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CIM Customer Comms

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ASSIGNMENT/PROJECT FRONT SHEET CIM Membership Number: 38459985 Module Title: Customer Communications Level: Foundation Certificate in Marketing Accredited Study Centre: Bournemouth University Candidate Declaration: “I confirm that I have applied, to all tasks, the CIM policies relating to (please tick relevant boxes to confirm): Page count Plagiarism Collusion 1 2 3 4 5
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Page 1: CIM Customer Comms

ASSIGNMENT/PROJECT FRONT SHEET

CIM Membership Number:

38459985

Module Title: Customer Communications

Level: Foundation Certificate in Marketing

Accredited Study Centre:

Bournemouth University

Candidate Declaration:

“I confirm that I have applied, to all tasks, the CIM policies relating to (please tick relevant boxes to confirm):

Page count ☐ Plagiarism ☐ Collusion ☐

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Module: Customer Communications

Assessment session: June 2016 CIM Membership number:

This assignment/project is the result of my own independent work/investigation except where otherwise stated. All other sources are referenced and a bibliography is appended.

The work submitted has not been previously accepted in substance for any other award and has been submitted in accordance with the set template requirements. I further confirm that I have not shared my work with other candidates”.

Tick to confirm ☐

I hereby give consent for this assignment/project, if accepted, to be used by CIM for the dissemination of best practice and, or, other appropriate purposes, on the understanding that the assignment/project is anonymised.

Tick here to opt out ☐

ASSIGNMENT FRONT COVER

Insert assignment front cover on this page (not included in page count)

Refer to the CIM’s Page Count Policy for Assignment document on myBU

Candidates must indicate the total number of pages (those included in the page count) used for each task, this must be indicated on the front cover of the assignment. Each task must be started on a new page.

One page is equal to one A4 ‘side’

All text must be 11 point Arial, Calibri or Times New Roman, including tables, diagrams and charts (which must not be compressed). This template is formatted in 11 point Calibri font.

NB: Candidates must NOT include their name in any part of the assignment

Report

To: Marketing ManagerFrom: Marketing ExecutiveTitle of report: Customer CommunicationDate:

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TABLE OF CONTENTS (for the report)

Organisation Summary 4

Introduction 5

How to segment the market for one service within your organisation 5

How developing closer relationships with customers in one of those segments could improve their lifetime value to the organisation 6

Two ways that the organisation may gain feedback from lapsed customers 6-7

How feedback from lapsed customers, alongside other customer satisfaction data could be used to manage customer relationships and how CRM technology could be used to supplement this process 7-8

Benefits of effective external marketing communications to Audi 9

How understanding the characteristics of your target market could help you to prepare an external marketing communications campaign for Audi 9-10

Outline of Audi’s marketing communications objectives, and why it is important for these to fit with their corporate objectives 10

The range of different marketing communications tools available and why it is important to use a variety of these in an external campaign 10-11

How one might use the following tools within a marketing communications campaign, outlining the key issues to be considered for Audi: PR, Direct Marketing, Online and Social Media 12-13

Summary 13

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Assessment session: June 2016 CIM Membership number: 38459985

TASK 1: ReportTask 1(a) – Organisation Summary AudiAudi is an automotive company with headquarters in Ingolstadt, Germany. They are a globally recognised and utilised brand, specialising in the production of luxury cars. The brand belongs to the Volkswagen Group AG, (Aktiengesellschaft; translates to corporation limited by share ownership, equivalent to Ltd. In the U.K). The group is owned by shareholders and can be traded on the stock market.The brand’s production output in 2014 was totalled at 1,741,100 units. In 2012 Audi amassed a revenue of €48.771 billion, with profits of €4.353 billion. In 2015 their worldwide sales increased by 3.8% compared to 2014. Audi employed 68,804 individuals in 2012. The brand has 11 production facilities in 9 countries, strategically placed to minimise costs lost in transportation of goods. They have constructed over 285 dealerships in the United States alone, and are expanding their reaches and building efficiencies in all of their markets.

Audi designs, engineers, manufactures and distributes luxury cars for the worldwide marketplace. Their cars range from compact super minis such as the Audi A1, to their more powerful Audi R8 super car. They have a number of subsidiaries, including Ducati and Lamborghini who produce motorcycles and high-end sports cars. Vorsprung Durch Technik (Advancement Through Technology) is the motto of the brand and the core aspect, which drives forward their business ventures. They also offer financial services to their customers incorporated in the purchase of their vehicles.

The markets that Audi dominates are predominantly B2C segments, which I will be focusing on. They distribute their cars through dealerships to the public and have also begun to integrate e-commerce into their online websites, to provide a hassle-free ordering service for their customers. Audi’s extensive range of products allows for them to cover a huge target market, however their cost of products is higher than competitors, resulting in the cars being marketed at predominantly ABC1 consumers. This is different to Daimler, who is the father organisation of Mercedes- Benz, as they supply engine parts and various transports such as trucks to B2C segments. This report concentrates on the U.K and U.S markets.Audi’s top three main competitors are Mercedes-Benz (revenue: €73.6 billion in 2014), BMW (Bavarian Motor Works, €80.401 billion in 2014) and Lexus (Toyota revenue: €202.2 billion in 2014). These brands offer predominantly similar ranges of cars, and each have their own production chains. I have chosen to compare these brands as the other competition is within the branch of the Volkswagen group (such as Porsche) and many parts of the cars are shared across the brands. The competition between Audi and BMW is incredibly fierce, with the latter brand underselling Audi solely by 429 cars in the first two months of 2014 in Europe. The figures show that Audi is not turning over as much revenue as BMW, Mercedes Benz or Lexus as in 2014 they amassed a sum of €53,787 billion. However, this is on a worldwide scale. Audi focuses its marketing and production for the European market.Audi ranks as the fourth best brand on consumer reports amongst other car brands, with Lexus being ranked as number one. Mercedes Benz and BMW were found further down the list coming in at number twenty-one and number ten. It has also been found to be one of the most reliable brands due to the quality of manufacturing and tailored servicing experience, associated with the slight premium of the car in comparison to Mercedes Benz’s and BMW’s comparative vehicles. The brand’s revenues are forecast to grow by around 3-4% in 2016, with profits steadily remaining in proportion to their previous years of trading. They have begun targeting a wider audience through their new ranges of products, which appeal to a broad spectrum of clientele. Other previously popular products such as the Audi TT have been revamped and remarketed to change their image and attract more consumer interest. The reason for their need to focus on customer communications is due to their bad press coverage over the VW group emissions scandal, resolving attitudes and perceptions of the brand image.

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Introduction The following report will outline and demonstrate various marketing materials and processes implemented by the Audi brand. Numerous consumer-brand relations are investigated and deconstructed to show the inner workings of the brand in question. The importance of these customer relationships is underlined with statistical information, emphasising the core values brands must invest resources into. The report then moves on to demonstrate the importance and effectiveness of the range of tools available in the marketing world and the impact they have had on the automobile marketing world. Task 1(b) – How to segment the market for one service within your organisation

Market segmentation allows for the product managers to understand and quantify the market opportunities available for a certain product within Audi. The benefits of this process include a tailored matching of customer needs, higher levels and opportunities for market growth, effective promotion and lastly a chance at gaining a higher share of the market.

The product I will be focusing on is one of Audi’s most popular cars, the A3. Segmentation is purely the filtering of audiences for whom the product is targeted. Primarily, for this global brand, the market would be segmented through a fairly broad category. This would be geographic segmentation, where product managers would identify the viable international markets within which the product could be marketed. This can be influenced by governmental restrictions upon automobiles and comparative profit margins between MEDC’s and LEDC’s. Customer locations would have a direct impact ton the geographic market segmentation process. Rural areas are compared with urban areas to determine where the product would be more successfully targeted as a higher population density results in a higher yield of purchases. Advanced systems such as ACORN are used to determine viable market opportunities, combining geo and demographic into geo-demographic segmentation, involving the use of the following data segments shown in figure 1.

Upon the completion of geographic segmentation the product managers would progress into a more concentrated segmentation process; demographic segmentation. This involves the investigation of the target market through the categories of gender, age, occupation and socio-economic group. This provides the company with more in-depth information upon which to ratify judgements. It is important for automobile companies to target a certain socio-economic group, as the cars price will heavily influence purchasing decisions. Gender segmentation allows for Audi to specialise their products marketing towards the appropriate category and filter their marketing techniques, predominantly through advertising towards the preference of the gender. However, this is still a fairly broad and untargeted stage.

Behavioural segmentation is an advanced stage of segmentation, which builds the foundations for the final stages of market targeting. Here Audi would investigate the customer’s rate of usage, which would be the purchase frequency of the brands vehicles. Furthermore, benefits sought are an important base to investigate, upon which the market can be defined, which in this case would potentially be compactness and luxury. Customer loyalty levels, and their readiness to purchase the brand or a new vehicle of a similar category to the A3 are also crucial factors, which come into play through the audience’s behavioural characteristics.

The final category or base through which Audi could segment their A3 car would be through psychographic segmentation. The audience’s personalities, lifestyles, attitudes and strictly social classes would be taken into consideration. This would, combined with the previous methods, allow for the brand to construct a finalised market plan, as well as a pen portrait of the ideal target consumer.

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Figure 1: The New Data Environment, Caci.co.uk

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Task 1 (c) –How developing closer relationships with customers in one of those segments could improve their lifetime value to the organisation Creating close relationships with customers is a key factor in the underlined working of a successful business and marketing plan. Peter Drucker (2006) quoted to Forbes magazine: ‘The purpose of a business is to create a customer and grow that customer’. The idea that the customer is always right is the steel frame upon which various marketing systems are mounted. Understanding the long-term value of the customer is key to improving the general customer experience, and in turn customer lifetime value to the brand.

Here Audi’s focus could be on the customers in the behavioural segment. Audi would take each of the four main components including benefits sought, loyalty levels, readiness to purchase and rate of usage into account. Loyalty levels are especially important, as this is a by-product and integrated factor with relationship building. Customer relationship marketing is used to develop the loyalty of the consumer. Building upon this loyalty is vital as can be seen with the success of companies such as Apple and Rolex, where stringent quality and customer communication consistency are regarded as priorities. Customer lifetime value is grown through the encouragement to repeat purchases and try new products released by the brand. Realising the customers own internalised values and catering towards these also increases loyalty dramatically, as customers would feel connected to Audi’s mission statement, especially if it is continuous. Here a relationship is formed, encouraging the customers to return and facilitate future purchases, increasing lifetime value.

This process is also identified as customer relationship management and even direct marketing. Audi could differentiate itself through the informing of customers through direct marketing about price promotions and various other benefits, which are sought. Customers in this behavioural segment are also searching for rewards from brands and organisations. Correct identification of these sought benefits leads to a maintained perception of quality and in turn, influences the building of the relationship between consumer and brand. Cindy Chung (2005) underlines that discounts decrease the consumer’s opinion of quality of the product, emphasising that correct choice is necessary in order to prevent deterioration of the brand image and consumer relationship. To maintain this healthy relationship, quality can be maintained through the use of free gifts to incite the consumer to feel as though they achieve a purchasing deal.

Customer relationship marketing utilises the relationship previously built with the consumer in order to work out the finer workings of the benefits and disadvantages of close customer engagement. Data can be compiled from direct marketing schemes and customer’s previous engagement with the brand. It would enable Audi to investigate which customers are too costly to maintain contact with and those with whom it makes sense to continue providing service and attention towards. This direct marketing features high levels of personalisation, which cause the consumer to believe to be thought of as more of a valued individual, as opposed to a figure of money. Despite this it is globally acknowledged that pre existing customers generate 80% of the profits, with new customers only 20% (Marshall, 2013). Weak emotional attachments are formed and the customer internalises the brand as one to return to due to trust and loyalty created over time. This increases revenues from revisits to the brands product offerings and elevates the consumer’s lifetime value to the brand.

In general, to build long-term relationships honesty is key to the consumer. Audi would need to reassure the consumers that their best interests are fulfilled and regarded as important. Building this relationship creates a strategic alliance with the customers business. This relationship may take time to configure and construct, but it provides a simple and effective way to gain greater revenues from current customers and improve their lifetime value to Audi.

Task 1(d) – Two ways that the organisation may gain feedback from lapsed customers Reaching out to lapsed customers is less simple than reaching out to those who are current customers of the brand. They are less easy to contact, and have a lower usage rate of Audi’s websites, if not a completely dissolved rate of interactivity. The first and foremost effective way of gaining feedback is

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through a personal outreach via their stated preferred method of contact. This could be through a direct email or preferably with a phone number. Within this email Audi could create a personalised message, which can resonate with the customer and increase their willingness to correspond with the brand. A link can be included to a survey online, which the individual, outlining reasons for their decreased interest and purchasing with the brand, can fill out. The phone call is more likely to resonate with the individual on a personal level and have a higher success rate in encouraging them to submit feedback as they are placed on the spot and are talking to another person. If the technique is mastered correctly one can even establish a higher level of respect for the brand, whilst also obtaining useful information, as opposed to irritating the consumer (BusinessBalls.com 2016).

Recorded customer details become very handy when mining for feedback. The sending of friendly emails or newsletters to these customers can have a built in feedback service, with links to a survey, contact numbers and even a feedback bar within the newsletter that allows for the customer to enter feedback directly and send it off to Audi. This can be placed at the end of a newsletter with a call to action phrase such as “Write to us now” or “Call us now”. This method is less intrusive than the previous method, asking exclusively for feedback for the brand. This feedback bar could also feature a beneficial enticement, suggesting that the customer can be entered into a prize draw to win a product or service from the brand upon supplying their information.

Task 1(e) – How feedback from lapsed customers, alongside other customer satisfaction data could be used to manage customer relationships and how CRM technology could be used to supplement this process

Customer loyalty can often initiate spontaneously, but companies usually need to nurture, listen to and develop relationships with the consumer before this loyalty can arise. Taking a structured approach to creating this beneficial exchange based relationship is far more effective than just relying on luck and a random selection of customer engagement. In terms of large companies such as Audi, the use of CRM systems (Customer Relationship Management) provides them with a large number of advantages to aid their effectiveness in maintaining and managing customer relations. Peppers (2004) stated that enterprises that build stronger individual customer relationships enhance customer loyalty. Understanding the customer base leads to an increase in business and this is done through obtaining data.

Customer relationships are managed through generally improving the service of the brand, in turn improving the overall customer satisfaction. The feedback that is obtained from previous customers can offer clear insight to improve this customer service. The primary reason for obtaining feedback is to improve the customer service system. Retaining previous customers is proving to be more and more difficult as well as obtaining and winning new customers. In order to create this needed experience, the brand must pose questions to the customers and be offered their insight in order to create a tailored experience. This feedback can even in turn provide information on how to be better than competitors, which when acted upon will increase the customers loyalty to your brand and increase their satisfaction levels, improving their relationship with the brand. This can be seen within this closed loop cycle in figure 2, as feedback from consumers is shown to be one of the core elements within the marketing process.

Feedback also builds upon the customer relationship through allowing the brand to measure the level of customer satisfaction. This can be done through a number of methods including the Net Promoter Score, created by Frederick Reichheld (2003). This is used in most surveys and features a scale, which allows the consumer to select the level of service they feel they receive and lets the brand quantify the responses through a multiple choice system. This provides the organisation with a valuable insight into the consumer opinions that are featured, pushing the brand to improve various segments of their business, which have not met the expectations of the consumer. Upon completion, these improvements can be featured in an email in the form of a “You said, we did” format. This will

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Fig 2: Marketing Feedback Loop, ozone-online.com.

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subsequently create positive associations within the customer’s mind, with connotations of being taken care of and catered for emerging. This feedback reply loop nurtures the customer relationship, in turn bringing future purchases with the brand.

Through listening to customer’s feedback the brand can pick out and put their finger on certain issues that are arising such as the customer’s level of happiness with their received products. Replying and listening to this unhappy customer can improve customer retention levels; as if the customer is pleased with the service they receive they are more likely to stick with the brand. If they are not listened to or are unhappy they are likely to start to explore other options available, causing the brand to lose out on profitable business. Happiness of customers will directly have an effect upon their inter-brand relationship, being solved through the use of feedback systems.

Feedback from customers, existing and lapsed, provides tangible data, which can be deconstructed and used to suggest business decisions. This feedback provides rich date that can help the brand understand which business decisions to plan to make, rather than act impulsively on decisions. If the users are all complaining about one thing, this should be brought to managements attention and resolved in order to keep the customers feeling happy and taken care of. Business decisions can also depend on these ratings, especially those that are high scores as the brand can identify and exploit these individuals, profiting from their high level of spending with the business. Exploiting these people involves building strong bonds with them over time, developing trust, in turn potentially encouraging them to spread information through word of mouth to others, spreading the reach of the business. Wharton School of Business (2012) found that referred customers have a 16% higher lifetime value to the company, and Tony Nissen (2013) suggests that referral is 30% more effective than other marketing strategies. Feedback allows for these close relationships to form, creating customer satisfaction and in turn highlights market opportunities, from which further customers can be drawn.

CRM is a digital tool, which has helped large, and small businesses alike to maintain an up to date log on their customers. CRM is a customer relationship management technology, which consolidates all customer information into a database that the brand can look into quickly and easily, as opposed to struggling with paper files, used in the past. This tool also records all customer interactions through a large array of media, allowing the management to look into their previous queries, purchases and much more information. The software entails a number of advanced systems, one of those being marketing automation. This system can automatically send sales prospects to viable customers at appropriate timings, increasing the relationship level between the consumer and the brand. Without CRM it is difficult to maintain relationships with customers, especially for large brands with many contactable individuals. CRM makes it easier to perform all of the discussed objectives in maintaining a customer relationship, segmenting the customers into groups based on many different criteria including geographic, demographic, behavioural and psychographic categories. CRM furthermore allows for the brand to establish relationships based on profitability. The consumers who use the brands resources such as telephone calling and complaints procedures can be slowly disconnected from the brand, where as strategic marketing can be put in place for the consumers with highest spending potential, targeting them with personalised emails. This is beneficial for the business in terms of revenue and also for the consumer, who feels personally approached through this marketing scheme. This is called data mining and its effectiveness is backed up through Pareto’s principle (Joseph Juran, 1940), where the filtering of audiences allows for the organisation to maximise their profits by targeting the 20% of people who provide the 80% of profit; also known as the 80/20 rule. CRM would generally allow for companies to stay in touch with their customers, taken note of their problems and have suggestions put forward of how to ensure their satisfaction.

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TASK 2: ReportTask 2(a) –Benefits of effective external marketing communications to Audi External marketing communications have been used since the post 1950’s business boom, being processed over time into a selling mechanism by the 1970’s. It has advanced with technology to insert tailored messages to a pre-researched public, insinuating the purchase of products. Today social media is utilised alongside other research methods, allowing for companies to create the image of being a close, contactable, friendly individual. Marketing communications are placed within the fourth ‘P’ of promotion in the marketing mix.

It is the transmission of information between a business and customers, potential customers, suppliers, investors and society at large in the company’s external environment. Transmission of messages into this external environment can be done through a huge number of media including magazines, televisions, outdoor advertisements, newsletters, websites, social media and email. The availability of all of these media results in the benefit of Audi having the ability to select a number of appropriate environments within which to market it self, upon selecting the appropriate categories from its segmentation process. Through undertaking research marketing managers at Audi can establish the appropriate mediums, which are viewed by the desired audiences. If the communications were effective then Audi would be able to establish a greater knowledge amongst societal members of the brand. Furthermore, customers are very inviting to receive information from the businesses, which they are interested in. These good relationships and upheld communications with shareholders hold very important roles in the conservation of customer loyalty with Audi as a brand. This subsequently forms relationship marketing where the consumer’s relationship is regarded as the primary importance.

Effective external marketing communication is a medium through which Audi can upkeep its reputation amongst society and reinforce levels of trust through a constant stream of communication. Maintaining a line of communication with consumers and various other entities is key in maintaining the brand’s image and can help to stamp out negative publicity from other brands or various networks. External marketing communications would also allow for Audi to influence their customer’s perceptions, as well as the general public, at the same time as creating a call to action. Through a tedious crafting of messages the marketers can position the brand, as a premier choice once the individual would reach the conviction and purchasing stages. Lastly altering the public’s perceptions of the brand over time through the use of these communications, if damaged, can slowly heal the brands reputation. Investors are often enticed through effective external brand communication, which can further benefit the organisation through the increased interest and flow of capita (Evans, 2016).

Task 2(b) –How understanding the characteristics of your target market could help you to prepare an external marketing communications campaign for Audi Understanding the target market can simplify the extensive reach of the external communications campaign. Filtering the number of people allows for the brand to decrease unnecessary expenditure on various components of the campaign, which will not necessarily target and influence the desired audiences. Different customers also have different needs and the marketing campaign may be entirely wasted if it does not hit the correct group. Understanding the target market characteristics from the previous segmentation will allow for the company to efficiently examine gaps in the market, which need to be filled with certain products. Upon this decision being made, the promotional messages being sent out to the audiences will be tailored specifically to these people via their demographic or geological backgrounds. The messages can also be further tailored to smaller groups through the use of psychographic and behavioural

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Fig 3: Luxury Car Buyer Filtering System, Mediataplatform.com

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studies, to determine the exact trends, benefits and calls to action are likely to spark interest with the consumers.

There are a very large number of buyers of luxury cars; therefore it is important to apply filters, which resonate with Audi’s brand audience. Once a filter is applied the targeted group is smaller, but the understanding of their characteristics can allow for the marketing material to feel far more targeted towards them, therefore improving effectiveness and minimising costs.

Without investing time into the process of creating a target market analysis, the target market may never even become aware of your product as it will never reach them, wasting valuable time and resources (Selvaggio, 2014). There is no need to worry about tweaking your product or service once the audience is established and can be assured that the information is reaching the correct people.

Task 2(c) – Outline of Audi’s marketing communications objectives, and why it is important for these to fit with their corporate objectives Audi heavily rely upon promotional facets in order to inform, persuade and influence their target audience base. There are a number of objectives, which come under the ‘P’ of promotion, including advertising, sales promotion, direct marketing and public relations.

Different tools from these promotional mixes are suited to different tasks. Television broadcast and digital advertising are Audi’s two main facets used to disseminate information through to their target audiences in order to convey their advantages over other brands in the same sector. 55% of the media budget spent in 2010 was on these two types of advertising for various range models. The lack of PR use indicates that Audi are not particularly attempting to reinforce brand loyalty amongst older existing consumers, where as they may be targeting potential customers who are looking to switch from their current vehicle brand to another one. Young (2010) emphasises that the brand has pushed in 2010 for very ‘tongue in cheek’ ads, amongst an incredibly competitive environment. These provide information on why an Audi is better than other brands available, targeting new customers, potential customers and appeasing previous customers through the reinforcement that Audi is the best available. The company wishes to promote itself as a luxury automotive brand at the pinnacle of safety and technology. Audi has set a marketing objective of becoming the world’s number one premium brand for motor vehicles. This objective is to run up to 2020, featuring a new slogan on Audi’s website, tagged as a main priority held close to the brands values: “We delight customers worldwide”. The following is featured on their corporate website (Marketing Strategy, audi.com)-shown in bold black font:

It is important for these objectives, quoted in their mission statement, to intercede with their brands corporate objectives as the brands image is tied hand in hand with the consumer’s desires. The consumer purchases Audi for a specific reason, which is inevitably tied into their core values. The brands corporate values are shown below (Corporate Strategy, audi.com)- shown in bold red font. These are fairly similar as they define one another, creating a definitive set of objectives for the campaign to reach, which is establishing Audi’s brand positioning as one of the best car brands in many perspectives, as well as sustainability and emotional relations between the customer and brand being highlighted. This will nurture an effective and appropriate campaign for Audi.

Task 2(d) –The range of different marketing communications tools available and why it is important to use a variety of these in an external campaign The use of a range of marketing tools can also be identified as a promotional mix. This encompasses five primary key tools that the brand can use to communicate the advantages of its services and products to the market: advertising, sales promotions, public relations, direct marketing and personal selling. Brands have to be able to show the products and services that they are providing to customers in order to captivate their target audiences and generate revenue over time. Each of these tools

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We define innovation

We create experiences

We shape Audi

We live responsibilitySuperior financial strength

Continuous growth

Top image position and customer mix

Leaders in innovation

Attractive employer worldwide

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compliment one another and work hand in hand effectively, less so on their own as they are all better suited and designated to different tasks in the promotional mix. However, for the tools to be especially effective, they must be accompanied by generous amounts of research underlining appropriate promotional objectives and opportunities in order to appeal to these target audiences. Below the various roles each tool takes are discussed, underlining the importance of using a mixture of these to boost the reach and effectiveness in an external campaign.

The first of these is advertising. This popular promotional tool serves a number of purposes. The first of these is marketing and promoting the brand or product. Advertising is a vehicle, which can create an image of the brand within the consumers mind, forming not necessarily a conviction to purchase, but a sincere interest in the brand or product. Advertising can also create awareness around a product to the consumers, establishing the primary knowledge of a company. Advertising creates awareness by exposing brands to customers (Huang, 2012). Furthermore, advertising is used to encourage individuals to purchase products through educative and informative processes. Lastly the brands overall existence is repeatedly reinforced. Research shows that people need to see an advertisement at least 7 times before is starts to mean anything to them (CIM, 2009).

Public relations are used to constantly raise the organisations connotations amongst the general public. Public relations are also used to influence the audiences that you are targeting through middlemen such as industry analysts or spokespersons for the brand or organisation. The main difference between advertising and PR is the fact that public relations are much more personal and targeting the individual, as opposed to circles that share common interests (Newlands, 2014). This preciseness also builds credibility as the audience will be more attentive listening to an official spokesperson, rather than advertising, which can often be ignored due to a lack of trust, thinking it is simply selling you something.

Sales promotions can wire into the consumers buying behaviours and patterns, which will in turn drive the success of the entity forwards through boosting sales over various periods of time. They also have the ability to bring in new customers, as they will be interested in the brand through the chance to save money. Using promotions of products in turn also promotes the brand as they are seen and talked about by more people. They can also be planned over a long period within a specific market segment, not always showing immediate results but holding a large share of the consumers wallet over time (Chand, 2014). These are fairly mass targeted, similarly to advertising campaigns.

Direct marketing is a promotional tool which many businesses use in order to increase their customer bases engagement with the brand. It can also be personalised towards an individual, transmitting tailored information through a direct medium such as email or telephone calling. It also helps build relationships with customers, whilst saving the brand large sums of money. It can be tracked and monitored in order to establish the level of its effectiveness and ROI.

Finally, personal selling is a flexible tool that uses personal communication, similarly to PR, in order to convey a convictive and educational message across to the target audience. Using personal selling where an individual meets face to face with a consumer (B2C) reduces wasted effort through advertising, which does not convict individuals to purchase products. Instead it tends to compliment advertising through providing a far more deep understanding of the products benefits to the consumer, where they have the option of posing questions. Advertising and sales promotion techniques mostly invoke desire; where as the return on sales of personal selling is far higher (Lakhotia, 2015). Personal selling encompasses all of the functions of other the promotional mix as the salesperson can undertake them all personally. However it is costly and impossible to do with large numbers of customers. Therefore, it is very clear that the use of a variety of these tools is necessary to cover a large number of tasks and goals for the brand. Each of them provides their own features, which demand a melange of the others in order to perform effectively as a grouping.

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Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 2(e) –How one might use the following tools within a marketing communications campaign, outlining the key issues to be considered for Audi: PR, Direct Marketing, Online and Social Media Audi has been a subsidiary of Volkswagen Group since 1966, producing the first of its mass-market vehicles shortly after the majority of the shares of the organisation were acquired. The grew substantially over the following years, dominating the prestige motor vehicle category due to their high level of performance and research into innovative technology. Audi have used a lot of interesting marketing ploys in the past, setting targets for other companies to keep up with. Their advertising has been particularly popular and effective, however there are far more tasks facing the marketing team.

Recently, Volkswagen Group has fallen from a reputable brand image into an untrustworthy pothole. In September 2015, the Environmental Protection Agency found that many VW cars had been sold with a “defeat device”, a software that allowed diesel engines to detect when being tested, changing the cars performance to cheat the tests (Hotten, 2015). This happened to be directly after a marketing campaign and launch into the U.S market with the brand, as well as Audi, proclaiming that these cars were eco friendly. Over 11,000,000 cars were affected worldwide. Trust was severely impacted, as the levels of nitrogen oxide pollutants was 40 times above the U.S legal limit. Mr Mueller replaced Mr Winkertorn as C.E.O of the company and quoted “My most urgent task is to win back trust for the Volkswagen Group- by leaving no stone unturned”. The campaign released would have to focus upon improvements Audi is making and feature credible, trustworthy information, which consumers will trust.

Public relations are an effective tool at managing interpersonal relations between the brand and the consumer. They are often utilised to build back trust during situations similar than this. The very statement by Mr Mueller was broadcast and publicised in various newsletters and informative outlets online. PR can rebuild Audi’s relationships with consumers through various media. Firstly, an official press release from the brand about changes being put in place can in turn influence the consumer’s opinion of the brand. Furthermore, media outlets will absorb these press releases from the brand, churning them out as news, magazine, television and radio coverage of the brand. 86% of the public in the U.K admitted to trusting national television, with other media scoring highly also (BBC Globescan, no date). The messages shown by these media networks will be trusted more by the consumers than those directly from the brand.

The use of PR will also undoubtedly minimise and repair damage done to the brand through slowly diverting the attention of the consumers to other factors and benefits shown by the brand. This can be done in the campaign through publicising green initiatives, which are believable and gradually rolled out, acclimatising the consumer to the new brand image Audi is attempting to construct. PR also includes magazine releases, which will be required to shape the consumers opinions through informative articles. These are also targetable through the correct choosing of magazines within which to place the material. Sponsorship under PR can also distract the consumers from the previous rut Audi was lowered into by its parent organisation. Audi has been previously involved with numerous sponsorships of sporting events and technological initiatives, such as its previous involvement with Sony PlayStation and Italian football teams. PR and marketing executives can shift their focus on initiatives for the environment, repositioning the brand from the previous polluting car manufacturer into a caring, eco-friendly organisation.

Due to Volkswagen Groups decreasing level of sales, dropping in December 2015 by 5.2% (Waesch, 2016), capital in the company has decreased. Utilising PR can save the company from spending copious amounts of money on other promotional tools such as advertising or personal selling. Direct marketing is also an effective tool at tackling Volkswagen Group’s lack of free capital issue. It is also very cheap yet effective at repositioning the subsidiary brand of Audi in the consumers eyes. This targeted one-to-one marketing method would enable the brand to further supplement the campaign by informing the consumers of initiatives taken by the brand to compensate for their wrong doings. The personalisation of the emails will also in turn rebuild the customers brand loyalty and piece together

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Page 13: CIM Customer Comms

Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

the broken down wall of trust created by the emissions scandal through showing the brands efforts to contact its customers. Direct marketing is mostly used to build relationships with customers through building a certain level of dialogue, which is not seen in simple advertising measures. The use of direct marketing is very available and quick to tackle issues in the economic and press environment that Audi encounters. The ability to instantly contact customers and inform them of issues facing the company is more open and likeable by the consumer than being misinformed. Certain topics can be tracked and monitored, such as the green initiative, which would be effective in rebranding Audi. The consumer’s reactions and opinions are followed and Audi can foreshadow which topics to discuss and customers to reach out to in order to rebuild their credibility and bring sales back to previous profitable levels.

In this modern society Internet is a tool trusted and used by all people across the world. Marketers must understand this tools full power in order to exploit the most effective campaign processes. Organisations maintain strong profiles online in order to increase the customer’s interest and propensity to purchase their goods. Online initiatives are also very cost effective. Using online resources will also allow for Audi to track the results of their online website marketing communications activity. This could be in the form of advertising new eco-friendly cars or covering recent efforts made by the brand to establish its new brand image. The use of online also allows for demographic targeting to be used, where various people can be chosen for the online advertising to be shown to. Another advantage is the ability to use global marketing, where SEO (search engine optimisation) can entice millions of people to view the material and be influenced by the brand (Blunt 2016). Google analytics lets the brand monitor what the consumer finds interesting through monitoring ‘dwell time’ and focus more of their material in effective areas, decreasing costs. Pushing the appropriate information can increase trust amongst the consumers.

Social media is another marketing tool which could let Audi maintain a direct level of contact with their audiences, listening to their issues and resolving queries directly with them either on public posts or privately on confidential messaging systems. To tackle the trust issues the brand can respond with new challenges they are undertaking in order to clarify the business and decrease levels of misinformation spread to the consumer and general public. This direct contact between the consumer and social media will allow for trust to be rebuilt. Trust is also reinforced with the ‘humanisation’ element, where the brand uses an individual to interact with people, rather than an automated system, which is not personalised. Studies have shown that social media has a 100% higher lead-to-close rate than outbound marketing, and a higher social media following tends to improve trust and credibility of your brand (DeMers, 2014). However, the brand would have to gradually increase its social media appearance due to the backlash they will immediately face from aggravated consumers. This would be in the form of negative complaints on posts put forward by the brand asking for the consumer consensus. Large amount of time would also have to be invested in training staff of how to deal with copious amounts of customer complaints in order to preserve the professional image of the brand.

In the broad spectrum, Audi have suffered under the wing of their parent organisation, Volkswagen Group. The creation of a marketing communications campaign in order to veer the brand away from further negative publicity is necessary. In this campaign, encompassing PR, direct marketing and online tools, various documentation and promotion of changes within the organisation are necessary in order to reposition the brand image. Audi will have many issues to overcome but through the use of subtle and gradual marketing insertions into the public’s quotidian lives, the brand has the chance to rise again and represent premium quality and advancement through technology.

Summary This report has deconstructed Audi’s values, delving into their relations with consumers and various tools, which can be used to alter the perceptions of the public in the brands favour. It is apparent that with the current economical situation of Audi’s father group, Volkswagen Group, drastic measures must be undertaken in their marketing communications world in order to uphold the brands core values.

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Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

TASK 3 HEADING – Presentation (12 slides max., 100 words in speaker’s notes per slide)

Task 3(a) – Outline two smart objectives and a clear message for the marketing communications campaign explaining why it is important for campaign messaging to be clearly defined

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Speaker’s notes

Each of the counterparts from the smart objective format must be combined in order to pose an obtainable, reachable and measurable objective. Organisations often set objectives, which are simply unobtainable, immeasurable and unspecific, leading to the demoralisation of staff. Smart objectives can resolve these issues and create a healthy manageable business schedule and targets.

The first objective is important following the previous issues that Audi has been dealing with, and arises out of their need to alter their brand image in order to return sales to previous levels and higher. Green technology is important to invest time into, as shown by the success of Elon Musk’s Tesla brand, selling 180,000 models in one day (Stoll, 2016).

This secondary objective will involve the use of a number of marketing tools in order to boost purchases by existing and potential customers. The third quarter is the appropriate time period as this is when orders for the next years models initiate.

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Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 3(a) – Outline two smart objectives and a clear message for your marketing communications campaign explaining why it is important for campaign messaging to be clearly defined (continued)

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Speaker’s notes

The message in marketing communications campaigns is the means by which the brand can communicate their beliefs and what they stand for across to the public.

Ensuring clarity is key as there are many different brands and other campaigns, which can affect the quality and effectiveness of Audi’s message.

Clarity also allows for brands to decrease the complexity of their advertisements, in turn minimizing the risks of consumers becoming misled. Consumers are also often confused by the use of inappropriate emotional cues. This can be seen in advertising which uses fear, humour, animation, music and sex in ways to spark outrage amongst the consumer population. These types of advertisements can receive a large quantity of coverage but can often cause large amounts of damage to the reputation of the brand. This has been seen for example with NHS advertisements for their “Get Unhooked Campaign”, being banned in the U.K causing damage to peoples opinions of their brand image through the excessive use of fear (Metro, 2007).

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Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 3(a) – Outline two smart objectives and a clear message for your marketing communications campaign explaining why it is important for campaign messaging to be clearly defined (continued)

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Speaker’s notesIt is key to balance the two different approaches to forming a clear message here as emotion and rationality both ascertain the effectiveness of relating to a car brand. Rationality is important for high-involvement purchases such as those of a car, where one must establish a clear and concise argument for how the brand is beneficial. Audi is offered as a solution to the on-going pollution around the world, resulting in peace and a green sustainable planet through the decrease of our carbon footprints.

Emotion is used in order to pull on the heartstrings of the consumer, and stimulate their sympathetic functions in order to convict them to purchase the Audi product shown to them in the campaign.

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Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 3(b) – Recommend an appropriate marketing communications mix for your campaign, explaining how the mix reflects the needs and interests of the target audience

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Speaker’s notesIt is important to establish to the target audience that Audi as a brand is interested and involved in the same things they are. The target audience will feel as though they can warm up to the brand much easier and it is of key importance to understand their characteristics, as well as their overall media consumption. In the following slides the various media usage is looked at, identifying the most efficient and effective marketing resources to utilise.

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Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 3(b) – Recommend an appropriate marketing communications mix for your campaign, explaining how the mix reflects the needs and interests of the target audience (continued)

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Speaker’s notesAdvertising bears many advantages as a marketing promotional tool as it allows for a widespread dissemination of the brands message. This can target a large quantity of the target market and stimulate their emotional senses, as well as inform them, convincing them that the brand is ideal for them through relating to their preferred media. Advertising can be placed accordingly within the target audiences preferred media channels, allowing for them to feel connected with by the brand.

This connection can also be established with the help of social media, in which case it acts as a personality for the company, forming an emotional bond, leading to preference and perhaps conviction to purchase.

Page 19: CIM Customer Comms

Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 3(b) – Recommend an appropriate marketing communications mix for your campaign, explaining how the mix reflects the needs and interests of the target audience (continued)

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Speaker’s notesDirect marketing simplifies the promotional process by allowing a brand to directly address the topic in question with the exact target audience it requires. The benefit here is that these people targeted, who are eco friendly professionals, tend to be short of time, with little ability to conduct research or watch lengthy videos about the products. This way of appearing in their mail system or through the post allows for a quick breakdown of important information.

Public relations act as a direct medium through which the organisation (Audi) can permeate their official messages to the public. This is internalised as a trustworthy source of information, especially if broadcast or publicised by a third party media network.

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Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 3(c) – Produce an outline schedule for your campaign, explaining the reasons for decisions taken

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Speaker’s notesThis excel spread sheet encompasses the campaign structure over the 6 months run time allocated to it. I have decided to work with a U.S plan due to the availability of data for advertising and marketing spend.

Page 21: CIM Customer Comms

Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 3(c) – Produce an outline schedule for your campaign, explaining the reasons for decisions taken (continued)

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Speaker’s notesThe aim of the campaign is to increase the general awareness of the E-Tron technology by 40% and to increase the total annual sales by 5%.

The campaign is spread over 6 months from the moment of writing this report until the end of the fiscal year for automobiles when orders are taken for 2017 models. In this duration advertising is implemented in a heavy manner throughout, in order to build momentum and to keep the consumers informed of the technology shorter excerpts are featured later on to save on cost. The television placements run throughout the week during prime time evening television once every night. There is a heavier presence of outdoor and online advertising due to the fact it is far cheaper than advertising in television broadcast media.

Public relations, direct marketing and social media all come into play throughout the campaign in order to trickle a sense of humanization within the brand. This will allow for the target audience to better relate to the campaign and feel personally targeted. Direct marketing is spread over a monthly schedule in order to keep the consumer satisfied and not bombarded with marketing material, doing negative damage to the brand.

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Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 3(d) – Create an outline budget for your marketing campaign, explaining the reasons for decisions taken

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Speaker’s notesHere you can see the campaign budget spread sheet analysis. The total budget spend increments from the previous years marketing budget in relative quantities. This is due to the needs of sales to be pushed by 5%. The start with heavy marketing will allow for the public to become aware of the product available to them, with 2/5 of the previous years total budget allocated to the E-Tron campaign, in order to establish awareness amongst at least 40% of people, resolving the negative connotations with the VW scandal.

Page 23: CIM Customer Comms

Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 3(d) – Create an outline budget for your marketing campaign, explaining the reasons for decisions taken (continued)

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Speaker’s notesThe combination of these two budgeting approaches allows for the previous SMART objectives to be fulfilled, whilst providing a reasonably quantifiable level of cost spreading amongst the pre determined media. In a large organisation such as Audi, campaigns of such high expense are a normal occurrence when launching new products to change the brand image. The large spend on this one sector is justified by the need to correct previous negative coverage of the brands wrongdoings, introducing this new eco friendly engine into its range of cars.

Page 24: CIM Customer Comms

Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 3(e) – Describe how the effectiveness of your campaign can be monitored and evaluated, and explain why this process is important

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Speaker’s notesTracking campaigns is a necessity in order to show the benefits of the marketing communications to financial directors and CEO’s of the company, where it is not possible just to aggregate a guess that the campaign performed well.

Page 25: CIM Customer Comms

Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

Task 3(e) – Describe how the effectiveness of your campaign can be monitored and evaluated, and explain why this process is important (continued)

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Speaker’s notes

Tracking traditional on digital forms of marketing communications like advertising (television and print) is far more difficult than tracking more modern technologically advanced methods of marketing. Focus groups and interviews are required to gain feedback and this can often not be a representative sample. However direct marketing and social media are digitally traceable through the use of third party software such as Google Analytics in order to view your reach and effectiveness.

Page 26: CIM Customer Comms

Module: Customer Communications

Assessment session: June 2016 CIM Membership number: 38459985

REFERENCE LIST for all three tasks (not included in page count)

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Houston-Waesch, M. (2016) Volkswagen sales drop for First time in 13 years. Available at: http://www.wsj.com/articles/volkswagen-group-sales-drop-for-first-time-in-13-years-1452275074 (Accessed: 13 April 2016).

Huang, R. and Sarigöllü, E. (2012) ‘How brand awareness relates to market outcome, brand equity, and the marketing mix’, Journal of Business Research, 65(1), pp. 92–99. doi: 10.1016/j.jbusres.2011.02.003.

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Jowett, C. (2013) Mobilize customer advocates for referral marketing. Available at: http://influitive.com/why-advocate-marketing/customers-and-referral-marketing/ (Accessed: 12 April 2016).

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Lakhotia, G. (2015) Importance of personal selling. Available at: https://knoji.com/importance-of-personal-selling (Accessed: 13 April 2016).

Ltd, C. (2013) The New Data Environment Available at: http://acorn.caci.co.uk/what-is-acorn (Accessed: 11 April 2016).

Marshall, P. (2013) The 80/20 rule of sales: How to find your best customers. Available at: https://www.entrepreneur.com/article/229294 (Accessed: 12 April 2016).

metrowebukmetro (2007) Ban for ‘scary’ anti-smoking ads. Available at: http://metro.co.uk/2007/05/16/ban-for-scary-anti-smoking-ads-373666/ (Accessed: 14 April 2016).

Mindruta, R. (2014) Measuring ROI: Understanding the true value of digital touch points. Available at: https://www.brandwatch.com/2014/07/measuring-roi/ (Accessed: 14 April 2016).

Newlands, M. (2014) Why public relations is important for your business. Available at: http://www.inc.com/murray-newlands/why-public-relations-is-important-for-your-business.html (Accessed: 13 April 2016).

Our green world (no date) Available at: http://www.startwithabook.org/booklists/our-green-world (Accessed: 14 April 2016).

Peppers, D. and Rogers, M. (2004) Managing customer relationships: A strategic framework. Available at: https://books.google.co.uk/books?hl=en&lr=&id=K4AVfoJX6wMC&oi=fnd&pg=PR3&dq=feedback+in+managing+customer+relationships&ots=S2sNbxchfP&sig=VlnW_d6bVo9CohWODUo5aPYflGg#v=onepage&q=feedback%20in%20managing%20customer%20relationships&f=false (Accessed: 12 April 2016).

Platform, M. (2015) Custom audiences Available at: http://www.mediataplatform.com/website/solutions/custom-audiences/ (Accessed: 12 April 2016).

Posted and Timlin, H. (2026) Subscribe to our Blog. Available at: http://blog.buzzreferrals.com/2012/07/referral-marketing-stats-you-need-to.html (Accessed: 12 April 2016).

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Reichheld, F.F. (2003) The One number you need to grow. Available at: https://hbr.org/2003/12/the-one-number-you-need-to-grow (Accessed: 12 April 2016).

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Stoll, J.D. (2016) Tesla’s model 3 electric car gets requests for 180, 000 vehicles on First day of ordering. Available at: http://www.wsj.com/articles/teslas-musk-model-3-orders-surpassed-115-000-within-24-hours-1459483890 (Accessed: 14 April 2016).

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Young, A. (2010) BMW vs. Audi: The best media plan on Four wheels?. Available at: http://adage.com/article/media/advertising-bmw-audi-media-plan/145990/ (Accessed: 12 April 2016).

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