Key Concepts in Integrated Marketing Communications

IMC (Integrated Marketing Communications)

A strategic approach to unify all marketing communication tools (advertising, PR, sales, social media, etc.) to send a consistent message to the target audience.

Components of the promotional mix

Advertising, personal selling, sales promotion, public relations, and direct marketing.

Purpose of promotion

To inform, persuade, remind, and build brand relationships with consumers.

Types of advertising appeals

Emotional (e.g., fear, humor, love), rational, moral, and bandwagon appeals.

Examples of sales promotions

Coupons, contests, free samples, loyalty programs, and limited-time offers.

Paid, owned, and earned media

Paid: ads you pay for; Owned: content you create (website, blog); Earned: word-of-mouth, social shares, reviews.

4 ways to segment markets

Demographic, geographic, psychographic, behavioral.

Value equation in marketing

Value = Benefits / Cost.

Price elasticity

A measure of how sensitive consumers are to price changes (Elastic = sensitive; Inelastic = less sensitive).

Profit equation

Profit = Total Revenue - Total Costs.

Break-even point

The point where total revenue equals total costs (no profit or loss).

Break-even price

The price at which a business covers its fixed and variable costs for a product or service.

Total, fixed, and variable costs

Total = Fixed + Variable; Fixed = do not change with production (rent); Variable = change with production volume (materials).

Product life cycle

Introduction, Growth, Maturity, Decline—stages of a product's market life.

Perceptual map

A visual tool that shows consumer perceptions of brands relative to competitors.

Types of pricing strategies

1) Penetration Pricing (low to enter market), 2) Skimming (high initial price), 3) Competitive Pricing (match or beat rivals), 4) Value-Based Pricing (based on perceived value).

Types of discounts

1) Trade Discount (to resellers), 2) Quantity Discount (bulk purchases), 3) Seasonal Discount (offered during off-peak times).

Difference between cumulative and non-cumulative discounts

Cumulative discounts accumulate over time for loyalty; non-cumulative apply to single large orders.

Types of market competition

1) Perfect competition, 2) Monopolistic competition, 3) Oligopoly, 4) Monopoly.

4 I's of services

Intangibility, Inconsistency, Inseparability, Inventory (also called perishability).

STP in marketing

Segmentation, Targeting, Positioning - identifying market segments, choosing which to serve, and designing an offering.

Types of consumer loyalty

Behavioral loyalty (repeat purchases) and attitudinal loyalty (emotional attachment).

Purpose of marketing

To create value for customers and build strong relationships to capture value in return.

SWOT

Strengths, Weaknesses, Opportunities, Threats.

5 environmental forces in marketing

Social, Economic, Technological, Competitive, Regulatory.

Difference between needs and wants

Needs are essential (food, safety); wants are shaped by culture and personality.

Target market

A specific group of consumers a company aims to reach with its products and marketing efforts.

Marketing mix (4 Ps)

Product, Price, Place, Promotion.

Maslow's hierarchy of needs

Physiological, Safety, Love/Belonging, Esteem, Self-Actualization.

Marketing channel

A set of intermediaries involved in moving products from producer to consumer.

Multichannel marketing

Using multiple platforms (stores, websites, social media) to interact with customers.

Brand equity

The value a brand adds to a product, based on customer perceptions and loyalty.

Difference between primary and secondary data

Primary: collected firsthand for a specific purpose. Secondary: existing data previously collected.

Triple-bottom line

A business framework focusing on social, environmental, and financial performance: People, Planet, Profit.

Difference between supply chain and marketing channel

Supply chain includes all steps from raw materials to consumer; marketing channel focuses on the delivery of products to customers.

Push vs. pull marketing

Push: promoting to intermediaries (e.g., retailers); Pull: targeting end consumers to create demand.