06. integrated global marketing communications

8/2/2019 06. Integrated Global Marketing Communications

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Intellectual Property of IMCS 1

INTEGRATED GLOBAL

MARKETINGCOMMUNICATIONS

Sunarto Prayitno


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DEVELOPING IGMC PROGRAMSThe nine keys areas to develop effective IGMC

programs:Create Global Processes and StandardizationStart with Customers, Not Products or GeographiesIdentify and Value Customers and ProspectsIdentification of Customer and Prospect ContactPoints

Align the Organizations Interactive ResponseCapabilitiesManage Multiple Systems


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DEVELOPING IGMC PROGRAMSThe nine keys areas to develop effective IGMC

programs (cont.):

Value the BrandFocus on Financial MeasuresCreate Horizontal Organizational Structures


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1. Create Global Processes andStandardization

The ability to create systems and processes that cancross borders, cultures, and businesses becomes

absolutely critical.

Until the organization has standardized methods of operating, producing, transporting, andcommunicating, it will be nothing more than a groupof geographically based elements struggling to findcommon ground with its other parts.


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2 . Start with Customers, NoProducts or Geographies

IGMC is founded on communicating with all internaland external customer groups.

Who they are, what they do, what interests theyhave.

Works backward to design products andcommunication.


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2 . Start with Customers, No

Products or Geographi esS tart 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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In this approach is the need to consider all theorganizations stakeholders in the marketingcommunication process.

Whom have an interest in the firm and can impactfuture success.

Non-customer stakeholders can range fromgovernment authorities to lobbyists and pressuregroups.


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However, most internal and external stakeholdershave limited influence on income, affecting only the

level of income flow generated from end users.

The end users are the only people who generateincome for the firm.

If the organization has no customers, it has no futureno matter how supportive or influential the other stake holders may be.


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3 . Identify and Value Customersand Prospects

Commonly we value customers based on the incomeflows they have produced in the past and their

potential for the future.

Further, we can value prospects based on whatincome flows they might create for the firm in thefuture.

We look at customers and prospects as assets.


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3 . Identify and Value Customersand Prospects

How to manage those assets so they produce thegreatest return to the company.

The finite resources of the organization must bedirected toward the best customers or prospectseither to continue current income flows or to generatenew or increased it.

In the IGMC approach we make great used of information technology to capture and analyze vastamount of information about customers andprospects.


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4 . Identification of Customerand Prospects Contact Points

In todays crowded and confused marketplace it isnot so much how an organization wants to

communicate with customers and prospects, butunderstanding how and where and in what ways thecustomer and prospect already come into contactwith the firm.


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The same is true with consumers and prospects.They observe product users in the marketplace. Theysee product evaluation in the media. They listen to or ignore advocates.

Undoubtedly the paid, planned, and measuredcommunication program, the organization develops

are only a part of what exist in the marketplace and towhich customers and prospects alike, along withemployees and stakeholders, are exposed.


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The task of the IGMC manager is not just to prepareand deliver integrated marketing communications

program.

It is also to understand how and where and in whatways customers and prospects come into contactwith the brand and the organization.


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The task is process : to understand the system, not just the specific elements involved,

And then to begin to manage global communicationprograms in an integrated fashion.


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Marketing Communication as a Process

Mobil

HumanResources Graphic

Identity

Collateral

Sales Promotion

Advertising

ExternalTraining

Human Resources

GovernmentRelations

InvestorRelations

Sponsorships

InternalTraining

Events

CommunityAffairs

MediaRelations

Source: Don E. Schultz & Philip J Kitchen,Communicating Globally: An Integrated Marketing Approach , NTC Business Book, 2000


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5 . Align the Organizations

Interactive Response CapabilitiesFor the most part of companies have had limitedlistening posts through which to access customer needs and wants, relying primarily on sales forcereports and formalized market research andincreasing on customer service activities and data.


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Interactive Response CapabilitiesThe primary focus of the organization in the 21th-century marketplace must be its ability to respond tocustomers, not just communicate with them on anoutbound basis.

The outbound model must be replaced so that theorganization can create and manage interactivecommunication with customers, often in real time.


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Interactive Response CapabilitiesFurther, the organization must be focused totally onthe customer and prospect so that all areas combineto provide an integrated global communicationmessage to every customer and prospect.


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6 .

Manage Multiple SystemsMarketing practitioners have always tried to simplifyand synthesize marketplace systems andcommunication approaches (e.g. the 4Ps marketing),as if, by controlling those elements, we could controlcustomers and competitors. The same is true withmarketing communication (e.g. the AIDA model).


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6 .

Manage Multiple SystemsObviously a global marketplace is far more complexand certainly not simple to summarize andsynthesize.

The manager of the 21 st century must recognize thatthere are multiple markets, multiple marketplaces,multiple customers, multiple channels, multiplemedia, and so on.


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Evolution and Revolution

H istoricalMarketplace

Marketer

Information

Channel

Media

Customer

Mktr Mktr Mktr

Channel

Information

Media

Customer

CurrentMarketplace

Mktr Mktr Mktr

Channel Channel

Media Media Media

Information

Customer

Twenty-First-CenturyMarketplace

Source: Don E. Schultz & Beth E. Barnes, S trategic 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 themarketplace in which the organization is operating.That will depend on the customers and prospects tobe served.

In many case the manager will quickly discover thatthere are customers in all three marketplaces. Andthere may will be some in totally new and differentmarketplaces specific to the organization.


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While there is commonly a need for an umbrellaapproach for the brand, generally specificcommunication programs a needed for individualmarkets and customers and prospects.

The most part of the global marketing communicationmanager is involved in multiple markets for multiplecustomer groups.


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Do not confused this multiplicity of programs withdifferences in geographies, languages, and cultures.

The differentiation will come from different customerswith different needs seeking different types of information, and responses from the marketingorganization.


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One of the best examples of how globalization haschanged many on the traditional planningapproaches in marketing communication has beendevelopment of global media systems and brands.


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For example, CNN and BBC circle the globe. Theycan receive in most countries where television isavailable. Yet these organization generally broadcastin only a single language, English.

MTV is a bit different. MTV, while featuring the sameartists and concepts, changes the language andsome of the music to fit the local country, though thebasic approach is the same.


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In print, Playboy magazine is published in multiplecountries, in local languages, with local stories andpersonalities. But the Playboy concept is the same.

Thus what we see today is the development of circular groups of customers and prospects aroundthe globe.


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They have the same interests, purchase the sameproducts, and are attuned to culture and approachthey have adopted no matter where they live or whatlanguage they speak.

This globalization of markets is a key element in thedevelopment of marketing communication programstoday and will be more so in the future.


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7 . Value the Brand

The brand developed and became important tocustomers and prospects not because of any planeffort on the part of the marketing organization, butsimply because the product and the product namedelivered good value to those who purchased theproduct or service.


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7 . Value the Brand

It wasnt that marketing organizations didntunderstand or value the brand, it was simply that theypaid 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 thatbrand creation, growth, maintenance, and above allvalue have begun to be recognized as anorganizational priority.


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7 . Value the Brand

Therefore, true management of brands, branding,and brand communication is a fairly recentphenomenon.

The brand was not terrible important in the product-or marketer-driven marketplace.


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7 . Value the Brand

Better products, newer features, incremental

innovations, and brand extensions were whatmarketer-driven organizations were and still are allabout. The same is true for distribution-drivenmarketers.


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7 . Value the Brand

The brand is a name to differentiate products andservices 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 activitiesbecomes commodified or easily replicated that thevalue of the brand comes to the fore.


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7 . Value the Brand

In a customer-driven marketplace the brand, and thebrands relationship with customers and prospectsand other shareholders, will be the primarycompetitive advantage organization will have.

As a result, to compete in any of the marketplaces, itis important to understand and manage the brandproperly.


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8 . Focus on Financial Measures

To be honest, many marketing and communicationactivities in the past have been weak inmeasurement, particularly when an attempt wasmade to relate marketing communication spending tofinancial returns.


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New technology and improved financial managementmandate that marketing communication manager beable to relate their financial expenditures onmarketing and communication to the financial returnsreceived as results of those investment.


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Whether this is considered accountability,stewardship, or simply ROI (return on investment),marketing communication managers must be able torelate what was spent or invested to what wasreceived in return.


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In the IGMC approach, we use financial investmentsand returns from customers and prospects as thebasis for evaluation.

Part of the difficulty in measuring the return onmarketing communication investments has been alack of precision in setting objectives.


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If you cant measure, you cant set realisticobjectives. If you dont set objectives, you cantmeasure.

Given that the firm has finite resources, the ability toinvest those recourses in activities that will generatethe greatest returns is critical.


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Thus in the IGMC process we focus on financialobjectives and use attitudinal measures tounderstand customer behavior and to better understand our success in the marketplace.


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9 . Create Horizontal

Organizational StructuresManagers have always organized thinks on a verticalbasis. Organizations have been built on verticalstructures such as divisions, sectors, units, and thelike.

Yet the global marketplace demands h orizontal , notvertical, structures, the ability to work acrossbusiness units, the ability to cross borders andcultures.


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Organizational StructuresThe demand today is for singular units that canaccess and use all the talent the organization tofocus on customer needs and wants.

This demand for horizontal, not vertical, approachesis perhaps the most difficult challenge for anyorganization attempting to operate globally.


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Organizational StructuresGlobal communication must cross borders,geographies, and cultures effortlessly and quickly.That requires horizontal structures, not vertical ones.

That means communication must move across andthrough and around and among groups and firms.That is horizontal organization in action.


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Organizational StructuresThe organization must align and integrate itself tofocus on customers and prospects.

The organization must align and integrate all thevarious elements in the communication process.

That means internal integration and organization so

that marketing, sales, operations, production, and thelike are all working together and focused on thecustomer.


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Organizational StructuresSimilarly, external suppliers must be aligned andintegrated. Internal operations, which generallyinclude employees, channels, and support units,must be align as well.

Likewise, external communication in the form of advertising, public relations, sales promotion, directmarketing, events, and the like must be integratedand aligned with a customer focus.

06. integrated global marketing communications

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