Transcript IGMC Drivers and Agency Interaction

IGMC Drivers and Agency
Interaction (1)
Sunarto Prayitno
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Introduction
In this chapter we illustrate the primary drivers of IGMC
and then show how these drivers operate from an
agency perspective.
Agencies servicing clients need a commonly an integral
part of developing meaningful communication that leads
to success.
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Introduction
While we use the term advertising agency, we prefer
the term communication agency, for major
corporations in today’s world do not seek just advertising
solutions to marketing communication or business
problems.
Instead they seek effective marketing communication
solutions that increase market share and expand brand,
business, and ultimately corporate performance in term
of sales, profits, enhanced relationships and behavior,
and more positive mind-set from all publics.
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Technology Drivers
The marketing scene, at least over the last ten years,
has been rocked by the impact of new media, including
the development of interactive television, the rise of the
Internet, e-commerce, interactive telephone, and faxing.
As we have indicated elsewhere, the amalgamation of
theses technologies resulted in the passing of control
from marketer into the hand of consumers and
customers.
Market segmentation heralded the introduction of
narrowcasting that has been doubly pushed forward by
the new media explosion.
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Technology Drivers
Both segmentation and narrowcasting signify the growth
of one-to-one communication opportunities; hence the
reference to market-space.
The brand has become central, most importantly in the
ways consumers interact with brands. The image of
brands, in the mind-sets of customers and consumers, is
central to IGMC.
Because the mind-sets may well vary from country to
country and between corporate and individual brands,
corporation that wish to grow brand globally still need to
know where brand “exist” in individual country
performance.
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Technology Drivers
McDonaldization:
McDonald’s is one of the most influential developments
in twentieth-century America. Its reverberations extend
far beyond the confines of the US and the fast-food
business. It has influenced a wide range of undertakings,
indeed the way of life, of a significant portion of the
world. And that impact is likely to expand at and
accelerating rate.
Mcdonalditazion is the process by which the principles of the
fast-food restaurant are coming to dominate more and more
sectors of American society as well as of the rest of the world.
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Technology Drivers
The real driving force, however, is the ever greater
accelerating pressure for marketers to show of prove
return on investment for marketing activities.
Since marketing communication forms by for the
greatest bulk of brand investment (not expenditure), we
will address this crucial issue of ROI, or we describe it,
ROCI.
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Technology Drivers
The Change Scenario
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Cultural Drivers
We have show that the age of mass marketing is rapidly
closing in most developed markets. In age where IGMC
mechanism proliferate, corporations need to access and
use multiple tools to reach and influence consumers.
Micro – and niche markets and one-to-one markets do
not necessarily exhibit different behavioral
characteristics. But appealing to their needs, wants, and
desires may need to be approached differentially
because of cultural criteria.
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Cultural Drivers
Marketing strategy for different consumers may need to
be differentiated on the basis of culture. And, taking this
to the corporate brand level, public, including internal
staff, require different type of communication. Yet culture
represents nothing new to marketers.
The major characteristics of culture from an IGMC
perspective are prescriptive, facilitator/retardant, learned,
relatively enduring, dynamic, social shared, subjective,
and cumulative.
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Cultural Drivers
Cultural Characteristics
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Cultural Drivers
Taking these characteristics as givens means that
marketers constantly have to revisit and adjust marketing
communication strategies to ensure they meet the needs
of target audiences or target publics.
An old but still relevant example of how strategy can be
similar but differ in term of a potential IGMC format was
found when Renault launched the Renault 5 throughout
Europe – one of the world’s major small car markets.
The basic elements of cultural factors.
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Cultural Drivers
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Cultural Drivers
The term high- and low-context cultures connote
receptivity of culture to in-depth background information.
Thus, in Japan, Spain, and Italy, communication may be
indirect rather than direct. The words used do not
necessarily convey message accurately.
Instead the sender’s position, social status, and values
convey the major part of the message. Personal
relationship-building approaches, therefore, are likely to
work well in these culture context.
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Cultural Drivers
On the other hand, in low-context cultures such as
Germany and United States, words are used to convey
the majority of information. What is said, not the way it is
said or who is saying it, conveys most of the information.
The second information-processing continuum also
indicates a potential need for adaptation. Polychronic
information-processing cultures work on several
fronts simultaneously. Direct eye contact, superficial
friendships, and moving with immediacy to ‘close the
sale’ are seen as confrontational and potential
aggressive.
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Cultural Drivers
Monochronic culture, on the other hand, a permeated
by a sense of time, and these characteristics are seen as
standard business practices.
In these cultures wasting time would be perceived as
annoying and irritating by certain types of
businesspeople. On the other hand, pushing for
schedule completion or contract closure may be seen by
Japanese or Hispanic cultures as ‘pushy’ or impatient.
These influences, well known to international marketers,
may be sidestepped or deemed unimportant in the drive
for globalization. Unfortunately, in these days to ignore
them is a potentially fatal mistake.
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Cultural Drivers
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Divergence and Integration
Marketers are faced with a paradox. At the very same
time of divergence of consumer and public behavior and
accelerating multidimensionality in media alternatives,
the organization is under pressure to integrate.
But the impetus to integrate is a reflection of many
factors, as conceptualized throughout this lesson.
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Divergence and Integration
Paradoxical Mirroring
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Divergence and Integration
The forces affecting the corporation are many and
varied. For example, ‘the Paradoxical Mirroring’ can be
considered from either the individual or corporate brand
perspective.
The brand structure may be multiplied by many
hundreds in the of, say, Procter & Gamble or Unilever.
The stakeholder set will vary brand by brand but would
probably be unitary at the corporate level.
Channels would vary based on consumer custom and
practice and the messages to be deployed.
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Divergence and Integration
Thus the question of what to integrate must be
addresses from a consumer audience or public
perspective and may include messages, tonality, media,
teams, planning processes, database requirements, and
ROCI analyses to deliver the benefits of coherency and
efficiency leading to behavioral outcomes.
So the answer to the questions of how and what to
integrate is driven by marketers’ pro-activity with respect
to consumer needs.
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Divergence and Integration
With these factors in mind, how is IMC developing in
advertising agencies around the world?
First we will look in advertising agencies in five countries;
then will examine how one global agency is responding
to its client’s desire for integrated approaches.
Finally, we will discuss issues that impact media systems
and distribution of messages and incentives needed by
agencies to service client needs with the integrated
approaches.
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The IMC Study Findings
During 1997 and 1998, a series of studies was carried
out to ascertain the level of development of IMC from an
agency perspective in the United States, United
Kingdom, Australia, New Zealand, and India. This study
was reported in the Journal of Advertising Research in
1999.
The study found a remarkable degree of unanimity
concerning what IMC was and how it had developed
over time.
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The IMC Study Findings
The study suggested that IMC was developing as a
response to, and in conjunction with, changes affecting
the field of marketing communication worldwide.
We have already indicated development paths a long
which firms could go in developing IMC and IGMC.
However, the extend to which IGMC or IMC can be
implemented depends on what firms decide to do given
potential differing contextual circumstances and perhaps
cultural constrains.
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The IMC Study Findings
From the international perspective, however there was
little to suggest the firms had progressed beyond the first
stage of IGMC, the integration of tactics.
The definition of IGMC used in the study found
acceptance of, but not wholehearted agreement with, our
executive respondents.
Based on responses, executives expressed the need for
a revised definition, together with a series of methods to
evaluate or measure the effects of IGMC programs.
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The IMC Study Findings
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