Positioning Products & Services Purposefully & Profitably

Profitable Positioning

Chocolate soufflé

Major Marketing Malfunction #2

Part 2 – The Solution

Yesterday’s post outlined how a poor positioning for your organization or offering without distinction or appeal is unappetizing and far from irresistible.  And positioning yourself with purpose and intention is not just a good marketing exercise – it’s a profitable one!

Positioning is as foundational to marketing, as a stock is to a soup or sauce. If your stock is rancid the soup or sauce will be unappetizing! And it’s not enough to just be differentiated – although that is important. What is the value you bring to your target market? The recognized value you bring to your clients combined with your novelty and differentiation will position you, your organization or your offering with the highest potential profit. 

Positioning-Value-Differentiation-Graph

Do not underestimate the challenge in implementing the simplicity offered by this approach. Just like making a soufflé, the ingredients and steps look pretty basic, but the key is executing well.

The key to becoming irresistible is to get N.U.D.E.! I didn’t say naked!  N.U.D.E.[1] is an acronym that spells out a four-part recipe:

  1. Novelty – What do you do or offer that is contextually different and of importance to your prospects or clientele? For example, Amazon changed the way we buy, (think “one-click”), and read, (Kindle) books. Pei Wei synthesized the cuisines of China, Japan, Korea, Vietnam, and Thailand. All their dishes are made to order and offer customization.
  2. Utility – What’s useful to your target audience about what you offer? The real value often lies below the surface. While a restaurant is useful since we all have to eat, its real usefulness (and perhaps its novelty too) is that they make everything from scratch using local produce. Or, they have gluten-free options or they always remember my name and table preference. That’s useful beyond the utilitarian value of basic sustenance. Look at the totality of your product-service offering.
  3. Dependable – How can you demonstrate consistency & dependability to your target audience? Performance guarantees, testimonials, endorsements, referrals, reviews and the customer’s previous experience are all means for a customer to gauge your dependability. Amazingly, 70% of online consumers trust recommendations from people they don’t know[2] and 70% consult reviews or ratings before purchasing[3]. What do your online reviews say about your organization or your offering?
  4. Economic Benefit – What’s the economic benefit from your offering? And it may not be financial! Some product-service offerings can clearly quantify the financial benefit in terms of return on investment, or time and money saved. Others may have an economic benefit that is not financial. A client of mine has a technology that prevents texting while driving. Can you put a price on peace of mind for the parents of a teenage driver? Risk reduction has economic benefits. American retailers are far more liberal in their return policy than their European counterparts making the purchasing decision easier and virtually eliminating the phenomenon of “buyer’s remorse”.      

Embracing the N.U.D.E. model is the answer to your irresistible positioning!

Embracing the N.U.D.E. model for Irresistible Positioning

Embracing the N.U.D.E. model for Irresistible Positioning

Share some experiences in how listening has improved your return on your marketing investment at Sza.bo/7MMM02b and it could be included in my forthcoming book: Irresistible!


[1] Acknowledgement: I owe a debt of gratitude to Scott Degraffenreid’s research on referral marketing. In collaborations with him on Foundations to Irresistible Marketing I quickly realized that if something is highly “referable” then its positioning is “simply irresistible!” For more on his research and the resulting model for customer referral behavior:
Scott Degraffenreid & Donna Blandford, Embracing the N.U.D.E. Model – The New Art and Science of Referral Marketing (Dallas: Degraffenreid & Blandford, 2005) 26-41

[2] Econsultancy, July 2009, Erik Qualman, Socialnomics

[3] BusinessWeek, Oct. 2008

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