Splog anyone?

It sounds like a fun soft drink, but it’s the latest spammer pest –splogs.
Splogs are spam blogs created and launched by spammers. After being an email pest for many years now, they have now entered the blogosphere.
A splog’s creator doesn't add any written value to the blog. The main function of the splog is to publish press releases, news articles, or advertising. Many splogs are fake blogs that use RSS feeds to create content by inserting links to their websites in an attempt to trick search engines into boosting results for their spammer's sites.

The problem has been around for a while, but a sudden rush of slogs suddenly popped up, many of which were created using Google's Bloggersite. The current theory is that spammers had written a script that would create thousands of new blogs and posts at a time.
To keep itself alive, a splog will crawl the Internet using directories, search engines, RSS feeds, etc., collecting information to give the appearance that a real person is adding content. In many cases, this involves automated "theft" of original and often copyrighted content from other authors, without their knowledge, permission, or even attribution. There are lots of different kinds of splogs that have different ways to disguise themselves as real blogs, but commonly they contain key search terms repeated dozens or even hundreds of times.

Why is it so bad? Spam blogs undermine the blogosphere and clog up the Internet even further, making legitimate business use harder.
Weblogs are inexpensive to produce, and show up well on the big search engines.
Companies use weblogs to spread news quickly or to get a quick feedback of their target groups. It is also used to spreading ideas and trends. It is also wonderful showcase for professionals to profile themselves. Budding authors, marketing and PR professionals have warmly embraced this great media outlet.
Due to its low cost, its easy use and its growing popularity, it was inevitable that spam would attack this medium as well.
Especially the credibility of search engines and the blog-advertising market are hit hard, since splogs distort traffic counts and water down the value of weblogs in general.

At this moment, there is no silver bullet to kill the splog beast yet. Google and several high-tech companies are looking into this issue.
In the mean time, all we can do is wait and hope for the day that enforceable international legislation will categorize spam, splogs, phising and the likes as felonies.

The crash of a graphic studio (a case study)

The dotcom crash hit graphic designers catering to high-tech companies later than most.
Graphic studios were still busy fulfilling orders for brochures, website, exhibitions, road shows, invitations and corporate collateral production. As a result, they kept on working day and night, with their staff of fulltime employees.
Then, almost overnight, they noticed that orders were put on hold or cancelled, with no new work was coming in.
Most graphic studios had depleted their cash reserves, relying on bank credit facilities to keep the business going.

As the shock began to pass, it was clear that action had to be taken.
The marketplace for large design studios had dramatically changed - freelancers and small agencies were now able to enter larger companies.
Potential clients simply did not see the added value anymore of working with a large and prestigious designer when they can get the same result from a relatively unknown and small studio.
One large design studio came to the conclusion that their added value was working with the client to define its core marketing messages, help create and maintain marketing programs together with producing the deliverables, as well as arranging the logistics and management of global shipping and fulfillment.
The studio went on repositioning itself by communicating this message to potential customers. It also seized down by firing 20% of its workforce.

The design studio was able to pitch a large multi-national company that was heading up its marketing efforts from Europe. In order to get this account, the design studio got permission from its banker to exceed its already maximized credit facilities. The studio not only got the account, but also was able to charge premium prices. Wanting to expand on this, the studio decided to form a truly international entity offering solutions to American and European companies.
In post 9/11 US, even established PR companies were struggling; so the studio decided to start with a European office, and once the market would pick up, target the US. To be able to start a local European company, the studio established a local European entity, headed by the local Managing Director for European operations. The studio hired local staff and office space, spent a month on training its Managing Director, and standardized all its presentations, including telephone scripts for initial pitches. Soon after, a local salesperson was hired for setting up initial meetings with potential new clients. The studio invested again lots of time talking about the strategy of finding the right type of client, deciding on a direction, creating a core listing of potentials and talking to them.
The design studio was convinced that they had a fresh, unique sales position and that the market was interested in its offer. This turned out to be a miscalculation. Companies with in-house PR professionals and marcom managers didn't see any added value in an outsider performing marketing research and SWOT analysis. Five years after the high-tech crash, the design studio had to close its doors due to lack of demand.

What went wrong?

1. The studio used to be (too) big – with a substantial payroll and a hefty overhead
2. The studio never made any reservations or preparations for bad times
3. The studio did poor marketing in the good times – “they come to us”
4. The studio didn’t analyze its price/quality ratio – even after the crash
5. The studio misread its competition
6. The studio didn’t conduct a proper market research on the wants and need of its past, present and potential customers
7. The studio left its core business, where it had a sterling reputation
8. The studio went into competition with in-house marketing professionals, which turned out to be lethal
9. The studio didn’t rebuild its home base, but invested time and money in entering foreign markets
10. The studio set up office in a country were it had to operate in an unfamiliar culture and a foreign language
11. The studio didn’t foresee the legal and practical problems of running a company from abroad
12. The studio founded a JV together with a local manager, thus making the decision making process too complicated

What lesson can graphic companies, studios and designers learn from this case study?

• Prepare for the future. Marketing, PR, graphics are normally the first areas where companies try to save a buck and orders could be delayed or cancelled.
• Listen to your customers – even if it means compromising on great graphic designs.
• Build customer loyalty – companies will stay with (or come back to) studios that are reliable.
• Make sure to limit fixed costs and overhead.
• Stay in the field that works; graphic designers are no marketers and vice versa.
• Specialize in a few areas (annual reports, website design) and become one of the major players with a sterling reputation in that niche.
• Perform ongoing market research on trends, (potential) customers and competitors

Bravo for Burberry

150-year old Burberry is one of the oldest brands around. It became famous for its invention of the gabardine waterproof raincoat and for providing kit to officers in the British armed forces during World War I.
Later in the century it was worn by Humphrey Bogart in Casablanca, Audrey Hepburn in Breakfast at Tiffany's and Peter Sellers in The Pink Panther. In 1955, GUS (Great Universal Stores) bought Burberry and has been its full owner until 2000. The flotation of Burberry brought the company back to its roots as an independent.
GUS had to sell off its most successful division under the pressure of analysts, who wanted the retail giant to focus on its core businesses, which include Argos and financial information provider Experian.
Burberry itself became burdened by its conservative image and, in 1998, by the recession in Asia which had proved a sales stronghold.
In 1997, Burberry appointed Saks Fifth Avenue executive Rose Marie Bravo to rejuvenate the brand.
Bravo took control of a brand image that was stale. Burberry had a predominantly male customer base. Furthermore, the GUS group was reliant on licensees over whom it had little control and distribution was haphazard. In central London Burberry was sold in more than 60 stores, but the luxury brand was absent in Selfridges, Harvey Nichols or Harrods.
Within weeks of arriving at Burberry, Bravo had signed up Mario Testino, one of the world's most celebrated fashion photographers, and the blue-blooded model Stella Tennant for an image-changing shoot. However, Bravo had one small problem: she had no new clothes to drape over the willowy Tennant. The appointment of Italian designer Robert Menchetti to the division solved this problem. Since then, three distinct ranges have been created: Prorsum, an international high fashion collection; Burberry London, the core collection that accounts for 85 per cent of worldwide clothing sales; and Thomas Burberry, a younger, more casual collection, which was launched in London in 2005.
By the end of 1998, Burberry and its latest ranges were being lauded by the fashion press, Burberry had found its niche between some of the broadly distributed apparel companies and the pure luxury brands, with the brand being British brand as an unexpected plus.
Bravo’s transformation of Burberry's image has been remarkable, including the opening of landmark stores in Milan, New York, Knightsbridge, Barcelona and Beijing.
Bravo also restructured the business side. Burberry regained control of vital markets such as Spain, Japan and Asia, by renegotiating and buying back licenses.
By focusing on high fashion and a media blitz, Burberry renewed its brand's prominence.
It resulted in a spectacular revival of the brand. In 2000 the likes of footballer David Beckham, it-girl Tamara Beckwith and ex-Spice Girl Victoria Adams Beckham made the brand even more fashionable.
Bravo also tried new colors in the traditional beige plaid and put the pattern on everything from bikinis to shoes.
As a result, Burberry's trademark check became over-exposed. In Britain, Burberry lost its cool after being adopted as the uniform of the suburban yob. (Yob refers to lager louts, soccer hooligans, or anyone guilty of drunken behavior resulting in racist and sexist remarks, rampaging through the streets and roughing people up.)

Since Bravo’s contract expires in July 2005, Burberry decided to appoint Angela Ahrendts as Bravo's replacement.
Ahrendts joined Burberry from Liz Claiborne Inc., one of the leading apparel companies in the US, where she was responsible for women’s wear and men’s wear brands including Ellen Tracy, Juicy Couture, DKNY Jeans and Lucky Brand.

Will Ahrendts be able to rebuild Burberry as a niche and exclusive brand in a mass market? Will she be able to maintain the profit level that Bravo set?
Bravo wove her magic combining product diversification, cross-marketing and media blitz.
It will be interesting to see how Ahrendts will try to make both customers and stock holders happy.

Do lawyers need marketing and PR?

Few legal firms believe in marketing and PR. This might cost them dearly in the long run for several reasons.

1. The market has changed. As long as there are people, there will be conflicts and lawyers will be able to make a living. However, clients are becoming more and more savvy – Internet and blogs make juridical information available to everyone.
   A lawyer has to realize that his/her potential clients will be critical and want to keep posted each step of the way.
   
   
2. Having a sterling reputation is not enough. Many lawyers still think that clients will come to them. Being well known and having a wonderful record of accomplishment will not have a pull effect. Law firms must actively seek out and search for clients. Just waiting for the knock on the door will not do it.
   
   
3. Websites are necessary. Many law firms still have no website at all or minimal one that isn’t being updated. They still assume that having a contact page will suffice. Law firms must invest in professional websites that reflect the capabilities and track record of the law firm.
   
   
4. Lawyers still think that they provide first and foremost professional services and ignore the client’s demand for full and upfront disclosure of pricing, procedures and risks.
   
   
5. Law firms must realize that they are selling a product: namely themselves. Lawyers must therefore market themselves to the public.
   
   
6. Competition. Many well-established law firms ignore market research on competitors. This might cost them dearly in the long run.
   
   
7. Branding. Law firms are notorious for ignoring branding. They are reputation-focused, building on publications and won cases. All professionals are only as good at their last success and maintaining a flawless rack record in law is almost impossible due to the many outside factors that can influence a case or procedure. Lawyers should therefore be brand-conscious and build and nurture their brand.

What are the lessons that marketing can teach lawyers?

1. Market research: identify potential clients, to keep abreast of changes in culture and trends that could influence legislation, to analyze the competition.
2. SWOT analysis: identify strengths, weaknesses, opportunities and threats
3. Positioning: position the law firm in the market, communicating its expertise, track record and price structure.
4. Branding: trade name, logo, website, corporate colors etc.
5. Promotion: newsletters, updates, sponsoring, adopting a cause
6. Public relations: communicate with the public, with clients, with industry players.
7. Media: trade magazines, local newspapers/radio/TV, national media and (depending on the expertise) international media.