THE FUTURE OF TRADEMARK AGENCIES WINNING BUSINESS STRATEGIES IN A CHANGING MARKET The increasing importance of trademarks is a fact. Worldwide, the number of registered trademarks is increasing rapidly, and on every business day an average of 11,000 trademarks is registered. However, the market of 'trademark services' appears to be strongly on the move. Requests from clients are changing, and trademark agencies must make choices on how to anticipate on this. Not only choices have to be made, but trademark agents will have to adjust their organisation and provision of services to that as well. Many of the market developments can also be noticed in other professional service sectors. For instance, law firms, consultancy firms, training and education agencies, and architects and engineers are also confronted with a changing 'economic landscape'. Therefore, developments that apply to the whole sector of professional services are partially included in this report as well, in order to inspire. With this study we want to show the trademark agencies how the demand for services with regard to trademarks is developing, and what those developments mean for their role in the coming decade.

1. The future of trademark agencies
Winning business strategies in a changing market
Prof. dr. Frank Kwakman
Cris Zomerdijk MSc

2. THE FUTURE OF TRADEMARK AGENCIES
Winning business strategies in a changing market
Prof. dr. F.E. Kwakman
C.J. Zomerdijk MSc

3. The future of trademark agencies
isbn 978 90 5261 662 9
© 2008 F.E. Kwakman, C.J. Zomerdijk

4. Preface
Nowadays, trademarks are a part of our economic life and it is impossible
to imagine life without them. A trademark can be a word, a shape, a logo,
even a sound, a scent or a combination thereof.
Worldwide the number of registered trademarks is increasing rapidly, and
every day an average of 11,000 trademarks is registered (source: Thomson
CompuMark ISS database). The strongest growth is taking place in the BRIC
countries (Brazil, Russia, India, and China) prompted by strong economic
expansion in these ‘developing nations’. In Europe trademarks remain
popular as well, with over 500,000 new registrations in EU countries
in 2007. Registering a trademark in the official trademark registers is
therefore an important, and in most countries necessary step to safeguard
a trademark and prevent infringement. In most countries, a trademark
right is established upon first registration in the trademark register, and
not upon first use of the trademark.
As partners of trademark specialists (lawyers specialised in trademark law)
we have noticed that our clients’, trademark agents’ and attorneys’ market
place has been subjected to significant changes. Thomson CompuMark
wants to be a real partner for its clients and help them operate more
efficiently, productively and with more market focus. Professor Kwakman
of the Nyenrode Business University was asked to map this market and
provide his insights into the future of independent trademark specialists.
Clients of trademark agents and attorney’s offices have become more
critical and less loyal, and increasingly compare offers from the various
players in the market. A good example would be requests for quotations
from organisations to various trademark agents to register trademarks
and file them in the trademark register. Corporations regard this activity
as a ‘commodity’ and therefore require sharp prices.

5. 4 THE FUTURE OF TRADEMARK AGENCIES
We have noticed that the wishes and needs of the industry have changed,
as a result of which trademark agents must make choices and invest in
order to meet these needs. Not only do trademark agents have to make
choices, they will have to make changes in their organisation and change
the way they deliver their services as well.
In this study we want to show trademark agencies how the demand for
trademark services has been developing, and what that means for their
role in the coming decade.
Jan Broeckx
Managing Director
Thomson CompuMark

6. Introduction
The increasing importance of trademarks is a fact. However, the market for
‘trademark services’ appears to be undergoing significant changes. Clients’
needs are changing, and trademark agencies need to decide how they
want to meet these needs. Many of these market developments can also be
found in other professional service sectors, both in research and in daily
practice. For instance, law firms, consultancy firms, training and education
agencies, architects and engineering firms also face a changing ‘economic
landscape’. For that reason, and for inspirational purposes, some of the
trends which apply to the entire professional services sector have been
included in this report.
We are very grateful to Thomson CompuMark for the opportunity to
research the trademark sector, both from the clients’ and trademark
agencies’ perspective, in more detail. The research results are unique for
trademark agencies and are based on the response of approx. 230 clients
and 180 trademark attorneys across Europe.
Our research findings were presented on 2 October 2007 at a congress in
Brussels organised by Thomson CompuMark. This report has impressions
and pictures of that day. Apart from that, the research results were further
elaborated and converted into strategic advice on how to develop a
‘winning business strategy’.
We thank all our interviewees and participants in our research and hope
the results and suggestions in this study may help you to shape a successful
future!
Nyenrode Business University, March 2008
Prof. dr. Frank Kwakman
Cris Zomerdijk MSc

7. Management Summary
brussels.– On Tuesday 2 October 2007 rather turn to medium and small offices
Thomson CompuMark organized (1 – 10 attorneys). For large attorneys (11
an exclusive conference on winning and more but not full-service) there’s
business strategies for trademark no difference in the client segments
attorneys in collaboration with (50%/50%).
the Nyenrode Business Universiteit
(the Netherlands). The meeting was Top arguments for increase in
attended by more than 60 participants registrations are different for clients
from 10 different countries who and attorneys. Whereas attorneys in the
had come to get acquainted with first place turn to financial value, clients
the spectacular results of two recent want more increased innovation. On
extensive market surveys which the second argument – differentiating
had revealed important trends, from competitors – attorneys and clients
opportunities and threats for the agree but not on the third: easily entering
business. new markets versus more conscious and
better understanding.
In his opening speech Stefaan Dewulf,
Vice-President Sales & Marketing, first In the field of client satisfaction and
had to excuse managing director Jan loyalty attorneys tend to put their
Broeckx, who was absent because of a reputation first but for clients it only
minor road accident two days before. comes fifth. Only half of the clients in the
Then he pointed at the importance of survey would recommend their attorney,
keeping informed of the constantly the other half even skipped the question.
changing business environment and Attorneys think their clients would
competitive landscape of trademark give them an 8 as overall satisfaction
agents and law firms. For the first time score and 75% would recommend them.
professional trademark attorneys could So both parties are not on the same
dispose of the results of a scientific wavelength and the approach to the
approach by means of market research client has to change radically. Critical
surveys responded to by over 100 statements: shopping for another
trademark attorneys and more than attorney has never been easier and the
300 companies. They were presented by market transparency has to be turned
Drs. Cris Zomerdijk, senior consultant from a threat into a challenge.
within the Holland Consulting Group,
who supports Prof. Dr. Frank Kwakman Although a decrease of 6% in trademark
and Leo Kerklaan with research and registrations is to be expected, attorneys
consultancy in the field of performance remain optimistic. Too optimistic
management and marketing. because attorneys and clients only agree
on an increase of online-services.
Growth without making choices?
In the overview of how the market These are only a few examples but a
study was conducted already important future strategy can be built upon them.
differences appeared in the client Most attorneys should be more realistic:
portfolio: who works with who? Full- an increase in turnover can only be
service law firms deal with 70% large realized by focusing on the clients’ needs,
clients (more than 100 registrations). by investing in marketing and not only
Small clients (less than 16 registrations) restricting to offering current services

8. 10 THE FUTURE OF TRADEMARK AGENCIES
to new clients. The market is growing, On the other end labour markets tend
getting more competitive and that to get more flexible with an increase
implies a strategy to adapt to changing of self-employed people creating their
needs. own networks, a growing demand for
temporary staff and last but not least
A ticking time bomb more and more offshore business units.
As to Prof. Dr. Frank Kwakman, an expert The answer is providing services across
in the management of professional borders and winning the war for top
service firms, we must face five critical talent.
factors which represent a ticking time
bomb. To deal with these challenges the firm of
the future should no longer sell hours
There’s a growing gap between because clients want to buy results. We
perception of trademark attorneys and have to take in account that the average
their actual and future clients. Clients’ client does not exist and thus focus on the
satisfaction and loyalty are low. New individual client, build up partnerships
clients are attracted without paying with strategic clients: loyalty is highly
attention to or investing in new services. effective to create stability for the future,
The expected increase in turnover is more likely than reputation which is
unrealistic. Half of the firms are unaware always the result of something else and
of the need to invest in marketing can’t be built on itself.
strategies. All these facts are based on
recent research and long term personal Client orientation at all levels and
experience. continuous innovation of all services
can only be achieved by means of
The marketplace for professional intelligent use of it. In this field we are
service firms has changed dramatically: running behind on industry. Technology
competition and pricing pressure have is available and we only have to make
never been as tough as they are today and it work in a smart way. Easier made
all branches in this market have to face communication and quick availability
the same problems and challenges. of worldwide knowledge are but a few of
the many it advantages.
The changing client demands are
based on three bases: strategic advice Winning business strategies are divisible
for unique issues, solutions for highly into two groups: general strategies
standardised services and functional and differentiated ones for solutions
competencies to fill in temporary needs. firms, advisory firms and full service
The main question is: will we be able to firms. All three are faced with the same
combine all three? implications for the marketing function
though: external communication and pr,
Traditional monopolies and borders practice groups to stimulate marketing
are fading: the market has become activities, sustain customer relationships
more global, there are new players in and develop strategic positioning.
the field, everybody competes with
everybody, which causes an unseen new At the end of his lecture Prof. Dr. Frank
competitive pressure. Clients become Kwakman invited his audience to take
more critical buyers and that implies new part in two out of three workshops after
professionalized purchasing functions. lunch. So we did…

9. MANAGEMENT SUMMARY 11
The stronger the brand, the bigger the recommendations, they all have to
miracle swap attention for attraction: tell a
The last ten years the percentage of the unique story, share fast, unexpected and
world population using the internet involving ideas and captivate visitors by
multiplied by ten from a fringe 1.7% in understanding their needs and motives.
1997 to 17.8% now. In 2007 half of the
Belgian population uses the internet on a The emphasis is on audio-visuals,
regular base, in the Netherlands the rate contents, interactivity, linguistic usage,
is even higher (73.3%). The user growth in structure and objectives. Internet
the European Union has reached 170.8% changed the world but how can we
in the past eight years. The predictions for change the internet? The ideal website is
2020 are even more optimistic. We must a matter of screening. (S) Set your goal
face the fact that the world has evolved and collect items to reach it. (C) Create
to one big global village. This offers great a difference for the client. (R) Reach the
opportunities but also includes risks. client. (E) Experience with sight, sound
Whether we’ll be present on the internet and motion. (E) Enable the client to
and perform online services or not is no regulate business instantly. (N) Neaten
longer an issue. The question is: how will the website by taking care of a clear and
we be able to turn the worldwide web logical structure and navigation.
into a winning business strategy. Our
guide was Frank Swolfs, owner-manager Customers should do your advertising
of an independent design and advertising What’s the ultimate way to manage client
agency and member of the board of the relationships for trademark attorneys?
PanEuropean Design Association. A lot of questions to be answered by
Drs. Jos Burgers, economist, registered
First conclusion: the internet is a new marketeer with over ten years experience
medium with its own rules but it doesn’t of practical business, teaching and
offer any more guarantees about the consultancy.
amount of prospects than the old media.
Nevertheless it’s free and it can be fun To begin with we should ask ourselves a
provided that we leave the actual general few questions rather than annoying our
trends and use all available technology. clients with questionnaires. Customers
don’t like them and strategic clients
Websites are on the whole clear and are too valuable to offend them with
clarifying but still too much focused questions. The only questions are: would
on text so that they don’t exceed much you recommend us to others? And: are
brochures on paper. new customers being referred to us by
others?
A website is not a sheet of paper though:
it’s a full option television screen As to the lecturer marketing starts at
including motion, sound, colour and the top, not at the bottom. Clients’ first
interactivity. Audio-visual elements must experience is capital: nobody wants to
focus on ratio, emotion and functionality: buy, everybody needs help and that’s
not only words but feelings and structure exactly what we should offer them. How
as well. can I help you? And is there anything we
could do better? Just asking improves
Although there’s a difference between the relationship with the customer. If
full service law firms and trademark the customer leaves, keep helping him
attorneys/companies concerning and do anything you can to get him
trends, contents, evaluation and back. But that doesn’t go without further

10. 12 THE FUTURE OF TRADEMARK AGENCIES
restrictions. First of all there are two ways The future is not what it used to be.
of making profit. There’s good profit and
bad profit. Good profit means you’ll be If you always stay with both feet on
successful for years. Bad profit is a short the ground, you’ll never make a step
term return achieved by working with forward.
passives (score: 7-8) and criticasters
(score: 1-6) at the cost of strategic Make your customers laugh: don’t sell,
customers (score: 9-10), promotors, as just tell.
they are usually called. As a measure of
success the Net Promotion Score is the If everything is under control, you’re
substraction of score 1-6 from score 9-10. not fast enough.
Marketing is not always a question of If you’re certain, you’re lost.
budget and our business is based on
confidence since it doesn’t deal with You’re thinking about the quality of
fast consumers’ goods. So No Budget your life? There’s still enough time to
Marketing is nothing more than having think about that later.
your clients doing your own advertising.
By the way: the only professionals who You have to think ahead of things.
don’t advertise for themselves are… Thinking is working too!
advertising agencies. What does No
Budget Marketing include? How to find Be a participant in life, not just a
and keep customers? Building a strong spectator.
reputation on a brand name, effective use
of mailings, websites… but don’t overfeed This is a gap in the market. But is there
your clients with information, the value a market for this gap?
of having promotors, rewarding those
promotors and using them in getting Loyal customers are made, not born.
new clients. Totally different in fact from
the usual account managers’ talk. Only 17% of the clients leave because
the price is too high, 92% for lack of
Starting a new approach to customer attention.
relation management? Remember
these: avoid ‘cattle behaviour’ – the You’re born with two ears but just
average client doesn’t exist – and dare one mouth. Start listening instead of
to make choices, identify your strategic talking.
customers, formulate clear criteria,
distinguish between satisfiers and Do what you love to do and quickly
dissatisfiers, formulate your strategy in find a way of getting paid for it.
account plans.
Never sleep at the office in the
Make your audience laugh morning. Otherwise you won’t know
The final tune was played by court what to do in the afternoon.
jester Bob Delbecque. The big chatterer
managed to carry out one the most And just a few seconds before the
difficult tasks in business: making his champagne sparkled, the complete
audience laugh. Since nobody’s at the audience received a copy of Bob’s latest
same level of sharpness we’ll restrict book Crisis Chance! Signed by the master
to some of his remarkable statements. himself…
Without any comment…
Copywriter: Guy Goewie guy@deksel.be