Unit: Principles of Marketing Assignment title: Shear & Hacksome. March Marking Scheme
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1 Unit: Principles of Marketing Assignment title: Shear & Hacksome March 2016 Marking Scheme Markers are advised that, unless a task specifies that an answer be provided in a particular form, then an answer that is correct (factually or in practical terms) must be given the available marks. If there is doubt as to the correctness of an answer, the relevant NCC Education materials should be the first authority. This marking scheme has been prepared as a guide only to markers and there will frequently be many alternative responses which will provide a valid answer. Each candidate s script must be fully annotated with the marker s comments (where applicable) and the marks allocated for each part of the tasks. Throughout the marking, please credit any valid alternative point. Where markers award half marks in any part of a task, they should ensure that the total mark recorded for the task is rounded up to a whole mark. Marker's comments: Moderator's comments: Mark: Moderated mark: Final mark: Penalties applied for academic malpractice:
2 1 Part (a) Award up to 5 marks for sensible points showing the breadth of the marketing role, in terms of business strategy and planning. Many factors could be discussed, including: 1. Impacts directly on sales and profits 2. Planning the business strategy (e.g. new product development, entering new markets, rationalising out of date products, creating excitement with new promotions, etc.) 3. Responsible for relationship marketing via working with other departments (e.g. sales) 4. Responsible for finding out about customers needs (e.g. via market research) and ensuring customers needs are satisfied Part (b) Many aspects of the microenvironment can be discussed, including customers, employees, competition, media, shareholders, suppliers, internal factors to the company (e.g. skills, resources, people). Award up to 5 marks for each of 4 in depth discussions about differing aspects of the microenvironment. 5 For example: Customers (e.g. DIY stores) They need to be in regular contact with customers to ensure they are meeting their needs e.g. making regular sales calls and meetings, excellent customer service, ensuring they have the products in stock, resolving complaints quickly and being market orientated. Employees Employing staff with relevant skills and experience is essential. Ensuring staff are aware of all the features and benefits of the new range, ensuring staff are motivated. Media Positive media attention can help sales for an organisation (or its products) and negative media attention can hamper sales. Organisations need to manage the media - e.g. with regular news releases and media briefing, perhaps endorsement of the product by a professional, mentions or product placement on prime time Page 2 of 7
3 DIY shows, etc. Competitors Ensuring their range is differentiated from the competition - e.g. by highlighting its heritage, quality of manufacture, lifetime guarantee, Britishness, USPs, etc Part (a) Award 1 mark for each advantage of personal selling in a B2B scenario. Advantages could include: 1. It is a two-way process i.e. the salesperson can alter the message as they get feedback from the customer 2. It is good at building relationships 3. You can convey more information than by using other forms of marketing communications e.g. advertising 4. You can address customer concerns, answer questions, etc. i.e. it is interactive 5. It can help stave off competition e.g. by building trust, helping make decisions where a lot of money is involved Part (b) Award 1 mark for outlining each of the 10 stages and 1 mark for to the scenario for each of the 10 stages. 5 The 10 step sales process is used in a sales situation where you have an existing relationship with a customer or expect to have one. This particular process is used when you have a wide variety of products that you can focus on and you have good knowledge of the customer s needs. The example below relates to a sales representative making an appointment to see a garden centre manager to tell them about the new Heritage Range. Step 1 Agree an appointment. Explain what it is going to be for, the deals on offer and why it is of benefit to them to have a meeting. Step 2 Planning and preparation gather information about the customer s buying habits, to plan which products are the most likely to be relevant. Step 3 Greeting the customer make a good first impression. Q2b continues on the next page Page 3 of 7
4 Step 4 Relationship building and setting out an agenda reaffirm the relationship and then set out an agenda for what needs to be covered in the meeting. Step 5 Gathering information dig for the hard facts and find out everything you need to know from the customer (e.g. demand, merchandising and delivery requirements, etc.) Step 6 Agree and prioritise needs chat the customer through any issues e.g. a sales or return policy for the new range), agree which ones are most important to them and prioritise those needs. Step 7 Making proposals make any proposals that you can to satisfy the needs of the customer. Step 8 Close the sale gain commitment from the customer to the sale. Step 9 Next steps explain what will happen next and how long it will take. Explain what they need to do, if anything (e.g. placing the order). Step 10 Administration complete all necessary paperwork to get the ball rolling, as well as to make note of all the information you gathered in the conversation This task addresses assessment criteria 2.1 by inviting candidates to identify and explain a suitable marketing mix. Candidates need to use the 4Ps as S & H is a product-based business. (1 mark) Candidates should develop each element of the 4P mix, ensuring that each of the elements is correctly addressed according to the context of the case study. Many examples are possible and marks should be allocated on the basis of a maximum of up to 6 marks for each of the 4Ps. Suitable ideas have been outlined below based on targeting adults who want to buy the gift set. These could form the basis of the discussion. Q3 continues on the next page Page 4 of 7
5 Product Candidates could talk about any aspects of the product of appeal the heritage branding, the benefits of buying a quality product, the actual product (stainless steel, made of quality wood), augmented product e.g. lifetime guarantee). Candidates can also talk about the benefits of personalising the gift with the recipient s name. Place Candidates are expected to talk about the place where the gift set may be sold e.g. top end garden centres and department stores (i.e. more exclusive places to keep with the high quality image and positioning). Price The price would be premium e.g. 50 reassuringly expensive for the keen gardener. Promotion Here candidates can discuss any aspect of the marketing communications mix e.g. celebrity endorsement by top gardeners, advertising via traditional media, use of social media sites to drive interest, editorial in gardening magazines, S & H website where people can order personalised gift sets. 4 This task addresses assessment criteria 2.2 about factors affecting buyer behaviour and the decision making process. Part (a) There are many factors affecting business and individual buying behaviour award up to 15 marks for five well explained differences (3 marks for each factors explained). Examples include: Businesses plan their buying in advance in a more rational manner, whereas consumers tend to buy more on impulse. Businesses tend to place an order against a specification with a purchase meeting a business need or for reselling (in the case of garden tools). In many cases, the consumer makes the decision to buy a product and they then buy the product. A business purchasing process goes through a formal approval process. The person that makes the final purchase may not have formulated the decision. Q4 continues on the next page Page 5 of 7
6 The relationship between a vendor and a business can be a significant factor in the buying decisions for the company. Consumer is encouraged to compare prices and offers between companies and does not base buying decisions on ongoing relationships. 15 Other factors influencing individual consumer buyer behaviour include culture (attitudes and beliefs) and social status (will a gift from the Heritage range show I can afford expensive items and be gratefully received by the recipient?) Part (b) There are five stages in the consumer purchase process award up to 2 marks for each of the five stages. A brief example is outlined below: Problem/Need Recognition it is my mum s birthday and she is a keen gardener so gardening equipment is a good idea. Information search search online and also around DIY stores and hear about the new Heritage range on the radio and see an article in a gardening magazine. Evaluation of purchases weigh up whether to buy one competitor product versus the heritage product based on factors such as price and quality Purchase decision buy the gift set online and the product is received within 3 days and looks to be of a good quality. 10 Post purchase behaviour mum reports that the gift set is a very good purchase and so the giver is pleased with the decision to buy. Page 6 of 7
7 Learning Outcomes matrix Task Learning Outcomes assessed 1 1 Yes 2 4, 5 Yes 3 2, 3 Yes 4 2 Yes Grade descriptors Marker can differentiate between varying levels of achievement Learning Outcome Pass Merit Distinction Understand key terms and concepts in marketing adequate level of robust level of Understand and apply the concepts associated with marketing mix Understand the marketing of products and services Understand and apply marketing communication Understand the relationship between sales and marketing adequate and adequate level of adequate and adequate level of sound and consistently robust level of sound and consistently robust level of highly comprehensive level of detailed and highly highly comprehensive level of detailed and highly highly comprehensive level of. Page 7 of 7
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