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Marketing Communications Plan - Essay Example

Summary
This work called "Marketing Communications Plan" describes marketing communication and its influence on the buyer’s behavior. The author takes into account the demand for alternative fuel vehicles, the traditional means of promoting the product as well as the use of the website and social networking to raise awareness about the new product. …
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Extract of sample "Marketing Communications Plan"

Marketing Communications Plan Executive Summary Fiat is intending to launch the new Fiat 500e battery powered eco-friendly car. For this purpose a communication plan has been developed for the product in UK market. The aim of the paper is to examine marketing communication and its influence on buyer’s behaviour. Market analysis helps to determine the demand for alternative fuel vehicle. The objectives of the communication plan have been designed with the help of SMART framework. The communication strategy has been designed with respect to the DRIP elements of the marketing. The strategy effectively uses the traditional means of promoting the product as well as use of website and social networking to raise awareness about the new product. The Gantt chart has been used to explain the deployment of methods and media. Survey method has been use to collect gather feedback regarding the implementation of the communication plan. Table of Contents Executive Summary 2 Introduction 4 Context Analysis 4 Internal Factors 5 Analysis of Automobile Market & Product Market 5 External Factors 8 Target Segment 8 Environmental Factors Affecting Communication Plan 9 Communications Objectives 10 Coordinated Communications Strategy 11 Differentiate the Product 12 Reinforce 12 Inform To Raise Awareness 12 Persuade 13 Coordinated Communication Mix 13 Advertising 13 Personal Selling 14 Public Relations 15 Sales Promotion 16 Direct Mail 16 Scheduling And Implementation 17 Evaluation And Control 18 Aided Recall and Unaided Recall 19 Attitude Tests 19 Enquiry Tests 20 Feedback 20 Conclusions 22 Summary of the Communication Plan 22 Limitations or Issues of Communication Plan 23 References 24 Introduction Marketing communication involves a set of activities performed by the organization to communicate with its stakeholders and other target audiences. It is a management process through which organization interacts with its customers as well as other stakeholders in order to promote its products or services. The main aim of communication process is to communicate and to satisfy this aspect, some of the tools used by the organization include direct marketing, mass media and other forms of promotion. The communication strategies are designed not only to promote the products but it also creates brand awareness that in turn affects the buying decision of the customers. In addition to this aspect, proper communication plan enables the organization to reach its potential customers that in turn is likely to enhance the profit margin and improve position with respect to other competitors (Smith & Taylor, 2004). The main aim of the paper is to design marketing communication plan for Fiat for its operations in the UK market. The plan mainly focuses on the launch of the new Fiat 500e a battery powered eco-friendly car in the UK market (Fiat, 2015). A communication strategy has been designed for Fiat that makes use of different medium of communication. The strategy designed use advertising, personal selling, PR and other medium of communication. In addition to the different traditional medium, internet has been considered as the main media for communication process by the business in UK (Smith & Taylor, 2004). Context Analysis The context analysis of the paper is divided into two parts including both internal and external factors. The internal factors include analysis of the automobile market and product analysis. External factors includes target segment, analysis of competitors and environmental factors affecting communication plan. Internal Factors Analysis of Automobile Market & Product Market Fiat falls into the car sector of automobile industry that includes private cars of almost all description regardless the type of fuel used. According to SMMT (2013), the total car registration in the UK has raised to 2,476,437 in 2014 as compared to 2013. This indicates the fact the demand for cars have shown a significant increase since 2014. The car market in the UK has grown by around 9.3% upto the year 2013. In addition to this the UK car market is also the second largest as compared to the other European nations. The UK car market has reached a new peak with respect to sale volume as well as value of the new car registration. Figure-1 Growth In Car Registration In Five EU Markets (2013-2014) Source: (SMMT, 2013) Figure-2 UK New Car Registrations (2008-2015) Source: (SMMT, 2013) The figure-2 represents the new car registration in the UK for the year 2008-2014. Form the above figure, it can be analysed that car registration in UK has increased significantly till the year 2012. However, the registration for new cars has increased within the economy in the year 2014, which is mainly due to the rise in demand for latest model of cars developed by different companies. Furthermore, the graph indicates the future growth in the registration of new cars. The market share of car with respect to the type of vehicle has been shown in the figure-3. From the figure it is clear that year 2014 is marked by increase in demand for alternative fuel vehicle. This reveals change in consumer taste and growing desire for alternative fuel cars with greater efficiency as well as low cost (SMMT, 2013). Moreover, it can also be analysed form this aspect that introduction of new latest car models in UK market is likely to have positive impact on the sales volume as well as growth of automobile sector in the long run. Figure-3 Market share (2013-2014) Source: (SMMT, 2013) The UK market share reveals the fact that the market share of alternative fuel vehicles has increased from 1.4% to 2.1% in the year 2014 as compared to the preceding year. The demand for petrol electric vehicle and other plug-in hybrid vehicle has increased, further indicating the fact that customers are more interested in purchasing fuel efficient cars as well as environmental friendly cars (SMMT, 2013). Figure-4 Alternative Fuel Vehicle Registration (2010-2014) Source: (SMMT, 2013) The automobile industry has made an extensive use of advertising techniques in order to project its brand image and different model of cars. The promotional activities of the company also influence the behaviour of the individuals as well as loyalty of the customer’s towards the company. The buyers are influenced by the brand image, price and other specifications of the products. The communication plan makes an effective utilization of the promotional medium to communicate with the customers and stakeholders (OGuinn & et. al., 2014). External Factors Target Segment The growth in demand for the alternative fuel vehicle also implies increase interest towards electric vehicles. Fiat is looking to launch the new Fiat 500e, the battery powered eco-friendly car and is expected to have increasing demand in EU markets. The potential benefit in introducing battery powered vehicle is that it is likely to increase business opportunities in long run. In addition to this, the growing demand for alternative fuel vehicle and the introduction of electric car in market results reduction in dependence on oil. Furthermore, the electric cars are also deemed to be eco-friendly and reduced carbon emission in the atmosphere is beneficial with respect to environmental protection (Fiat, 2015). The Fiat 500e battery powered car belongs to both lower as well as medium segment consumers. However, the market for this kind of car is competitive in nature and is likely to grow more in near future. Therefore, it becomes essential for the organization to plan the communication strategy carefully that is further essential to raise awareness about the new product as well as to attract the potential customers. The market for hybrid car is strong due to the involvement of competitors. For example, Prius, Honda Insight and many others are the hybrid car companies operating with resulting in strong competitive environment. The market for electric cars can be divided into groups that are the consumers and the customers. The consumers are the private buyers of cars who buy car for personal use and the customers are the corporate buyers or the car dealers. The private buyers are the most important factor of communication plan as the profitability of organization depends on them. The target audience belonging to upper middle class are likely to be well educated, informed and so are expected to be prepared to buy eco friendly car and pay higher prices (Andidas, 2003). Environmental Factors Affecting Communication Plan The activities involved in marketing communication depend on different external environmental factors. The communication process involved in the promotion of the new battery car should be designed in such a manner that the external factors have less or no impact over it. The environmental factors are essential to be identified so that the organization can effectively communicate its products to the existing as well as the potential customers. The major factors of the communication environment include economic, technological, social and political aspects (Fill, 2011). In this regard, the external economic factors are beyond control so the concerned organizations need to adapt the factors significantly. The customers are price sensitive and so likely to avoid unnecessary products. Therefore, it is crucial to identify the potential market for electric cars. In addition, the government authority of the nation has strong influence over the business with respect to the laws and regulations framed. A proper awareness about the increase in competition in automobile and information regarding similar product enables effective communication between the company and its different stakeholders. Technological innovations has resulted changes in the automobile industry and to introduce low cost and environmental vehicles (Egan, 2014; Holweg & et. al., 2009). As the UK car market is the second largest in EU and therefore the introduction of new eco friendly can be profitable for the Fiat. In addition to this, the use of internet for communicating offers more opportunity for marketing the new eco-friendly car has been established. Moreover, it improves the communication process between the company and the stakeholders. The use of internet as a communication medium enables the organization to minimise the overall operating cost involved in promotion. The major problem linked promotion of the new car is the existence of strong automobile competitors (Andidas, 2003). Communications Objectives The marketing communication objective has been designed according to the SMART framework. For the communication plan to be successful, it is crucial to communicate proper information to the customers using appropriate channels of communications (Copley, 2007). Specific: The objective of the communication plan is to promote the launch of Fiat 500e battery powered eco-friendly car in the UK market. The main aim of the communication process is to raise customer awareness about the brand and the new product. This will in turn ensure the existence of the concerned company and affects the buying behaviour of the customers. Measurable: The specific objective of the communication plan is measurable. It can be measured by a proper analysis of the market share of the electric car launched by other companies and Fiat. On the other hand, after the introduction of the product and promotion of the new car, if the initial sale increases then it indicates the fact that the promotion of the product was successful. Furthermore, a proper feedback system can also be used to measure the objective. In order to satisfy the objective of communication plan, survey method can be used to collect information regarding the success of the promotion activities. Achievable: The main objective of the communication plan is to make it achievable. This is because the demand for alternative fuel vehicle has increased in recent years. On the other hand, the change in customer’s preference for environment friendly car has the potential to improve the market share for electric cars. Realistic: The communication plan also needs to be realistic for the organization. The concept of hybrid car those are environmental friendly is known to the people of the UK. The electric car is an addition to the type of eco friendly cars. Therefore, it becomes easier for the organization to launch the new product in UK market. Targeted And Timed: The target audience for the communication plan includes the private buyers as well as the corporate buyer and the dealers of car. The objective of the communication plan is achievable within a period of one year. Coordinated Communications Strategy The development of the communication plan is followed by identification of the targeted audiences. The DRIP elements of the marketing have been used to determine the communication strategy. The elements of the model support the objective of communication plan and are helpful in case of launching the new eco-friendly battery car (Fill & Hughes, 2008). Differentiate the Product The difference between the existing and the new product is the key element that differentiates Fiat from other brands. Differentiating one brand from the other provides an opportunity to retain the existing customers and to attract the potential customers to buy the product. Fiat is looking to launch the new battery powered eco-friendly car that is different from other cars because it comes under the category of alternative fuel vehicle and operates with the help of battery (Vashisht, 2005). In addition to this, the electric cars are not only cheaper than the diesel or petrol cars but they are also easier to maintain as compared to other vehicle. The electric vehicles are more reliable because of low maintenance cost. The electronic products requires charger and that is likely to reduce the pressure on increase in oil prices. However, the electric car involves cost of replacing the batteries, which is comparatively less when aligned with petrol or fuel prices (Parliament UK, 2010; Vashisht, 2005). Reinforce The communication plan must be designed in such a manner that can strengthen the brand message. The main aim of the brand is to raise awareness about the new product. This in turn is likely to affect the purchase decision of the customers (Liljenwall, 2004). Inform To Raise Awareness The main aim of information is to make the customers aware about the new product. The awareness regarding the product must include the features of the product so as to educate the customers regarding electric car. The communication plan involves use of different promotion mediums, which includes examples such as advertisements, sales promotion, personal selling and other in order to raise awareness about the new product (Shimp, 2008). Persuade The main aim of the communication process is to inform the customers about the product. The behaviour of the potential customers can be further influenced in order to retain the purchase behaviour of the customers. The buying decision of the exiting as well as potential customer’s can be further changed by providing additional information regarding the new electric car. In order to attain this objective, the concerned company can use social media as one of the medium to directly communicate with the customers. In addition to this, the official website of the company can also be used to promote the new product (Vashisht, 2005). Coordinated Communication Mix The communication mix covers certain set of activities used with the aim of promoting the product to the targeted audience. The communication mix is affected by the type of product and its unique feature that differentiates it from other brand. Advertising Advertising is the paid form of communication tool that is the main element of its use for promoting the new eco-friendly car in the UK market. Advertising is effective medium of communication but is expensive as compared to other form of communication. In addition to this the company has to bear additional costs involved in hiring the ad agency. It is an effective medium to raise awareness among the customers regarding the product. Advertising is expensive but is likely to generate more interest among the targeted audiences (Koekemoer & Bird, 2004). The advertisement campaign of eco friendly car can be through broadcast ads including television that has the potential to reach a large number of existing and potential buyers. In addition, product placement ads can be used to promote the product. The promotion of the product is mainly in between the context of any shows, as it is likely to catch the individual faster as compared to the open advertisements. The improvement in technology has enabled the use of internet for advertisement purpose. The use of digital technology for promotion of car can be useful as it increases the level of information regarding the use of electric vehicle rather than petrol or diesel cars (Sasse, 2008). The ads can be placed in web page that is used mostly by the users. In addition to this, the official web page of Fiat can also be used to extensively promote the use of environmental friendly car. The website is a source of information for the buyers and therefore can be one of the best medium for promotion as well as raising awareness. Furthermore, social networking sites can also be used to provide more detail information regarding the launch of new car in the UK market. The sites are likely to prove beneficial for the potential customers as they are able to enquire in detail about the specifications of the product as well as give their feedback (Holweg & et. al., 2009; Koekemoer & Bird, 2004). Personal Selling Personal selling is linked with direct marketing of the product. The use of sale force as distribution medium is likely to be effective in promoting electric car and directly influences the buying behaviour of the customers. Personal selling of the product is more effective as the customers are able to enquire about the product in details that affects the knowledge about the product. Personal selling of the car is mainly performed by the local dealers of UK. The sellers must be given a prior training so that they are familiar about the new Fiat500e car. Furthermore, personal selling is effective in case of attracting the corporate buyers as they buy the required product in bulk quantity. This in turn has the potential to raise the market share and profitability in the long run (Cant & Heerden, 2005). Personal selling is useful for promoting the high value goods as the representative of the concerned company are able to interact with the customers directly. Promotion of car requires demonstration and that is not possible in through dealing with every single customer. The demonstration of the product is possible in open are and therefore to satisfy this purpose shopping malls is mostly preferred. The sales person is able to communicate with the potential buyers easily as well as a clear display of electric car is likely to influence the buying decision. Moreover, personal skills of the salesperson also are effective in developing long term relationship with the customer’s long term (Cant & Heerden, 2005). Public Relations Public relation aims at developing relation with the customers and is necessary for every organization to reach the target customers that in turn expected to influence the decision. However, public relation is not only developing relation but to maintain it in long run. Public relation is like maintaining interpersonal relation with the customers that is essential for the future growth of the company (Bernays, 2013). The most effective public relation tool is press release that includes communication of information using newspaper, magazine and other forms of interaction. Blogging can also be used an effective medium to communicate with the online target audience. It is helpful in developing two way communications that enables improved public relation. Apart from developing public relation it also allows exchange of information and opinion of the individuals. Blogging is a part of online marketing and is therefore gives an opportunity to reach the new potential customers. Online marketing also enables the customers to share their personal innovative and creative ideas with the company representatives. This in turn helps to develop brand personality that influences the buying behaviour of the individuals (Bernays, 2013). Sales Promotion Sales Promotion is one of the most effective ways of increasing the sale of newly launched electric car at the initial stage of its introduction. Sale promotion is helpful in increasing the volume of sale and improve market share. The method is often useful to reduce the pressure of increase in completion in the market. The main aim of sale promotion is to increase the sale of product but it is not effective in building brand loyalty among the customers. At the initial stage of introduction the company can offer monetary discount to the first twenty customers. Some other effective way includes conducting contest for the customers that is likely to attract the customers and is influential with respect to buying decision. Additional offers like a test drive of the eco-friendly Fiat car is likely to have a positive impact on the customers. Moreover, a practical experience of ride is effective in influencing the buying behaviour of the customers (Kazmi & Batra, 2009). Direct Mail Direct mailing is useful for this campaign as it creates pre-awareness about the product before it is launched in market of the UK. The method is effective in interacting and informing about the various features of electric car and to communicate various offers provided by the company. In addition, the method is useful in attracting the corporate buyers. Direct mail is a way through which the company can provide detail information about launch of new car to the corporate buyers. Direct mailing has been preferred for the promotion of product as it is cost effective and enables the organization to target a particular group of customers (Kotler, 2008). Scheduling And Implementation The deployment of the communication mix and strategy has been explained using the Gantt chart. The marketing communication starts before the actual launch of Fiat 500e into the UK market. The above chart indicates the process of implementation of the communication plan. The plan has been designed with respect to one year operation of the company. From the above Gantt char, it is clear that the execution of the plan takes place in the month of April. The first two months are essential to determine the factors that are likely to affect the communication plan. The identification of the internal as well as the external factors is essential for the successful implementation of the communication plan. In addition to this, the analysis of the automobile sector is also conducted prior to the execution of the communication strategies. The identification of the factors is followed by the development of the communication objective. The objectives are designed according to the SMART framework. The development of the objective is again followed by the development of the communication strategies. The strategies are designed with the aim of communicating the consumers regarding the launch of the new product. The communication mix is designed according to the objective of communication plan. The implementation of the communication requires more time as compared to other steps in the plan. The process involved in hiring the ad agency, developing presentation and finally placing the ads in different forms of media is a longer process as compared to personal selling or sale promotion. In addition to this, various other forms of promotions were used in promoting the launch of the new electronic car including sales promotion, personal selling and direct mailing. The implementation of the various communication mixes requires more time as compared to the previous steps of the plan. The evaluation of the communication strategies is essential to examine the success of communication mix. Furthermore, in order to gain the feedback of the consumers the survey method has been used. Evaluation And Control After the effective implementation of the communication mix strategy in order to promote the launch of the new car in the market of UK, it becomes essential for the company to measure the effectiveness of each individual tools or media being used. Evaluation of performance of individual tool can be conducted either during or after the completion of the campaign in order to gain required feedback from the buyers of the product. A proper evaluation of the communication mix is a crucial factor to analyse the performance and success of the campaign. The post evaluation of the communication plan is necessary to get feedback of the customers that determines the success of various tools and media use for the promotion of the product. The success of the promotion strategy and plan is the degree to which the set objectives of the communication plan are achieved (Applegate, 2005; Koekemoer & Bird, 2004). Aided Recall and Unaided Recall The recall test determines how well the customers retain information about the advertisement. The recognition of a brand determines the limit to which the consumers are aware about the product. Aided recall of a product is linked with recognizing the brand name. On the other hand, the unaided recall test is contrasts with the former recall test. The unaided test is linked with recalling the brand. The recall test is effective in measuring the knowledge of individual with respect to brand name and the product associated with it. The recall test of advertisements has to be conducted after a series of broadcast ads have been telecasted. The test is effective in measuring what the viewers have noticed about the ads. However, the test does not ensure that the viewer is the potential customer of product (Applegate, 2005; Koekemoer & Bird, 2004). Attitude Tests The main aim of attitude tests is to measure the attitude of the target individuals towards the product as well as advertisers. The test is conducted both before and after the promotion of the product to examine influence of brand in changing the buying decision. Further, in-depth analysis of the attitude can be conducted after the broadcasting of the commercial ads. In addition, tracking study can also be used as effective medium to determine the attitude of the individual over a long period of time (Applegate, 2005; Koekemoer & Bird, 2004). Enquiry Tests The enquiry test is effective in measuring the effectiveness of the advertisements published in different forms of media. The consumer’s direct response to an offer presented in the ads measures its effectiveness in influencing the buyer’s behavior. In addition, the test measures understandability of the individual and the direct response with respect to the ads telecasted through different mediums. Split-run is one form of enquiry test that is mainly used in case of print ads by placing different ads under same brand name. The test is mainly conducted before telecasting the ads in media. Split-run is effective in determining the effectiveness of promotion activity (Applegate, 2005). Feedback The success of the communication plan can also be determined with the help of proper feedback system. Feedback denotes the customer’s response towards the brand and the product. The feedback process involves communicating back to the advertiser of the product. The main aim of the feedback system is to get the response of the potential as well as existing customers. Post promotion, feedback system is effective in gathering more information. The feedback system also assists the organization in further planning of future promotion programmes (Smith & Taylor, 2004). The launch of new eco-friendly car model of Fiat is promoted through various forms of advertisement and media. Therefore, survey method is an appropriate method to collect feedback from the potential customers. In order to receive the feedback of different individual the company has to hire private agency that are responsible for conducting survey. The survey method is the appropriate way to predict the public reaction with respect to the communication. The reaction of the public towards the product determines the attitude and behaviour towards the product. The survey method has been preferred for gathering feedback because the method involves low cost and interview of the consumers is helpful in observing the attitude of the individuals (Smith & Taylor, 2004). The post testing of the promotion programme determines the success of the communication strategy. The information gathered through different evaluation methods including aided, unaided recall test, attitude test and enquiry test are used survey method. The survey method is effective in determining the fact that whether the objective of promotion was understandable by the target audiences. A detail analysis of final result of survey determines the overall impact of the communication plan (Smith & Taylor, 2004). The implementation of the communication plan is based on the general principal of planning, implementing, tracking, and adjusting. The communication plan involves developing the main objective with the help of SMART terminology. The planning of the communication plan is followed by selecting proper communication medium in order to communicate the brand message. The implementation of the promotion programmes is then followed by the evaluation process and the development of the feedback system. In order to determine the impact of the communication plan, the survey method is used. The feedback process ultimately determines the success of the promotion programme (Smith & Taylor, 2004). Conclusions Summary of the Communication Plan The communication plan has been designed with the aim of promoting the launch of the new eco-friendly electronic car. The importance of marketing communication has been discussed in the paper that in turn indicates the essence of various promotion programmes. The context analysis has been dived into two sections focusing on internal and external factors. The internal factor includes analysis of the automobile sector in the UK. This in turn is helpful to determine the number of car registration in the past few years. In addition, a study of demand is effective in determining the demand of car in UK market. Furthermore, the examination of the market share reveals the increase in demand for alternative fuel vehicle. The external factors involve identifying the target audience and various environmental factors that affects the communication plan. The target audience of the communication plan involves the private and corporate buyers as well as the dealers. The external environmental factors that affects the communication plan comprises of economic, technological, social and political factors. The objective of the communication plan has been developed according to the SMART framework. The communication plan has been designed according to the DRIP elements of the marketing. The communication mix defines the activities involved in the communication process to promote the launch of Fiat electric car. To attain the objective of the communication plan traditional means of promotion that is advertisement, personal selling, direct mailing, has been used along with the effective use of internet. The use of digital technology is more effective in promoting the product as the users of internet are able to gather more information about the product. Gantt chart has been used to indicate the scheduling and implementation of the communication plan. The survey method has been preferred according to the objective of the communication plan to collect feedback regarding the implementation of promotion activities. Limitations or Issues of Communication Plan The marketing communication strategy is mainly implemented with the aim of raising awareness about the newly launched product. However, providing additional information can prove to be harmful for the organization. The competitors of Fiat in the UK market may take advantage of any sensitive information, if leaked in the process of communication plan. In addition to this the extensive use of sale promotion is likely to deliver wrong information to the customer that in turn has negative impact on communication plan. One of the major issues involved in the communication plan is the miscommunication of the information that affects the brand image of the concerned company. 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