Mata kuliah Tahun : O0274 - INTEGRATED MARKETING COMMUNICATION : 2009/2010 IMC - STRATEGIC PLANNING Pertemuan 15 & 16 IMC—STRATEGIC PLANNING The Nature of Marketing Communication Learning Objectives Understand that marketing communications seeks to change ideas Be able to distinguish between intended and unintended communications Recognize centrifugal and centripetal marketing organizations Be aware of current levels of expenditure on communications mix Know how the communications tools available from internal and external programme can be used to create a consistent image of the business. Bina Nusantara University 3 The Nature of Marketing Communication Communication is concerned with : Sending and Receiving Knowledge Ideas Facts Figures Goals Emotions and Values Subject to discuss Marketers need to take in managing communications Examines the key organisational role for marketers Discuss how that role now needs to change quite fundamentally as we move into 21st century. Bina Nusantara University 4 Intentional and Unintentional Communication Intentional Communication aimed at communicating specific lifestyle values to other identified people on a specific occasion The way a person dresses may be important for a specific occasion such as wedding party, which require a carefully constructed style of dress to communicate a particular self-image Unintentional Communication when the style and dress will be observed by others and will send unintended message to other people about style, tidiness, convention and social role Bina Nusantara University 5 Intentional and Unintentional Communication Impact of Intended and Unintended Communication on Person To Person Communications Send of Message A Receive of Message Intended Self-image Intended Message If A and B are inconsistent, credibility is reduced. If A and B are consistent, credibility is increased Unintended Personal Attributes Unintended Self-image Other people receive the unintended message B B Bina Nusantara University 6 Centrifugal and Centripetal Communication In such business, all of unintentional message sent to the market will contradict the message intended to achieve its market objectives, this is characteristic of Centrifugal Marketing The more effective kind of organization, in which all activities are focused towards achieving specific marketing objectives with specific customer, termed Centripetal Marketing. Bina Nusantara University 7 Centrifugal and Centripetal Communication Impact of Intended and Unintended Communication on Business Communications Company Sending Message Intended Creative Strategy Unintended Corporate Attributes Sales Rep Packaging Delivery After Sales Product Customer Receiving Message Intended Message A Unintended Message B Unintended attributes can be any aspect of the selling company which negative the intended creative strategy If A and B are inconsistent, credibility is reduced. If A and B are consistent, credibility is increased Potential customer receive the unintended message B = lost of potential market Bina Nusantara University 8 Session 1. The Nature of Marketing Communication The Scope of Marketing Communications The Scope of Marketing Communications therefore encompasses Both The Internal Information and Decision Making System The Messages and Images Put Across by The Business to Its Present Potential Customers and Others Stakeholders The Marketing Communications Mix consists of the following Communications Tools Sales Force (Personal Selling)—advertising—sales promotion—direct marketing—public relations—sponsorship—exhibitions—corporate sales promotion and merchandising—Word of Mouth—Internet identity—packaging—point of and New Media. Bina Nusantara University 9 The Scope of Marketing Communications $3,000 9% $9,000 26% Sales Promotions PR and Exhibitions Advertising $12,400 37% $1,400 4% Personal Selling Direct Marketing $8,250 24% Bina Nusantara University 10 Internal Programmes and Communication Tools (1) Internal Programmes with which the marketer must be involved Internal Programmes Intended and Unintended Communications Tools Corporate identity and image Corporate identity design manual and policy, eg logo, design signature, signage, van livery, uniforms, letterhead, compliment slips, personal cards, gifts, annual report, design specifications for packaging and promotional literature Internal Marketing Communications This is a system for telling staff what is happening in the business in order to reinforce motivation, eg new campaign about to break, news letter, training awards, news from international subsidiaries. Staff are also important sources of world of mouth communication, 24 hours a day Sales force training and development Dealer/ Distribution Network Bina Nusantara University Brochures, sales manuals, technical manuals, sales conference Conferences, training, manuals, brochures, dealer agreement 11 Internal Programmes and Communication Tools (2) Internal Programmes with which the marketer must be involved Internal Programmes Intended and Unintended Communications Tools Retailer merchandising plans Display and shelf-facing in own outlets, point-of-sales materials, annual market analysis First-contact-customer service Training telephonists and reception staff, brochures, name badges, security clearance After-sales service Training, manuals, brochures, point-of-sales literature Production quality assurance Product/ service design to reach the required quality level for the market, training, quality assurance procedures and manuals, motivation of staff to achieve target quality Managing global/ international brands Contact with world staff, setting common standards, aftersales service, training, sales conferences Bina Nusantara University 12 Internal Programmes and Communication Tools (3) External Programmes with which the marketer must be involved External Programmes Marketing Mix : Promotion Marketing Mix : Place Intended and Unintended Communications Tools Communications mix should also plan the integration of all message produced by ingredients of the marketing mix Distribution is in itself a major method of communication with the market, through gaining effective shelf-facings and merchandising for product Marketing Mix : Price Message about quality and status Marketing Mix : Product Quality must be consistent with advertising, sales and packaging message. This plays a significant role in stimulating repeat purchase More marketing budget is invented in personal selling than in any other communications tools. The sales force both sells and listens (the voice, eyes and ears of the business) and its effectiveness depends on the quality of 13 individual sales rep, training and level of preparation Marketing Mix : People Bina Nusantara University Internal Programmes and Communication Tools (4) External Programmes with which the marketer must be involved External Programmes Intended and Unintended Communications Tools Marketing Mix : Processes In service-based businesses, production often take place at the same time as customers use the service, so the method and technology of production conveys messages to the customers and others. A cash machine which says “out of order” or chews up a bank card is negative and unintended communications Marketing Mix : Physical evidence Bina Nusantara University The overall visual presentation of the business is a major communications tool. Van livery and cleanliness of transport is a mobile message with high but immeasurable market cover. Shop signs and window display should be treated as reminder advertising. Product packaging is the 3 D advert of the shelf. 14 Internal Programmes and Communication Tools (5) External Programmes with which the marketer must be involved External Programmes Market Research Public Relations Bina Nusantara University Intended and Unintended Communications Tools Most market research is not about discovering new markets, but about what the established customers are thinking. Many large businesses also use routine market research monitor the image which customers have of them. Unfortunately, instead of this prompting these businesses to develop cohesive communication strategies, it appears to drive them to more advertising spend PR is only occasionally under marketing control and is difficult to cost within a marketing budget. Some PR cover, such as sponsorship of sports and cultural events, can be measured and coasted 15 Case Study Leaky Communications ? For example, UK water companies have generally much higher water wastage through, leaks in the main supply pipes than water suppliers in other European countries. This contributes significantly to the annual summer water shortages and consumers tend to point the finger of blame at the water companies for paying too much out in dividends to shareholders and investing too little in improving the quality of the main piping. The water companies respond by advertising, but this has little effect in changing consumer attitudes because of the high inconsistency between the water companies’ intended and unintended communication. This reduces the credibility of all communications from these companies, who then have to spend even more on advertising, and carry more administration costs from customers querying their water bills. Bina Nusantara University 16 BE A WINNER ALWAYS!! THE WINNER WILL NOT GIVE UP! EVOKE YOURSELF! MINDMAP YOUR THINKING! BE A LEARNER AND YOU WILL SEE….! GOODLUCK!! Bina Nusantara University 17