Chapter 15 – Integrated Marketing Communications and Direct Marketing
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3. How does Taco Bell ensure the continued success of the food chain?
Answer:
Taco Bell hopes to continue its success by developing:
Epilogue
Taco Bell continues to expand through new forms of integrated marketing
communication, new products, and new technology. For example, Taco Bell recently announced
that it will provide 3000 tickets to the “Live Mas Student Section” at each of the final College
Chapter 15 – Integrated Marketing Communications and Direct Marketing
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ICA 15-1: IN-CLASS ACTIVITY
An IMC for Lay’s STAX
Learning Objectives. To have students: (1) suggest elements of an integrated marketing
communications (IMC) program and (2) describe how these elements can generate revenues for
an innovative consumer packaged goods product—Frito-Lay STAX potato crisps.
Nature of the Activity. To have students work in 4-person teams to identify integrated
marketing communications (IMC) program actions and potential results that Frito-Lay might
take to reach prospective buyers of its STAX potato crisps.
Estimated Class Time and Teaching Suggestions. About 20 minutes, taught in class in
4-person teams.
Materials Needed. Copies for each student of the:
Steps to Teach this ICA.
2. Form students into 4-person teams.
3. Give the following mini-lecture on an (IMC) program:
“In the past, organizations designed their advertising program without consulting
4. Give the following mini-lecture on the Frito-Lay’s STAX product line at the time of
its launch:
“In August 2003, Frito-Lay launched its Lay’s STAX potato crisps, which are stacked
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5. Pass out copies of the Frito-Lay’s STAX IMC Program Handout to each student.
6. Give the following mini-lecture on the importance of an IMC program for Frito-Lay’s
STAX:
7. Give the students the following instructions:
a. “In your teams, identify ‘IMC Actions’—the middle column in the handout—for
an IMC program for the Frito-Lay STAX potato crisps using the Frito-Lay’s
STAX IMC Program Handout as a guide. As the handout shows:
• The target audience is the U.S. young adult premium snack consumer.
b. For each of the five actions of the IMC program you identify, explain ‘How the
Action Produces Sales’ for Frito-Lay—the right-hand column in the handout.”
9. Pass out copies of the Frito-Lay’s STAX IMC Program Answers Handout to each
student or team and compare the handout ideas with the suggestions from the teams.
10. Conclude this ICA by saying:
“Thank you for sharing your ideas for the Frito-Lay’s STAX potato crisps IMC
program. Let’s see a few examples of actual elements in the Frito Lay’s IMC program
for STAX potato crisps.”
Marketing Lesson. An effective IMC program needs to target both retailers and
Chapter 15 – Integrated Marketing Communications and Direct Marketing
FRITO-LAY’S STAX IMC PROGRAM HANDOUT
• Target audience—U.S. young adult premium snack consumer.
• Promotional objectives—(1) create awareness and (2) achieve sales by reaching
both retailers and ultimate consumers.
ELEMENT OF
THE IMC
IMC ACTION
HOW THE ACTION
PRODUCES SALES
Advertising
Personal
Selling
Public
Relations
Sales
Promotions
Direct
Marketing
Chapter 15 – Integrated Marketing Communications and Direct Marketing
FRITO-LAY’S STAX IMC PROGRAM ANSWERS HANDOUT
• Target audience—U.S. young adult premium snack consumer.
• Promotional objectives—(1) create awareness and (2) achieve sales by reaching
both retailers and ultimate consumers.
ELEMENT OF
THE IMC
IMC ACTION
HOW THE ACTION
PRODUCES SALES
Advertising
• Advertise Lay’s STAX on
national and cable TV.
• Run free-standing insert (FSI)
ads in Sunday newspapers
with cents-off coupons to gain
trial and repeat purchases.
• Generates consumer
awareness about the new
Frito-Lay’s STAX brand and
products so consumers know
where to buy.
• Generates actual sales at retail
outlets; gains retailer support.
Personal
Selling
• Conduct training seminars for
retail salespeople.
• Have sales brochures and
training videos for salespeople.
• Make sure rack jobbers are
trained on stocking and display
procedures at stores.
• Provides retail salespeople with
detailed information to answer
retail partner questions.
• Provides rack jobbers with
detailed information to correctly
place the product for maximum
exposure.
Public
Relations
• Issue press releases about
product announcements to gain
coverage in national
newspapers (USA Today, etc.)
and magazines targeted at
young consumers.
• Generates broad awareness
and interest for Lay’s STAX,
which must compete with firmly
entrenched Pringles.
Sales
Promotions
• Have attention-getting, easy-to
dispense point-of-purchase
displays in grocery stores,
mass merchandisers, and
convenience stores.
• Generates powerful consumer
awareness for Lay’s STAX in
retail outlets. It should be
difficult for consumers to NOT
see the displays.
Direct
Marketing
• Put excitement into description
of the various Lay’s STAX
flavors on the Web site.
• Introduce new Lay’s STAX
flavors with a direct mail piece
or e-mail notice with coupon.
• Generates some awareness
and interest among consumers.
• Generates sales from loyal
consumers wanting to try a
new flavor and piques interest
of potential customers.
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ICA 15-2: IN-CLASS ACTIVITY
An IMC for a Toro® Snowthrower1
Learning Objectives. To have students: (1) suggest elements of an integrated marketing
Nature of the Activity. To have students work in teams to identify integrated marketing
communications (IMC) program actions that Toro might take to reach prospective buyers of
snowthrowers.
Estimated Class Time and Teaching Suggestions. About 20 minutes, taught in class in
4-person teams.
Materials Needed. Copies for each student of the:
• Toro Power Max Snowthrower IMC Program handout.
Steps to Teach this ICA.
1. OPTIONAL: Bookmark the following websites on your classroom computer:
2. Form students into 4-person teams.
4. Give the following mini-lecture on an IMC program:
“In the past, organizations designed their advertising program without consulting
departments or agencies that had responsibility for sales promotion or public
Chapter 15 – Integrated Marketing Communications and Direct Marketing
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5. Give the following mini-lecture about Toro:
“Since 1914, The Toro Company has been the leader in providing innovative outdoor
maintenance and beautification products for home, recreation, and commercial
landscapes around the world. For consumers, Toro offers lines of lawn mowers, yard
tools, sprinkler systems, and snowthrowers. This activity focuses on the IMC program
6. Discuss with students:
a. Click on the Internet icon “Power Max Video” to view a video clip of the Toro
7. Give the following mini-lecture on the Toro Power Max snowthrower line:
“The first Toro snowthrower was introduced over 50 years ago. Today, Toro is the
8. Pass out copies of the Toro Power Max Snowthrower IMC Program Handout.
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9. Give the students the following instructions:
“In your teams, spend 10 minutes to develop an IMC program for the Toro Power
Max snowthrower using the Toro Power Max Snowthrower IMC Program Handout
11. Pass out copies of the Toro Power Max Snowthrower IMC Program Answers
Handout to each student.
12. Conclude this ICA with the following mini-lecture:
“Thank you for sharing your ideas for the Toro Power Max snowthrower IMC
program. Toro used different mediums to reach target customers for snowthrowers.
Chapter 15 – Integrated Marketing Communications and Direct Marketing
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TORO® POWER MAX™ SNOWTHROWER
IMC PROGRAM HANDOUT
• Target audience—American homeowners where snow removal is required.
• Promotional objectives—(1) create awareness and (2) achieve sales.
ELEMENT OF
THE IMC
IMC ACTION
HOW THE ACTION
PRODUCES SALES
Advertising
Personal
Selling
Public
Relations
Sales
Promotions
Direct
Marketing
Chapter 15 – Integrated Marketing Communications and Direct Marketing
TORO® POWER MAX™ SNOWTHROWER
IMC PROGRAM ANSWERS HANDOUT
• Target audience—American homeowners where snow removal is required.
• Promotional objectives—(1) create awareness and (2) achieve sales.
ELEMENT OF
THE IMC
IMC ACTION
HOW THE ACTION
PRODUCES SALES
Advertising
• Advertise innovative Power
Max on national and cable
(HGTV) TV.
• Develop co-operative
advertising program with Home
Depot (a major Toro retailer),
local hardware or lawn &
garden stores to run ads on
local TV, radio, newspapers,
etc.
• Generates consumer
awareness about the Power
Max and possibly visits to retail
outlets or Toro’s Web site.
• Long-term: generate actual
sales at retail outlets identified
in the co-operative ads.
Personal Selling
• Conduct training seminars for
retail salespeople.
• Have sales brochures and
training DVDs available for
salespeople.
• Provides retail salespeople with
detailed information to answer
consumer questions about the
Power Max and actually
complete a sale.
Public Relations
• Issue press releases and
product announcements to gain
coverage in magazines,
newspapers, and TV news.
• Generates awareness through
reading newspapers or
magazine articles or watching
TV news coverage.
Sales Promotions
• Have attention-getting point-of–
purchase displays in Home
Depot stores and other Toro
dealers.
• Generates consumer
awareness for the Power Max
in retail outlets where attentive
salespeople might actually
make a sale.
Direct Marketing
• Put excitement into description
of Power Max’s capabilities on
Toro’s website with “Power
Max virtual tour.”
• Let consumers be able to order
a Power Max on Toro’s
website.
with coupon.
• Gains awareness and interest
among consumers with the
Power Max virtual tour.
• Generates sales from already
loyal Toro customers.
Chapter 15 – Integrated Marketing Communications and Direct Marketing
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Connect Exercises
Exercise 1: Promotional Mix Elements
Activity Summary: In this click and drag activity, students are given the five promotional
elements (advertising, personal selling, public relations, sales promotion, direct marketing) as the
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: The Promotion Mix
Learning Objective: LO 15-02 Describe the promotional mix and the uniqueness of each
component.
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could have students create a collage which includes an example
Exercise 2: Promotion Decision Process
Activity Summary: In this click and drag activity, students are exposed to the promotion
decision process. The three stages of the process (planning, implementation, and evaluation) are
the drop areas and the dragable items include tasks found in the promotion process (Gen X and
Exercise 3: Taco Bell: Using IMC to Help Customers Live Mas!
Chapter 15 – Integrated Marketing Communications and Direct Marketing
15–46
Activity Summary: In this 8-minute video, students learn the history of Taco Bell and its use of
LO 15-02 Describe the promotional mix and the uniqueness of each
component.
LO 15-04 Describe the elements of the promotion decision process.
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could ask student to review a sample of Taco Bell’s
Exercise 4: Push or Pull? Choosing Channel Strategies
Activity Summary: In this click and drag activity, students are introduced to the push and pull
channel strategies. Students are given two drop areas (push strategy and pull strategy) and six
Follow-Up Activity: Instructors could ask students to collect examples of push strategy
promotions and pull strategy promotions. In class, the instructor could pose the following
questions. Which industries are more likely to use pull/push strategies? Which type of promotion
is more likely to utilize a push/pull strategy? Why would manufacturers use both push and pull
strategies in their promotional plans?
Marketing Analytics Exercise: Evaluating Promotional Spending
Chapter 15 – Integrated Marketing Communications and Direct Marketing
Activity Summary: In this analytics activity, students read a mini-case about Sweet Bites, a
cupcake bakery. The owner would like to increase her sales and is evaluating a number of
promotional options including sales promotion, advertising, and public relations. Using an