Transcript INTEGRATED GLOBAL MARKETING COMMUNICATIONS

INTEGRATED GLOBAL
MARKETING
COMMUNICATIONS
Sunarto Prayitno
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DEVELOPING IGMC
PROGRAMS
The nine keys areas to develop effective IGMC
programs:
Create Global Processes and Standardization
Start with Customers, Not Products or Geographies
Identify and Value Customers and Prospects
Identification of Customer and Prospect Contact
Points
Align the Organization’s Interactive Response
Capabilities
Manage Multiple Systems
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DEVELOPING IGMC
PROGRAMS
The nine keys areas to develop effective IGMC
programs (cont.):
Value the Brand
Focus on Financial Measures
Create Horizontal Organizational Structures
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1. Create Global Processes
and Standardization
The ability to create systems and processes that can
cross borders, cultures, and businesses becomes
absolutely critical.
Until the organization has standardized methods of
operating, producing, transporting, and
communicating, it will be nothing more than a group
of geographically based elements struggling to find
common ground with its other parts.
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2. Start with Customers, No
Products or Geographies
IGMC is founded on communicating with all internal
and external customer groups.
Who they are, what they do, what interests they
have.
Works backward to design products and
communication.
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2. Start with Customers, No
Products or Geographies
Start with:
How does the customer or prospect behave to our
product category now?
Do they use it?
Have they use it?
Might they use it?
What information do they have about our product,
services, or brand now?
What would they need or like to know?
How can we make that information or knowledge or
material available to them?
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2. Start with Customers, No
Products or Geographies
In this approach is the need to consider all the
organization’s stakeholders in the marketing
communication process.
Whom have an interest in the firm and can impact
future success.
Non-customer stakeholders can range from
government authorities to lobbyists and pressure
groups.
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2. Start with Customers, No
Products or Geographies
However, most internal and external stakeholders
have limited influence on income, affecting only the
level of income flow generated from end users.
The end users are the only people who generate
income for the firm.
If the organization has no customers, it has no future
no matter how supportive or influential the other
stake holders may be.
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3. Identify and Value
Customers and Prospects
Commonly we value customers based on the income
flows they have produced in the past and their
potential for the future.
Further, we can value prospects based on what
income flows they might create for the firm in the
future.
We look at customers and prospects as assets.
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3. Identify and Value
Customers and Prospects
How to manage those assets so they produce the
greatest return to the company.
The finite resources of the organization must be
directed toward the best customers or prospects
either to continue current income flows or to generate
new or increased it.
In the IGMC approach we make great used of
information technology to capture and analyze vast
amount of information about customers and
prospects.
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4. Identification of Customer
and Prospects Contact Points
In today’s crowded and confused marketplace it is
not so much how an organization wants to
communicate with customers and prospects, but
understanding how and where and in what ways the
customer and prospect already come into contact
with the firm.
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4. Identification of Customer
and Prospects Contact Points
The same is true with consumers and prospects.
They observe product users in the marketplace. They
see product evaluation in the media. They listen to or
ignore advocates.
Undoubtedly the paid, planned, and measured
communication program, the organization develops
are only a part of what exist in the marketplace and to
which customers and prospects alike, along with
employees and stakeholders, are exposed.
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4. Identification of Customer
and Prospects Contact Points
The task of the IGMC manager is not just to prepare
and deliver integrated marketing communications
program.
It is also to understand how and where and in what
ways customers and prospects come into contact
with the brand and the organization.
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4. Identification of Customer
and Prospects Contact Points
The task is process: to understand the system, not
just the specific elements involved,
And then to begin to manage global communication
programs in an integrated fashion.
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Marketing Communication as a Process
Media
Relations
Investor
Relations
Government
Relations
Human Resources
Sponsorships
Internal
Training
External
Training
Mobil
Events
Advertising
Community
Affairs
Sales Promotion
Human
Resources
Graphic
Identity
Collateral
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Source: Don E. Schultz & Philip J Kitchen,
Communicating Globally: An Integrated
Marketing Approach, NTC Business Book, 2000
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5. Align the Organization’s
Interactive Response Capabilities
For the most part of companies have had limited
listening posts through which to access customer
needs and wants, relying primarily on sales force
reports and formalized market research and
increasing on customer service activities and data.
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5. Align the Organization’s
Interactive Response Capabilities
The primary focus of the organization in the 21thcentury marketplace must be its ability to respond to
customers, not just communicate with them on an
outbound basis.
The outbound model must be replaced so that the
organization can create and manage interactive
communication with customers, often in real time.
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5. Align the Organization’s
Interactive Response Capabilities
Further, the organization must be focused totally on
the customer and prospect so that all areas combine
to provide an integrated global communication
message to every customer and prospect.
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6. Manage Multiple Systems
Marketing practitioners have always tried to simplify
and synthesize marketplace systems and
communication approaches (e.g. the 4Ps marketing),
as if, by controlling those elements, we could control
customers and competitors. The same is true with
marketing communication (e.g. the AIDA model).
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6. Manage Multiple Systems
Obviously a global marketplace is far more complex
and certainly not simple to summarize and
synthesize.
The manager of the 21st century must recognize that
there are multiple markets, multiple marketplaces,
multiple customers, multiple channels, multiple
media, and so on.
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Evolution and Revolution
Current
Marketplace
Historical
Marketplace
Marketer
Mktr
Mktr
Twenty-First-Century
Marketplace
Mktr
Mktr
Mktr
Mktr
Information
Channel
Channel
Channel
Channel
Information
Media
Media
Media
Media
Media
Information
Customer
Customer
Customer
Source: Don E. Schultz & Beth E. Barnes, Strategic Brand
Communication Campaigns, NTC Business Book, 1999.
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6. Manage Multiple Systems
The first task of the manager will be to identify the
marketplace in which the organization is operating.
That will depend on the customers and prospects to
be served.
In many case the manager will quickly discover that
there are customers in all three marketplaces. And
there may will be some in totally new and different
marketplaces specific to the organization.
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6. Manage Multiple Systems
The key challenge is to recognize the marketplaces
and the various customers, and then define IGMC
programs to serve them.
Often the this analysis reveals the need for multiple
marketing and communications programs.
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6. Manage Multiple Systems
While there is commonly a need for an umbrella
approach for the brand, generally specific
communication programs a needed for individual
markets and customers and prospects.
The most part of the global marketing communication
manager is involved in multiple markets for multiple
customer groups.
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6. Manage Multiple Systems
Do not confused this multiplicity of programs with
differences in geographies, languages, and cultures.
The differentiation will come from different customers
with different needs seeking different types of
information, and responses from the marketing
organization.
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6. Manage Multiple Systems
One of the best examples of how globalization has
changed many on the traditional planning
approaches in marketing communication has been
development of global media systems and brands.
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6. Manage Multiple Systems
For example, CNN and BBC circle the globe. They
can receive in most countries where television is
available. Yet these organization generally broadcast
in only a single language, English.
MTV is a bit different. MTV, while featuring the same
artists and concepts, changes the language and
some of the music to fit the local country, though the
basic approach is the same.
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6. Manage Multiple Systems
In print, Playboy magazine is published in multiple
countries, in local languages, with local stories and
personalities. But the Playboy concept is the same.
Thus what we see today is the development of
circular groups of customers and prospects around
the globe.
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6. Manage Multiple Systems
They have the same interests, purchase the same
products, and are attuned to culture and approach
they have adopted no matter where they live or what
language they speak.
This globalization of markets is a key element in the
development of marketing communication programs
today and will be more so in the future.
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7. Value the Brand
The brand developed and became important to
customers and prospects not because of any plan
effort on the part of the marketing organization, but
simply because the product and the product name
delivered good value to those who purchased the
product or service.
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7. Value the Brand
It wasn’t that marketing organizations didn’t
understand or value the brand, it was simply that they
paid little attention to the management and growth of
the brand in and of itself.
It has only been in the last twenty or so years that
brand creation, growth, maintenance, and above all
value have begun to be recognized as an
organizational priority.
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7. Value the Brand
Therefore, true management of brands, branding,
and brand communication is a fairly recent
phenomenon.
The brand was not terrible important in the productor marketer-driven marketplace.
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7. Value the Brand
Better products, newer features, incremental
innovations, and brand extensions were what
marketer-driven organizations were and still are all
about. The same is true for distribution-driven
marketers.
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7. Value the Brand
The brand is a name to differentiate products and
services from others in the distribution system.
It was generally not a major factor in the success of
the firm.
It is only when all the traditional marketing activities
becomes commodified or easily replicated that the
value of the brand comes to the fore.
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7. Value the Brand
In a customer-driven marketplace the brand, and the
brand’s relationship with customers and prospects
and other shareholders, will be the primary
competitive advantage organization will have.
As a result, to compete in any of the marketplaces, it
is important to understand and manage the brand
properly.
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8. Focus on Financial
Measures
To be honest, many marketing and communication
activities in the past have been weak in
measurement, particularly when an attempt was
made to relate marketing communication spending to
financial returns.
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8. Focus on Financial
Measures
New technology and improved financial management
mandate that marketing communication manager be
able to relate their financial expenditures on
marketing and communication to the financial returns
received as results of those investment.
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8. Focus on Financial
Measures
Whether this is considered accountability,
stewardship, or simply ROI (return on investment),
marketing communication managers must be able to
relate what was spent or invested to what was
received in return.
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8. Focus on Financial
Measures
In the IGMC approach, we use financial investments
and returns from customers and prospects as the
basis for evaluation.
Part of the difficulty in measuring the return on
marketing communication investments has been a
lack of precision in setting objectives.
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8. Focus on Financial
Measures
If you can’t measure, you can’t set realistic
objectives. If you don’t set objectives, you can’t
measure.
Given that the firm has finite resources, the ability to
invest those recourses in activities that will generate
the greatest returns is critical.
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8. Focus on Financial
Measures
Thus in the IGMC process we focus on financial
objectives and use attitudinal measures to
understand customer behavior and to better
understand our success in the marketplace.
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9. Create Horizontal
Organizational Structures
Managers have always organized thinks on a vertical
basis. Organizations have been built on vertical
structures such as divisions, sectors, units, and the
like.
Yet the global marketplace demands horizontal, not
vertical, structures, the ability to work across
business units, the ability to cross borders and
cultures.
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9. Create Horizontal
Organizational Structures
The demand today is for singular units that can
access and use all the talent the organization to
focus on customer needs and wants.
This demand for horizontal, not vertical, approaches
is perhaps the most difficult challenge for any
organization attempting to operate globally.
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9. Create Horizontal
Organizational Structures
Global communication must cross borders,
geographies, and cultures effortlessly and quickly.
That requires horizontal structures, not vertical ones.
That means communication must move across and
through and around and among groups and firms.
That is horizontal organization in action.
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9. Create Horizontal
Organizational Structures
The organization must align and integrate itself to
focus on customers and prospects.
The organization must align and integrate all the
various elements in the communication process.
That means internal integration and organization so
that marketing, sales, operations, production, and the
like are all working together and focused on the
customer.
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9. Create Horizontal
Organizational Structures
Similarly, external suppliers must be aligned and
integrated. Internal operations, which generally
include employees, channels, and support units,
must be align as well.
Likewise, external communication in the form of
advertising, public relations, sales promotion, direct
marketing, events, and the like must be integrated
and aligned with a customer focus.
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