MARKETING

Integrated Marketing Communications (IMC)

The coordination of promotion and marketing efforts to deliver a consistent message.

The main goal of IMC

To maximize informational and persuasive impact on customers.

Three promotional tools used in IMC

TV, social media, direct mail.

Why is IMC becoming more popular today?

Due to the decline of mass media and the rise of targeted, data-driven marketing tools.

Database marketing

Using customer data to create more precise and effective promotional strategies.

What is promotion?

Communication to build relationships by informing and persuading audiences.

Objectives of promotion

To increase awareness, generate interest, and encourage action.

Promotion mix

A combination of methods used to promote a product.

Four main elements of the promotion mix

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

Importance of promotion

It helps build and maintain relationships with customers and stakeholders.

What is advertising?

Paid, nonpersonal communication about an organization or product.

Advantages of advertising

Broad reach and brand recognition.

Why are traditional media like newspapers declining?

Due to reduced readership and the rise of personalized digital ads.

What type of advertising caters to smaller, personalized audiences?

Digital advertising.

How has advertising changed with digital media?

It now focuses on targeted, data-driven campaigns.

What is personal selling?

Paid, personal communication to inform and persuade customers.

Advantages of personal selling

Immediate feedback and greater impact.

Limitation of personal selling

It is expensive.

Kinesic communication

Communicating through body movements like gestures and eye contact.

Proxemic communication

Communicating by varying physical distance in face-to-face interactions.

What is public relations (PR)?

Efforts to create and maintain favorable relationships with stakeholders.

What is publicity in PR?

Nonpersonal communication in a news-story format, often free of charge.

Two PR tools

News releases and event sponsorships.

Why should PR be an ongoing effort?

To maintain relationships and build long-term trust.

How does PR differ from advertising?

PR focuses on relationship building, while advertising is paid communication.

What is sales promotion?

Activities or materials offering incentives to increase sales.

Examples of sales promotions

Coupons, free samples, contests.

Purpose of sales promotions

To provide added value or incentives for customers.

Types of sales promotions aimed at resellers

Discounts and trade allowances.

How do sales promotions benefit customers?

They encourage trial and repeat purchases.

Profit-oriented pricing objectives

Achieving a target return or maximizing profits.

Sales-oriented pricing objectives

Increasing sales volume or market share.

Status quo pricing objectives

Stabilizing prices or meeting competition.

Importance of pricing objectives

They guide how a company sets prices to align with business goals.

Value pricing

Emphasizing value over low price by focusing on quality and benefits.

What is market-skimming pricing?

Setting a high price to maximize profits from early adopters.

What is market-penetration pricing?

Setting a low price to quickly gain market share.

What is loss leader pricing?

Selling products at a low price to attract customers to the store.

What is everyday low pricing?

Consistently offering products at a low, stable price.

What is price lining?

Offering multiple products at predetermined price points.

What is a line extension?

A product closely related to existing products but targeting new customer needs.

Benefit of product modifications

Satisfying customers' needs more effectively.

Idea generation in new product development

The process of seeking new product ideas from internal and external sources.

What is concept testing?

Assessing potential buyers' reactions to a product idea.

Purpose of test marketing

To introduce a product on a limited basis to measure customer response.

Four stages of the product life cycle

Introduction, growth, maturity, decline.

Main goal during the introduction stage

To create product awareness and stimulate demand.

What happens during the growth stage?

Sales rise rapidly, and profits peak before starting to decline.

Focus during the maturity stage

Maintaining market share and generating cash flow.

What happens during the decline stage?

Sales and profits fall as the product loses market relevance.