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IGMC Drivers and Agency Interaction (1). Sunarto Prayitno. Introduction. In this chapter we illustrate the primary drivers of IGMC and then show how these drivers operate from an agency perspective.
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IGMC Drivers and Agency Interaction (1) Sunarto Prayitno
Introduction • In this chapter we illustrate the primary drivers of IGMC and then show how these drivers operate from an agency perspective. • Agencies servicing clients need a commonly an integral part of developing meaningful communication that leads to success.
Introduction • While we use the term advertising agency, we prefer the term communication agency, for major corporations in today’s world do not seek just advertising solutions to marketing communication or business problems. • Instead they seek effective marketing communication solutions that increase market share and expand brand, business, and ultimately corporate performance in term of sales, profits, enhanced relationships and behavior, and more positive mind-set from all publics.
Technology Drivers • The marketing scene, at least over the last ten years, has been rocked by the impact of new media, including the development of interactive television, the rise of the Internet, e-commerce, interactive telephone, and faxing. • As we have indicated elsewhere, the amalgamation of theses technologies resulted in the passing of control from marketer into the hand of consumers and customers. • Market segmentation heralded the introduction of narrowcasting that has been doubly pushed forward by the new media explosion.
Technology Drivers • Both segmentation and narrowcasting signify the growth of one-to-one communication opportunities; hence the reference to market-space. • The brand has become central, most importantly in the ways consumers interact with brands. The image of brands, in the mind-sets of customers and consumers, is central to IGMC. • Because the mind-sets may well vary from country to country and between corporate and individual brands, corporation that wish to grow brand globally still need to know where brand “exist” in individual country performance.
Technology Drivers McDonaldization: • McDonald’s is one of the most influential developments in twentieth-century America. Its reverberations extend far beyond the confines of the US and the fast-food business. It has influenced a wide range of undertakings, indeed the way of life, of a significant portion of the world. And that impact is likely to expand at and accelerating rate. • Mcdonalditazion is the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world.
Technology Drivers • The real driving force, however, is the ever greater accelerating pressure for marketers to show of prove return on investment for marketing activities. • Since marketing communication forms by for the greatest bulk of brand investment (not expenditure), we will address this crucial issue of ROI, or we describe it, ROCI.
Technology Drivers The Change Scenario
Cultural Drivers • We have show that the age of mass marketing is rapidly closing in most developed markets. In age where IGMC mechanism proliferate, corporations need to access and use multiple tools to reach and influence consumers. • Micro – and niche markets and one-to-one markets do not necessarily exhibit different behavioral characteristics. But appealing to their needs, wants, and desires may need to be approached differentially because of cultural criteria.
Cultural Drivers • Marketing strategy for different consumers may need to be differentiated on the basis of culture. And, taking this to the corporate brand level, public, including internal staff, require different type of communication. Yet culture represents nothing new to marketers. • The major characteristics of culture from an IGMC perspective are prescriptive, facilitator/retardant, learned, relatively enduring, dynamic, social shared, subjective, and cumulative.
Cultural Drivers Cultural Characteristics
Cultural Drivers • Taking these characteristics as givens means that marketers constantly have to revisit and adjust marketing communication strategies to ensure they meet the needs of target audiences or target publics. • An old but still relevant example of how strategy can be similar but differ in term of a potential IGMC format was found when Renault launched the Renault 5 throughout Europe – one of the world’s major small car markets. The basic elements of cultural factors.
Cultural Drivers • The term high-and low-context cultures connote receptivity of culture to in-depth background information. • Thus, in Japan, Spain, and Italy, communication may be indirect rather than direct. The words used do not necessarily convey message accurately. • Instead the sender’s position, social status, and values convey the major part of the message. Personal relationship-building approaches, therefore, are likely to work well in these culture context.
Cultural Drivers • On the other hand, in low-context cultures such as Germany and United States, words are used to convey the majority of information. What is said, not the way it is said or who is saying it, conveys most of the information. • The second information-processing continuum also indicates a potential need for adaptation. Polychronicinformation-processingcultures work on several fronts simultaneously. Direct eye contact, superficial friendships, and moving with immediacy to ‘close the sale’ are seen as confrontational and potential aggressive.
Cultural Drivers • Monochronic culture, on the other hand, a permeated by a sense of time, and these characteristics are seen as standard business practices. • In these cultures wasting time would be perceived as annoying and irritating by certain types of businesspeople. On the other hand, pushing for schedule completion or contract closure may be seen by Japanese or Hispanic cultures as ‘pushy’ or impatient. • These influences, well known to international marketers, may be sidestepped or deemed unimportant in the drive for globalization. Unfortunately, in these days to ignore them is a potentially fatal mistake.
Divergence and Integration • Marketers are faced with a paradox. At the very same time of divergence of consumer and public behavior and accelerating multidimensionality in media alternatives, the organization is under pressure to integrate. • But the impetus to integrate is a reflection of many factors, as conceptualized throughout this lesson.
Divergence and Integration Paradoxical Mirroring
Divergence and Integration • The forces affecting the corporation are many and varied. For example, ‘the Paradoxical Mirroring’ can be considered from either the individual or corporate brand perspective. • The brand structure may be multiplied by many hundreds in the of, say, Procter & Gamble or Unilever. The stakeholder set will vary brand by brand but would probably be unitary at the corporate level. • Channels would vary based on consumer custom and practice and the messages to be deployed.
Divergence and Integration • Thus the question of what to integrate must be addresses from a consumer audience or public perspective and may include messages, tonality, media, teams, planning processes, database requirements, and ROCI analyses to deliver the benefits of coherency and efficiency leading to behavioral outcomes. • So the answer to the questions of how and what to integrate is driven by marketers’ pro-activity with respect to consumer needs.
Divergence and Integration • With these factors in mind, how is IMC developing in advertising agencies around the world? • First we will look in advertising agencies in five countries; then will examine how one global agency is responding to its client’s desire for integrated approaches. • Finally, we will discuss issues that impact media systems and distribution of messages and incentives needed by agencies to service client needs with the integrated approaches.
The IMC Study Findings • During 1997 and 1998, a series of studies was carried out to ascertain the level of development of IMC from an agency perspective in the United States, United Kingdom, Australia, New Zealand, and India. This study was reported in the Journal of Advertising Research in 1999. • The study found a remarkable degree of unanimity concerning what IMC was and how it had developed over time.
The IMC Study Findings • The study suggested that IMC was developing as a response to, and in conjunction with, changes affecting the field of marketing communication worldwide. • We have already indicated development paths a long which firms could go in developing IMC and IGMC. • However, the extend to which IGMC or IMC can be implemented depends on what firms decide to do given potential differing contextual circumstances and perhaps cultural constrains.
The IMC Study Findings • From the international perspective, however there was little to suggest the firms had progressed beyond the first stage of IGMC, the integration of tactics. • The definition of IGMC used in the study found acceptance of, but not wholehearted agreement with, our executive respondents. • Based on responses, executives expressed the need for a revised definition, together with a series of methods to evaluate or measure the effects of IGMC programs.
