Archive for August, 2009

Marketing Innovation in a Downward Economy – State Lotteries

by Marco Padovani on Aug.17, 2009, under Vertical Industries

Robert Budens, President of the Patent Office Professional Association once said, “Innovation is the way America generally gets out of downturns.” In today’s economy, to keep your business above water and thriving, you’ll need to implement innovative techniques to help booster sales as well as keep office morale high so your loyal soldiers don’t abandon ship.

There are many innovative ways that can help drive sales and increase brand awareness. For instance in the lottery industry, proceeds are imperative to supporting seniors, funding education and other community programs so it’s important to find new ways to drive sales. The state lotteries could go beyond the traditional to revamp their websites and promote innovative campaigns through social networking sites to broaden their consumer base. Guerilla marketing campaigns are also successful tactics, driving consumers to purchase lottery tickets after witnessing attention-grabbing street promotions on their way to/from work. The possibilities are endless if you can start thinking outside the box, jar or whatever container holds your unconventional ideas captive.

Even though driving sales is top priority, building employee morale is just as important since they are instrumental in a company’s success. Institute friendly office competitions, establish theme days or simply distribute lottery tickets as a token of appreciation. Be as creative or traditional as you like.

Domus is a full-service advertising, public relations, interactive, and social media marketing agency based in Philadelphia. Our business model is unconventional, forward thinking and implemented specifically to meet the needs of our clients. For more information, visit our website, www.domusinc.com.

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Give Your Clients What They Need

by Marco Padovani on Aug.12, 2009, under Strategic Consulting

What do you do when your client (or prospect) wants one thing but you know that something else is better for them? As an agency we are often faced with this situation, and it leaves us in a quandary. Do we accept money for effort we know will be ineffective or even damaging? Or do we remain firmly opposed? It’s a tough situation. Ultimately, the customer is the boss and their wishes must be honored, but an agency has an almost fiduciary responsibility to make sure that the customer knows its measured opinion (and repeatedly if need be). Likewise, an agency would be remiss if it did not offer an unpopular recommendation to a prospect.

We’re preparing a pitch right now for a (hopefully) new client, and we’re facing this exact situation. We’re going to include our unpopular but correct recommendation. In the long run we’ll be happy we did.

Domus is a full-service marketing communications firm based in Philadelphia. Please visit our web site for more.

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Judge Rules that Microsoft Must Stop Selling Word

by Marco Padovani on Aug.12, 2009, under Strategic Consulting

Judge Leonard Davis of the U.S. District Court for Eastern Texas just ruled today that Microsoft violated a patent held by i4i of Canada, and such must stop selling Microsoft Word in the U.S. within 60 days. The dispute centers around Microsoft Word 2007′s .docx file format. I just finished reading the abstract for i4i’s U.S. Patent 5,787,449 and delved a little deeper into the .docx file format, and are a few of my thoughts.

  • First, it’s ironic that Microsoft started developing the .docx format because of governmental pressure – both in the US and especially in Europe. Microsoft had been under attack for having a proprietary and closed format, and as such came up with the .docx format to satisfy its attackers. The format is both open (with published specs) and non-proprietary (submitted to standards bodies as an available format for others). One area of governmental legal systems first forced the development of a new format, and now another area is trying to kill it.
  • Patents in the software world are becoming so general and vague that they can potentially cover such broad areas, which in turn can dramatically stifle competitive innovation. This is a perfect example. In summary, this patent (filed in 1994 and granted in 1998) details an idea whereby instead of storing documents as one large file that combine both content (e.g., text) and formatting intermixed, they instead separate the content from the formatting markup into separate files, allowing content to be changed independently of style. However, the exact structure of the separation is not detailed in the patent, just the concept of separation. So, theoretically, nobody can come up with any future file format that splits the two, regardless of the technology to combine or display them. This is an example of a patent that should never have been granted because it is too broad. In the physical world, here’s an analogy. Let’s make believe that once upon a time all shoes were constructed as single solid pieces that you squeezed on your foot. Then someone came up with an idea (and patented it), saying that a new approach would be to separate the fitting of the shoe from the shoe itself – but they didn’t explicitly invent shoelaces/eyelets or Velcro, metal clasps, etc. So, no future shoe manufacturer could now make shoe designs with clasps, laces, Velcro fasteners, or anything else without violating this patent.
  • The reason Microsoft’s .docx format theoretically violates this patent is that although the .docx format looks like it is a single file (that incorporates both content and style), it actually does separate the two. The .docx format is basically a .zip (compressed) file. (See for yourself – change the extension of a Word document from .docx to .zip and then open it.) Within the zip structure are a number of XML files, where content and style are separated. However, because they are incorporated into a single .docx file, in practicality nobody works with the formatting and content components separately. Therefore, in the real world, even if there were some merit to the i4i patent, it really doesn’t apply to .docx files.
  • Moreover, this has much broader implications than Microsoft. By far the most common technology today that uses the concept of separating content from format is CSS (Cascading Style Sheets). This forms the basis of virtually every single web page around the world being created today. (The whole idea of CSS is to separate style information from HTML files, leaving the HTML files with principally content. All of the style information can then be maintained in CSS files, allowing web designers to change the entire look-and-feel of a site by just changing its “theme”.) Moreover, virtually every software maker who makes web design tools, including Adobe, Microsoft, Oracle, IBM, and countless others, uses CSS. The CSS specification is managed by the World Wide Web Consortium, an international organization. Are they now the next target for a lawsuit? If so, does that put a halt on everybody’s web development? If not, how can they not be targeted when CSS technology much more closely fits the pattern of the patent than the .docx file format?
  • Ironically, a few days ago Microsoft secured its own patent covering its XML-based format of its Office 2007 suite (including Word), Office Open XML (OOXML). Although patented, Microsoft has also offered the format to world as a free standard. (It is now accepted as an ISO and an ECMA standard.)

It’s troubling when developers and marketers can’t effectively develop and market because of situations like this. Let’s just hope that a higher court rectifies this problem.

Domus is a full service advertising agency based in Philadelphia, with areas of expertise in multiple digital and interactive arenas. As both users and developers of technology, we follow closely situations such as this – as should most businesses. For more information on Domus, please visit our web site.

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Google Search Engine Changes

by Marco Padovani on Aug.10, 2009, under Strategic Consulting

Google just posted on its webmaster blog (help-test-some-next-generation.html) that it would like feedback on a new working version of its search engine. Regardless of how good or bad the changes in the SERP rankings are, there will be changes, and marketers should prepare.

Based on a few quick tests on our agency web site’s rank, so far we’re happy. We tested 20 of our most tracked keyword phrases and the new Google ranked us higher (better) in 18 of the 20 with one tie. On the other hand, a few other sites we help manage had more mixed results. Interestingly, the difference between the better performing sites and keywords vs. the worse performing ones was related to the consistency of blogging efforts. The sites that had the related blogs with the most frequent posts fared better with Google’s new engine.

The above results are preliminary, and as such we will dig deeper and then if necessary adjust our tactics accordingly. All advertising agencies should be doing likewise with their clients. For more information on Domus, please visit our web site.

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State Lottery Winner Awareness

by Marco Padovani on Aug.10, 2009, under Vertical Industries

Brand presence management is a vital service helping organizations manage how their brand is perceived in the digital space. This includes actively monitoring blogs, news, and other social communities for any communication that could present an opportunity or threat.

In the lottery industry, negative perceptions have always surrounded jackpot winners. Research has shown that a significant number of lottery winners lose their winnings within five years, a fact that appeals to the media and casts a negative light on lotteries in general. Little has been done to reshape the positive appeal of winner awareness; however internet presence management can easily turn adversaries into advocates. With a shift in focus to online news, blogs and social networks, there is an opportunity to transform how people view lotteries and shed positive light over winner awareness.

It’s common for state lotteries to list big winners on their websites, but little follow-up is done. An active internet presence management campaign would be ideal to help raise winner awareness, which will help drive sales. By utilizing social networks and industry blogs, lotteries can promote the success stories and philanthropy work that is attributed to lottery winners. Likewise, negative connotations can be countered through active blog monitoring and participation.

Domus is a full-service advertising, public relations, interactive, and social media marketing agency based in Philadelphia. We are advocates of building a strong internet presence for our clients and making the most of the opportunities the internet has to offer. For more information, visit our website, www.domusinc.com.

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The Long Tail of (Web) TV

by Marco Padovani on Aug.07, 2009, under Strategic Consulting

As the major TV networks are struggling to sell advertising inventory this season (Reuters), other “networks” are showing vitality. And, although the story seems similar, this time it’s not the cable TV networks – it’s the web TV networks. Sites like youtube, hulu, and others are garnering larger and larger audiences every day.

One site, BlipTV, has particularly been in the news lately. They provide a platform for independent show creators to air their series, whereby the BlipTV people sell advertising time and create distribution channels, splitting the revenues with the show creators. Within the last couple of weeks they have signed or expanded deals with YouTube, Verizon FIOS, Tivo, and others to distribute their shows. So now, even while channel surfing using TV remotes, people can watch their favorite BlipTV shows just like they would other network or cable shows.

This is the beginning of a new revolution in TV – both for content production and for advertisers. Just like the introduction of tens or hundreds of cable channels changed how and what people watch, and just like the introduction of technologies such as DVRs did the same, the introduction of tens of thousands of new web-based networks along with new associated technologies are going to have a growing impact on people’s watching patterns. This in turn will have an associated effect on advertising. How big is this nascent industry? Right now BlipTV garners 70,000,000 views per month, and it’s only getting bigger.

Venues such as this give marketers the opportunity to target tight demographic groups. Moreover, large and small advertisers alike now have opportunities targeting very specific audiences. This includes pre- and post-roll ads as well as product placement and original content creation. Agencies such as Domus, Inc. should be well aware of the possibilities that are now available for their clients.

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Kaizen and Advertising Agencies

by Marco Padovani on Aug.06, 2009, under Resource Management

“Kaizen” (“improvement” in Japanese) is a Japanese philosophy that focuses on continuous improvements throughout all one’s life. Japanese companies have applied this philosophy to the workplace, where they continually search for improvements in all aspects of their business practices. The emphasis is on small continuous changes with monitoring feedback and adjustments as opposed to large-scale overhauls.

Up until recently, most of these improvements have focused on manufacturing and related processes. However, they might well be ready to move into the marketing and advertising area, and American marketers should take note. Toyota just announced that it is creating two internal marketing companies to start focusing on both its Japanese and worldwide advertising efforts. Their goal is not just to save money by bringing advertising and PR functions in-house; rather, they want the kaizen culture imbued in their entire marketing efforts, and they believe they can better do this in-house.

This might be a preface to bringing in-house their more than $1 billion advertising budget. If they are successful and this becomes a trend, Madison Avenue might have more problems than it already thinks it has. But moreover, it’s a valid wake-up call to the entire industry. Although there are many aspects to marketing that are hard to quantify because they are creative in nature, there are also many aspects that are quantifiable and ripe for improvement. Who among us can assuredly say that none of our project lifecycles could not have been completed more quickly with fewer change cycles? Who can say that no mistakes have ever gotten through the cracks? And who currently has in place mechansims to track things like this as well as processes to continually improve them?

Those of us who do not might well find our businesses suffering or even dying. On the other hand, those of us who embrace these ideas might well have new opportunities that we had not realized were available to us. At Domus, we have spent the last few years working on improving what we already considered a lean, effective organization. But we can’t – and won’t – rest from this process. Please click on our web site to find out more about us.

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Digital Marketing Focus

by Marco Padovani on Aug.05, 2009, under Strategic Consulting

I was just reading an article in Advertising Age about Taco Bell selecting a new digital marketing agency to make over their web presence and one of the things that struck me was what I didn’t read. I didn’t see anything about Taco Bell’s overall focus or how the new agency’s efforts were going to be integrated into the overall marketing strategy. Sometimes marketers get so focused on key components of their marketing tactics that the broader picture is lost.

As marketers, it is our responsibility to always ensure that every decision remains grounded in the overall strategic approach supporting our brand and corporate positions. At Domus, we make sure that we always do this. Please visit our web site for more.

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Advertising, PR, and Good Brand Positioning

by Marco Padovani on Aug.04, 2009, under Strategic Consulting

In yesterday’s post I commented on the importance of starting with a good brand position and positioning statement as the basis of further advertising and PR efforts. “Advertising campaigns that are intriguing for no reason other than to intrigue do not add to long term brand value. Generating short-term buzz without reinforcing a brand’s position does little more than just generating buzz.”

Conversely, great brand positioning without good supportive communications (advertising, PR, internet presence management, social media marketing) is also minimally effective. If no one hears your message (advertising) or believes your message (PR, internet presence management, social media marketing), or remembers your message (all), it doesn’t matter what your message is.

Good marketing is the synthesis of all of these, along with company culture, product development, customer service, and more – all coordinated to support one underlying product or brand position.

If you are not constantly focusing on all of these in this supportive manner, it’s time to take a step back and revisit what you’re doing. One of the biggest benefits that agencies such as Domus can and should provide to clients is the application of these basic, classic marketing principles. Please contact us to find out more.

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Good Brand Positioning

by Marco Padovani on Aug.02, 2009, under Strategic Consulting

Ford Motor Company is planning on announcing later today that its monthly sales increased for the first time in two years (Wall Street Journal). Moreover, over the last year, Ford has regularly posted stronger results than its competitors, gaining market share in nine of the last ten months. In the meantime, GM and Chrysler are regularly running ads promoting sales through the government’s “cash for clunkers” program. So, two struggling companies promote a program that can benefit all competitors, and the company who has done the best job of positioning itself reaps the greatest rewards.

All marketers should take note. Advertising that ignores or precludes good brand positioning is not effective in the long term; conversely, good brand positioning enables a brand to take advantage of future marketing opportunities. Advertising campaigns that are intriguing for no reason other than to intrigue (such as the new Palm Pre ads in Advertising Age) do not add to long term brand value. Generating short-term buzz without reinforcing a brand’s position does little more than just generating buzz.

Domus has always grounded its marketing consulting in classic marketing principles, including good brand positioning as the basis for advertising and other communications. Please visit our web site to find out more about us.

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