1 IGMC Drivers and Agency Interaction (1) Sunarto Prayitno

11

IGMC Drivers and Agency IGMC Drivers and Agency Interaction (1)Interaction (1)

Sunarto Prayitno

22

IntroductionIntroduction

In this chapter we illustrate the primary drivers of IGMC In this chapter we illustrate the primary drivers of IGMC and then show how these drivers operate from an and then show how these drivers operate from an agency perspective.agency perspective.

Agencies servicing clients need a commonly an integral Agencies servicing clients need a commonly an integral part of developing meaningful communication that leads part of developing meaningful communication that leads to success.to success.

33

IntroductionIntroduction

While we use the term While we use the term advertising agencyadvertising agency, we prefer , we prefer the term the term communication agencycommunication agency, for major , for major corporations in today’s world do not seek just advertising corporations in today’s world do not seek just advertising solutions to marketing communication or business solutions to marketing communication or business problems.problems.

Instead they seek effective marketing communication Instead they seek effective marketing communication solutions that increase market share and expand brand, solutions that increase market share and expand brand, business, and ultimately corporate performance in term business, and ultimately corporate performance in term of sales, profits, enhanced relationships and behavior, of sales, profits, enhanced relationships and behavior, and more positive mind-set from all publics.and more positive mind-set from all publics.

44

Technology DriversTechnology Drivers

The marketing scene, at least over the last ten years, The marketing scene, at least over the last ten years, has been rocked by the impact of new media, including has been rocked by the impact of new media, including the development of interactive television, the rise of the the development of interactive television, the rise of the Internet, e-commerce, interactive telephone, and faxing.Internet, e-commerce, interactive telephone, and faxing.

As we have indicated elsewhere, the amalgamation of As we have indicated elsewhere, the amalgamation of theses technologies resulted in the passing of control theses technologies resulted in the passing of control from marketer into the hand of consumers and from marketer into the hand of consumers and customers.customers.

Market segmentation heralded the introduction of Market segmentation heralded the introduction of narrowcasting that has been doubly pushed forward by narrowcasting that has been doubly pushed forward by the new media explosion.the new media explosion.

55


Both segmentation and narrowcasting signify the growth Both segmentation and narrowcasting signify the growth of one-to-one communication opportunities; hence the of one-to-one communication opportunities; hence the reference to market-space.reference to market-space.

The brand has become central, most importantly in the The brand has become central, most importantly in the ways consumers interact with brands. The image of ways consumers interact with brands. The image of brands, in the mind-sets of customers and consumers, is brands, in the mind-sets of customers and consumers, is central to IGMC.central to IGMC.

Because the mind-sets may well vary from country to Because the mind-sets may well vary from country to country and between corporate and individual brands, country and between corporate and individual brands, corporation that wish to grow brand globally still need to corporation that wish to grow brand globally still need to know where brand “exist” in individual country know where brand “exist” in individual country performance.performance.


McDonaldization:McDonaldization:

McDonald’s is one of the most influential developments McDonald’s is one of the most influential developments in twentieth-century America. Its reverberations extend in twentieth-century America. Its reverberations extend far beyond the confines of the US and the fast-food far beyond the confines of the US and the fast-food business. It has influenced a wide range of undertakings, business. It has influenced a wide range of undertakings, indeed the way of life, of a significant portion of the indeed the way of life, of a significant portion of the world. And that impact is likely to expand at and world. And that impact is likely to expand at and accelerating rate.accelerating rate.

Mcdonalditazion is the process by which the principles of the Mcdonalditazion is the process by which the principles of the fast-food restaurant are coming to dominate more and more fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world.sectors of American society as well as of the rest of the world.

66

77


The real driving force, however, is the ever greater The real driving force, however, is the ever greater accelerating pressure for marketers to show of prove accelerating pressure for marketers to show of prove return on investment for marketing activities.return on investment for marketing activities.

Since marketing communication forms by for the Since marketing communication forms by for the greatest bulk of brand investment (not expenditure), we greatest bulk of brand investment (not expenditure), we will address this crucial issue of ROI, or we describe it, will address this crucial issue of ROI, or we describe it, ROCI. ROCI.

88

The Change Scenario


99

Cultural DriversCultural Drivers

We have show that the age of mass marketing is rapidly We have show that the age of mass marketing is rapidly closing in most developed markets. In age where IGMC closing in most developed markets. In age where IGMC mechanism proliferate, corporations need to access and mechanism proliferate, corporations need to access and use multiple tools to reach and influence consumers.use multiple tools to reach and influence consumers.

Micro – and niche markets and one-to-one markets do Micro – and niche markets and one-to-one markets do not necessarily exhibit different behavioral not necessarily exhibit different behavioral characteristics. But appealing to their needs, wants, and characteristics. But appealing to their needs, wants, and desires may need to be approached differentially desires may need to be approached differentially because of cultural criteria.because of cultural criteria.

1010


Marketing strategy for different consumers may need to Marketing strategy for different consumers may need to be differentiated on the basis of culture. And, taking this be differentiated on the basis of culture. And, taking this to the corporate brand level, public, including internal to the corporate brand level, public, including internal staff, require different type of communication. Yet culture staff, require different type of communication. Yet culture represents nothing new to marketers.represents nothing new to marketers.

The major characteristics of culture from an IGMC The major characteristics of culture from an IGMC perspective are prescriptive, facilitator/retardant, learned, perspective are prescriptive, facilitator/retardant, learned, relatively enduring, dynamic, social shared, subjective, relatively enduring, dynamic, social shared, subjective, and cumulative.and cumulative.

1111


Cultural Characteristics

1212


Taking these characteristics as givens means that Taking these characteristics as givens means that marketers constantly have to revisit and adjust marketing marketers constantly have to revisit and adjust marketing communication strategies to ensure they meet the needs communication strategies to ensure they meet the needs of target audiences or target publics.of target audiences or target publics.

An old but still relevant example of how strategy can be An old but still relevant example of how strategy can be similar but differ in term of a potential IGMC format was similar but differ in term of a potential IGMC format was found when Renault launched the Renault 5 throughout found when Renault launched the Renault 5 throughout Europe – one of the world’s major small car markets. Europe – one of the world’s major small car markets. The basic elements of cultural factors.The basic elements of cultural factors.

1313


1414


The term The term high-high- and and low-contextlow-context cultures connote cultures connote receptivity of culture to in-depth background information.receptivity of culture to in-depth background information.

Thus, in Japan, Spain, and Italy, communication may be Thus, in Japan, Spain, and Italy, communication may be indirect rather than direct. The words used do not indirect rather than direct. The words used do not necessarily convey message accurately.necessarily convey message accurately.

Instead the sender’s position, social status, and values Instead the sender’s position, social status, and values convey the major part of the message. Personal convey the major part of the message. Personal relationship-building approaches, therefore, are likely to relationship-building approaches, therefore, are likely to work well in these culture context.work well in these culture context.

1515


On the other hand, in low-context cultures such as On the other hand, in low-context cultures such as Germany and United States, words are used to convey Germany and United States, words are used to convey the majority of information. What is said, not the way it is the majority of information. What is said, not the way it is said or who is saying it, conveys most of the information.said or who is saying it, conveys most of the information.

The second information-processing continuum also The second information-processing continuum also indicates a potential need for adaptation. indicates a potential need for adaptation. PolychronicPolychronic information-processinginformation-processing culturescultures work on several work on several fronts simultaneously. Direct eye contact, superficial fronts simultaneously. Direct eye contact, superficial friendships, and moving with immediacy to ‘close the friendships, and moving with immediacy to ‘close the sale’ are seen as confrontational and potential sale’ are seen as confrontational and potential aggressive.aggressive.

1616


Monochronic cultureMonochronic culture, on the other hand, a permeated , on the other hand, a permeated by a sense of time, and these characteristics are seen as by a sense of time, and these characteristics are seen as standard business practices.standard business practices.

In these cultures wasting time would be perceived as In these cultures wasting time would be perceived as annoying and irritating by certain types of annoying and irritating by certain types of businesspeople. On the other hand, pushing for businesspeople. On the other hand, pushing for schedule completion or contract closure may be seen by schedule completion or contract closure may be seen by Japanese or Hispanic cultures as ‘pushy’ or impatient.Japanese or Hispanic cultures as ‘pushy’ or impatient.

These influences, well known to international marketers, These influences, well known to international marketers, may be sidestepped or deemed unimportant in the drive may be sidestepped or deemed unimportant in the drive for globalization. Unfortunately, in these days to ignore for globalization. Unfortunately, in these days to ignore them is a potentially fatal mistake.them is a potentially fatal mistake.

1717


1818

Divergence and IntegrationDivergence and Integration

Marketers are faced with a paradox. At the very same Marketers are faced with a paradox. At the very same time of divergence of consumer and public behavior and time of divergence of consumer and public behavior and accelerating multidimensionality in media alternatives, accelerating multidimensionality in media alternatives, the organization is under pressure to integrate.the organization is under pressure to integrate.

But the impetus to integrate is a reflection of many But the impetus to integrate is a reflection of many factors, as conceptualized throughout this lesson.factors, as conceptualized throughout this lesson.

1919

Divergence and IntegrationDivergence and IntegrationParadoxical Mirroring

2020


The forces affecting the corporation are many and The forces affecting the corporation are many and varied. For example, ‘the Paradoxical Mirroring’ can be varied. For example, ‘the Paradoxical Mirroring’ can be considered from either the individual or corporate brand considered from either the individual or corporate brand perspective.perspective.

The brand structure may be multiplied by many The brand structure may be multiplied by many hundreds in the of, say, Procter & Gamble or Unilever. hundreds in the of, say, Procter & Gamble or Unilever. The stakeholder set will vary brand by brand but would The stakeholder set will vary brand by brand but would probably be unitary at the corporate level.probably be unitary at the corporate level.

Channels would vary based on consumer custom and Channels would vary based on consumer custom and practice and the messages to be deployed.practice and the messages to be deployed.

2121


Thus the question of what to integrate must be Thus the question of what to integrate must be addresses from a consumer audience or public addresses from a consumer audience or public perspective and may include messages, tonality, media, perspective and may include messages, tonality, media, teams, planning processes, database requirements, and teams, planning processes, database requirements, and ROCI analyses to deliver the benefits of coherency and ROCI analyses to deliver the benefits of coherency and efficiency leading to behavioral outcomes.efficiency leading to behavioral outcomes.

So the answer to the questions of how and what to So the answer to the questions of how and what to integrate is driven by marketers’ pro-activity with respect integrate is driven by marketers’ pro-activity with respect to consumer needs.to consumer needs.

2222


With these factors in mind, how is IMC developing in With these factors in mind, how is IMC developing in advertising agencies around the world?advertising agencies around the world?

First we will look in advertising agencies in five countries; First we will look in advertising agencies in five countries; then will examine how one global agency is responding then will examine how one global agency is responding to its client’s desire for integrated approaches.to its client’s desire for integrated approaches.

Finally, we will discuss issues that impact media systems Finally, we will discuss issues that impact media systems and distribution of messages and incentives needed by and distribution of messages and incentives needed by agencies to service client needs with the integrated agencies to service client needs with the integrated approaches.approaches.

2323

The IMC Study FindingsThe IMC Study Findings

During 1997 and 1998, a series of studies was carried During 1997 and 1998, a series of studies was carried out to ascertain the level of development of IMC from an out to ascertain the level of development of IMC from an agency perspective in the United States, United agency perspective in the United States, United Kingdom, Australia, New Zealand, and India. This study Kingdom, Australia, New Zealand, and India. This study was reported in the was reported in the Journal of Advertising ResearchJournal of Advertising Research in in 1999.1999.

The study found a remarkable degree of unanimity The study found a remarkable degree of unanimity concerning what IMC was and how it had developed concerning what IMC was and how it had developed over time.over time.

2424


The study suggested that IMC was developing as a The study suggested that IMC was developing as a response to, and in conjunction with, changes affecting response to, and in conjunction with, changes affecting the field of marketing communication worldwide.the field of marketing communication worldwide.

We have already indicated development paths a long We have already indicated development paths a long which firms could go in developing IMC and IGMC.which firms could go in developing IMC and IGMC.

However, the extend to which IGMC or IMC can be However, the extend to which IGMC or IMC can be implemented depends on what firms decide to do given implemented depends on what firms decide to do given potential differing contextual circumstances and perhaps potential differing contextual circumstances and perhaps cultural constrains. cultural constrains.

2525


From the international perspective, however there was From the international perspective, however there was little to suggest the firms had progressed beyond the first little to suggest the firms had progressed beyond the first stage of IGMC, the integration of tactics.stage of IGMC, the integration of tactics.

The definition of IGMC used in the study found The definition of IGMC used in the study found acceptance of, but not wholehearted agreement with, our acceptance of, but not wholehearted agreement with, our executive respondents.executive respondents.

Based on responses, executives expressed the need for Based on responses, executives expressed the need for a revised definition, together with a series of methods to a revised definition, together with a series of methods to evaluate or measure the effects of IGMC programs.evaluate or measure the effects of IGMC programs.

2626


Documents

1 IGMC Drivers and Agency Interaction (1) Sunarto Prayitno