IMC - 4 Days Day One

IMC - 4 Days Day One

Digital, Interactivity and IMC: How They All Fit Together Don Schultz, Ph.D. Professor Emeritus-in-Service Medill Integrated Marketing Communications Dept. Northwestern University Izmir University 21 April, 2015

A Natural Question: What Is Medill IMC? Part of the School of Journalism, Media and Integrated Marketing Communications at Northwestern University (near Chicago) Over 650 graduate and undergraduate

students enrolled 300 undergrads in a certificate program 200 graduate students full and part-time 150 online graduate students Other Affiliated Units Applied Neuromarketing Consortium interdisciplinary research center

Retail Analytics Council research on intersection of online and offline retailing Omni-Channel Initiative using software to identify, understand and communicate with consumers

Spiegel Research Center cooperative research with industry to improve marketing results What We Teach Marketing Marketing Mgmt Mgmt

Content Content Mgmt Mgmt Data Data Analytics Analytics Brands/

Brands/ Branding Branding Financial Financial Analysis Analysis Core CoreIMC

IMC Concepts Concepts Consumer Consumer Insights Insights Media Media

Mgmt Mgmt Data Data Platforms Platforms Market Market Research

Research Comm Comm Strategy Strategy Were a Group of Hybrid Generalists, In an Increasingly Specialized World

One Overriding Theme: Everything Starts With the Consumer/Customer! Our Curriculum Continues to Expand, Evolve and Change as the Marketplace, Consumers and Technology Develop A More Scientific,

Than Intuitive Approach to Marketing Communications Moving Beyond the Mad Men Era Conversation/Discussion How Did IMC Get Started and Why?

Formal Study Began at Northwestern in 1902.. But, With Advertising A study of the innate behavior of the species Our Historical Roots Advertising Walter Dill Scott psychology professor -published The Theory of Advertising, 1903 later became

Northwestern President Advertising taught at NU since 1905 a major in the School of Commerce Marketing came later 1910 as a concept, not an activity

Early 1900s to World War Years Advertising Moved from Building Basic Demand to Brands and Branding Advertising: 1940s-1970s Foundations of todays advertising practice

developed Mass communication/media Retailing and distribution Brand management Agency structures Consumers as targets In the 1980s, Many Factors Impacted the Field

Advertising.from art to science. computing and digitalization Shift of client spending ..from media to sales promotion, direct marketing and PR

Agency consolidation Growth of MBA-trained business managers Industry structures..functional silos We Got Disrupted Out of Our Advertising Niche We Couldnt Remodel, So, We Had to Re-Invent We Crossed the Chasm

What We Do What Customers Want Our First Response to the Changes The Subtitle Says It All:

Pulling It Together and Making It Work Inside-out only still, what we want to do Create one sight and one sound for the brand

All before Interactivity was even available Focused on four major elements: advertising, sales promotion, direct marketing and public relations align and coordinate these elements Build practical values for marketers (reduced waste) generate assumed values for consumers (easier to understand the brand)

That Was New to Many Marketers, and, Certainly New to Traditional, Specialized Agencies and Media Firms The 1990s Produced Newer Versions of IMC

Growth and availability of consumer and retailer data and analytics - digitalization Increased focus on customers and insights outside-in approaches Move toward a technology base for marketing and communication rise of databases and CRM Increasing emphasis on measurement and ROI Globalization and internationalization driven by

emerging markets We Defined It as IMC: The Next Generation Built Around This Definition. Integrated Marketing Communication is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, shared marketing communication

programs over time with consumers, customers, prospects, employees and other relevant external and internal audiences. The goal is to generate both short-term financial returns and build long-term brand and shareholder value. Schultz and Schultz (2014) And, This 5-Step Integrated Marketing Communication Process

1. Customer Identification From Behavioral Data 5. Budgeting, Allocation, Evaluation & Recycling IMC 4. Estimating Returnon-Customer- Investment

2. Valuation of Customers/ Prospects 3. Creating & Delivering Messages & Incentives Emphasis Was on Strategic, outside-in approaches to

marketing and communication development Building communication processes replicable, forward-looking approaches Focus on measurement and accountability

Moving communication up in the corporate hierarchy expand planning That Was the Newer Stage IMC Continues to Evolve, But, Based on Some Key Principles That Have Emerged The Key IMC Concepts

Customer Focus Stakeholders

Interactive Communications Message Consistency Brand Focus

Synergy Reciprocity Continuous Planning

Relationships Moriarty and Schultz, 2010 Financial Investments and Returns Contact Points Cross-Functional Management

Discussion/Conversation Everything Was Wonderful! Then, 1994 Digital and The Internet Technology Changed the Marketing World.. Forever!

Information Technology Gave Consumers Control Internet WiFi Mobile Telephony Consumer iPods/MP3 -- podcasts Social Networks Cable/satellite Blocking Systems - TIVO/DVRs/

Filters/Pop-up Blockers/etc. Consumers Are Now Armed with Two Powerful Tools Pictures and Voices And, Much of It Is on The Cloud Okazaki, Shintaro Fundamentals of Mobile Marketing: Theories and Practices

So, Were Reinventing Ourselves..Again! Starting with This: Consumers Inhabit a Multi-Dimensional World They are continually and consistently changing

Trying to hold them static is useless Yesterday and curated data are irrelevant factors But, Marketers Have Created A Linear World . Like Legos

Consumers Live in a Multi-Dimensional World Like Tinker-Toys Our Present Tools and Techniques Just Dont Fit. and Worse, They Often Dont Work! So, Most Outbound

Communication Push Models Are Out of Date and Irrelevant Employees/Recommenders/Friends/Influencers The World Marketers Still Try to Control Web Search Competitors Competitors Media Sales Force

Agency Products and Services Marketer Messages and Incentives Competitors Word-of-Mouth Competitor

s New Forms of Media Customers/ Prospects Ignoring Consumer Demand for Real-Time Responses What to Do?

Discussion/Conversation Whats Needed? 1. New Business Models Traditional 4Ps Supply-Chain Model Final Packaging

Assembly Batch/line/Continuous process Raw material Suppliers Distributors Distributors

Agents & Agents & Brokers Brokers Retailers Retailers Manufacturer Customers/End Users

Start With Customers to be Served, Not Products or Services to be Sold! Wants/ Needs/ Desires Recognized/ Unrecognized

Appropriateness of Solution Knowledge of Solution Value/Sacrifice to Obtain Access to Solution Market Planning

Solution Seeking: Considerations Customer-Driven Demand-Chain Model Marketing/ Marketing/ Sales Sales Production

R&D Admin Customers/End Users Intermediaries 2. New Communication Models Abandon Western Psychological/Attitudinal Approaches

Marketing Communication One-Way Attitudes/ Knowledge Preference Awareness Conviction

Purchase Behavior Linear Influencing and Persuading Consumers Source: Adapted from Lavidge and Steiner Recognize Communication Is Networked, Dynamic and

Non-Linear Remember Our Multi-Dimensional Example In a Networked World, Behavioral Measures of Customer Performance

Customer income flows Then, re-invested to retain present customers and gain new ones Aggregated into customer value Tracked and measured over time

Customers treated as investments and returns 3. New Organizational Models Most Organizations Are Still Based on Command and Control Lines and Boxes Organizational Silos That Ignore

Customers and Prospects CEO CEO Marketing Marketing Marketing Marketing Sales Sales Sales

Sales Human Country C IT/Digital Human Region X Resources Country C IT/Digital Region X Resources

Source: Adapted from Cranfield School of Management Operations Operations Needed: Horizontal Planning Processes That Focus on the Customer CEO CEO Finance

Sales Information Technology Strategy Development Process Strategy Development Process Value Creation Process Value Creation Process Channel Management Process

Channel Management Process Information Management Process Information Management Process Performance Management Process Performance Management Process Source: Adapted from Cranfield University Operations Customers Customers

Marketing Where Were Headed Planning in Real Time Network #1: Customers Network #5: Communication Delivery

Network #2: Data Network #3: Analytics Network #4: Marketing Planning Using a Consumer-Focused

Response Model S I V

A Solution(s) Customer Pain Relief Information Sorted and Supplied Values Input and Outcomes Access Clients Where and When Thats Where Weve Been, Where We Are Now, and Where Were Headed

Ill be Here All This Week, Let Me Know If Youd Like to Discuss This Further If you want to chat, contact me at Don E. Schultz Ph.D. [email protected]

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