a2 applied business UNIT 10 PROMOTIONAL ACTIVITIES

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1 a2 applied business UNIT 10 PROMOTIONAL ACTIVITIES

2 YEAR 13 A2 APPLIED BUSINESS UNIT 10: PROMOTIONAL ACTIVITIES Coursework Task How much is this coursework worth? Unit 8 Unit 10 Unit 15 Business Planning (Coursework Assessment) 1/3 of the A2 level Promotional Activities (Coursework Assessment) 1/3 of the A2 Level Financial Accounting for Managers (Exam) 1/3 of the A2 Level The coursework task: In this unit, you will look at how promotional activities, such as advertising and personal selling, are carried out by profit and not for- profit businesses. You will investigate how businesses combine promotional activities into a promotional mix and how this choice is vital to the success of a promotion campaign. You will consider how promotional activities are designed to alter customer attitudes, and you will investigate how the cost of promotional activities affects the final choice of promotional mix. You are going to produce a plan of a promotion campaign, working within an allocated budget, for a new or existing business, The business can be a company, a partnership, a sole trader, or a not for profit business (charity or public sector company) Requirement A (AO1): Requirement B (AO2): Requirement C (AO3): Requirement D (AO4): Explains the main objectives of the promotion campaign, the range of promotional activities available to the business and the characteristics of the targeted customers. Explains how the campaign s promotional mix and timings and costs of promotional activities are designed to achieve the campaign s objectives. Analyses the findings of appropriate research to develop a campaign plan capable of meeting its objectives: customer attitudes the AIDA model available business resources. Evaluates the suitability of the campaign s promotional mix, based on an assessment of: the ability of the campaign to achieve its objectives customer attitudes the cost of the promotional activities compared with available resources. 2

3 What is meant by a promotional campaign? The Health Promotion Agency The Health Promotion Agency for Northern Ireland (HPA) is a government organisation. It s main responsibility is to provide leadership and support to people and organisations involved in promoting health in Northern Ireland. It s mission statement is to make health a top priority for everyone in Northern Ireland In November 2004, The HPA launched a promotion campaign to raise awareness about the dangers of passive smoking, the damage caused by indirectly inhaling the smoke produced by other people s cigarettes. The campaign had two phases, with each phase having a separate aim, and targeted different groups involved in this health issue. Phase 1 ran from November to December It s aim was to make smokers and non-smokers aware of the public effects of passive smoking and, in turn, to encourage smokers to stop smoking in the company of others to quit for good. The primary target groups were smokers and parents (both smokers and non-smokers); the secondary target group was the general public. Phase 2 ran in January and February Its aim was to encourage workplaces to introduce a nosmoking policy (in the absence of legislation outlawing smoking in public places). The primary target group was employers; the secondary target groups were employees and the general public. The campaign had several objectives: To increase knowledge of the major health effects of passive smoking To encourage smokers not to expose others to the damaging health effects of their smoking To support employers wishing to implement a no-smoking policy in the workplace To encourage non-smokers to be less accepting of passive smokers To promote the smokers helpline service To increase the number of smokers seriously considering quitting or making an attempt to quit To encourage ex-smokers to stay quit The campaign used a range of promotional activities to achieve it s objectives, including TV adverts, posters, leaflets and information packs. Structure of the coursework To pass this unit you must produce a PLAN for a promotional campaign. You DO NOT have to create the campaign, just plan it. In order to create a plan that is realistic and has a good chance of success, you will need to conduct primary and secondary research. You will need to research the characteristics, behaviour and attitudes of the target market in order to identify their media preferences, spending power, opinions towards the products, etc. So This coursework will be completed in a different order to the others that you have completed You will need to do AO3 before you can do AO2. 3

4 How your work will marked MB1 MB2 MB3 MB4 AO1 A description of the main objectives of the promotion campaign, the range of promotional activities available to the business and the characteristics of the targeted customers. Outlines examples to illustrate some of these. A partial explanation of the main objectives of the promotion campaign, the range of promotional activities available to the business and the characteristics of the targeted customers. Examples are used in context to illustrate some of these. An explanation of the main objectives of the promotion campaign, the range of promotional activities available to the business and the characteristics of the targeted customers. Realistic examples are used in context to illustrate these. A thorough explanation of the main objectives of the promotion campaign, the range of promotional activities available to the business and the characteristics of the targeted customers. Realistic and detailed examples are used in context to illustrate these. (1-4 marks) (5-8 marks) (9-12 marks) (13-16 marks) AO2 A plan of a promotional campaign which includes the campaign s promotional activities and aspects of their timings and costs. A description of how these support the campaign s objectives. A plan of a promotion campaign which contains the campaign s promotional activities and aspects of their timings and costs. A basic explanation of how these contribute to achieving the campaign s objectives. A plan of a promotion campaign which contains a developed promotional mix, promotional activities, their timings and costs. An explanation of how these could achieve the campaign s objectives. A plan of a promotion campaign which contains a comprehensive promotional mix, promotional activities, their timings and costs. An in-depth explanation of how these could achieve the campaign s objectives. (1-5 marks) (6-10 marks) (11-16 marks) (17-22 marks) AO3 Collects some up-to-date data from a limited Selects some up-to-date data from a limited range of sources. range of sources. Uses numerical and/or non-numerical Uses numerical and/or non-numerical techniques on the collected data to provide techniques on selected data to provide a a partial analysis of: partial analysis of: the AIDA model the AIDA model available business resources. available business resources. Uses the results of the analysis to identify Uses the results of the analysis to outline some elements of the campaign plan. the campaign plan. Selects relevant and up-to-date data from a range of sources. Uses appropriate numerical and/or nonnumerical techniques on selected data to provide a partial analysis of: the AIDA model available business resources. Uses the results of the analysis to develop the campaign plan which considers the aims and objectives. Selects relevant and up-to-date data from a wide range of sources. Uses appropriate numerical and/or nonnumerical techniques on selected data to analyse: the AIDA model available business resources. Uses the results of the analysis to develop an integrated campaign plan, showing a detailed consideration of how the campaign plan meets its aims and objectives. (1-3 marks) (4-6 marks) (7-10 marks) (11-14 marks) AO4 A judgement, based upon limited evidence, of the suitability of the promotional activities, taking into account some of the following evidence: the ability of the campaign to achieve its objectives the cost of the promotional activities compared with available resources. Ideas are communicated in a way that is adequate to convey meaning with limited use of technical terms. There are noticeable errors in accepted conventions of written communication. A judgement, with some justification, of the suitability of the promotional mix, having prioritised some of the following evidence: the ability of the campaign to achieve its objectives the cost of the promotional activities compared with available resources. Ideas are communicated with some structure evident with occasional use of appropriate technical terms. There are some errors in accepted conventions of written communication. An evaluation of the suitability of the promotional mix, based on an assessment of: the ability of the campaign to achieve its objectives the cost of the promotional activities compared with available resources. Ideas are communicated using a logical structure with some appropriate use of technical terms. There are occasional errors in accepted conventions of written communication. A comprehensive evaluation of the suitability of the promotional mix, based on a detailed assessment of: the ability of the campaign to achieve its objectives the cost of the promotional activities compared with available resources. Ideas are communicated in a coherent structure with consistent and appropriate use of technical terms. There are few errors in accepted conventions of written communication. (1-4 marks) (5-8 marks) (9-13 marks) (14-18 marks)

5 Task 1: Proposal You need to write a short proposal ( words) outlining the following: Who the business are, what they do, etc Your relationship/ contact with the business A brief outline of the promotional campaign (this should be brief and just give a quick outline of the promotion, you do not need to go into any detail) You will need to submit this to your teacher first, and it must be approved before you can continue with this work You do not need to submit this with your final piece of coursework Task 2: Background research Carry out some background research into your organisation and the needs of the promotional campaign Your research should include the following, and should be appended to your report: The background of the business The legal structure Number of employees and locations Sales revenue, profits/ losses over recent years (Be careful about this one!! It is sensitive information) Products/ services sold Industrial sector Target audience Demographics Socio-economic group Characteristics Attitudes Company strengths and weaknesses (again this might be sensitive) Main competition Budget allocation for the promotional campaign Identify company capability to design, develop and produce promotional materials in house and to what standard Any specific requirements for the business from the promotional campaign Any challenges which your business faces when trying to sell products to potential customers You should keep all of your notes from the interview/ research and you should quote specific statements throughout your work It may be that the information given by the business here, later disagrees with the research which you carry out, this is fine as you can comment on it in your evaluation of the work (AO4) AO1: Explains the main objectives of the promotion campaign, the range of promotional activities available to the business and the characteristics of the targeted customers. Task 3: Aims and Objectives State the overall aims for the campaign and describe them in short, specific paragraphs (Use the HPA As an example; Phase 1, Phase 2)

6 Describe the objectives for the campaign and explain how they might help to achieve the aims of the promotion- You must ensure that they are SMART Task 4: Sales Promotion Possibilities You must explain in detail the relevant sales promotional activities realistically* available to the business. You are not stating at this stage which you will use, but you are demonstrating knowledge. *Realistic- clearly do not suggest that the company should engage with an in-store merchandising activity if the company is a web based sales company. Therefore they must be relevant to your chosen business. Collect examples of competitors promotional campaigns and analyse them. Similar to the analysis of materials in Y12 work. Stick them on a page and write about them, features, strengths and weaknesses. Describe any previous/ current promotional activities which your business has carried out, again try to get examples and analyse them. Task 5: Types of customer and other stakeholders Describe the types of customers and other stakeholders that will be the focus of the promotion campaign. What is their age, sex, location, socio-economic profile, lifestyle group, psychological profile, ACORN grouping? Remember this is from the business current perspective, and will come from your research in Task 2. Any stakeholders involved in the campaign, e.g. agencies that break up the channel of distribution between the customer and the buyer, like an estate agent or travel agent or even a website or ISP AO3: Analyses the findings of appropriate research to develop a campaign plan capable of meeting its objectives: (1) Customer attitudes (2) The AIDA model (3) Available business resources. AO2: Explains how the campaign s promotional mix and timings and costs of promotional activities are designed to achieve the campaign s objectives. Task 6: Customer attitudes This task requires you to collect data, using primary and secondary sources. You must then analyse this data in order to describe customer attitudes. Construct a questionnaire and/ or interview sheet. This should be designed to collect the following data on your target customers Their media preferences and circulation and cost of these resources. Such as television, newspapers and magazines. For example, ask questions about favourite TV channels and programmes, times when they listen to the radio, which newspapers they read. (This should be appropriate to your campaign) Their socio-economic group- this is sensitive, but you could ask for their postcode and then use the ACORN website to classify them Their attitude towards the product/ Buyer behaviour- You could use MINTEL research to gather this information 6

7 Attitudes towards promotional activities. For example, do they prefer 50% off or buy one get one free promotions, do they read leaflets posted through the letterbox? Make sure that you have covered a range of promotional activities and media. You could base some questions on specific examples by, say, showing them copies of printed adverts. You must analyse the data gathered carefully to confirm trends, patterns, exceptions that your promotional campaign will be based upon Present your findings as tables, graphs and charts as appropriate identifying the promotional activities and media likely to be positively received by your target customers Task 7: Available business resources To produce your plan of a promotional campaign you will need to analyse the resources available to your business. Research the key human, physical and financial resources available to your business. Do any employees have skills relevant to the design, production and/or delivery of promotional activities Are there any physical resources present within the business to support the promotional campaign, e.g. specialist equipment, etc What budget is the business likely to be able to allocate and is this flexible? Analyse how the resources available to your business might shape/ impact upon your promotional campaign Task 8: The Promotional Campaign You need to produce an appropriate promotional campaign, taking into account all of your research. The campaign must meet the original objectives set in AO1 and as with Unit 8, you must refer back to how your campaign will meet the aims and objectives and the needs of the target audience. Task 8a: The Promotional Mix You must include the following: The promotional mix that you will use The media that you will use The timing of each promotional activity How and why the promotional mix is appropriate to your target customers The objectives each promotional activity is designed to achieve Task 8b: The Campaign Budget The cost of each component The costs of the media used including some research into appropriate alternatives The usage of the campaign budget Task 8c: Planning the campaign A plan of who is going to do what- internal & external A Gantt Chart to show the timings of the promotional campaign The Gantt chart should include: 7

8 The range of promotional activities that form part of the campaign The duration of each promotional activity The sequence of the promotional activities The busy and quiet times annotated Throughout Task 8 you must refer back to the aims and objectives suitability for the target audience Task 9: The AIDA Model This is a summary of all of your research to date. This could be set out in a table format, but should be quite substantial as it summaries your findings. You should pack this table out with facts to justify your promotional mix. So I m doing this because my research suggests this, etc, etc Attention Interest Desire Action Theory In this column, write up the theory about the AIDA model So Attention means, Interest means. etc Research findings In this column you must say how your promotional campaign applies to the AIDA model How will your campaign get attention from your target audience? AO4: Evaluates the suitability of the campaign s promotional mix, based on an assessment of: The ability of the campaign to achieve its objectives Customer attitudes The cost of the promotional activities compared with available resources. Task 10: Ability to meet objectives & suitability to the attitudes of the customers You will need to explain and justify how your promotional campaign meets your promotional aims and objectives. You need to justify how suitably your plan matches the attitudes of the target customers. So justify here any decisions you made to suit your target audience needs. Task 11: SWOT Analysis Carry out a SWOT analysis on your promotional campaign, drawing out evidence from your research and stating how you will meet the objectives and the needs of the customers Carry out a general evaluation on your proposal, stating why you think the idea would be viable, also consider the limitations of your campaign 8

9 Any places where you have had to make assumptions because data was not available- and the impact of any changes to these assumptions Task 12: Costs compared with available resources A brief cost/ benefit analysis to demonstrate how the costs incurred will benefit the business in the short term and long term- in other words some drivel about how your costs were well spent, but acknowledging that there are other methods which you could have used and the benefits of these alternatives. Also whether there is anything that the business could have produced itself or could do itself if it replicated this campaign in the future. Task 13: Sensitivity Analysis Carry out a sensitivity analysis on your promotional plan, consider what might happen to the viability of the plan if key components are altered. For example, it should be considered what might happen to the viability of the promotional plan if: The timings were altered, is there an alternative timing plan? The cost of the components were altered, would your plan still be viable?- what are the alternatives? A component of the promotional mix failed- would objectives still be met? The business is unable to produce or deliver the campaign The stakeholders involved are unable to fulfil their part of the mix- the impact on the campaign and any alternatives The product loses appeal to customers- the impact of changes on the aims and objectives Task 14: Contingency Planning Contingency plans could then be developed based on the results of your analysis. In other words what is the back up plan Task 15: Bibliography & Presentation State the sources of information which you used in your coursework All pages MUST be numbered, include your name and the unit number 9