External Assessment NCFE Level 2 Certificate in Business and Enterprise (601/0048/5) Marketing for business and enterprise Paper number: THIS IS NOT A LIVE PAPER Assessment window Sample This booklet should be used for Tasks 2, 3, 4, 5 and 6 only. Centre number Learner number Surname Other names Learner declaration: I confirm that the work contained in this external assessment is all my own work. I have not copied work from anyone else. I have not copied work directly from handouts/internet/textbooks or any other publication. If I have used a quote, then I have referenced this appropriately. Learner s signature: Date: Grade achieved To be completed by the Examiner All the material in this publication is copyright. NCFE
Time allowed 4 hours to complete Tasks 2, 3, 4, 5 and 6 Instructions for learners Complete your personal details on the first page. You have 4 hours to complete Tasks 2, 3, 4, 5 and 6. After 4 hours you ll hand in your responses to Tasks 2, 3, 4, 5 and 6 and you will not be able to work on them again. Write your responses to the tasks in the spaces provided. If you need more space you may use extra paper. Make sure any extra paper is labelled clearly with your name, centre number and learner number and is securely attached to the appropriate answer booklet. If you write your answers using a word processor you must make sure that any printouts are labelled clearly with your name, centre number and learner number and are securely attached to the appropriate answer booklet. If you write your answers using a word processor you must make sure that you clearly record the relevant task along with your answer to ensure that the Examiner is able to grade it. You MUST attempt all of the tasks to address all assessment criteria fully. You cannot achieve a pass grade unless you meet the required standard in all the tasks. All of the work you submit must be your own. You must sign the learner declaration on the front page of this assessment paper to declare that the work produced is your own. At the end of the assessment hand all documents over to your Invigilator. Guidance for learners Make sure you re familiar with the assessment criteria and grading descriptors for this unit. These are included along with the tasks in this external assessment paper. If you re aiming for a merit or distinction it s important that you re familiar with what these grades require as you work through the tasks. Read the tasks carefully and make sure that you understand: o what you need to do to complete the assessment o what you need to submit o how much time you need to allow for each task. The Invigilator will explain where you will save your work between each external assessment session. Resources You may use all of the material given within the external assessment paper but no other resources should be taken into the examination room You re not allowed to use the internet during the external assessment. All the evidence you submit must be your own work. Make sure all your work is clearly identified with your name, centre number and learner number. 2
External assessment - Tasks 2 6 Before you attempt tasks 2 6 you must read the case study below and relate this to your responses. You may also use your knowledge of other businesses or enterprises to illustrate your responses. Queens QC Ltd Business background Queens QC Ltd, set up by 4 college friends in 1998, during the growth of computer consoles. Each partner has sound knowledge of computer game programming, business, marketing and finance. They employ additional staff, but still do the day-to-day running of the business. Turnover last year was 3m, with net profits of 1m. Product: computer games for consoles, such as Xbox, PlayStation and PCs. Price: 49.95+ per game and then reduced later when new games are introduced. The product Fantasy role-playing games, for both male and females. There is no upper age limit to the games and due to the mild content they have a PEGI rating of 7+. The partners know that there is a large market for games consoles and these are continually being updated and therefore they want to develop a new game every time a new console is updated. Competitors Microsoft EA Games Promotion Queens QC Ltd have found it difficult to match their competitors who can afford more extravagant marketing campaigns. Instead they have had to rely on more traditional methods such as exhibitions, local newspaper and radio adverts. Exhibitions however have proved to be very successful as many of their customers attend these as they know they will gain access to new releases, special offers and be able to talk to other gaming enthusiasts to share tips and recommendations. They also have a website and a Facebook page which they use to promote: competitions, where customers can win vouchers or free games in return for leaving some feedback 3
special offers such as bundle deals and reduced prices flash sales where customers can access exclusive prices. The website and Facebook page have been very successful and sales have increased, especially where there has been a flash sale, encouraging customers to buy quickly, before the deal ends. Research and development Whilst promoting their games at exhibitions the directors have spoken directly with their customers and carried out brief interviews. From this research they have found that more and more people own a smart phone (Android and iphones) and like to play games on their phone when out and about or at home. Therefore to increase revenue they are considering branching out into the Apps market. They believe they have the skills and experience to be successful in this market. They will still continue to produce new games for consoles. The business partners have therefore held a meeting and come up with some ideas: 4
Responses % Queens QC Ltd have also carried out some initial research through their website and have published the results below: 100% 80% 60% 40% 20% 0% 38% Analysis of market research 62% Would you pay for an App? 81% 19% Would you pay for lives? 6% 94% Would you pay to remove Ads? 54% 46% Would you pay for an upgrade? Questions asked via website 78% 22% Would you play through Facebook? Yes No They have over 1.5m followers on Twitter. The product Using their initial research, they made the following Apps available: Queens QC Ltd App Store Apps with no advertisements Apps with no advertisements but with in app purchases In app purchases: 5 lives 10 lives 2.99 FREE 0.69 0.99 50 lives 2.99 100 lives 5.00 500 lives 15.00 5
Promotion They promote their games through: social media (Facebook, Twitter and their own website) in game advertisements to promote the Apps. The use of social media and their website has had some success. 3 months after the launch, they have gained many new customers through recommendations. All the feedback received has been positive and the 5 and 10 lives In app purchases has exceeded all expectations. This may be due to the feedback and recommendations through Facebook and Twitter for these lives. Not many recommendations, however, were made for the 50, 100 and 500 In app purchases and as a result the sales for these were very poor. Conclusions The Directors are keen to increase the sales of their console games and apps and would like your help to review their market research techniques and promotional methods. 6
Task 2 You must ensure that your work in Task 2a addresses assessment criteria 2.1. You can refer to the assessment criteria after each task. 2a Now that you have read the case study identify the various target markets for Queens QC Ltd. You should consider who will buy the games and who will download the Apps. You may want to give reasons why the 4 Directors know these target markets are suitable for their business. Assessment criteria Pass Merit Distinction 2.1 Identify the various target markets for an organisation Learners will identify the various target markets for an organisation. Learners will justify reasons why the various target markets are suitable for an organisation. No distinction criteria for this AC. 7
From the information in the case study, it is clear that the games and apps are suitable for both males and females and there is no upper age limit. These groups will clearly have different needs and Queens QC Ltd will need to be aware of this to meet the needs of all their customers. You must ensure that your work in Task 2b addresses assessment criteria 2.2. You can refer to the assessment criteria after the task. 2b In the space below compare how their needs are different. For example how will the needs of the younger generation compare to that of the older generation etc. Give as much detail as you can. Assessment criteria Pass Merit Distinction 2.2 Compare the different needs of the target markets for an organisation Learners will compare the different needs of the target markets for an organisation. Learners will compare in detail the different needs of the target markets for an organisation. No distinction criteria for this AC. 8
Task 3 Businesses use various methods of research to discover the needs of their target markets. These include: primary and secondary research, quantitative and qualitative research and research conducted by external companies. You must ensure that your work in Task 3 addresses assessment criteria 2.3. You can refer to the assessment criteria after each task. 3a In the space below describe the methods Queens QC Ltd have used to research their target market for both the console games and the Apps. Give as much detail as you can. You may wish to discuss: how effective these have been where improvements could have been made. 9
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3b Using your knowledge of market research methods describe some other research methods they could have used. Within your answer explain why these methods would be useful. You may also refer to businesses or enterprises you are familiar with to help illustrate your answer. 11
Assessment criteria Pass Merit Distinction 2.3 Describe how an organisation would research their target market Learners will describe how an organisation would research their target market. Learners will describe in detail how an organisation would research their target market. Learners will describe how an organisation would research their target market showing critical judgement. 12
Task 4 You must ensure that your work in Task 4 addresses assessment criteria 3.1. You can refer to the assessment criteria after each task. Explain the marketing mix of both elements of the business (the console element and the Apps element). Give as much detail as you can. You may wish to include in your answer an explanation of how the marketing mix is different for the two elements of the business. 13
Assessment criteria Pass Merit Distinction 3.1 Explain the marketing mix Candidates will explain the marketing mix Candidates will explain the marketing mix in detail Candidates will explain the marketing mix perceptively 14
Task 5 Social media and the internet are now widely used by business and enterprises to promote their business, using methods such as blogs, Facebook, Twitter and LinkedIn etc. You must ensure that your work in Tasks 5a and 5b address assessment criteria 3.2. You can refer to the assessment criteria after each task. You may refer to businesses or enterprises you are familiar with to help illustrate your answers. 5a Using the space below explain why some businesses and enterprises prefer these methods. You may choose to: make comparisons between social media and the internet, with traditional methods, eg TV adverts, leaflets etc. discuss the positive and negative impacts they can have on the business or enterprise. 15
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5b Using the information from the case study: explain how Queens QC Ltd have used social media and the internet to promote their business discuss how these methods could be used more effectively to promote the Apps and the console games. 17
Assessment criteria Pass Merit Distinction 3.2 Explain the impact of social media and the internet on promotion Candidates will explore the impact of social media and the internet on promotion Candidates will clearly explain the impact of social media on promotion in comparison to traditional methods Candidates will explain the positive and negative impacts of social media on promotion 18
Task 6 Queens QC Ltd have used various methods to market their console games and Apps, such as exhibitions, local newspapers, adverts on radio stations, Facebook, Twitter and their website. You must ensure that your work in Task 6 addresses assessment criteria 4.1. You can refer to the assessment criteria after each task. In the space below evaluate how effective these methods have been in promoting the console games and Apps. You may wish to include: recommendations to show where improvements could be made for example how could they use Facebook more effectively etc references to other businesses or enterprises that have been able to use these methods effectively other methods that Queens QC could have used and how. 19
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Assessment criteria Pass Merit Distinction 4.1 Evaluate the effectiveness of different marketing methods Candidates will evaluate the effectiveness of the marketing of the business or enterprise methods Candidates will coherently evaluate the effectiveness of different aspects of the marketing of the business or enterprise methods. Candidates will indicate where improvements may be made Candidates will comprehensively evaluate the effectiveness of different aspects of the marketing of the business or enterprise methods. Candidates will show critical judgement and indicate where improvements may be made What you need to hand in after your external assessment At the end of the timed external assessment you ll hand in the following work to your Invigilator: this external assessment paper any extra paper you have used and securely attached make sure that all your work, including any extra paper, is clearly identified with the task number, your name, your centre number and your learner number. Make sure you ve signed the learner declaration on the front page of this external assessment paper. Any remaining time left can be spent checking your responses to Tasks 2, 3, 4, 5 and 6. This is the end of the external assessment. 21