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Transcript
INTEGRATED MARKETING COMMUNICATION:
concept, process, and application
Reza A. Nasution, PhD
Director of MBA Program
School of Business and Management
Institut Teknologi Bandung
COMMUNICATION
Communication is a transactional
process between two or more
parties whereby meaning is
exchanged through intentional
use of symbols
(Engel et al, 1994).
MARKETING COMMUNICATION
• Marketing communications are the means by
which firms attempt to inform, persuade, and
remind consumers—directly or indirectly—
about the products and brands that they sell.
• Marketing communications represent the
“voice” of the brand and are a means by
which it can establish a dialogue and build
relationships with consumers.
Ads
spending
was
reduced to
be 75%
2003
Ads
domination
(almost
100%)
Early 90’s
80’s and under
CHANGES IN MARCOMM
SPENDING
50% trade
promo,
25%
consumer
promo, &
25% ads
TRADITIONAL MARCOMM
TOOLS
THE IMPORTANCE OF
INTEGRATION
Marketing communication activities must be
integrated to deliver a consistent message
and achieve the strategic positioning
desired.
COMMUNICATION PROBLEMS
• Level A: technical = transmission
• Level B: semantic = message
representation
• Level C: effectiveness = customer
behavioral change
HAVE YOU EVER EXPERIENCED
THESE?
• You sent an e-mail to a friend and got a response
that you did not expect. You decided to talk to
him/her directly and eventually he/she
understood your intention.
• You received a flyer from a reputable institution
that did not match the image of the institution.
• You found different FB accounts for a single
institution or company and they look different to
each other.
INTEGRATED MARKETING
COMMUNICATION
Management and
control of all
marketing
communication
activities =
“One Voice, One
Look”
EXAMPLES
• Honda Jazz
• Gudang Garam International
MORE TO BE INTEGRATED
• Strategic integration between brand personality
and its communication through any media that
entirely build the brand personality
• Analysis, choice, implementation and strategic
control of all marketing communication elements
that help companies to create transaction with
their customers efficiently, economically and
effectively
• The essence of IMC is a call to make coordination
and strong brand strategy, which is driven by
customer feedback data
DIFFERENT FACETS OF
INTEGRATION
•
•
•
•
•
•
•
Vertical
Horizontal
Marketing mix
Communication mix
Creative design
Internal-external
Financial
THREE BASIC ANTECEDENTS
1. Cross-functional strategic planning
2. Mission marketing
3. Interactivity
Source: Reid, 2005
IMC SEQUENCE
Organizational
Prerequisites
IMC
Antecedents
IMC Practices
IMC
Performance
ORGANIZATIONAL
PREREQUISITES OF IMC
• Cultural predisposition to cooperate
• Market and brand orientation
• Market and consumer-sensing
capability
• Practice of ‘informed approach’
• Top management support
Source: Madhavaram, 2004 and Reid et al., 2005
STAGES OF IMC ADOPTION
• Tactical coordination
• Marcomm scope redefinition
• Strategic integration
Source: Adapted from Kitchen and Schultz, 2000
TACTICAL COORDINATION
6 criteria to check tactical integration:
1. Coverage
2. Contribution
3. Commonality
4. Complementarity
5. Versatility
6. Cost
IMC TACTICAL PLANNING
Identify target
audience
Analyze SWOTs
Determine MC
Objective
Evaluate
effectiveness
Determine the
budget
Develop
strategies and
tactics
INTEGRATED MARKETING
COMMUNICATION PLAN
Identify target
audience
Analyse the various customer and prospect segments
and determine which to target and to what extent
Analyse SWOTs
Summarize internal (strengths, weaknesses) and external
(opportunities, threats) brand – related conditions with respect
to communicating with the selected target; determine the
success of the MC functions and media used in preceding years
Determine MC
Objective
Decide what marketing communication programmes
should accomplish
Develop strategies
and tactics
Determine which MC functions should be used and to what
extent . Choose brand messages and means of delivery.
Support each strategy with a rationale. Decide when each
MC Programme will begin and end
Determine the
budget
Decide what the overall MC budget will be and then
how money will be divided among the selected MC
functions
Evaluate
effectiveness
Conduct ongoing MC tests in an effort to find more
effective ways to do IMC. Monitoring and evaluate all
the IMC efforts to determine effectiveness and
accountability
FACTORS TO CONSIDER
MC
Objectives
Buyers
Readiness
Stage
IMC
Strategy
& Tactics
Regulations
Competitors’
MC tactics
Products and
Brand Factors
Buyer Behavior
Characteristics
of MC Tools
EXAMPLE
• JAKARTA EYE CENTER
IMC AUDIT
• Duncan and Moriarty’s IMC Miniaudit is used
to assess marcomm integration
• The audit consists of 5 aspects:
1. Interactivity
2. Mission marketing
3. Organizational infrastructure
4. Strategic consistency
5. Planning and evaluation
PRETEST
• The purpose of Pre-Test is to measure the
knowledge of customer about the brand before
IMC is conducted.
• The analysis includes IMC concept, creative
strategy, brand awareness, brand knowledge,
and perceived positioning.
• The method used are Focus Group Disscusion
(FGD) and Survey
IMPLEMENTATION ISSUES
• Holm (2006)
– Strategist lack of understanding about communication theory
and practice
– Tactical persons lack of strategic management process and
practice
– The intersection area between the two is very small
• Kotler et al. (2009)
– Large companies employ several communications specialists to
work with their brand mangers who know comparatively little
about the other communication tools.
– Many global companies use a large number of ad agencies
located in differing countries and serving different divisions.
ASSESSING IMC IMPACT
Activity & Program
Metrics
Customer Perceptions &
Behavior
Market
Performance
•Marketing Investment
•Program Quality
•Clarity
•Relevance
•Distinctiveness
•Consistency
•Channel expansion
•Brand awareness
•Brand associations
• Perceived quality
•Brand Loyalty
•Sales
•Market share
•Price premium
•Profitability
•Price elasticity
•Brand penetration
Brand Value Chain
“Marketers can judge marketing communications according to its ability
to build brand equity and drive brand sales.” (Kotler et al., 2009)
PRACTICAL INDICATORS
Marketing communications is GREAT when :
- People remember the ad and the brand
- The promotion draws people into the store
- The store display motivates people to try the product
Marketing communication DOES NOT work, when :
- The ad is forgettable or point is unclear
- No one remember the promotion
- The direct email piece gets thrown away without
being opened
PERFORMANCE AUDIT
• Sales-related performance
• Brand-related performance
• Customer satisfaction
SALES-RELATED MEASURES
•
•
•
•
•
•
Sales
Market share
Sales margin
Price premium
Price elasticity
Brand penetration index
EXAMPLES
Honda Beat
Semen Tiga Roda
1200000
1033928
1000000
800000
712007
600000
426935
400000
200000
208490
0
2008
Source : okezoneautos
2009
2010
2011
BRAND EQUITY EVALUATION
Academic Models
Practical Models
Generic/Basic Models:
Aaker (1991,1996)
Keller (1993, 1998,
2003)
Campbell (2002)
Netemeyer (2004)
Specific Models
(adapted generic
models)
Brand Asset Valuator
Brand Dynamics
Equity Engine
BEHAVIORAL CHANGES
(Source: Kotler et al., 2009)
LASIK LIFE CYCLE
2000
1800
1600
1400
1200
1000
800
600
400
200
0
2011
2011.5
2012
2012.5
2013
2013.5
2014
2014.5
2015
2015.5
2016
EVALUATION, CONTROL AND
REVISION
• Driving forces:
– Internal dynamics
– External dynamics:
• Macro environment dynamics
• Industry dynamics
• Market dynamics
• Evaluation and control should be done periodically and
when necessary
• Revision should be done promptly and impacts should
be measured properly
• Sometimes, all IMC planning steps should be repeated
entirely
The World keeps changing
and so must we.
Only when we rule the
change, we can rule the world
THANK YOU!!
For further discussion please send e-mail to [email protected]