Daily Deal sites like Groupon and Living Social can cause problems for a business due to hurting its’ profitability, brand and relationship with customers.

With a discount offer, the business is probably appealing to customers that purchase on price. It is unlikely customers will come back to the business in the future to purchase products and services at full value. In a column on AdAge.com, Al Ries, the famous marketing consultant, states:

“Presumably, all those consumers who bought products and services for 50% off are going to be happy to return to their local retailers and return to buy those same products and services at full prices. That’s not going to happen. What is going to happen is that those same consumers are going to go back to Groupon and wait for the next 50%-off sale.”

I’m sure many of you have used Groupon, Living Social or one of the other local daily deal sites. Of those of you who have, how many of you have returned to that business to purchase the same product or service at full price? My guess is not many.

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Yes, we all know how hard it is to build a brand in today’s economy. All of the tried and true marketing wisdom seems to be in question for new whiz kid technology brands as well as the blue chip brands. But here are three easy steps to having your brand remain strong and even accelerate, in these challenging times:

1. Have a point of difference: Yes, this is Marketing 101, but it’s surprising how many brands, seemingly in a panic over retaining old customers and gaining new ones, slowly, but surely, are moving away from this key basic. Having a point of difference means understanding your market needs, knowing what perceptual space each of your competitors has claimed and then (based on your brand’s core competencies) differentiating your market-relevant message so that it resounds and grabs the minds and hearts of your target audience.

2. Be consistent: Again, a basic that we were all taught in “packaged goods school.”  But, now consistency is what you need to convey not only in your paid advertising, but also in your social media, public relations, promotions, event marketing and especially in your customer service and employee communications.  If your customer service reps or employees can’t describe what your company and brand(s) stand for, you’re missing a great opportunity for the most natural viral campaign. Now, everyone is a star on Facebook – and they talk about their lives, including their work – make sure they are ambassadors, not complainers or destroyers of your positioning.

3. Measure, adjust, measure, adjust, measure, adjust: Well, you get the picture. This approach is common now in online advertising, BUT it needs to be applied to every facet of your brand’s marketing mix. Gone are the days when you implemented an “Annual Planning” cycle and re-wrote the next calendar or fiscal year’s plan to launch on a certain date.  The “measure, adjust, measure, adjust” approach must be built into each program.  When you are developing a promotion, from the onset, you need to know what the monthly, weekly and, dare I say it, daily success hurdles are that your brand needs to clear.  And, they must be actively managed on an ongoing basis to reallocate, increase support or pull the plug.

It’s back to school time (let’s face it, that feeling never goes away) and that can mean back to branding basics. If you want to learn specific examples of how these three easy steps for better ROI worked for marquise brands, visit the Success Stories section at www.domusinc.com If you want to chat online, leave a comment on this post. If you want to chat in person as to how Domus can help your brand, call or e-mail me directly at 215-772-2805 Or betty.tuppeny@domusinc.com.

Betty Tuppeny is the CEO and founder of Domus, Inc., a marketing communications agency based in Philadelphia. For more information, visit http://www.domusinc.com. For new business inquiries, please contact Betty directly at betty.tuppeny@domusinc.com or 215-772-2805.

As economists predict slow growth for the U.S. economy over the next few years, companies are turning to emerging markets such as Africa, Brazil, China, India and Russia to grow their business.

This week, Coca-Cola announced that it will be making a $4 billion investment in China over the next three years. Coca-Cola’s sales in China grew 24% in the most recent quarter; in addition, China is Coke’s third largest market. Coke CEO Muhtar Kent stated, “We don’t see China only as a great growth market. We see China as a future market for further innovation that will benefit our business globally.”

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Picture a brand, very simply, as an ongoing conversation with a consumer, business decision maker or any audience you target.  From your brand’s first introduction, through ongoing discussions, encounters and experiences, you build a relationship with each person.  That relationship is fragile and can be breached at any point.  It takes focus, investment and consistent messaging to ‘brand’ – defined as winning the minds and, most importantly, the hearts, of your users.

Everything in the advertising/marketing industry has changed dramatically, yet, I believe, has stayed completely the same.  Recent research shows that consumers and businesses have shifted spending to brands that create, maintain and strengthen their relationships while delivering both value and values.  This reflects the principles of a classic marketing approach – listen to your target and speak with them, not at them.

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We all talk about keeping our clients happy and satisfied, but do we delight them?  That may sound like an odd objective but let’s look at the definitions.  “Satisfied” is defined as “filled with satisfaction, content.”  Whereas “delight” is defined as “a high degree of gratification; also extreme satisfaction.”   Given these two definitions, I would prefer to delight my clients rather than simply make them happy.  This is particularly important in today’s tough economic climate.  Companies that have successfully weathered the economic storm are those that understand that service excellence is a business strategy and recognize that delivering on this strategy is a key differentiator.

According to the recent J. D. Power and Associates Inaugural Cross-Industry Report on Best Practices in Customer Service, during the past decade, average satisfaction scores for service-oriented industries have remained flat, unlike in product-based industries, for which satisfaction has improved steadily. In addition, across all service industries measured by J.D. Power, gaps in satisfaction between the highest- and lowest-performing brands have increased considerably between 2003 and 2010.  This is a sad state of affairs for the “service” industry.

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It’s well known that the best and most reliable form of effective marketing is “Word of Mouth.” A person is more inclined to buy/use a certain product that has been referred by somebody they know. It’s also known that marketers have zero control over word of mouth marketing, but thanks to the advent of social media, this is not true anymore. Brands can have an online presence on various social platforms like Facebook, Twitter, YouTube etc. where real people can Like, Follow or Subscribe to their brands and show their friends, followers and connections what they use and prefer, giving an indirect word of mouth.

This is just one of the benefits of having your brand present on social networking sites. Another big advantage of being in the social realm is the interaction with your clients. We’re getting lazier (or smarter!), and we would prefer to have things in the fastest, most convenient way possible. With the advances in technologies and everyone having BlackBerries, Androids, Windows and iPhones, people are getting used to doing everything with the touch of a finger using the same tool. The point is that you and I would rather have everything in one place than having it at a hundred different places. For the same reason, it’s easier for a customer to give feedback to a company using a tool that he uses (already) to connect with his family and friends, rather than filling out a feedback form on the company’s website. It’s also a great way to inform people about the latest news and reviews about the brand’s products, share offers and deals, or engage in a general conversation about the brand or the industry.

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There are many keys to a successful social media campaign. Different things work for different companies and organizations, but there are a few roadblocks that will hinder even the best laid campaign. Check out three roadblocks to avoid below!

The first roadblock of social media is not being fully ready to be “out there.” You’re exposing your company to the public’s opinion. You need to be ready for their honesty. Take negative comments as constructive criticism. Defend your brand well, but be respectful of your audience’s opinions and issues. Once you’ve made the leap, there’s no turning back so make sure you’re company is ready for that type of exposure.

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There are many different client/agency relationships. Some clients like to direct their agency on exactly what they want, including creative development and media selection. Other clients hire their agency for their expertise and counsel but may be hesitant to discuss certain business matters.

At Domus, we believe in a collaborative team effort. This includes complete immersion in our clients’ business. Our responsibility is to constantly evaluate market dynamics as well as client data and translate that understanding into strategies and recommendations that builds our clients’ business.
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When Dacor, a manufacturer of luxury kitchen appliances, requested some onsite help at KBIS, I was thrilled at the opportunity to go. As a PR practitioner I spend years – literally, YEARS – cultivating relationships through email, phone, and the occasional LinkedIn friend request (if, and only if, the editor requests me first). An industry event like a trade show gives us PR folks the opportunity to meet face to face, exchange a friendly handshake, talk shop, and hopefully make a lasting impression so the next time I send a pitch that editor is a little more inclined to open my email.

For those of you who don’t know, KBIS aka the Kitchen & Bath Industry Show, is the premier event for those in the kitchen and bath industry; designers, manufacturers, architects, dealers – they’re all there. This year’s event took place April 26^th – 28^th in Las Vegas, at the Las Vegas Convention Center.  Everything is very high high-end and high quality. The best of the best go to KBIS, and I was proud to be there with Dacor.
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For those of us in marketing who watch Mad Men, we see a simpler, yet antiquated, ad industry business model. Paid media drives all of the billings and revenue, Public Relations and Market Research are burgeoning, yet-to-be-trusted disciplines, and the internet is a nickname for Betty Draper’s hair curlers covering.

But, in this TV show, the definition of what an ad agency delivers is crystal clear, and to me, always has been. In this seductive reenactment of the early days of the industry, Don Draper’s agency’s role is to understand a client’s business, develop the compelling point of difference for the brand, conceptualize the main campaign idea and then use mass media to turn up the noise level in the market.

It’s still the same today, only now agencies, on behalf of their clients’ brands, have a myriad of traditional and electronic avenues beyond mass media with which to build clients’ brands while keeping an ongoing conversation with their prospects, customers and referrers.

So, the answer to Advertising Age’s April 25, 2011 cover story, “Why Does it Seem Like Agency has become a Dirty Word?” is simple to me. It’s semantics – no matter what you call my company, Domus, Inc., we still have always taken the same approach, both before and since internet marketing became an option: 1) Define the market need, strategically position the client against that need (considering their core competencies and where their competitors are positioned) to create a compelling point of difference; 2) know their target audience(s) demographics, psychographics and media habits; 3) develop the creative concept that breaks through and has “legs” for promotion and longevity; 4) consistently implement a cohesive message; and 5) measure, measure, measure – and adjust accordingly to maximize our clients’ ROI on building not just their brands but, importantly, their businesses.

On the cover of the same issue, Advertising Age also points out that agencies are “ …starting venture funds, buying brands and developing products.” I don’t think this has as much to do with the industry’s identity crisis as much as it has to do with the fact that they need new accounts and revenue streams to survive and thrive, and they are finding more self-reliant, innovative means of accomplishing this objective. Kudos – entrepreneurial approaches helps the agencies as well as their clients and make for a more vibrant industry.

So I can’t resist the notion that, somewhere in a room, a group is brainstorming our industry bible, Advertising Age’s potential new name: some options are: We Brand for you but Can’t Brand Ourselves Age; Former Admen Turned Entrepreneurs Age; First We were an Ad Agency then a Digital Agency and Now a 360 Agency, and my favorite, We Don’t Know Who We Are Age. I suggest it remains Advertising Age and we stop talking to and about ourselves and focus on the clients’ needs in our ever-changing communications world. When marketing decision makers on the client side need help introducing, growing or saving a brand they say either “What does the ‘Agency” think? or “Do we need an new/different ‘Agency” to help us get this done?

If you want to learn about Domus, Inc., visit www.domusinc.com or call me directly at 215-772-2805. We know who we are and can deliver what you need.

Survey question: Marketing Directors, how do you define what your agency’s role? Do you still use the term agency?”