive stance can be taken, the user of the REPAMA study should first
ensure that its own leadership position is well understood, clearly communicated and defensible. Picking a fight
with a competitor by looking to focus on a perceived weakness whilst risking a similar attack from the
competitor would be unwise.
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Many smaller early market organisations will gravitate towards innovation or technology leadership by claiming
unique creativity or first-to-market positions. A strategy that can be used effectively against organisations that
take these corporate profiles is one of outlining the risk involved in dealing with a vendor of that size/stage of
development. Companies are either, highly creative and innovative, OR they are large, global and stable.
Pointing to the risk associated with innovative and technologically-led organisations could be a valid corporate
depositioning angle.
Another depositioning strategy is to look for contradictions in their profile and to then exploit this. Such an
example would be Global Leadership. If the REPAMA study suggests that a vendor is claiming a global
leadership profile but it can be shown that this vendor is not truly global, or if the user of the REPAMA study can
demonstrate a more global footprint, this can be used to dismiss the claims of the competitor.
Other examples include claimed quality or service leadership. If an organisation is claiming leadership in either
of these qualities then a competitive kill strategy that looks to arm sales and marketing teams with examples of
the competitor’s poor customer service or product quality might be a successful option. Obviously any
negative competitive depositioning strategy has to be executed with care not to cross any legal or corporate
good practice boundaries.
Knowledge leader
Flexibility leader Market share leader
Value leader Service leader
Technology leader Prestige leader
Innovation leader Quality leader
Bargain leader Global leader
Figure 10 above shows that Vendor 3 alone claims a market and global leadership position. As the other
vendors in the study do not claim these positions it is likely to be a valid and easily defensible position. This can
be dangerous to Vendors 1 and 2 as many prospects and customers will be comforted by dealing with the
perceived market leading vendor.
A valid defensive strategy that Vendors 1 or 2 could implement would be to conduct or commission their own
research to ascertain the “real” market leader. Equally, Vendors 1 or 2 could redefine or re-segment the market
on their terms to claim market leadership in a smaller market segment where their expertise would allow them
legitimate title to the term market leader.
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Offer Category
What is this?
This REPAMA element tracks the way in which each of the vendors refers to the category of their market offer.
Lustratus will almost certainly have grouped two or more vendors in a REPAMA Segment Analysis Study
because of a perceived similarity between their products or services. Whilst market analysts might place certain
vendor’s product offerings in specific categories, not all vendors use the same terminology.
An example might be that of the Enterprise Service Bus (a specific piece of infrastructure software that allows
data and processes to be knitted together to make it easier for organisations to integrate their systems). If
Lustratus looked at this space it might be that all vendors in the study referred to their offer category as
“Enterprise Service Bus”. However, for differentiation purposes, it is likely that some of the vendors examined
would refer to their offering differently from their competition. It’s likely that each vendor would attempt to
differentiate, in subtle, or not so subtle ways when compared to the competition.
As shown in the Figure 11 below, many vendors will use language in their outbound communication that will
define a primary category that they refer to when talking about their own product in generic terms. The Offer
Category MED shows both the primary as well as any additional categories that the vendor refers to.
Category 1
Category 4 Category 2
Category 3
A high degree of correlation between the vendors in the MED would typically infer a mature market where new
innovation and change is very gradual and where differentiation is more subtle than at the broad offer category
level. An example of this might be the category “Database”. That said, even within the database category it is
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likely that vendors would attempt to differentiate themselves by appending or pre-pending adjectives of some
sort to create implied value and difference.
Defensive or offensive strategies that immediately present themselves here include highlighting differences that
could be perceived as deficient or simply pointing to the lack of a word, typically an adjective, and developing a
competitive depositioning strategy based upon that. For example, if the REPAMA user refers to their offering as
“Reliable Process X” and Competitor A refers to their category as “Enterprise Process X”, it would be possible
for the REPAMA user to point toward Competitor A and question whether their product is reliable. Now
obviously Competitor A had every intention of using the term Enterprise to infer that it was up to the rigours of
use across an Enterprise and as such reliability would be a given. Simply pointing to the lack of the Reliable
term may cause Competitor A to have to demonstrate its reliability when in competitive situations.
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Primary Audience
What is this?
This REPAMA strategy element shows what type of audience a competitor targets within end user
organisations. Lustratus infers which level of audience they are primarily targeting from the language and
programs present in the vendor’s outbound marketing activities.
Lustratus categorises the primary end user target audience as one or more of the following three categories:
A full description of the roles, concerns and area of focus for each of the 3 audience constituents can be found
in Table 5 - End User Organisation Audience Strata below.
Business
Other IT Business
IT Technical
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Both the types of vendor marketing deliverables as well as the language they use differ enormously when
addressing the different categories. The closer to the Business strata, the more benefits-focused the marketing
efforts will be. Likewise the closer to the IT Technical layer, the more focus is applied to product functionality,
capability, capacity, etc.
If a vendor is shown to be aiming their marketing communications solely at the IT Technical stratum, it suggests
that they are taking an evangelical approach to the market. This is based on the fact that the IT Technical
audience does not have the ability to “buy” anything. Rather this layer serves as an influencer and perhaps
gatekeeper during sales efforts. The implication here is that once marketing contact has been made with the IT
Technical community, a sales process will need to be engaged within the prospect organisation to network
above the IT Technical contact to a point where budget, pain and problem resolution is owned.
Addressing the IT Business category involves communicating technical capabilities but at the same time
translating that into language of the business-focused IT community. It also requires the vendor to show that it
understands the pains of the IT Business stratum and that it can address these. Pains and concerns at this
level are likely to revolve around the balance of strategy against tactical, resulting in messaging focused on cost,
time to value, etc. Providing proof of capability via references is more important at this level than it is at the IT
Technical level.
The Business audience category will be sensitive to messages that solve the business problems they are facing.
This category has little to no interest in technology so language that majors on the technology will only serve to
confuse and potentially alienate this audience constituent.
Vendors that appear to communicate at multiple levels may run the risk of confusing their prospects. Many
vendors successfully simultaneously address the IT Business and IT Technical communities by providing
educational/evangelical material to IT Technical and more benefits-focused material to IT Business. That said
this does show a reduction in focus and a lack of clarity and understanding of the key entry point into their
target organisation. In Lustratus’ experience, a reduction in focus typically results in a lack of success.
A vendor that focuses completely on IT Technical may be betraying the fact that their market is not yet “real”.
As the IT Technical community doesn’t “buy”, the vendor may very well be attempting to get a foothold
anywhere it can within its target organisations. Wasting too much time with this audience constituent can be a
failing in many early market technology innovators.
If a REPAMA user is experiencing lost sales to a competitor, understanding what audience stratum that
competitor is focused on can help in mitigating lost sales. If that competitor is shown to focus on the Business
level it might suggest that they are gaining earlier access to the power within an organisation. Earning the right
to be able to address the Business audience is a long process that involves demonstrating and documenting
proof of value to other reference customers. Whilst access to the Business audience is seen as the ultimate
aim in technology sales, it takes time, focus and a continued demonstration of delivering and documenting
business value.
Addressing the Business audience without a complete solution to their pain will result in failure. Many vendors
of early technology see “selling to the business” as the panacea to many of the problems of early market
technology sales. In fact, prematurely addressing the Business strata is a quick way to burn a lot of cash and
waste a lot of time. As such, a vendor that makes a token commitment to selling to the Business is likely to fail.
Such a token commitment can be betrayed by communicating in business benefits at the same time as
addressing the IT Technical audience. An example of this might be attending a technical tradeshow where IT
Technical people are present at the same time as talking about the product’s ability to reduce the risk of
corporate governance failures.
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Job Titles
What is this?
Where possible the REPAMA analysis will attempt to identify specific job titles that are targeted by the vendors
in the study. These specific roles and job titles often figure in the vendor’s outbound marketing activity such as
invitations to seminars, webinars, press releases or even web site copy. Whilst it is not always possible to
collate specific job titles and roles, it is often possible to infer the likely roles within end user organisations that
are targeted.
Developer
CEO Development Manager
CIO Software Architect
Defensive lead generation techniques can be improved by understanding which job titles are targeted by
competitors and creating similar programs. Obviously this has to be qualified first by understanding whether the
vendor can manage sales leads generated with a specific job title. For example, many vendors have great
expertise in dealing with highly technical job titles and roles but have little capability when dealing with
individuals in line of business management positions. Generating leads within a specific audience has to be
backed up by the vendor’s ability to nurture and mature the lead through the sales cycle.
The REPAMA user will also find value in understanding competitive job title focus across the segment as this
shows whether the same individuals are being targeted by competitors. The implication here is that if the
competitor also focuses on the same geographies and vertical markets, it is more likely that the REPAMA user’s
prospects will be familiar with, or even already talking to the competitor.
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Sales Engagement Level
What is this?
This part of the study attempts to identify where the vendors that are present in the study look to start their
sales process. Each vendor’s outbound marketing activities will feature calls to action aimed at creating leads
or contacts. For example a vendor may target a specific tradeshow or industry event exclusively for CIOs. This
suggests that the vendor is aiming to start the sales process at the IT Business level. Another vendor may run
their own webinar for software developers again suggesting that they see value in starting the sales process at
the IT Technical level.
This study differs from the primary audience in that it looks for where a vendor has used a call to action or
similar device, to attempt to get an individual engaged as a suspect and into the first part of the sales pipeline.
Whilst a vendor might communicate to audiences at different levels, this study examines when a vendor first
attempts to interact with potential prospects.
Business
IT Technical IT Business
An interesting piece of competitive intelligence can be inferred from observing vendors that are struggling to get
traction with a specific audience suddenly looking to change audiences in the hope that they are able to gain
greater traction with the new audience. The REPAMA study can be used to identify companies who are
potentially executing this strategy by looking for a disconnect between the Primary Audience and the Sales
Engagement Level. It should be borne in mind that this could obviously be the actions of a vendor whose
prospecting is simply maturing to now include additional audience stratum.
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Market Stage
What is this?
This study attempts to determine at what stage of development a specific vendor believes their market is
currently at. This is inferred by the language and marketing programs present in their outbound marketing mix.
The market stages that are monitored include:
Evangelism – no “real” market. Small sales are made but the vendor is looking to create the market
Early, proven – the market is at an early stage but there is proof of customers deriving benefit from the
vendor’s technology
Mature – the market has existed for some time, customers, competition and alternatives exist
Mature with breakthrough – as mature but with a significant recent technical or commercial
breakthrough
Evangelism
Mature with breakthrough Early proven
Mature
Another use is understanding the subtle difference between “Evangelical” and “Mature with breakthrough”
approaches to the market. Whilst the result is similar because a new capability has been introduced, the way
the messages are spun and delivered can make a big difference. Innovations are often brought about by
technical advancement and not in reaction to customer need. Evangelical language such as “radically new
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approach”, “technological breakthrough”, “completely changes the way you do x” may make some potential
customers nervous that they are in some way at the forefront of technological innovation and therefore risk.
Instead an approach that stresses the minor changes to the traditional methods that are now possible due to
some technical or commercial innovation may play better with prospects who are risk averse.
Likewise if a user of the REPAMA study is in a mature market segment and is experiencing stiff competition
from a certain competitor who is using language that suggests they have introduced a significant technological
or commercial breakthrough to the market, then competitive strategies can be drawn up to combat that
approach.
As individuals we exhibit a pre-disposition to either evangelical language that cites technical advancement or
pragmatic language that delivers value. The same is broadly true of industries or vertical markets. Certain
industries are seen as early adopters of innovative technology whilst other industries are seen as laggards.
Using evangelical language about an innovative technology whilst selling into a pragmatic sector such as
farming, may be seen as a disconnect.
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Vertical Market Segmentation
What is this?
This study outlines the relative commitment that each vendor has to the different vertical markets in which it
sells. Vertical markets or industries may or may not require specific knowledge or domain expertise but where
such knowledge is demonstrated the vendor scores higher than another where no such expertise appears to be
present.
Vertical segment 1
Vertical segment 9 Vertical segment 2
Vertical segment 8 Vertical segment 3
Vertical segment 7 Vertical segment 4
Vertical segment 6 Vertical segment 5
Similarly, if an established vendor is looking to enter a new specific vertical market they may consult the
REPAMA study to understand which other vendors are present and use their competitor’s experience and
tactics as a guide to forming their own strategy.
This MED can be combined with external market sizing data to project where unaddressed market
opportunities may lie. For example if the MED were to show a vertical segment that is currently not addressed
by any of the market protagonists and external market sizing data showed that the market segment was likely
to spend significantly, this may indicate an area of the market where unchallenged opportunity exists.
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Channel Approach
What is this?
The alternative approaches that vendors take to selling indirectly are captured in this study. Channel in this
study refers to a route to taking products to market that is not directly part of the vendor’s organisation. Some
of the channel elements examined may not actually be commercially active for the vendor but they appear to
claim that they are.
Channel Description
No specific channel strategy The vendor demonstrates no clear or specific 3rd party channel strategy.
communicated
System integrators System integrators are used to reach the market because of the relationship
they have with end user customers. The vendor’s technology may be used
as some form of integrated solution that the SI takes responsibility for
delivering. This channel element may also be used by the vendor to deliver
professional services to their end user customer.
Reseller/Distributor The vendor uses distributors or resellers to reach the market. Often these
will be present in “overseas” territories and will effectively be the face of the
vendor in these geographic territories. As vendors mature these channel
partners are often subsumed into the vendor’s direct sales force or the
vendor launches their own organisations into the territory.
Internal channel A number of large organisations will use internal channel to reach the market.
Sometimes these internal channel organisations will focus on a geography,
vertical market or perhaps a horizontal capability such as a professional
services division.
OEM OEM relationships are the result of embedding a vendor’s technology into
another vendor’s product. Due to the complexity of OEM contracts and
relationships, such channels will typically be developed manually. As such, in
most cases the need for vendors to target OEMs through outbound
marketing activities is minimal.
Technology partner Technology partnerships are typically formed with other vendors that have
technology that is complimentary to a vendor’s portfolio. Quite often
amongst early market companies, such agreements may simply be co-
operative marketing relationships and may not be a genuine route to market
for the vendor.
Other channel As it suggests this category captures any additional channel approaches not
listed above.
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No specific channel strategy
communicated
Other channel System integrators
Technology partner Reseller/Distributor
OEM Internal channel
The marketing benefit associated with announcing relationships with 3rd parties can be two-way. Both sides of
the announcement will enjoy benefit. Whether this marketing benefit yields a commercial return may or may not
be important to both parties especially in early market situations where vendors are desperate to paint a picture
of credibility. It might be that both sides simply recognise the value of announcing the relationship for marketing
purposes.
Understanding the commercial strategies of competitors and specifically how they believe they will achieve
growth via channel strategies can be a key piece of competitive intelligence. Mimicking the channel strategies
of competitors is one option. Building channel relationships with your competitors’ channel partners or even
those channel partners’ competitors is also a valid competitive strategy. Large or long-established
organisations may well have existing deep and far-reaching channel relationships. Competing with such
organisations can be challenging because such deep rooted relationships will not be overturned over night.
A vendor that claims significant SI relationships may suggest that the vendor does not have its own professional
services organisations. In essence all services and solution integration related work is pushed through a
channel. Understanding this can be useful intelligence when selling to end users who may not want to work
with an SI or who may mandate their own SI.
The OEM strategies of your competitors are important to understand. If a competitor’s strategy is to be
embedded in other technologies that have an easier route to market, then they do not necessarily have to
understand the pains and needs of the ultimate end user of the technology. Instead, their prospect is in fact the
OEM, and it is the specific pains of the OEM that are important to address. OEM strategies are also important
in an early market because by embedding technology in another solution, a vendor can obviate the need to
address all of the functional requirements of the market. Also by selecting a credible and respected partner, the
early market OEM can minimise the risk that their size and lack of experience might otherwise betray. Early
market software vendors gradually add functionality to their offering over time which means that, at any point in
time, it may not be suitable for every customer. By partnering with an organisation that can provide the
additional functionality, early market organisations can reach a broader target audience earlier in their evolution.
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The downside is obviously that the end user is not a direct customer. The customer instead is typically the
OEM.
In Figure 18 - Example Channel Approach MED above we can see that Vendor 2 appears to be targeting OEMs
and system integrators. This may suggest that they have little desire, or perhaps ability, to reach direct end
user prospects. Comparing this to Vendor 3 in the same diagram we can see that they appear to be executing
a strategy of working through system integrators and resellers/distributors. To build a reseller/distributor
channel suggests that there must be a real market for Vendor 3’s products and services.
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Implied Sales Methodology
What is this?
This study attempts to infer whether a vendor uses a specific sales methodology. If such a methodology is in
place and well executed, the language that the vendor uses to reach its customers and prospects will typically
betray this.
Value added selling focuses on the value that can be provided by the vendor and vendor’s products. This is
different from a technical sale in that it interprets the value that can be derived from the prospect using the
technology. Reference selling relies heavily on documenting previous successes and typically involves
quantifying what those benefits were and listing the previous organisations the vendor has already helped. The
implication is that the prospect will be able to see how similar companies have benefited from dealing with the
vendor. Reference selling can also be used as a supporting strategy with each of the other methodologies.
No evidence
Technical sale
Other
(feature/benefit)
Value added (stress the
Refence sale (cite customers)
value)
Solution sale (business pain)
If one vendor is shown to focus on a solution selling methodology whilst another vendor majors on more
technical/value-based selling, these vendors may not feel that they compete. Whilst they might not talk to the
same part of an organisation, they may still be competing for business within the same prospect organisations.
Understanding where vendors fit in this MED can help to interpret unexpected lost sales. This is a key study in
understanding how some competitors appear to be able to delay and scupper the deals of other vendors
because they have access to power that others don’t.
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Geographic Operations
What is this?
This study shows the relative commitment to the different geographic territories of the various vendors in the
study. This is an Absolute Score MED which means that scoring is based upon a maximum score for each of
the territories. i.e. it is possible for a vendor to score the maximum on each of the axis in the study rather than
having a maximum score distributed across the axes in the study.
The scoring works by mapping the claimed supported country territories of a specific vendor, either directly or
via resellers, against the IMF’s GDP rankings (See Appendix III – IMF GDP Rankings). The total GDP for the
supported countries is then mapped against the maximum GDP for each of the five categories below.
Africa
Middle‐East Americas
Europe Asia Pacific
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Product
This section describes the elements of the REPAMA study that relate to the product and how it is promoted in
terms of value, features and benefits. The individual elements examined are listed below.
•Primary feature/benefit ‐ Which features and benefits does
the vendor ascribe to its product?
•Interpreted feature/benefit ‐ for comparing multiple
vendors using a rationalised list of features and benefits
•Value proposition approach ‐ How important is value‐based
Product selling to the vendor?
•Primary value proposition ‐ Which value propositions does
the vendor focus on?
•Interpreted value proposition ‐ for comparing multiple
vendors using a rationalised list of value propositions
•Use cases ‐ What uses can the technology be put to?
This section examines features and benefits as well as the value propositions some vendors use to engage the
market. These will be of interest to marketing communications professionals who need to track competitive
movements in these areas. In addition these studies will help sales professionals who need to understand the
major thrust of their competitors’ sales approach. By understanding the key features and benefits a competitor
is likely to use when in front of a prospect, users of the REPAMA study will be better placed to build strategies
to compete.
Understanding the approach that a vendor takes to selling on value and the value propositions that are
important to them is equally important. Gaining insight into the value that a competitor believes they provide to
their customers will allow REPAMA users to build similar or countering strategies.
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Primary Feature/Benefit
What is this?
This study looks at the specific capabilities or elements of functionality that a vendor highlights in their outbound
marketing activities. Importantly this study uses the raw claimed features and benefits from each vendor’s
outbound marketing communication with little consolidation. Only where two vendors claim to have the same
or similar features would the MED diagram score two vendors as being present on a particular axis.
The related Interpreted Primary Feature/Benefit study below looks to consolidate multiple features/benefits so
that vendors can be more easily compared across their claimed product strengths.
Feature/benefit 1
Feature/benefit 11 Feature/benefit 2
Feature/benefit 10 Feature/benefit 3
Feature/benefit 9 Feature/benefit 4
Feature/benefit 8 Feature/benefit 5
Feature/benefit 7 Feature/benefit 6
In highly competitive situations in mature markets or in markets that are newly formed around some new
capability, it is likely that there will be a high degree of correlation between the vendors in the study.
The market mean can be important here in that it may reveal consensus amongst different vendors as to what
the key features and benefits are for a particular market segment. The chart does need a degree of
interpretation especially if a specific vendor is seen as dominating the segment. Understanding the priorities of
a “market leading” vendor and then implementing similar marketing claims might be a valid strategy. Equally a
REPAMA user may look to create clear differentiation between their claims and those of their key competitors.
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Interpreted Primary Feature/Benefit
What is this?
This is paired with the previous Primary Feature/Benefit study with one key difference. Here Lustratus attempts
to interpret the different feature/benefit combinations and consolidates them into a reduced list. For example, if
the Primary Feature/Benefit study showed categories of “Bandwidth”, “Throughput” and “Capacity” these might
all be consolidated into a single category called “Performance”. This makes it far easier to compare each
vendor’s key areas of focus.
Certain vendors market and sell based on the relative strengths and weaknesses of their own and other
vendors’ features and benefits. All marketing material and likely the sales team’s strategy will be based around
winning the feature battle. The implication of such a strategy is that the vendor will likely be targeting IT
Technical contacts who care about feature sets. Another potential implication is that vendors who focus on
technical features will likely be selling into existing or planned projects. It is unlikely that addressing the IT
Technical audience constituent alone about specific features will result in new projects being created based
solely on this feature now being available. This vendor behaviour is characteristic of, but not solely limited to,
early market vendors.
The other type of vendor will understand the worth of selling based on the value they believe they can provide
their prospects. These vendors will take their features and interpret what these features, if put to use within a
prospect, would mean to that organisation. The target audience for vendors that sell on value within their
prospects would be different from the IT Technical community and would likely be the IT Business or even the
Business strata. This is because these two audience constituents are more interested in the results of the
product rather than how the project will be carried out.
It must be stressed that the two approaches are fundamentally different across most departments within a
vendor’s organisation, from product marketing, marketing communication, lead generation to the sales team
itself. Selling on value is philosophically different from selling on features and it requires a very different
organisational approach and structure.
Whilst these are the two main categories of vendors that the study looks to identify, a third category exists. This
is where a vendor, that actually sells on features to the IT Technical stratum will actually go to the effort of
interpreting the value of their features and communicate this to the market. The difference lies in the fact that
such vendors will use the derived value to show some form of affinity for the business problems and needs that
a prospect may face. But significantly the sales effort will still major on features and will still focus on developing
interest at the IT Technical level.
This approach is evident in vendors who communicate to the IT Technical audience constituent as well as the
higher level audience strata who are more concerned about value. Lustratus categorises such vendors as
making a cursory commitment to value-based sales and marketing purely to demonstrate some form of affinity
with their prospect’s higher level pains. Lustratus suggests that these vendors may use value statements but it
is unlikely that it is central to their sales approach.
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Interpreting the Result and Potential Competitive Strategies
The value of this study depends on the perspective of the vendor using the study. If the REPAMA user applies
value-based selling techniques then it can be valuable to understand how to unseat potential feature-focused
competitors by aiming higher in the organisation and selling based on value.
No specific value proposition
approach
Integral to the sales process Cursory use to show affinity
If the REPAMA user is one that favours technical sales (features) then it may be valuable to understand which
competitors they compete with who will be selling against them at a higher level in the organisation using value-
based selling statements. It can also be used to understand which vendors sell based on value and then to
perhaps mimic their tactics to facilitate a move to value-based selling. Obviously, moving to a value-based
selling methodology is not simply a matter of changing marketing tactics. As mentioned above value-based
selling runs through the entire organisation and has significant impact in both the sales and marketing
organisations in particular.
Importantly, this study uses the claimed value propositions from each vendor’s outbound marketing
communication with little or no consolidation. Only where two vendors claim to deliver the same value would
the MED score two vendors as being present on a particular axis.
The related
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Interpreted Value Proposition study below examines the vendors’ claims in detail and looks to consolidate
multiple value propositions so that vendors can be compared more easily across their claimed value.
Value proposition 1
Value proposition 9 Value proposition 2
Value proposition 8 Value proposition 3
Value proposition 7 Value proposition 4
Value proposition 6 Value proposition 5
It is important to remember that the likely commitment to value-based selling as seen in the Value Proposition
Approach study has an impact on the interpretation of this result. If the result of the Value Proposition
Approach study suggests that a vendor is simply using value to show affinity with the prospect, then the result
of this Primary Value Proposition study should be interpreted as such. If however a vendor is seen to use a
value-based approach as central to the sales process, then the results of both this study and the Interpreted
Value Proposition below for that vendor are particularly relevant.
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Use Cases
What is this?
This study uses each vendor’s suggested uses for their product/solution to build a picture of which products
are claimed to be suitable for which use cases. Importantly, an omission here does not suggest a lack of
suitability but rather the fact that the vendor does not specifically list the use case in their outbound marketing
communications.
Use case 1
Use case 6 Use case 2
Use case 5 Use case 3
Use case 4
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Positioning
This section describes the elements of the REPAMA study that relate to product positioning and the competitive
depositioning that each vendor engages in. The individual elements examined are listed below.
•Reverse‐engineered positioning statement
•Depositioning strategy – How does each vendor look to deposition the
competition or the primary alternative ?
•Differneitation strategy ‐ What approach does the vendor take to differentiation?
•Perceived threat ‐ What is the key, implied threat that the vendor fears?
•Positioning Spectrum Analysis – Comparing each element of the positioning
statement with each of the other vendors in the study:
Positioning •Ideal customer
•Pain, need or desire
•Product name
•Product category
•Compelling reason to buy/main benefit
•Competition/alternative
•Unique selling proposition
A REPAMA user may also use the study introspectively to view the perception of their own marketing efforts.
This allows a comparison to be made between the perceived messaging and the intended strategy which in
turn allows for any required curative action to be taken.
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Depositioning focus
What is this?
The depositioning focus study attempts to identify how each vendor categorises their main competition or what
they perceive is the main alternative to their proposition. The vendor may explicitly or implicitly direct negative
attention towards an alternative. If they do it may suggest that the vendor fears this alternative and that
overcoming it, and ensuring that their prospects know that they are superior, is key to sales success. This may
be a specific competitor or simply an alternative way of doing things.
Depositioning focus 6 Depositioning focus 2
Depositioning focus 5 Depositioning focus 3
Depositioning focus 4
Understanding which alternative(s) a specific vendor “fears” is a key piece of competitive intelligence. If a vendor
cares enough to use marketing copy to attempt to damage a competitor or alternative approach then this
suggests that there may be a weakness that they are attempting to cover. At the very least it would suggest
that the vendor expects to meet that competitor in sales situations and that the competitor has a credible offer
such that it is worth spending time and effort damaging them. If the user of the REPAMA report is named as a
“feared” competitor then it is possible to research the nature of the depositioning tactics and build competitive
strategies that reduce the damage. For example, if a vendor attempted to deposition Competitor A by
questioning whether Competitor A’s product can perform under certain conditions, then it would be possible for
Competitor A to produce marketing collateral and perhaps even external testimony that proves that their
product does indeed perform under those conditions.
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Differentiation strategy
What is this?
This study attempts to identify the approach that each vendor takes to differentiation. Broken down into the
categories shown in the table below, the question being answered here is “What does the vendor attribute its
superiority to?”.
Element Detail
Organisational The claimed differentiation lies with the company itself – age, experience, stability,
track record, etc.
Technical/Functional Differentiation is about the product, features, functionality, capacity, speed, etc.
Service The human skills that the company provides, its ability to provide quality service to its
customers
Holistic No single thing differentiates the company, instead it is a combination of the above.
Holistic Organisational
Services Technical/Functional
In the diagram above we can see that Vendor 3 believes that it is differentiated in the market by its services
strategy and also, to a lesser extent its technical/functional capability. Vendor 1 believes that its differentiation
comes from the technical capabilities of its products whereas Vendor 2 feels that a combination of factors
differentiate it in the market.
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Building a competitive strategy against a vendor based on their differentiation strategy would involve either
attempting to undermine their claimed strengths or bolstering one’s own capabilities in that area.
Perceived threat
What is this?
The perceived threat study looks to identify which, if any, of the other vendors in the study are apparently
perceived as a threat. This is similar to the depositioning focus study above but here the result is limited to only
the other vendors in the study whereas the depositioning focus study identifies any external threat that the
vendor apparently fears. In addition to the other vendors in the study two other categories are supplied.
Implicit/Explicit all – suggests that either implicitly or explicitly all of the vendors in the study are perceived
threats. Other – suggests that the perceived threat comes from a vendor that is not part of this study.
Implied all Vendor 2
Other Vendor 3
Vendor 6 Vendor 4
Vendor 5
In Figure 27 – Example perceived threat MED diagram above we can see that the majority of the vendors in the
study apparently feel that vendors 2 and 3 are the main threats. Only Vendor 3 in the study believes that Vendor
5 is a threat to them.
Competitive strategies here are similar to that of the Depositioning Strategy Study above.
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Reverse Engineered Positioning Statement
What is this?
This section of the study covers the reverse engineered positioning statement and positioning matrix.
Positioning is the discipline of placing a product or an organisation in a unique space in a prospect’s mind.
Ideally the prospect will feel that the product has been engineered uniquely to address his or her specific needs.
The positioning statement is usually an internal tool that the vendor uses to capture the positioning focus for a
product. Lustratus reverse engineers a vendor’s positioning statement from their outbound marketing
communication to succinctly capture in one place their approach to the market.
The positioning statement is a natural language sentence that captures the following strategic marketing
elements:
Whilst there are many varieties of positioning statement, Lustratus favours the following format and structure:
Reverse engineering an accurate positioning statement from the way that a vendor addresses its prospects is
not a precise science but the results can be quite rewarding. It is particularly useful for gaining a high level
snapshot of a vendor’s marketing strategy. The positioning statement will provide most of the significant
marketing elements that the vendor will use to convince prospects and to compete against other vendors. As
such this is a useful tool to use with sales and marketing teams who need a succinct summary of the way a
specific vendor addresses a market.
It is important to realise that the positioning statement is an internal tool used to convey a vendor’s strategy to
internal stakeholders. The positioning statement is never usually communicated externally in a raw state but the
essence will be embodied within everything the vendor does to address the market. The positioning statement
is taken by the various elements of the marketing and sales teams and is turned into collateral, marketing
communications, press releases, sales presentations, etc.
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statement and how they should be used will probably be the remit of the experienced Product Marketing
individuals.
In compiling the positioning statement it is not always possible to be certain that the most significant elements
have been selected. For this reason Lustratus creates the positioning matrix shown in Table 4 - Example
Positioning Matrix below. This will show any secondary or tertiary alternatives for each of the elements if
relevant. The presence of a secondary or tertiary element indicates that the precise element was unclear but
the primary positioning element will always be the most likely primary element that was captured during the
analysis.
Our... ...product
Whilst the primary elements will have been selected and tuned to flow as a complete statement the same is not
true of the secondary and tertiary elements. Where the positioning matrix features alternative secondary and/or
tertiary positioning elements, they are provided for annotation only and will not be matched or paired.
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The Positioning Spectrum Analysis (PSA)
The Positioning Spectrum Analysis is a series of MEDs that explore the relative similarities and/or differences of
each of the positioning elements across each of the vendors in the REPAMA study. For every positioning
element in Figure 28 above we compare and rank each of the vendors in the study. The following positioning
elements are analysed.
In reality the product name and occasionally the category will be unique to a specific vendor. This may render a
comparison of product name and/or category across multiple vendors pointless. Each of the vendor’s products
and product categories are likely to be unique to them.
In other cases the ideal customer is inferred by the language the vendor uses to reach its prospects. This is
unlikely to be found in one place in their outbound marketing communication but will instead be woven
throughout their outbound communication materials, necessitating the analyst to pull this together from the
various inferences.
The ideal customer is likely to be expressed in terms of one or more of the following elements:
Element Description
Industry What industry or vertical market?
Use What other are they using and for what purpose?
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Element Description
Size What size of organisation? - by revenue or employees
Image What image does this client have? - Leading edge, conservative, well know, leader in their
own market.
Reason to buy What compelling reason does the client have to buy the product?
If a specific competitor is seen as a market leader or if they are seen as particularly successful, their strategy
can be examined and mimicked. It is also invaluable to understand whether any two vendors are absolute
head-on or adjacent competitors i.e. do the two organisations address exactly the same ideal customer?
The market mean here is also a powerful tool for illuminating the part of the market where most vendors appear
to focus. This has two distinct uses.
Firstly it can be used to illustrate where the marketing opportunity may lie. The implication being that if the
majority of vendors in the study focus on a specific ideal customer it suggests that this is where the market as a
whole believes the most opportunity lies.
Secondly, it should be noted that the same measure could also illustrate the part of the market that is over-
canvassed and therefore may also indicate where most competition is. This may dictate that to approach the
same ideal customer as most of the rest of the market may result in less chance of finding opportunities and
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ultimately winning business. Here the results of the REPAMA study should be combined with other primary or
qualitative research to determine the significance of strong correlation in the ideal customer study.
Ideal customer 1
Ideal customer 6 Ideal customer 2
Ideal customer 5 Ideal customer 3
Ideal customer 4
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PSA – Who...(Pain, Need or Desire)
What is this?
The Who element of the position statement describes the pain, need or desire of the ideal customer. This
describes the situation that the vendor believes they can positively alter for the customer. The implication is that
the customer will recognise and identify with the negative situation that they find themselves in and will relate to
the vendor’s apparent understanding of their desire to change the situation. The type of questions that the Who
element answers are shown below
What is the ideal customer looking to do or achieve that they cannot do without help?
What must the ideal customer do that they are struggling to do?
What is the desired state that the ideal customer is looking to achieve?
What is the problem that the ideal customer is wrestling with?
The Who element of the reverse engineered position spectrum analysis shows the main areas of pain that each
of the vendors feels is important to the ideal client. A high score for a specific vendor and/or a strong
correlation between the different vendors in the study would indicate that the segment features a well
understood customer pain point. This is most commonly found in mature markets.
The opposite, where there is little correlation between the vendors and where each vendor focuses on a
different specific pain suggests that the market segment has not yet established a strong value proposition for
the ideal customer. This situation occurs typically in early markets.
Pain 1
Pain 6 Pain 2
Pain 5 Pain 3
Pain 4
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PSA - Our...(Product Name)
What is this?
This is the name of the product (or service) that the vendor uses to address the pain of the ideal client. A
comparison of the different vendors’ product names is usually of limited value. As one would expect the Our
Product positioning element is typically unique to a specific vendor, each using a unique name for their own
product. Having said this, that is not always the case which is why Lustratus tracks a MED for each vendor.
Product category 6 Product category 2
Product category 5 Product category 3
Product category 4
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Where a vendor refers to its own products in multiple categories or where the vendor’s own product category is
very similar to other vendors’ categories they will be scored on the same axis of the MED.
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PSA – That Provides...
What is this?
The “That Provides” component of the positioning statement defines the compelling reason for the ideal
customer to buy. This is usually the main capability that the vendor feels is of significant benefit to the ideal
customer. This should compel the ideal customer to buy and will typically be interpreted in terms of business
value.
The “That Provides” element may well be the antidote to the “Who” section
of the positioning statement where the ideal customer’s perceived pain, need
"Who" "That Provides"
• Pain, need or • Compelling reasons
and desire is documented. It is common for these two elements to balance
desire to buy
each other so that the “Who” section sets up the problem and the “That
Provides” section documents the solution.
Compelling reason to buy 1
Compelling reason to buy 6 Compelling reason to buy 2
Compelling reason to buy 5 Compelling reason to buy 3
Compelling reason to buy 4
Of all of the elements in the positioning statement this element is most likely to find its way into the sales
situation. Whilst much of the positioning statement will be used in outbound marketing materials, it is highly
likely that the “That Provides” element will be used by outbound sales teams in their direct communication with
prospects. For this reason, understanding the competitive landscape with respect of their use of the compelling
reason to buy section of the positioning statement is key. Building competitive strategies to undermine
competitive claims would be built upon understanding this.
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PSA – Unlike...(Primary Competitor or Alternative)
What is this?
The Unlike Section of the positioning statement captures a vendor’s perceived primary competitor or alternative.
Whilst this may be explicitly stated as a competitor it is often portrayed as an approach. For example “Unlike
traditional approaches”. In addition this may not be a straight software vendor competitor. It may for example
be a simple alternative such as “Unlike performing the job manually”.
Competition/alternative 1
Competition/alternative 6 Competition/alternative 2
Competition/alternative 5 Competition/alternative 3
Competition/alternative 4
This is another important element of the positioning statement for the product marketing function in that it
allows the market landscape to be drawn up in respect of who believes they compete with who. If the
REPAMA user is mentioned as the primary alternative or competitor in another vendor’s reverse engineered
positioning statement then it is a signal to the product marketing team that if they haven’t already done so, they
need to start to build competitive intelligence on that vendor.
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PSA – Our Product...(Primary Differentiation/USP)
What is this?
The Our Product component of the positioning statement conveys the vendor’s claimed primary differentiation
and unique selling proposition.
The “Our Product” element is typically paired with the “Unlike” element of the
positioning statement. The two work together. The Unlike element defines
"Unlike" "Our Product"
• Primary competitor or • Primary differentiation /
the main competition or alternative and the Our Product element defines the
alternative USP
way in which the vendor believes they are different from the primary
competitor or alternative. For example UNLIKE xyz OUR PRODUCT has this
specific differentiation.
This claimed differentiation often differs depending on the sales strategy of the vendor in question. If the vendor
has a business value or value proposition focus then the differentiation is likely to be based around how they
uniquely deliver value. If, however, the vendor puts more emphasis on technology, features or capabilities then
the differentiation will likely focus on that.
If a correlation exists across multiple vendors’ perceived differentiation in the study, it suggests that little real
differentiation exists. In fact if multiple vendors are all claiming the same differentiation it suggests a crowded
market or a market that lacks technical or business value innovation.
Primary differentiation 1
Primary differentiation 9 Primary differentiation 2
Primary differentiation 8 Primary differentiation 3
Primary differentiation 7 Primary differentiation 4
Primary differentiation 6 Primary differentiation 5
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Remember that to interpret the differentiation properly, it must be combined with the Unlike element of the
positioning statement. Together they form the differentiation. So whilst the Our Product component
documents the Primary differentiation, it is a differentiation when compared to the Unlike element that is key.
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Appendix I - Glossary
Term Description
Absolute Score MED The absolute score system is used where a each of the elements in the marketing
element distribution can score a maximum of 11. This differs from the relative score MED
where the maximum score of 11 is distributed across the various elements in the MED.
The Geographical Operations MED study is an example of an absolute score MED.
Audience Strata/Stratum The high-level Lustratus categorisation of the 3 different audience constituents in high-
tech marketing – IT Technical, IT Business, Business. See Appendix II – Audience Strata
below for more information.
MED The marketing element distribution (MED) is the distribution of a notional score for a
vendor across any number of marketing elements to show the relative commitment/lack
of commitment. This is typically represented visually in an MED diagram.
Positioning Matrix The positioning matrix shows the primary perceived strategy for a specific vendor across
each of the 7 elements of the positioning statement in addition to any lesser secondary
and tertiary elements that the analysis may have been identified.
Positioning statement Typically used as an internal communication tool, the positioning statement is the natural
language statement that captures and conveys the following strategic marketing
elements:
PSA The positioning spectrum Analysis (PSA) compares multiple vendors position on each of
the 7 elements of the positioning statement.
Relative Score MED The relative score MED system features a maximum score of 11 that is distributed across
the various elements of the MED. This differs from the absolute score MED which allows
each of the elements of the MED to score the maximum of 11.
REPAMA Reverse Engineered Positioning and Messaging Analysis is the Lustratus methodology
that infers key sales and marketing strategies and tactics from the way vendors engage
the market through their outbound communication.
REPAMA SAS The REPAMA Segment Analysis Study compares multiple vendors’ strategies who are
operating within the same market segment.
REPAMA VAS The REPAMA Vendor Analysis Study analyses the strategy and tactics of a specific single
vendor.
Marketing Efficacy Whilst not covered by this guide, the Lustratus Marketing Efficacy Assessment analyses
Assessment the marketing tactics such as lead generation programs, press and analyst work, internet
marketing, etc. to gauge the effectiveness of vendor, or multiple vendors’ marketing. This
study can be commissioned by a vendor on a competitor or it can be introspectively
commissioned.
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Appendix II – Audience Strata
This section shows the high level role, focus and concerns of each of the three tiers of audience within end user
organisations. It should be noted that there is a blurring of the lines between the 3 classifications depending on
the individual organisation and perhaps also the industry. In some vertcial markets, such as financial services,
the role of the IT Architect is exteremly strategic and may appear in the IT Business classification.
IT Business IT Management. The Technology sign-off, Spans the technical Strategy, budget, IT
interface between justification of spend, concerns and the risk, mistakes
the business and IT technology strategy business concerns
enforcement
Examples
IT Director/VP
IT Manager
Snr Project Mgr
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Appendix III – IMF GDP Rankings
The table below contains the 2007 IMF rankings for country gross domestic product. These figures are used
together with Lustratus’ country and regional classifications to determine a vendor’s relative commitment to the
countries within a specific region.
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