Here's a thought: put the cart before the horse

While you're in the product development stage, consider how you're going to brand the product.

Without giving away my actual age, I was involved in launching several important products while with IBM in the late 1960's. I even sat on the naming committee for a year or two.

For months prior to launch, marketing, systems design, manufacturing and field engineering would battle toe-to-toe over specs and features and tests and options.

Hardly ever was anyone concerned about how the product would be branded until it was ready to be released from engineering.

Then we scrambled. Then we were asked to position and name the product; create data sheets, publicity kits, presentations and sales manuals; set up press conferences, key customer announcement meetings and systems engineering workshops. We wove a brand from whole cloth.

We came up with marketing communications programs in a vacuum, and we did it in weeks, not months. That's how IBI came up with scintillating brands like System 3 and System 7.

Now I may be prejudiced, but wouldn't it be better for all concerned if the brand was developed first? Establish a brand story which describes the customer need, the competitive stance, the benefits of a superior product. Put a name and a face to the product and then set about fulfilling the dream, the passion of the product's potential.

Now instead of compromise and trade-offs, everyone would have the same objective, to fulfill the promise of the brand.

Given the mindset of the "60s", we'd have been putting the cart before the horse. And today, we now the cart became the automobile.

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

Brand for Capital

So you've discovered or invented a new product category, but to develop it and take it to market you need capital. Lots of capital. More capital than your local bank is willing or able to advance. More than the SBA will loan you. More than all your friends and relatives put together could dredge up even if they were willing to back you.

You'll need venture investors.

So you write a plan and get all the legal compliance docs you need to raise money.

But I suggest something's missing.

Your brand.

Even at this early stage, you have more than a product idea. You have a vision, a dream, a mission, a passion.

Though the business may be an intangible at this point, it just makes sense to build a brand that reflects and reinforces your passion, and helps convey that passion to potential investors. Once investors get enthusiastic, who knows where that might lead?

And a strong, unified brand will help build confidence in the venture, impressing potential investors that you are business-savvy and have a market-orientation many entrepreneurs lack.

So those documents and presentations you must develop should, even at this early stage, be grounded in a brand, emanating from your vision and executed in a professional, convincing brand with which investors can identify.

After all, they are the first group of "prospects" you'll need to convert to "customers".

This is the ultimate example of adhering to my admonition to all entrepreneurs, "Brand smart from the start".

Oh, and a powerful brand can't hurt when you go to your local bank, either.

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

Branding for referrals

In today's over-advertised environment where credibility has never been lower, the small business, just like its big competitors, need to base their business on referrals, not ad impressions.

And people refer other people to a resource only if two things occur: The referrer has confidence in the company they are referring someone to, and they can easily and quickly state what differentiates the company from its competitors.

Branding helps.

Particularly if you look beyond the name and logo to the foundation of the brand. The brand is the expression of a firm's position within its competitive arena. When you set out to position your company - also read product/service - you look for a way to differentiate yourself from competition.

I've blogged earlier this year about the various ways you can establish a viable position through differentiation. (See the blog archive for July/Aug)

But once you've discovered a position you can call your own, make it your own using all the tools available, beginning with a commitment to own the position. Then product, service, messages, graphics and employee interactions will mesh and re-enforce the brand, making it unique and desirable.

Then you'll be able to ignite enough passion and knowledge about the brand to generate referrals and expand your market penetration through less expensive and more effective communication methods.

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

www.signaturestrategies.com

Niche for long-term growth

For my entire career - coming on to 50 years counting the summer job selling advertising for the Estes Park Trail-Gazette - I've heard that focusing your marketing efforts is the best policy.

I preach the principal.

I believe it's particularly vital for a small businesses to find a niche that they can own and focus their resources and attention on that niche exclusively.

Mostly people nod agreement, then ignore this advice.

There are two reasons, I think.

First, they aren't patient enough. Understandably, they are cash poor. We know the biggest concern of start-up businesses is cash flow. If you can help a business generate cash flow, you are considered an angel. Never mind where the customers come from or how they are acquired or how loyal they may be or how fragmented their needs may be, if they represent immediate cash they're welcome.

So business owners try a coupon mailing. If the first one "doesn't work" in generating immediate customer activity, they abandon it and begin listening to the radio salesperson, or the list broker with a sure-fire traffic generator. Flitting from one medium to the next, from one message to a second, from one offer to another, whatever income is produced by unfocused promotions is funneled to another medium promising better results.

The second reason entrepreneurs won't focus is because they might miss some business. Their attitude is that if they do not address "the masses",  they will leave money on the table. It's not greed so much as fear that they may be missing a great and on-going opportunity if they narrow their focus.

If you focus upon a specific market segment, fashion your brand and message to meet needs in that segment, you can build a brand and a business that will thrive long-term because it "means something" to customers and the people to whom your customers will refer their associates.

Selecting the market segment(s) you will serve may be tricky. There are three criteria I believe a segment must meet to be viable

1.       Is it large enough to accommodate another player?

2.       Are the members of the segment willing and able to buy what you're selling?

3.       Can you readily identify those populating the segment?

It's worth exploring niche marketing as a major strategy. Just be patient and never fear.

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

303-242-5975

Power in Numbers

Using numbers in names can be powerful.

In describing the next iteration of an existing product, using a number after the product's original name both ties the brand into the heritage of the past success the product enjoyed, and provides a springboard for the advanced product. Since the old and new do not sit side-by-side on the shelf, the new product is not a line extension. It is a replacement. So you benefit from both the equity of the old brand and the promise of the new are enjoyed. Using the next number in sequence provided that clue to consumers.

Now some numbers in and of themselves have a connotation and relevance: Lucky 7, Fifth Dimension, Catch 22.

In a competitive situation, the number 1 can have significance as a rating device (Bank One or First Bank).

A progression of numbers, if well publicized, can have meaning - 707, 737, 747, 757 for Boeing's jet craft, or Mach 3 for Gillette's space-age razor. And of course software developers are prone to release improved versions of their products with version numbers (CorelDRAW 12, Net Objects Fusion 9).

For some small businesses, using the facility's address may make sense because it also guides customers to the site.

There are also several famous number combinations - 1776, 4-minute mile, Apollo 8 that convey positive association and reaction.

Finally, for some product types, using mathematical expressions and symbols might be worth investigating.

Perhaps not for every product or company, but certainly for some, you might consider numbers a part of a powerful name.

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

The Secret

Someone among my network decided I needed to know about "The Secret".

The Secret is to be unveiled in "A Worldwide Television Event" scheduled for sometime in 2006. When you go to their website http://www.whatisthesecret.tv/ you'll find an intriguing visual and a slick video to whet your interest.

The entire site is devoted to getting you to become an advocate and then spreading the word to your friends and associates.

If you do submit your e-mail address to them, you'll get some very mystical emails now and again. They'll promise if you share names and emails of your friends, you will receive great benefits and good fortune.

Now the message is pretty standard. We all get the emails from acquaintances promising good luck if we send on the message, and dire consequences if we break the chain.

But The Secret is different in significant ways: first, it's a commercial attempt to capitalize on viral marketing techniques, and second, from a branding standpoint it is brilliantly executed.

The graphics in both the emails and the website convey a mood of Masonic mysticism (Their video even speaks of The Church suppressing The Secret.).The logo incorporates a wax seal. The type font, though hard to read on a monitor, is appropriate for the message. The message itself is mysterious but compelling.

I'll be watching this campaign unfold. It may be the way of the future for media promotions, following in the footsteps of other viral marketing successes like "The Blair Witch Project", "The Passion of Christ" and "What the Bleep Do I Know".

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

Color guidelines for brands

A while ago I received an e-newsletter from Mitch Meyerson, an associate and advocate of Jay Levinson of Guerrilla Marketing fame. Mitch and Jay produced together an analysis on the use of color as it relates to marketing. Though general in nature, I think its a valuable guideline to choosing a dominant color for your branding palette. Their thoughts are listed below.

Red evokes aggressiveness, passion, strength, vitality. In business, it is great for accents and boldness, stimulates appetites, is associated with debt.

Pink evokes femininity, innocence, softness, health. In business, be sure you're aware of its feminine implications and associations.

Orange

evokes fun, cheeriness, warm exuberance. In business, it's great to highlight information in graphs and on charts evokes positivity, sunshine and cowardice. In business, it appeals to intellectuals and is excellent for accenting things. Too much is unnerving.

Green evokes tranquility, health, freshness. In business, its deep tones convey status and wealth; its pale tones are soothing.

Blue evokes authority, dignity, security, faithfulness. In business, it implies fiscal responsibility and security. Plus it is universally popular.

Yellow is an optimistic color that almost always evokes a positive response. Yellow gets you motivated; it stimulates creative and intellectual energy; it's cheerful and easygoing.

Purple evokes sophistication, spirituality, costliness, royalty and mystery. In business, it's right for upscale and artistic audiences.

Brown evokes utility, earthiness, woodsiness and subtle richness. In business, it signifies less important items in documents.

White evokes purity, truthfulness, being contemporary and refined. In business, it enlivens dark colors and can be refreshing or sterile.

Gray evokes somberness, authority, practicality and a corporate mentality. In business, it is always right for conservative audiences.

Black evokes seriousness, distinctiveness, boldness and being classic. In business, it creates drama and is often a fine background color.

I’ll just add this: when you put colors in combination, guidelines can become unreliable in no time. There are several authors who have addressed emotions evoked by colors in combination, particularly two Japanese scholars, Ikuyshi Shibukawa and Yumi Takahashi, who have created a five-volume set of soft-cover, modestly priced books under the name, Designer’s Guide to Color. For branding, volumes 1, 2 and 3 are most helpful.I'd try Amazon and buy used from a partner listed there.

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

303-242-5975

ABC names: why small businesses shouldn't name with initials.

Why is it companies, particularly smaller companies, continue to take the easy way out and name themselves with initials?

Now I know that most often those initials stand for something, usually three multi-syllable, Latin-ending, generic descriptors that vaughly describe the company's business category. Not only is the name a mouthful, it's not memorable. Even within the company, the formal name has no meaning. Besides, it's too long so they quickly establish the initials as the shorthand name. Then they begin to use it outside the company and just assume it communicates something to someone.

But unless those initials already stand for somethig that's appropriate for the company (MVP, QED, ASAP), initials don't mean a thing to prospects and customers until they have a considerable history with the company. And then the initials have no actual meaning, just an identification - like a part number.

So initials have no personality They don't resonate. They communicate no passion, history or expertise. They are just initials.

Go instead with a short, active one or two word name. Even if it's a coined word name, that's so much better than lifeless initials.

But if you insist on initials, I've compiled a short list of those that have meaning through usage as shorthand for longer phrases (like MVP, QED, etc.). If you'd like that list, just email me at martin@signaturestrategies.com.  Use at your own risk.

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