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Chapter 17 - 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 3,000 tickets to the “Live Mas Student Section” at each of the final College
Football Playoff games. According to Chris Brandt, chief marketing officer for Taco Bell, “the
passionate student fans define what it is to Live Mas, especially at playoff games, and we’re
thrilled to be able to provide such a memorable experience with a Taco Bell twist.” A recent
new product is the Doritos Cheesy Gordita Crunch, which is a combination of the Doritos Locos
Taco and a Gordita. Finally, Taco Bell introduced an advanced mobile app that lets customers
place an order and pay on their smartphones, and then drive through to pick up their food.
Some students may have noticed that Taco Bell’s exclusive beverage, Mountain Dew
Baja Blast, was available for a limited time in retail stores. The flavor is the second largest and
fastest growing beverage sold at Taco Bell, and gained exposure to millions of new customers
through the promotion.
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TEACHING NOTE FOR APPENDIX D CASE D-17
Banyan Tree Holdings: Creating a Brand with IMC1
Synopsis
Since its first Phuket resort launched in 1995, Banyan Tree Holding Limited now
covers over 40 locations in 20 countries, with a strong presence in Asia and the Middle East.
The Banyan Tree brand is renowned for its luxurious resorts and premium service, catering
specifically to customers who value the exclusivity and its distinctive touch.
Banyan Tree Holdings Limited is a leading player in premium resorts, hotels and spas
in Asia. It operates Banyan Tree Hotels and Resorts, Angsana Hotels and Resorts, an
integrated resort called Laguna Phuket, and manages the Indian-owned Oberoi Hotels and
Resorts. The company’s two leading brands, Banyan and Angsana, serve to represent its
natural and Asian-based identity. The Banyan Tree brand appeals to high-end travelers with
the themes of romance, intimacy, and rejuvenation while the Angsana brand caters more
towards younger and adventurous travelers with its exuberant and environmentally-conscious
theme.
This case has two purposes. First, students are encouraged to understand the need for
marketing communications. Second, students are given the opportunity to examine various
strategies used in marketing communication to reach target audiences.
Teaching Suggestions
This case was written to highlight concepts described in Chapters 17 and 18. Therefore,
whenever possible, an instructor should refer the case discussion back to these chapters. In
addition, since the case also deals with a service, instructors might consider linking the
discussion back to Chapter 12 as well.
Answers to Questions
1. How does Banyan Tree segment its market? What groups represent Banyan Tree’s
target audiences in its marketing communication strategy?
Answers:
a. How Banyan Tree segments its market. Banyan Tree segments its market by income
level and lifestyle. Lifestyle is a person’s pattern of living as expressed in his or her
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2. What are the different ways in which Banyan Tree can communicate with its target
audiences? What should its promotional mix be like? What factors influence the
promotional mix decision?
Answers:
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3. What marketing communication and promotion objectives should Banyan Tree set?
4. How should Banyan Tree set its promotion budget?
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5. Evaluate the advertising messages of Banyan Tree. How would you improve its
advertising strategy? What sales promotion tools can the company use to supplement
its advertising efforts?
Chapter 17 - Integrated Marketing Communications and Direct Marketing
6. What direct marketing tools can Banyan Tree use to reach out to its customers?
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ICA 17-1: 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:
• “Frito-Lay’s STAX IMC Program” handout.
• “Frito-Lay’s STAX IMC Program Answers” handout.
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:
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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:
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.”
8. Have teams describe their IMC program actions and how they will produce sales to
the class for each promotional element for Frito-Lay’s STAX potato crisps.
10. Conclude this ICA by saying:
“Thank you for sharing your ideas for the Frito-Lay’s STAX potato crisps IMC
Marketing Lesson. An effective IMC program needs to target both retailers and
consumers with very specific (1) IMC actions and (2) expectations of what the actions will
achieve for each of the five promotional activities—advertising, personal selling, public
relations, sales promotions, and direct marketing.
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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
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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
• Advertise Lay’s STAX on
national and cable TV.
• Generates consumer
awareness about the new
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.
• Issue press releases about
product announcements to gain
• Generates broad awareness
and interest for Lay’s STAX,
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.
• Put excitement into description
of the various Lay’s STAX
• Generates some awareness
and interest among consumers.
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ICA 17-2: IN-CLASS ACTIVITY
An IMC for a Toro® Snowthrower2
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 product—Toro’s Power Max™ snowthrower.
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.
• Toro Power Max Snowthrower IMC Program Answers handout.
Steps to Teach this ICA.
1. OPTIONAL: Bookmark the following websites on your classroom computer:
3. Pass out copies of the Toro Power Max Snowthrower Brochure.
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
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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
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
10. Have 2 or 3 teams share their suggestions and actions for each promotional element
listed in the Toro Power Max Snowthrower IMC Program Handout.
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.
Marketing Lesson. An effective IMC program needs to target both retailers and
consumers. This becomes especially true when a relatively expensive new consumer product
like the Toro Power Max snowthrower is involved.
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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
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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,
• 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.
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.
Direct Marketing
• Let consumers be able to order
a Power Max on Toro’s
website.
• Send customers of other Toro
products (lawn mowers and
yard tools) a direct mail piece
with coupon.
loyal Toro customers.
Connect Application Exercises
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Application 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
drop areas. The dragable items are examples of promotional elements (Budweiser Clydesdales,
Going Green, The Gecko and Caveman, Buy One/Get One Free, Mr. Plaid Coat, McDonald’s
Monopoly, Blue suits/white shirts, L.L. Bean Catalog, Company Annual Report, Spam). As
students mouse over the element, they receive a description of the promotional element.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: The Promotion Mix
Learning Objective: LO 17-02 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
Application 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
Y, Break the bank, Check it out, “We must protect this house”, IMC audit, Post-test). As students
mouse over the task, students receive a hint to aid in classification.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: IMC
Learning Objective: LO 17-04 Describe the elements of the promotion decision process.
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could ask students to consider the first stage of the promotion
decision process, specifically the promotion objective. Ask students to locate promotional
Application Exercise 3: Taco Bell: Using IMC to Help Customers Live Mas!
Activity Summary: In this 8-minute video, students learn the history of Taco Bell and its use of
creative promotional activities. The IMC concept is introduced and applied to Taco Bell. After
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viewing the video, students are asked seven questions covering the communication process,
promotional elements, and integrated marketing communication.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: The Communication Process, IMC, Sales Promotions, Social Media as part of the
Marketing Plan
Learning Objectives: LO 17-01 Discuss integrated marketing communications and the
communication process.
LO 17-02 Describe the promotional mix and the uniqueness of each
component.
LO 17-04 Describe the elements of the promotion decision process.
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could ask students to review a sample of Taco Bell’s
promotional materials (advertising, sales promotion, social media, direct marketing, and public
Application 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
promotional and purchase scenarios to classify (hammer time, cereal bowl, Black Friday, clean
house, prescription please, and healthy snack). As students mouse over the scenario, they are
provided with a hint describing the flow of promotion and the flow of demand stimulation.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Channel Strategies
Learning Objective: LO 17-03 Select the promotional approach appropriate to a product’s
target audience, life-cycle stage, and channel strategies.
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
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
Analytics Exercise 5: Marketing Analytics: Evaluating Promotional Spending
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
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interactive spreadsheet, students evaluate each of the promotional options and combinations
using multiple metrics including sales, expense, profit, promotion-to-sales ratio, and average
sales price. Students answer a series of five multiple choice questions in which the students
evaluate different scenarios.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Marketing Analytics
Learning Objective: LO 17-04 Describe the elements of the promotion decision process.
AACSB: Analytical Thinking
Blooms: Analyze
Difficulty Level: 2 Medium, 3 Hard
Follow-Up Activity: Instructors could ask students to identify their favorite brand and complete
an IMC audit. In the analysis, ask students to describe the brand, its target audience, and IMC
