People refer others to a particular company, product, service or event so they will look good in the eyes of the referee.

That's it. That's their motivation. Period.

We know this intuitively, but now there's statistically-derived data to back that up. It's all in Scott Degraffenreid's new book, The New Art and Science of Referral Marketing - Embracing the N.U.D.E. Model. This modestly-sized volume is based on Scott's observations and sophisticated statistical analysis of large databases derived from research performed in the medical and pharmaceutical fields. You will find this book modestly-priced as well. Just click over to www.docmurdock.com.

So here's the question: what will it take for you to refer me to a friend of yours?

From a branding standpoint, the most important consideration is this: It must be easy for you to explain my offering to your associate. I need to make you appear authoritative. I want you to look good and be thanked (even praised) for your astuteness and benevolence in referring me.

So as the brander, I must make the offering crystal clear in explaining how this offering is different and better. My brand message must be memorable enough so referrers can quote with confidence.

Then I must deliver on my promises. If I don't, no more referrals and plenty of bad vibes.

So, make it easy for people to refer you, and make them feel good about doing so by delivering an outstanding experience.

Martin Jelsema

Signature Strategies

Helping smaller businesses profit from the power of branding.

www.signaturestrategies.com

Martin Jelsema

www.signaturestrategies.com

I promised I'd continue talking about the NUDE model (novelty, utility, dependability and Economy) developed by Scott Degraffenreid and described in his book, The New Art and Science of Referral Marketing (available at www.DocMurdock.com  ).

I'll discuss the second pair, dependability and economy, today. Scott believes, based on the vast statistical evidence he and his team have amassed and analyzed, that people see a big distinction between dependability and economy, and believe they cannot co-exist. Cheap can't be dependable, and conversely, a really dependable product must cost more.

Now dependable does not necessarily mean high quality and life-long durability. It just means a product will perform as expected. Nor does economical always mean the least expensive. If a longer-lasting product can demand a premium price an still be known as the "value leader". So a product can provide both in equal measure.

But if this is the way you differentiate your product or service, there will be tension. And though tension will create buzz, it must be tempered. Rather than attempting to claim both dependability and economy as dual differentiators, it is wiser to position the brand with emphasis on one of them, or on the product's novelty.

Helping smaller companies profit from the power of branding.

www.signaturestrategies.com

Martin Jelsema

www.signaturestrategies.com

There's a guy I know who's a "Social Network Architect". He used to be a "Social Network Analyst" until he wrote a book. Now he's an architect.

His given name is Scott Degraffenreid. His book is The New Art and Science of Referral Marketing: Embracing the N.U.D.E. Model. It can be purchased at www.DocMurdock.com if you're interested.

Anyway, he makes sense, and then backs it up with solid statistical manipulation of very large databases.

His NUDE model speaks to four attributes of a business or brand that generate almost all referrals: Novelty and Utility, Dependability and Economy. Tension exists in each of those pairs.

Scott believes a balance of all four are required to establish a "Tipping Point" ( a score of 315 out of 400), and that the tension of the paired attributes are important to establish high scores. (Don’t ask me how these scores are derived - Scott doesn't even attempt explanations of the statistical processes involved, thank goodness.)

For instance: If all you offer is utility, no one will spontaneously refer your business to a friend. Too mundane. Not buzzworthy.

But if your product or service is all novelty (think Pet Rock) someone might mention it but probably wouldn't recommend it. It becomes a joke, or at the very best, a fad.

So it's really the tension between novelty and utility that will generate legitimate referrals. If referrals are your objective, I recommend branding on the side of novelty, and them making sure your messaging contains strong benefit-oriented copy that people can remember and pass along to reinforce the novelty of  the brand with utility.

More about Scott's findings concerning referrals in the next blog.

Martin Jelsema

Signature Strategies

Helping smaller companies profit from the power of branding.

www.signaturestrategies.biz

Martin Jelsema

www.signaturestrategies.com

Two recent experiences have started me thinking again about brand uniqueness and familiarity.

Both clients resorted to an informal "market research" poll to determine if a unique brand concept was "meaningful".

In both cases, the results were obvious: friends and associates went with the familiar rather than the unique.

This type of research is usually instigated because the entrepreneurs are not comfortable with a fresh  concept. They, too are seeking comfort just as intensely as they are novelty. Comfort often wins out at the expense of a differentiated brand, so the brand never raises above the static. But one unstated goal is met :no one is offended or challenged.

Commonality has never generated buzz.

Novelty in face of conformity produces tension, and if there's anything that produces buzz it's tension.

So a little discomfort in the branding process is both healthy and effective. Go for it!

Martin Jelsema

www.signaturestrategies.com

How  do marketing and branding differ? Is it just semantics?

I began thinking about this when I wrote about differentiation being a major component of the branding process. Then Duct Tape Marketing maven, John Jantsch, wrote an article in his May 10 newsletter called "Differentiate and Dominate". I recommend the article to all. It applies equally to branding (the strategic process) and marketing (the implementation of the strategy). Find it at http://ducttapemarketing.com/newsletters/differentiate-and-dominate.htm

His set of differentiators is some different from the list Jack Trout published in "Differentiate or Die" (Note the positive name of John's article as opposed to the book-selling title Jack created). I wrote about Jack's list in the last Brand Smart blog.

Use either or both, or find your own criteria for differentiating based on your core values, your product category and your marketplace. But do differentiate your business, product and/or service in a compelling and significant way from the inside out.

Whether it starts as a branding process or a marketing activity, discover and use the differentiator that can become the very keel of your business boat. And continue using that same differentiator in all your marketing communications and in the way you conduct your business. It's your foundation and your path to a powerful brand.

Martin Jelsema
Signature Strategies
Helping smaller companies profit from the power of branding

303-242-5975

Martin Jelsema

www.signaturestrategies.com

When speaking of differentiation in relation to branding, I'd be remiss if I didn't mention a book by one of the founders of the concept of "positioning", Jack Trout. The book is called Differentiate or Die. The title may smack of hyperbole, but it makes his point: differentiation is a critical component - no, not just a component but the very foundation of a viable brand.

Mr.Trout classifies a dozen types of differentiators, and makes a point that most of those we would think of as significant are really weak - differentiators like price, quality and customer service just don't cut it. Why? Because they are easily duplicated, or they can't really be substantiated.

Just being creative in your presentation isn't a good differentiator, either (ad agencies, eat your hearts out). This is a credibility issue.

But having a truly unique service, or a specialty product, or a totally new type of event can differentiate you.

So can other attributes that are difficult to achieve because of circumstance. Those include having a heritage, being the first or being the latest.

Another class of differentiator can be deliberately achieved if accompanied by good timing and a modicum of luck. These include being preferred by authorities, being on the leading edge of a hot trend, or being an industry (or neighborhood) leader.

Then there are the differentiators that a company can create deliberately through core competencies. It may be in the way a product is made (materials, process, patent), or the way in which a service is performed. It might have to do with the way you concentrate your attention on particular design aspects (like safety, ergonomics, or customization). Another differentiator might be the commitment you make to a particular market or market segment. It is possible to become a leader in certain segments through a concentration of resources.

Note that all these differentiators are derived from a strategic commitment to them. They are not marketing/advertising tactics. Unless they emanate from the business's very core, they will be, rightly, viewed as so much hype.

So look inside, not to an ad campaign, to differentiate your brand.

Martin Jelsema

Signature Strategies

Helping smaller companies profit from the power of branding

http://www.signaturestrategies.com

Martin Jelsema

www.signaturestrategies.com

I believe differentiation should be the basis of your brand.

At the core, differentiation should be inherent in the company, product, service or event being branded. The differentiation needs to be perceived as valuable as well as unique. And it must be clear - easily understand and easily communicated by gatekeepers to others. (More about branding for referrals in future blogs.)

And most important, it needs to be believable.

Doug Hall in his very wise and very readable book, Jump Start Your Business Brain, provides the three ingredients to a successful brand, although he didn't mention "brand" per se. He just calls them the "three laws of Marketing Physics". Those ingredients are:

•     An Overt Benefit (what's in it for the consumer?)

•     A Real Reason to Believe (why should the consumer believe what you have to say?)

•     A Dramatic Difference (how novel is your delivery of the first two factors?)

Mr. Hall has isolated and documented these three factors through extensive research, and claims that if they are present at sufficient levels, there is an 84% overall probability of success.

Be that as it may, I've advised clients to utilize those three "laws" as a sound approach to differentiation. They do provide a solid foundation for a compelling brand.

I believe you will find that applying them to your branding process will be valuable.

Martin Jelsema
Signature Strategies
Helping smaller companies profit from the power of branding

http://www.signaturestrategies.biz

Martin Jelsema

www.signaturestrategies.com

I received a comment to a recent blog (Customers, not you, position your company) asking how to position an unproven new product or service in a new product category with little competition.

Great question many entrepreneurs will face, but few will realize or take advantage of this very unique and important opportunity.

Usually when there's "no competition" it means there's no one filling a spot in a new category in which you are competing. There's plenty of competition. People have been devising ways to solve a problem or satisfy a need that this new product will do better. But people have been coping or using methods from another product category.

Now they're offered a better way, a more powerful way, a less expensive way, a faster way, or at least a more novel way to gain the satisfaction they are striving to acheive.

So you position your new offering against the old way of doing things.

Geoffrey A. Moore in the book, Crossing the Chasm, gives us a specific model to position a truly new product. It was written specifically for hi-tech product introductions, but I've used it with modifications as a basis for low-tech launches as well.

Incidentally, I recommend this book as a strategy primer for any new product launch even though it was written over 15-years ago.

Anyway, Geoffrey provides the following formula for developing a position for unique products.You just fill in the blanks.

For (target customers)

Who are dissatisfied with (current market alternative)

Our product is a (new product category)

That provides (key problem-solving capability)

Unlike (the product alternative)

We have assembled (key product benefits)

A product category is key to positioning. You compete within one. You position your product to the competitors in your product category. It's important to know your category.

And if you're first in a particular category, you have a distinct advantage. In fact, uless and until you really foul up, you own that category.

So if you truly have a unique product that doesn't belong in an existing product category, your position should be that you own that category. Act like a leader and customers will follow, provided the product serves a purpose, solves a problem or fulfills a desire.

Martin Jelsema

Signature Strategies

Helping smaller companies profit from the power of branding

http://www.signaturestrategies.biz

Martin Jelsema

www.signaturestrategies.com

They do it based on their observations and experiences, and they compare them with similar observations and experiences with your competitors. They judge you, rank you, classify you, accept or dismiss you on the basis of their perceptions.

This process is called "positioning". The idea of positioning, first espoused by All Ries and Jack Trout in the 1970's, is how people collectively determine the likelihood of doing business with you.

 Positioning is what people "do" to brands. That is they judge, rank and classify them. "Coke is number one", "Rolex is the highest quality watch you can buy", "Wal-Mart is the least expensive", "Volvo is the safest car".

For many brands with a history, the company has made a determined effort to position their business or product favorably and to establish the brand as a unique (differentiated) offering.

As Ries and Trout put it they, "establish a lasting relationship between a positive attribute and the brand in the collective minds of your target market members." That attribute is the differentiator: first, oldest, most innovative, safest, least expensive, sweetest, most versatile, most durable, etc.

Most companies position their offerings consciously and deliberately. As long as the offering delivers on the differentiating attribute, the attribute is important to the market, and the position is not already taken by a strong competitor, the offering can become positioned in the market's mind as the company planned and profits follow.

However, there are many examples of businesses attempting to position their offering without the credentials. The result is the market scoffing and positioning the product as being deceitful. I offer Qwest's "Spirit of Service" advertising campaign flying in the face of customer experience as a prime example.

Thus, prior to attempting to influence a market to accept the position you prefer them to have, make sure you can deliver better than your competitors can. And most importantly, deliver at least as good as your market’s expectations.

Martin Jelsema

Signature Strategies

Helping smaller companies profit from the power of branding

http://www.signaturestrategies.biz

Martin Jelsema

www.signaturestrategies.com

I received a comment to a recent blog (Customers, not you, position your company) asking how to position an unproven new product or service in a new product category with little competition.

Great question many entrepreneurs will face, but few will realize or take advantage of this very unique and important opportunity.

Usually when there's "no competition" it means there's no one filling a spot in a new category. There's plenty of competition. People have been devising ways to solve a problem or satisfy a need that this new product will do better. But people have been coping.

Now they're offered a better way, a more powerful way, a less expensive way, a faster way, or at least a more novel way to gain the satisfaction they are striving to achieve.

So you position your new offering against the old way of doing things.

Geoffrey A. Moore in the book, Crossing the Chasm, gives us a specific model to position a truly new product. It was written specifically for hi-tech product introductions, but I've used it with modifications as a basis for low-tech launches as well.

Incidentally, I recommend this book as a strategy primer (meaning explosive catalyst) for any new product launch even though it was written over 15-years ago.

Anyway, Geoffrey provides the following formula for developing a position for unique products. You just fill in the blanks.

For (target customers)
Who are dissatisfied with (current market alternative)
Our product is a (new product category)
That provides (key problem-solving capability)
Unlike (the product alternative)
We have assembled (key product benefits)

A product category is key to positioning. You compete within one. You position your product to the competitors in your product category. It's important to know your category.

And if you're first in a particular category, you have a distinct advantage. In fact, unless and until you really foul up, you own that category.

So if you truly have a unique product that doesn't belong in an existing product category, your position is that you own that category. Act like a leader and customers will follow, provided the product serves a purpose, solves a problem or fulfills a desire.

Martin Jelsema
Signature Strategies
Helping smaller companies profit from the power of branding

http://www.signaturestrategies.biz

Martin Jelsema

www.signaturestrategies.com

When speaking of differentiation in relation to branding, I'd be remiss if I didn't mention a book by one of the founders of the concept of "positioning", Jack Trout. The book is called Differentiate or Die. The title may smack of hyperbole, but it makes his point: differentiation is a critical component - no, not just a component but the very foundation of a viable brand.

Mr.Trout classifies a dozen types of differentiators, and makes a point that most of those we would think of as significant are really weak - differentiators like price, quality and customer service just don't cut it. Why? Because they are easily duplicated, or they can't really be substantiated.

Just being creative in your presentation isn't a good differentiator, either (ad agencies, eat your hearts out). This is a credibility issue.

But having a truly unique service, or a specialty product, or a new type of event can differentiate you.

So can other attributes that are difficult to achieve because of circumstance. Those include having a heritage, being the first or being the latest.

Another class of differentiator can be deliberately achieved if accompanied by good timing and a modicum of luck. These include being preferred by authorities, being on the leading edge of a hot trend, or being an industry (or neighborhood) leader.

Then there are the differentiators that a company can create deliberately through core competencies. It may be in the way a product is made (materials, process, patent), or the way in which a service is performed. It might have to do with the way you concentrate your attention on particular design aspects (like safety, ergonomics, or customization). Another differentiator might be the commitment you make to a particular market or market segment. It is possible to become a leader in certain segments through a concentration of resources.

Note that all these differentiators are derived from a strategic commitment to them. They are not marketing/advertising tactics. Unless they emanate from the business's very core, they will be, rightly, viewed as so much hype.

So look inside your company and to the way you do business, not to an ad campaign, to differentiate your brand.

Martin Jelsema

Signature Strategies

Helping smaller companies profit from the power of branding

http://www.signaturestrategies.biz

Martin Jelsema

www.signaturestrategies.com

I mentioned earlier I'd address how you might evaluate your offering (i.e., your company, product, service or event) to enable you to brand it effectively.

Remember the three related factors I suggested were basic to formulating a brand strategy: market, competition and offering. Once you're clear about the markets you wish to serve, and you understand the strengths and weaknesses of the competitive forces, you can fashion an offering that's really of value to the market and well differentiated from the competition.

Occasionally, the offering comes first. It's a new idea! There is no market as yet! There are no competitors! Well, that's subject for future blogs, or if you can't wait, I suggest you find two of the remarkable books written in the 1990's by Geoffry A. Moore - Crossing the Chasm and Inside the Tornado.

But more often you will be attempting to penetrate existing markets where competitors already lurk. Your offering may be an improvement, or it may even be different enough to be classified in a new product category, but it is recognized as a solution to a problem, or a gratification of a desire, that others claim to be fulfilling. Here is where differentiation is key.

I believe differentiation should be the basis of your brand. At the core, differentiation should be inherent in the company, product, service or event being branded. The differentiation needs to be perceived as valuable as well as unique. And it must be clear - easily understand and easily communicated by gatekeepers to others. (More about branding for referrals in future blogs.)

And most important, it needs to be believable.

Doug Hall in his very wise and very readable book, Jump Start Your Business Brain, provides the three ingredients to a successful brand, although he didn't mention "brand" per se. He just calls them the "three laws of Marketing Physics". Those ingredients are:

•     An Overt Benefit (what's in it for the consumer?)

•     A Real Reason to Believe (why should the consumer believe what you have to say?)

•     A Dramatic Difference (how novel is your delivery of the first two factors?)

Mr. Hall has isolated and documented these three factors through extensive research, and claims that if they are present at sufficient levels, there is an 84% overall probability of success.

Be that as it may, I've advised clients to utilize those three "laws" as a sound approach to differentiation. They do provide a solid foundation for a compelling brand.

I believe you will find that applying them to your branding process will be valuable

Martin Jelsema
Signature Strategies
Helping smaller companies profit from the power of branding

http://www.signaturestrategies.biz

Martin Jelsema

www.signaturestrategies.com

When I do a branding workshop, the first question I ask is, "What's your definition of a brand?". Seems everyone has an impression about brands, so after a few moments of daze, the answers start to flow...

"Branding is a good name."

"Branding is an eye-arresting logo."

"Branding has to do with what your facility looks like."

"Branding is a memorable slogan."

"Branding is your company's personality."

"Branding is your corporate image."

“Branding is buying ad specialties with your name on them.”

Once someone said, "Branding is renting a blimp."

I tell them they are all right, but that they are like the six or seven blind people trying to describe an elephant by just feeling the part they are presently touching. I then suggest branding can be all those things - and much more.

Looking at the bigger picture, branding is first a strategic process. Whether you are branding a company (and that should probably be the first thing you brand) or a product, service or event, it begins with an assessment of the environment. Three critical factors converge here: the markets you serve, your competitors (current and future) and your offering(s).

Knowing your markets and competitors prepares you to develop an offering that's valued and unique. Once the offering meets those criteria, it's then your job to crystallize the value/uniqueness message.

 At the same time, that message must be creditable and reflect the true personality and core values of your organization. Without this last consideration, the message becomes just more advertising puffery.

The process is a complex and introspective undertaking.

But I believe that establishing this foundation based on honesty and substance is vital to the brand and to the success of the business itself. Upon that foundation, considerations of name, package, logo, color, type face, slogan and, yes, selection of ad media should flow.

So the big question is what do you have to communicate about your offerings that are unique and valuable? I have a couple of ideas, and I'll be sharing them over the next week or two.

Martin Jelsema

www.signaturestrategies.com