13&14 Guiding Principles & 5-Step Planning ProcessCOPY

7/31/2019 13&14 Guiding Principles & 5-Step Planning ProcessCOPY

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Guiding principles of

value-based IMCINTEGRATED MARKETING COMMUNICATION


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IMC definition: Schultz

a strategic business process

used to plan, develop, execute, &

evaluate coordinated, measurable,persuasive brand communicationprograms over time, with customers,

prospects, & other relevant external &internal audiences.


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IMC: Four key elements

1. Strategic business process wherefinite resources can be invested &returns calculated...

2. Involving the entire organization, notjust communications specialists

3. Activities that can be measured &

evaluated4. To produce results over time, & not

within a defined campaign period.


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How IMC works

uses multiple communicationmethods

focuses on customer

with the objective ofacquiring,maintaining, growing or migratingthem

generating greater & more consistentincome flows over time.


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IMC at Work @ Intel


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The Intel Inside program

NOT originally an IMC initiative! In the 1980s, Intel identified its products by

assigning numbers286, 386 & 486

reflecting the level of technology; Other chip manufacturers adopted the

same numerals to identify their

products; Intel applied forpatent protection,

which was rejected.


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The Intel Inside program Company created Intel Inside logo (in

1991) to identify its chips, that wasaccepted;Intel used it for advanced technologyPentium & Celeron chips as well;

Market capitalization rose from to $10 b in1991 & $ 260 b in 2001. Contribution ofnew logo 1/10th ? Value: nearly $25 billion.

Intel Inside = symbol of brandcreation & brand value in the techindustry.


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The Intel Inside program:First level of integration

Intel brand concept developed into aclean-cutlogo symbol of simplicity &customer assurance;

Same logo/ graphics used on every pieceof advertising, DM, packaging, PR, internal& external communication;

Every stakeholder exposed to thesame new look and feelone sight,one sound!


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The Intel Inside program:Second level of integration

Push & pull strategy at work: Pullthrough advertising - push through othermanufacturers, & channels.

Dell, IBM, Toshiba, used Intel Insidestickers on outside casing, as part ofcooperative advertising agreements;

In return Intel offered funds for marketingsupport, in-store displays/ programs to sellthe value of Intel Inside.


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The Intel Inside program:Third level of integration

Intel also invested in consumermarketing & communicationprograms of its own to promote IntelInside branding.

Trained senior management personnelIntel partners (computermanufacturers, channels & distributionsystems) - integration in full swing.


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Intel Inside: In summary1. Intel viewedprogram as a

strategic issue rather than the domainof marketing alone;

2. Program involvedall parts of theorganization including externalpartners/ channel members;

3. Program developed,executed, &

measured against objectives;

4. Intel made long-term, ongoingcommitment.


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The 8 Guiding Principles

that drive value-oriented IMC.


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Guiding principle #1:Become a customer centric organization!

Most traditional organizations structuredbased on hierarchical command andcontrol objective;

Managers assigned activities assigned -managers have a turf to protect;

Cross-functional interaction limited;

Overall: firms are inward-looking;

IMC, in contrast, outward-looking:revolves around the customer.


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Guiding principle #1:Become a customer centric organization!

Clear goal of customer-centric: serve &satisfy customer, build loyalty - regularflows of income assured.

Intermediaries are important, but not ascritical as the customer;

With common focus, all functional areas

coordinate closely with each other; Integration, at all levels, becomes the

norm NOT the exception.


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Guiding principle #2:

Use outside-in planning! Most common method of marketingplanning based on internal volume &financial goals;

Organizational capacity & resourcesdetermine marketing planning;

Emphasis on reducing marketingexpenditure & not long-term businessgrowth;

Under IMC, the goal is to managecreation of demand & income flowsover time;

not simply attract customers, but retain


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Focus on total customer experience

In the global marketplace the companyis the brand & brand is thecompany;

Brand sends out messages in wayswell beyond simple communication;

Every message = provider ofbrand experience, & must thereforebe considered, managed & measured.


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Focus on total customer experience

Total customer experience includesknowing:

How product or service performs in themarketplace?

How is it obtained/ delivered? How capable are channel members in

providing products in a timely & efficient

manner? How customer service is delivered?

What social impact the firm has in thecommunity?


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Guiding principle #4:Align consumer goalswith corporate goals

In the competitive environment,

matching what the customer wantswith what the firm can provide is afinancial & strategic challenge;

Alignment of consumer goals &corporate objectives is key tomeeting that challenge;

Businesses seek continuation of highershort-term cash flows, increasedshareholder value & higher market

capitalization.


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Guiding principle #4:Align consumer goalswith corporate objectives

Three strategic routesavailable toachieve corporate objectives:

1. Invest in orenhance products orservices (R&D initiatives);

2. Invest in supply chain - effectivecustomer response (ECR) &enterprise resource planning (ERP);

3. Invest in customer relationshipmanagement (CRM).

In each initiative on IMC must play a key

role.


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Guiding principle #4:Align consumer goalswith corporate goals

IMC must go beyond traditionalmarketing communication (for buildingbrand awareness or brand recognition);

IMC must be designed to achievemeasurable financial results:

Top-line growth;

Bottom-line growth; Increase market share;

Increased revenue per customer etc.


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Set customer behavior objectives

What do firms generally seek frommarketing & communicationplanning?

1. Acquire new customers;

2. Retain and maintain presentcustomers;

3. Retain & grow sales volume & profitfrom existing customers;

4. Migrate existing customers through thefirms product or service portfolio.


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Set customer behavior objectives Ability of marketing & communication

to change the behavior of customers &prospects is key to meeting corporateobjectives;

Hence:

IMC must be designed to influencecustomer behavior;

Change in behavior must bemeasurable in a manner that allowsthe firm to take appropriate action as

needed.


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Treat customers as assets

Customer is the source of all incomeflows into the organization most otheractivities simply generate cost;

Treating customers as assets wouldjustify more focused investments (inadvertising, DM, PR and other activities);

Knowing value of customers & prospects,would allow for more reasonablefinancial investments to maintain, growfirms portfolio of products & services.


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Streamline functional activities Historically, marketing communication

managers had created artificialdifferences & distinctions within theirfunctional area;

Promotions (1 of4Ps) broken down intoadvertising, sales promotion, PR, DM etc.each competing for resources to meet

narrow objectives; This approach contradicts

customers view ofmarketing

communication .


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Streamline cross-functional activities

Customers categorize marketingcommunication underTWO heads:

1. Messages

brand concepts, ideas, associations,values, & other perceptions companieswant to store away in customers memory;&

2. Incentivesshort-term offers rewards for doingsomething the firm believes will be of valueto itself & the customer.


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Streamline cross-functional activities

Customers categorize marketingcommunication underTWO heads:

Messages seen as strategic &

Incentives as tactical.


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Converge MarCom activities

Convergence in IMC, originally meantbringing together all traditional mediacommunication activities under a singleumbrella;

Convergence today encompassesblending traditional media,Internet/ Social Media & more;

Technology differences betweentraditional & new media must beunderstood to integrate & use both to fullpotential.


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How is IMC developed inan organization?

A 5-STEPPLANNING PROCESS


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What is the five-step IMC PlanningProcess?

a series ofinter-connected,

customer-focused,managerial steps that lead to thedevelopment & implementation of atotally integrated marketingcommunication program.


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What is the five-step IMC PlanningProcess?

IMC

1. Identification ofcustomers & prospects

2.Validation of

customers &prospects

3. Creating &developingmessages &incentives

4.Estimating returnon customer investment

5.Budgeting,allocation& evaluation


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Step 1: Identifying Customers & Prospects

Identifying customers on the basis ofbehavioral data, to not only

understand what they do but why?

Information on demographics,geographics, psychographics help

understand help understand some of thereasons why


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Step 2: Estimating Value of Customers &Prospects

Focusing on financial impact &identifying customers cash flows into

the firm... by understanding current usage

patent, as well as factoring in

growth in income to assessfuture potential.


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Step 3: Planning CommunicationMessages & Incentives

Identify communication delivery systemfor the target audience includingbrand contacts & brandnetworks;

Create messages through use of words,graphics, copy platform, campaign

theme etc. to suit the delivery system; Integrate with basic marketing tools &

process of communication (4Ps).


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Step 4: Estimating Return on CustomerInvestment

Treat customers as assets(Guiding principle six) to develop themarketing communication program;

Apply right mix of short-term(business-building) & long-term (brand-building) tools.

S P A l i F


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Step 5: Post-program Analysis & FuturePlanning

Implement IMC program in the marketduring the relevant time period;

Evaluate the program onceimplemented;

Developing a reinvestment

strategy IMC is not a finite program,with a precise beginning & end, but acontinuous & ongoing process.

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13&14 Guiding Principles & 5-Step Planning ProcessCOPY

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