imc - client perspective (manosh) (31.01.10)

8/14/2019 IMC - Client Perspective (Manosh) (31.01.10)

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Content prepared by Manosh R. Sengupta.Not to be reproduced without permission.

Labour Pains !

The Autobiography of a

Brand Parent




mother mother

Off Off --springspringChildChild

ManMan WomanWoman

ClientClient Agency AgencyBrandBrand

father father

Its relevance in this contextIts relevance in this contextChanging Roles




Why is the Brand so important

• It is the most valuable asset of anyorganization

– all other assets can be replaced, not the brand

– it not only affects the market performance butplays a larger role




Stake-holders

• Investors / Share holders• Internal customers

• Market customers• Business Partners

• Opinion builders & influencers / Future

employees




Most Valuable BrandsRank

Brand Value '09

05 06 07 08 09

1 1 1 1 1 Coca Cola 68.73

3 3 3 2 2 IBM 60.21

2 2 2 3 3 Microsoft 56.64

4 4 4 4 4 GE 47.78

8 6 5 5 5 Nokia 34.86

8 9 7 8 6 McDonald's 32.27

24 18 10 7 Google 32

9 7 5 6 8 Toyota 31.33

5 5 6 7 9 Intel 30.64

7 8 8 9 10 Disney 28.45

Interbrand - BusinessWeek survey *All Values in $Bn



So, how is IMC relevant to brand?




Today’s Buzz Word

• Integrated Marketing Communication

“the synergy of all communication energies”

It’s not about advertising but IMC



“IM when implemented effectively, enhancesmultilateral value creation (for

shareholders, customers, employees,

organization, and wider stakeholders’communities).”

Angus Jenkinson and Branko Sain

Implementing Integrated Marketing: The Seeboard Energy Case

IM is a measurable process for calculating ROI



ROI

• “People like short term ROI. Promisingheaven upon their passing is not nearly as

appealing as 1 in a billion chance to win the

lottery this Thursday”

- Bob Wan Kim, blogger

What gets measured, gets done



7 Levels of Integration & Challenges…1

• Vertical objectives integration: – Communication objectives fit with marketing objectives and the

overall corporate objectives.

• Horizontal/functional integration.

– Marketing communications activities fit well with other businessfunctions of manufacturing, operations and human resourcemanagement.

• Marketing mix integration:

– The marketing mix of product, price and place decisions is

consistent with the promotion decisions, e.g. with the requiredcommunication messages.



7 Levels of Integration & Challenges… 2

• Communications mix integration:

– All the communications tools are being used to guide thecustomer/consumer/client through each stage of the buyingprocess and all of them portray a consistent message.

• Creative design integration:

– The creative design and execution is uniform and consistent withthe chosen positioning of the product.

• Internal/external integration:

– All internal departments and all external employed agencies areworking together to an agreed plan and strategy.

• Financial integration: – The budget is being used in the most effective and efficient way

ensuring that economies of scale are achieved and that long-terminvestment is optimized.



PLANNED

Advertising

Sales promotion

Marketing PR

DM/DR

Personal sellingPOP/merchandising

Packaging

Events/sponsorships

Customer serviceInternal marketing

websites

UNPLANNED

Employee gossip

& behavior

WOM

Online guerilla sites

UNCONSIDERED

Facilities

Service

Distribution

Product design

Product performancePrice

The 2nd Barrier - Mindset



Create demand Produce product

provide support

LSC

LSC = Leadership

& Strategy Council

stakeholders

The Harley Davidson Model



Philosophy

• IM depends on• Uniting everyone around a collective vision of value that

connects to the identity and purpose of the organization / brand

• Depends on a profound and shared understanding of customersand an organization can deliver value seamlessly throughoutall customer experiences across the relationship

• Also means that connecting and matching spiritual withpractical qualities: vision, purpose, values with information,processes and systems

Argus Jenkinson, Professor of IM, Luton School of BusinessBranko Sain, Research Fellow

Harley Davidson – Organization-led IM



Critical Skills

• Marketing: to understand• Concepts of segmentation, targeting and positioning

and their interrelation

• Marketing mix and its key components• PLC concept and its implications

• Role of branding and different branding strategies

• Concepts of differentiation & competitive advantage

and their relevance

• Familiarity with different methods MR



The Client Brief

exposure to engagement



Understanding your Target Group

A day in HIS life



600-900 hrs

900-1100 hrs

1100-1300 hrs

1300-1800 hrs

1800-1900 hrs

1900-2100 hrs

2100-2400 hrs

A weekday in life

Of Target Group

Activities -Wake up, do

housework or exercise,

maybe a walk, readnewspaper / listen radio,

,have breakfast

Media – Radio, Newspaper

Activities -Drive / By

train to work, Read

paper / listen radio

while commuting, At

home watch TV

Media - OOH, TV,

Newspaper

Activities - At

work, Write e-

mails or surf

internet

Media - Internet

Activities - At work, may be out for lunch or

coffee break with colleagues / Friends, Surf

Internet, Flip through magazine, At home

watch TV or do some exercise

Media - Internet, OOH, In Club activation

Activities - Back from

work by bus/car/train,

Go shopping alone

Media - OOH, In Shop

activities

Activities - Back

home with Family,

May go for a shopping

, May go out with

friends at home do

housework, do

exercise

Media - TV, In Shop

activities, Mall

activation

Activity - At home,with family watching

TV. Surf the net.Or go

for a late night movie

Media - TV, Internet,

Cinema



People are more comfortable getting their news from multiple sources



IMC – the case of MTV

• To take a state-of-the-art look at the contemporary relationship

between media and marketing, consider MTV which has achieved a

level of communications integration only dreamed about by most

brand managers.

• Here's how it works:

• MTV hosts an event - a concert, or rave, or beach bash.

• It invites the station's primary advertisers and others to join in as event

sponsors.

• These sponsors are free to mention their participation in their own marketing,

and MTV promotes them as well in its promotional efforts.

• At the event itself, the sponsors' wares—shoes, hats, bags, t-shirts, musical

instruments, records, CDs, whatever—are handed out, sold and/or raffled off.



• It gets more interesting.• MTV covers the event as part of its own programming schedule.

• Youth attracted to the event are wearing the sponsors' branded shorts andshoes and hats so these brands get additional coverage as the event itself unfolds.

• Afterwards, MTV produces and broadcasts the event, again promoting it and

giving event sponsors surrounding airtime.• The youth —now part of the show content—become an enthusiastic, grass-

roots audience spreading the word, and creating loyalty for the participatingsponsors' products.

• Not just on the air, but also on the web and in person.

Efficient. Cost effective. Controllable. And measurable, too.



Stay Connected• Problem:

• Customer satisfaction down.

• Caused by internal syndrome of ‘silos’• Employee moral affected

• Task:

• Stem the rot.

• Brief: • Bring back the ‘camaraderie’

• Strategy:

• Creative idea – ‘stay connected’

• IMC –

– level 1 – annual theme ‘stay connected’ internal programs; CFTs; partnermeets

– level 2 – ATL campaign, sponsored shows, PR

– Level 3 – customer connect programs

• Result:

• CSS & ESS scores up



The Experience Chain

Willingness

to pay premium

Willingness to recommend

Willingness to continue

Post purchase experience

Choose / Buy

Select

Consider

Awareness

•The ladder illustrates the buying process

of a typical customer

•At each level different marketing elements

aid the process•Identifying these elements will bring sharper

focus to our marketing energies

•It will also enable better / more accountability

to the process



The Experience Chain… 2

STAGE ACTION CRITICAL ISSUES

4 CHOOSE / BUY 1. The moment of truth

2. The key drivers at this stage are Price & Consumer /

Trade Promos

3. This is a delicate point in the Brand strategy, as most

organizations lured into the trap of quick fix solutions

focus too much on these parameters without building

adequate Brand Preference - thus leading to commodification

of the Brand - the recent studies of Idea show that we are very close to this point

5 POST PURCHASE EXPERINECE 1. The make or break stage - where all the earlier promises

comes under scrutiny

2. The sensitivity here is the 'post purchase dissonance'

syndrome, a very common affliction in most categories

3. Going by our churn analysis, a major chunk of drop-outs

happen within the initial months (6) of entry. This could beattributed to the high degree of expectations from the category

coupled with a sense of achievement in entering into a world

which signifies progress & achievement.

4. Perhaps a certain amount of proactive councelling

at this satge will help to create greater appreciation of the

category benefits. The additional benefit being a greater

dependency on the brand



The Experience Chain… 3

STAGE ACTION CRITICAL ISSUES

6 WILLINGNESS TO CONTINUE 1. It is more profitable to retain customers than to pitch for

new ones

2. Never has it been so true than for our catregory - where

referrals & WOM play a crucial role in brand acceptance and

thus its growth

3. A lot of the factors at this stage is same as pt 5 and hence

needs to be seen in the same light

7 WILLINGNESS TO RECOMMEND 1. The ultimate acquisition tool. Brands have been built on

WOM, even where there's been no advertising - e.g.

Starbucks and our very own Barrista

2. Howvever, a satisfied customer does not mean a brand

advocator. To make someone proactively recommend abrand, the incumbent's emotional affimity has to go beyond

just satisfaction - he has to become a BRAND PATRIOT

3. A strong army of BRAND PATRIOTS is the most effective way

to counter price wars and discounting threats

8 WILLINGNESS TO PAY PREMIUM 1. The final test of a true Brand

imc - client perspective (manosh) (31.01.10)

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