1 From Strategy to Creative Execution Sunarto Prayitno

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From Strategy to Creative From Strategy to Creative ExecutionExecution

Sunarto Prayitno

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BackgroundBackground

To develop a strategy and then create communication To develop a strategy and then create communication messages and incentives requires all of the messages and incentives requires all of the nine nine competenciescompetencies for mastering IGMC as well as a for mastering IGMC as well as a comprehensive understanding of the comprehensive understanding of the eight-stepeight-step IGMC IGMC planning process.planning process.

The IGMC process is not simply a template you can use The IGMC process is not simply a template you can use to develop and implement programs. Instead, it is more to develop and implement programs. Instead, it is more concern with logical, concern with logical, customer-driven processescustomer-driven processes that that lead to sustainable and successful outcome. lead to sustainable and successful outcome.

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The nine keys areas to develop effective IGMC programs:The nine keys areas to develop effective IGMC programs:1.1. Create Global Processes and StandardizationCreate Global Processes and Standardization2.2. Start with Customers, Not Products or GeographiesStart with Customers, Not Products or Geographies3.3. Identify and Value Customers and ProspectsIdentify and Value Customers and Prospects

4.4. Identification of Customer and Prospect Contact PointsIdentification of Customer and Prospect Contact Points

5.5. Align the Organization’s Interactive Response CapabilitiesAlign the Organization’s Interactive Response Capabilities

6.6. Manage Multiple SystemsManage Multiple Systems

7.7. Value the BrandValue the Brand

8.8. Focus on Financial MeasuresFocus on Financial Measures

9.9. Create Horizontal Organizational StructuresCreate Horizontal Organizational Structures

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The Eight-Step IGMC ProcessThe Eight-Step IGMC Process1. Global Database2.2. Consumer/Prospect ValuationConsumer/Prospect Valuation3.3. Contact Points and PreferencesContact Points and Preferences4.4. Brands RelationshipsBrands Relationships5.5. Message Development and DeliveryMessage Development and Delivery6.6. Estimate of Return on Customer Investment (ROCI)Estimate of Return on Customer Investment (ROCI)7.7. Investment and AllocationInvestment and Allocation8.8. Marketplace MeasurementMarketplace Measurement

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Strategic ThinkingStrategic Thinking

There is nothing new about strategy, which is defined as There is nothing new about strategy, which is defined as “the art of the general”.“the art of the general”.

Just as an army general must work with his resources Just as an army general must work with his resources under conditions of risk and uncertainly, so must under conditions of risk and uncertainly, so must corporate executives, marketing managers, and brand corporate executives, marketing managers, and brand managers decide how best to marshal limited marketing managers decide how best to marshal limited marketing resources to achieve satisfactory exchange that help resources to achieve satisfactory exchange that help grow brand.grow brand.

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From a corporate and brand perspective the field of From a corporate and brand perspective the field of action is not just the USA, UK, or Japan, but increasingly action is not just the USA, UK, or Japan, but increasingly the entire world.the entire world.

When communicating with any public, the same strategy When communicating with any public, the same strategy cannotcannot be deployed to all potential customers or be deployed to all potential customers or prospects.prospects.

In other words, strategy itself is a In other words, strategy itself is a pluralisticpluralistic concept. concept. Strategic outcomes are, however, extremely general in Strategic outcomes are, however, extremely general in nature.nature.

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And yet, in country after country, year after year, the And yet, in country after country, year after year, the same banal, unappealing, unexciting messages are same banal, unappealing, unexciting messages are deployed through broadcast and broad-scale media.deployed through broadcast and broad-scale media.

They are not consumer oriented or event geographically They are not consumer oriented or event geographically oriented but company oriented.oriented but company oriented.

Instead of building brands or even companies, they tend Instead of building brands or even companies, they tend to switch consumers and potential customers off.to switch consumers and potential customers off.

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Instead of reinforcing, rebuilding, or strengthening Instead of reinforcing, rebuilding, or strengthening memory organization packets, such campaigns and memory organization packets, such campaigns and messages do not pass the second stage of perception or messages do not pass the second stage of perception or information processing, attention.information processing, attention.

What’s important is not the product/brand means to the What’s important is not the product/brand means to the company, but what the product/brand means to the company, but what the product/brand means to the customer.customer.

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Thus our strategic thinking, the IGMC mode of though, Thus our strategic thinking, the IGMC mode of though, involve developing or understanding the involve developing or understanding the mind-set mind-set or or behaviorbehavior of our target. of our target.

Such understanding in based on Such understanding in based on tracking customer tracking customer income flowsincome flows and seeing the product, brand, or and seeing the product, brand, or communication from their perspective.communication from their perspective.

Invariably this way of seeing will depend on the quality of Invariably this way of seeing will depend on the quality of material in the material in the databasedatabase concerning customers and their concerning customers and their needs.needs.

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Customer and ConsumerCustomer and ConsumerMind-SetsMind-Sets

Customers want to be taken seriously, to be valued. That Customers want to be taken seriously, to be valued. That implies that they are seeking relationships.implies that they are seeking relationships.

What companies can do is find out as much as possible What companies can do is find out as much as possible about each customer or market, and then craft marketing about each customer or market, and then craft marketing communication to appeal to clearly identifiable needs communication to appeal to clearly identifiable needs that in turn lead to behavioral outcomes.that in turn lead to behavioral outcomes.

Today’s computerized technologies and market research Today’s computerized technologies and market research techniques, if used wisely, allow customers to be known techniques, if used wisely, allow customers to be known and appealed to directly. Therefore, no single strategy and appealed to directly. Therefore, no single strategy can be deployed to all potential or existent customers.can be deployed to all potential or existent customers.

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Customer and ConsumerCustomer and ConsumerMind-SetsMind-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

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Communication StrategyCommunication Strategy

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

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The potential of IGMC strategy to further synergize The potential of IGMC strategy to further synergize marketing strategy and tactics, is depends on several marketing strategy and tactics, is depends on several factors:factors:– The domestic, international, and global environment.The domestic, international, and global environment.– The stage of life cycle in which brands are positioned The stage of life cycle in which brands are positioned

on a country-by-country basis and the extent to which on a country-by-country basis and the extent to which such brands are directed globally.such brands are directed globally.

– The corporate culture with respect to globalization or The corporate culture with respect to globalization or IGMC processes.IGMC processes.

– The extent to which IGMC prevails in each contextual The extent to which IGMC prevails in each contextual environment.environment.

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Global Developments and Global Developments and IGMCIGMC

Source: Don E. Schultz & Philip J Kitchen, Communicating Globally: An Integrated Marketing Approach, NTC Business Book, 2000

CorporateCommunications

MarketingStrategies

Marketing Mix

IGMCBrand

Communication

Databases

Global Multinational National

Publics Internal/External

Integrated & coordinated

Direct Marketing

Personal Selling

Marketing Public Relations

Sales Promotion

Advertising

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IGMC or Global PotentialitiesIGMC or Global Potentialities

Un-integratedCommunication

DomesticOrientation

IntegratedCommunication

GlobalOrientation

Continuum A

Continuum B

Source: Don E. Schultz & Philip J Kitchen, Communicating Globally: An Integrated Marketing Approach, NTC Business Book, 2000

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Marketing communication may be tackled from Marketing communication may be tackled from domestic perspective through the following stages:domestic perspective through the following stages:

1.1. Determine the target buying incentive.Determine the target buying incentive.

2.2. Establish brand core value.Establish brand core value.

3.3. Identify brand perceptions.Identify brand perceptions.

4.4. Know the competition core values and brand Know the competition core values and brand perceptions.perceptions.

5.5. Determine the competitive consumer benefit.Determine the competitive consumer benefit.

6.6. Focus on confidence-building motive.Focus on confidence-building motive.

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7. Determine tonality and personality.7. Determine tonality and personality.

8. Determine communication objectives.8. Determine communication objectives.

9. Decide on perceptual change variable.9. Decide on perceptual change variable.

10. Seek to manage customer contact points.10. Seek to manage customer contact points.

11. Move from here to there.11. Move from here to there.

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Creativity and IGMCCreativity and IGMC

Creativity or what is perceived to be creative may vary Creativity or what is perceived to be creative may vary significantly from country to country or from consumer to significantly from country to country or from consumer to consumer.consumer.

From a brand building perspective the use of integrated From a brand building perspective the use of integrated communication is derived from consumer needs and communication is derived from consumer needs and wants.wants.

By adopting this approach, perceived value By adopting this approach, perceived value (recognizable to consumers) are build into messages to (recognizable to consumers) are build into messages to differentiate and position brands from competing differentiate and position brands from competing alternatives. alternatives.

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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

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The three-step typology for application of IGMC The three-step typology for application of IGMC processes:processes:

Business BuildingBusiness Building

Brand BuildingBrand Building

Corporate CommunicationCorporate Communication


All those activities that stimulate sales for a given product All those activities that stimulate sales for a given product or brand within an annual marketing planning period are or brand within an annual marketing planning period are business buildingbusiness building. The annual marketing plan for a . The annual marketing plan for a brand usually contains the following elements:brand usually contains the following elements:

Situational analysisSituational analysis

Clear description of the target marketClear description of the target market

Marketing objectives and goalsMarketing objectives and goals

Overview of marketing strategyOverview of marketing strategy

Delineation of marketing tacticsDelineation of marketing tactics

Control and implementation criteriaControl and implementation criteria

Summary and appendix informationSummary and appendix information

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The building of brands is partly tied up with the annual The building of brands is partly tied up with the annual planning period but extends significantly beyond this planning period but extends significantly beyond this period.period.

Brand purchase, and indeed brand loyalty, is not just an Brand purchase, and indeed brand loyalty, is not just an expression of current promotional or IGMC campaign. expression of current promotional or IGMC campaign. Such behaviors are a function of past brand usage and Such behaviors are a function of past brand usage and current intent.current intent.

What this means from an IGMC prospective is that brand What this means from an IGMC prospective is that brand building should be part of a continuous process of building should be part of a continuous process of development.development.

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To complete this task properly, corporations are starting to To complete this task properly, corporations are starting to appoint corporate communication executives who in turn appoint corporate communication executives who in turn engage specialists in the field of marketing or corporate engage specialists in the field of marketing or corporate communication to develop programs for internal and external communication to develop programs for internal and external publics in a manner consistent with the corporate identity.publics in a manner consistent with the corporate identity.

The gap between identity (corporation) and image (publics) The gap between identity (corporation) and image (publics) that need to be bridged constitutes the planning framework that need to be bridged constitutes the planning framework using such as mechanism as public relations, public affairs, using such as mechanism as public relations, public affairs, investor relations, government relations, labor market investor relations, government relations, labor market communication, social responsibility, corporate advertising, communication, social responsibility, corporate advertising, and media relations.and media relations.

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ConclusionsConclusions

There are ten factors at the nexus of marketing strategy: There are ten factors at the nexus of marketing strategy: ObjectiveObjectiveInitiativeInitiative

ConcentrationConcentrationEconomy of ResourcesEconomy of Resources

ManeuverManeuverUnity of CommandUnity of Command

CoordinationCoordinationSurpriseSurpriseSimplicitySimplicityflexibilityflexibility

ConclusionsConclusions

The corporate reengineering you will need to effect must The corporate reengineering you will need to effect must be a top-down effort.be a top-down effort.

Make creativity be effective, not merely unique.Make creativity be effective, not merely unique.

Apply IGMC processes to building your business, brand, Apply IGMC processes to building your business, brand, and corporate identity.and corporate identity.

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Documents

1 From Strategy to Creative Execution Sunarto Prayitno