1 From Strategy to Creative Execution Sunarto Prayitno

2 Background To develop a strategy and then create communication messages and incentives requires all of the nine competencies for mastering IGMC as well as a comprehensive understanding of the eight-step IGMC planning process. The IGMC process is not simply a template you can use to develop and implement programs. Instead, it is more concern with logical, customer-driven processes that lead to sustainable and successful outcome.

3 Background The nine keys areas to develop effective IGMC programs: 1. Create Global Processes and Standardization 2. Start with Customers, Not Products or Geographies 3. Identify and Value Customers and Prospects 4. Identification of Customer and Prospect Contact Points 5. Align the Organization’s Interactive Response Capabilities 6. Manage Multiple Systems 7. Value the Brand 8. Focus on Financial Measures 9. Create Horizontal Organizational Structures

4 Background The Eight-Step IGMC Process Global Database 2. Consumer/Prospect Valuation 3. Contact Points and Preferences 4. Brands Relationships 5. Message Development and Delivery 6. Estimate of Return on Customer Investment (ROCI) 7. Investment and Allocation 8. Marketplace Measurement

5 Strategic Thinking There is nothing new about strategy, which is defined as “the art of the general”. Just as an army general must work with his resources under conditions of risk and uncertainly, so must corporate executives, marketing managers, and brand managers decide how best to marshal limited marketing resources to achieve satisfactory exchange that help grow brand.

6 Strategic Thinking From a corporate and brand perspective the field of action is not just the USA, UK, or Japan, but increasingly the entire world. When communicating with any public, the same strategy cannot be deployed to all potential customers or prospects. In other words, strategy itself is a pluralistic concept. Strategic outcomes are, however, extremely general in nature.

7 Strategic Thinking And yet, in country after country, year after year, the same banal, unappealing, unexciting messages are deployed through broadcast and broad-scale media. They are not consumer oriented or event geographically oriented but company oriented. Instead of building brands or even companies, they tend to switch consumers and potential customers off.

8 Strategic Thinking Instead of reinforcing, rebuilding, or strengthening memory organization packets, such campaigns and messages do not pass the second stage of perception or information processing, attention. What’s important is not the product/brand means to the company, but what the product/brand means to the customer.

9 Strategic Thinking Thus our strategic thinking, the IGMC mode of though, involve developing or understanding the mind-set or behavior of our target. Such understanding in based on tracking customer income flows and seeing the product, brand, or communication from their perspective. Invariably this way of seeing will depend on the quality of material in the database concerning customers and their needs.

10 Customer and Consumer Mind-Sets Customers want to be taken seriously, to be valued. That implies that they are seeking relationships. What companies can do is find out as much as possible about each customer or market, and then craft marketing communication to appeal to clearly identifiable needs that in turn lead to behavioral outcomes. Today’s computerized technologies and market research techniques, if used wisely, allow customers to be known and appealed to directly. Therefore, no single strategy can be deployed to all potential or existent customers.

11 Customer and Consumer Mind-Sets Objectives Initiative Concentration Economy of Resources Maneuver Unity of Command Coordination Surprise Simplicity Flexibility Customers Consumers Audiences Publics (Existing or potential) The Nexus of Marketing Strategy

12 Communication Strategy The drive for comprehension of consumer mind-set, coupled with the strategic imperative, means that corporations that wish to compete in the global marketplaces of today and tomorrow will almost inevitable need to undergo a process analogous to organizational reengineering.

13 Communication Strategy The potential of IGMC strategy to further synergize marketing strategy and tactics, is depends on several factors: –The domestic, international, and global environment. –The stage of life cycle in which brands are positioned on a country-by-country basis and the extent to which such brands are directed globally. –The corporate culture with respect to globalization or IGMC processes. –The extent to which IGMC prevails in each contextual environment.

14 Global Developments and IGMC Source: Don E. Schultz & Philip J Kitchen, Communicating Globally: An Integrated Marketing Approach, NTC Business Book, 2000 Corporate Communications Marketing Strategies Marketing Mix IGMC Brand Communication Databases Global Multinational National Publics Internal/ External Integrated & coordinated Direct Marketing Personal Selling Marketing Public Relations Sales Promotion Advertising

15 IGMC or Global Potentialities Un-integrated Communication Domestic Orientation Integrated Communication Global Orientation Continuum A Continuum B Source: Don E. Schultz & Philip J Kitchen, Communicating Globally: An Integrated Marketing Approach, NTC Business Book, 2000

16 Communication Strategy Marketing communication may be tackled from domestic perspective through the following stages: 1.Determine the target buying incentive. 2.Establish brand core value. 3.Identify brand perceptions. 4.Know the competition core values and brand perceptions. 5.Determine the competitive consumer benefit. 6.Focus on confidence-building motive.

17 Communication Strategy 7. Determine tonality and personality. 8. Determine communication objectives. 9. Decide on perceptual change variable. 10. Seek to manage customer contact points. 11. Move from here to there.

18 Creativity and IGMC Creativity or what is perceived to be creative may vary significantly from country to country or from consumer to consumer. From a brand building perspective the use of integrated communication is derived from consumer needs and wants. By adopting this approach, perceived value (recognizable to consumers) are build into messages to differentiate and position brands from competing alternatives.

19 Effectiveness and Creativity Must extend from sound marketing strategy Must take the consumer’s view Must be persuasive What characterizes effectiveness and creativity? Must find a unique way to break through clutter Must not promise more than it can deliver Creative idea must not overwhelm the strategy Adapted from Shimp, 1997

20 Creativity and IGMC The three-step typology for application of IGMC processes: The three-step typology for application of IGMC processes: Business Building Brand Building Corporate Communication

Creativity and IGMC All those activities that stimulate sales for a given product or brand within an annual marketing planning period are business building. The annual marketing plan for a brand usually contains the following elements: Situational analysis Clear description of the target market Marketing objectives and goals Overview of marketing strategy Delineation of marketing tactics Control and implementation criteria Summary and appendix information 21

Creativity and IGMC The building of brands is partly tied up with the annual planning period but extends significantly beyond this period. Brand purchase, and indeed brand loyalty, is not just an expression of current promotional or IGMC campaign. Such behaviors are a function of past brand usage and current intent. What this means from an IGMC prospective is that brand building should be part of a continuous process of development. 22

Creativity and IGMC To complete this task properly, corporations are starting to appoint corporate communication executives who in turn engage specialists in the field of marketing or corporate communication to develop programs for internal and external publics in a manner consistent with the corporate identity. The gap between identity (corporation) and image (publics) that need to be bridged constitutes the planning framework using such as mechanism as public relations, public affairs, investor relations, government relations, labor market communication, social responsibility, corporate advertising, and media relations. 23

24 Conclusions There are ten factors at the nexus of marketing strategy: ObjectiveInitiativeConcentration Economy of Resources Maneuver Unity of Command CoordinationSurpriseSimplicityflexibility

Conclusions The corporate reengineering you will need to effect must be a top-down effort. Make creativity be effective, not merely unique. Apply IGMC processes to building your business, brand, and corporate identity. 25