The Global Marketing Communications (2) Compiled by: Sunarto Prayitno.

The Global Marketing The Global Marketing Communications (2)Communications (2)

Compiled by:

Sunarto Prayitno

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3. Marketing 3. Marketing Communications SystemCommunications System

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Factors Impacting Factors Impacting Consumer BehaviorConsumer Behavior

Verbal to Visual

Functional Illiteracy

Facts to Perceptions

Media Fragmentation

Outcome:

Demassification of Markets

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The Life-style TrendThe Life-style Trend

Convenient TrendConvenient Trend

Quality TrendQuality Trend

Personality TrendPersonality Trend

Health/natural TrendHealth/natural Trend

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Media FragmentationMedia Fragmentation

Media

Mass Media

Interpersonal Media

Interactive Media

Print

Television

Radio

Face-to-face

Group

Internet, Intranet, Extranet

New Media

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Communication StrategiesCommunication Strategies

Cognition

Affection

Conation

Soft-sell

Hard-sell

Advertising

Public Relations

Sales Promotion

Interactive Marketing

Direct Marketing

Personal Selling

Experiential Marketing

CSR

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Marketing StrategicMarketing StrategicBasic DesignBasic Design

SegmentationSegmentation

TargetingTargeting

PositioningPositioning

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Information

Technology

Process

Product

Defining “CRM”

People

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4. Global Integration4. Global Integration

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Brand ImageBrand Image

Quality perceptions

Value perceptions

OrganizationOther user influences

Brand name

Reputation

Corporate image

Before sales service

After sales service

During sales service

DeliveryGuarantees

Warrantees

Add-ons

Finance

Availability

Advice

Function

DesignPackaging

FeaturesPrice

Efficacy

CORE

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Moving from the 4Ps to Moving from the 4Ps to the 4Csthe 4Cs

Inside-Out Focus:Inside-Out Focus: Outside-In Focus:Outside-In Focus:

ProductProduct CustomerCustomer

PricePrice CostCost

PlacePlace ConvenienceConvenience

PromotionPromotion CommunicationCommunication

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Global Integration

1.1. Become a Customer-CentricBecome a Customer-Centric2.2. Use Outside-In PlanningUse Outside-In Planning3.3. Focus on the Total Customer ExperienceFocus on the Total Customer Experience4.4. Align Consumer Goals with Corporate Align Consumer Goals with Corporate

ObjectivesObjectives5.5. Set Customer Behavior ObjectivesSet Customer Behavior Objectives6.6. Treat Customers as AssetsTreat Customers as Assets7.7. Streamline Functional ActivitiesStreamline Functional Activities8.8. Converge Marketing Communication ActivitiesConverge Marketing Communication Activities

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IMC ManagementIMC Management

1. Become a Customer-Centric Organization:1. Become a Customer-Centric Organization:

The ultimate end user, customer, or consumer The ultimate end user, customer, or consumer must be at the center of any type of integration.must be at the center of any type of integration.

For the purposes of IMC, a customer-focused (or For the purposes of IMC, a customer-focused (or customer-centric) organization is simply one that customer-centric) organization is simply one that considers the ultimate purchaser or consumer of considers the ultimate purchaser or consumer of the product first, foremost, and always.the product first, foremost, and always.

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2. Use Outside-In Planning:2. Use Outside-In Planning:The most common method of planning and budgeting for The most common method of planning and budgeting for marketing is shown on the next page (inside-out planning).marketing is shown on the next page (inside-out planning).

It starts with what the organization wants to achieve and It starts with what the organization wants to achieve and then forces various activities into a series of steps that will then forces various activities into a series of steps that will hopefully produce the desired results.hopefully produce the desired results.

Planned volume or financial goals drive the marketing and Planned volume or financial goals drive the marketing and communication or spending levels.communication or spending levels.

If anticipated goals are achieved, the firm is then willing to If anticipated goals are achieved, the firm is then willing to use a portion of sales to buy further marketing and use a portion of sales to buy further marketing and communication activities.communication activities.


2. Use Outside-In Planning:2. Use Outside-In Planning:The IMC alternative is to flip the inside-out model to The IMC alternative is to flip the inside-out model to create the outside-in approach.create the outside-in approach.

Here the marketing communications manager views Here the marketing communications manager views customers and prospects not as units of expense but as customers and prospects not as units of expense but as income flows to the firm.income flows to the firm.

The goal is to manage the creation of demand and The goal is to manage the creation of demand and income flows rather than products and costs.income flows rather than products and costs.

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3. Focus on the Total Customer Experience:3. Focus on the Total Customer Experience:

Total customer experience encompasses how Total customer experience encompasses how the product or services performs in the the product or services performs in the marketplace, how it is obtained, the capability of marketplace, how it is obtained, the capability of channel members to provide products in a timely channel members to provide products in a timely and efficient manner, how customer services is and efficient manner, how customer services is delivered, and what type of social impact the firm delivered, and what type of social impact the firm makes in the community it inhabits.makes in the community it inhabits.

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4. Align Consumer Goals with Corporate 4. Align Consumer Goals with Corporate Objectives:Objectives:

Creative? Perhaps, yes. Effective marketing Creative? Perhaps, yes. Effective marketing communication? Probably not.communication? Probably not.

IMC must go much further than traditional IMC must go much further than traditional communications goals such as building brand communications goals such as building brand awareness or recognition. It must achieve awareness or recognition. It must achieve management’s financial goals, too.management’s financial goals, too.

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5. Set Customer Behavior Objectives:5. Set Customer Behavior Objectives:To acquire new customers.To acquire new customers.

To retain and maintain present customers.To retain and maintain present customers.

To retain and grow sales volume or profit from existing To retain and grow sales volume or profit from existing customers.customers.

To migrate existing customers through the firm’s product To migrate existing customers through the firm’s product or services portfolio.or services portfolio.

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6. Treat Customers as Assets:6. Treat Customers as Assets:The customer, in most instances, is the primary unit that The customer, in most instances, is the primary unit that generates income flows for the organization.generates income flows for the organization.

Almost all the other activities and initiatives of the Almost all the other activities and initiatives of the organization are really cost centers.organization are really cost centers.

So, a key ingredient of the value-oriented IMC system is So, a key ingredient of the value-oriented IMC system is the understanding that marketing and communication are the understanding that marketing and communication are asset managers.asset managers.

That is, they are or should be responsible for the initiation, That is, they are or should be responsible for the initiation, continuation, and maintenance of customers, the source of continuation, and maintenance of customers, the source of the firm’s income flow.the firm’s income flow.

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7. Streamline Functional Activities:7. Streamline Functional Activities:One of the major challenges of achieving One of the major challenges of achieving organizational integration is sorting through the organizational integration is sorting through the tangle of functional structures and activities tangle of functional structures and activities through which marketing and communication through which marketing and communication have developed.have developed.

Perhaps the greatest value of this collapse of Perhaps the greatest value of this collapse of marketing communication disciplines is that is marketing communication disciplines is that is forces the manager to think strategically rather forces the manager to think strategically rather than in terms of communication tactics.than in terms of communication tactics.

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8. Converge Marketing Communication 8. Converge Marketing Communication Activities:Activities:Until the mid-1990s, convergence was generally Until the mid-1990s, convergence was generally considered to involve the bringing together all of considered to involve the bringing together all of communication activities under a single communication activities under a single umbrella.umbrella.

Today, convergence has taken on a new Today, convergence has taken on a new meaning: the blending of traditional marcom with meaning: the blending of traditional marcom with electronic marketing and communication electronic marketing and communication activities.activities.

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Stages in IMC Development

Firm constantly monitor marcoms’ performance from a return on investment (ROI) perspective. Information, knowledge linked to an ongoing evaluation of each served segment on a global basis.

Maintain accessible data sources and build to globally segmented databases. Effectively incorporate data in communication planning and implementation to turn customer data into customer knowledge.

Organizations gather extensive information about their customers and evaluating feedback. Also need to align with external agencies.

Requires high degree of interpersonal and cross-functional communication within and without the business. Led by the business, not external agencies.

Financial and Strategic Integration

Application of Information Technology

Redefining the Scope of Marketing Communication

Tactical Coordinator of Marketing Communication

Stages

4th

3rd

2nd

1st

Baseline

Source: Adapted the IMC Best Practice Report, 1998 APQC

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Databases and Information Technology

Brand Messages (Strategic consistency of brand positioning, big creative idea)

Media-mass, niche, and interactive (Intrinsic and created brand contacts)

Brand Relationships (Customer acquisition, retention, growth)

Sales, profits, and brand equity

SWOT Analysis, zero based planning (MC functions and media neutral)

Cross-functional organization (Monitoring and evaluating brand relationships)

Advertising, customer services, direct response, E-commerce events, packaging, personal selling, public relations, sales promotion, sponsorships, trade shows

IMC Process Model

IMC is an ongoing process that “spins off” sales, profits, and brand equity

The Global Marketing Communications (2) Compiled by: Sunarto Prayitno.

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