Advanced Diploma in Purchasing and Supply Marketing for Purchasers L5-10 Level 5 Senior Assessor s Report May 2009
SECTION A Question 1 : Prepare a detailed promotional plan to launch clothestoreonline.com in the UK. This question tested candidates application of knowledge and understanding of the development of a promotional plan. In addition, it tested candidates ability to apply this knowledge in the context of the case. A recognised approach to promotional planning might typically include the following stages: situation analysis identification of target customers assessment of the target audience set communications objectives create the message (reference to DAGMAR/AIDA) select/tailor the promotional mix (advertising, pr, sponsorships, direct marketing) allocate budget and resources agree media schedule manage and oversee implementation monitor performance against objectives measure effectiveness of outcomes. A number of answers addressed a marketing plan rather than a promotional plan. As a result, these answers contained a large amount of irrelevant material, for example examination of all aspects of the marketing mix. Typically, most answers omitted key elements of a plan and instead described either just promotional offers, for example buy one get one free, or focused on the promotional mix elements of the plan. Both of these were valid and should have been included, however a promotional plan should also include other key elements, for example a situational analysis, identification and analysis of target customers, creation of the message etc. Some answers were more focused on the new product development process, in the context of the development of the new website. This was not required in the question. A large number of answers made little, or in some instances no, reference to the case material. These answers were highly descriptive and generic rather than focusing on the specific issues raised in the case and failed to gain marks. L5-10/SA report/may 2009 2
Question 2 Evaluate the main issues which Clothestore plc should consider when entering a new international market. This question tested candidates application of knowledge and understanding of the micro and macro environmental considerations and other marketing related issues when an organisation enters a new international market. The question also tested candidates ability to apply this knowledge in the context of the case material. A number of candidates structured their answers around the marketing mix elements. Whilst some of the content was valid, better answers focused more on the PESTEL approach. Most candidates who considered each of the PESTEL elements performed reasonably well on this question. political evaluation considered government stability, tax policies, foreign trade policy and regulations economic evaluation considered interest rates, exchange rates, inflation, employment/unemployment, disposable income social evaluation considered demographics, income distributions, lifestyle changes, education levels, language, culture, religion technological evaluation considered availability, adoption, infrastructure reliability environmental evaluation considered protective regulations and standards, consumer demands legal evaluation considered impact of in-country legislation on Clothestore activities Good answers also addressed competitors (using Porter s Five Forces model to good effect) and customers (assessment of market potential, size of market, likely demand). Alternative answers considered other issues in addition such as distribution of goods ordered to customers, costs and cost management, pricing, branding etc. However a number of answers addressed only the aspect of costs. Whilst valid, and some marks were awarded, this is just one of a number of key issues for consideration. Some answers made no reference to the case material and were mainly descriptive of the typical PESTEL considerations which would apply to any organisation. These answers lacked sufficient relevant detail in the context of the case and failed to gain many of the available marks. L5-10/SA report/may 2009 3
SECTION B Question 3 You are the marketing manager of a large consumer goods manufacturer. The goods are sold to consumers through a number of major retailers. Examine the areas where your colleagues in the purchasing department could assist you in the attainment of the company s marketing objectives. This question tested candidates ability to recognise the relationship that should exist between marketing and purchasing, towards the achievement of the stated objectives. Good answers began by discussing typical objectives that may have been set, for example market share growth. A large number of answers were more focused on best practice in procurement and tended to ignore the marketing aspect of the question. Others addressed what purchasing would be responsible for within such an organisation. Neither of these approaches was entirely valid. The answer sought an examination of the areas purchasing can assist in the attainment of the company s marketing objectives. These might include areas such as selection and management of agencies, product design (supporting new product development), product management, product enhancements/improvements, quality management/monitoring, innovation (new materials, processes etc), financial analysis/roi, creating differentiation managing/monitoring performance of distribution channels, cost management/reduction, competitor analysis. Good answers supported their examination with examples from the candidates own experience. Question 4 Marketers face different challenges when marketing to organisations compared to consumers. Evaluate this suggestion and examine the main differences which exist between organisational and consumer marketing. This question tested candidates knowledge and understanding of the differences between organisational and consumer buying behaviour. To some extent, it could be argued that there are some similarities as, ultimately, individuals still make the buying decisions in organisations. Alternative evaluations which presented a differing point of view were awarded appropriate marks, as long as the view was supported appropriately. L5-10/SA report/may 2009 4
Answers were expected to include reference to the differences in buying/decisionmaking process and the influences on buyer behaviour. Typical answers were expected to place approximately equal emphasis on organisational marketing and consumer marketing, though valid alternative approaches were awarded appropriate marks. A number of answers addressed either consumer buying behaviour or organisational buying behaviour, rather than providing an evaluation of whether marketers face different challenges when marketing to organisations compared to consumers. While many answers incorporated some relevant buyer behaviour issues few developed these fully, especially in the light of the evaluation requirement in the question. Too many answers were presented very brief form, for example the answer would make a relevant point, however this is not supported or justified through additional commentary and therefore failed to demonstrate the extent of the candidates knowledge of this area of the unit content. Few answers paid sufficient attention to the decision making unit (DMU) aspect, which is a key difference between consumer and organisational buying. Some candidates appeared to confuse the decision making unit with the decision making process. Question 5 You have been invited to speak at the annual relationship managers conference of an organisation in the financial services sector. Your presentation is called Managing customer relationships: why it is important and how to do it effectively. Explain and justify the contents of your presentation. This question tested candidates knowledge and understanding of customer relationship management, its importance and how organisations apply it successfully. Some answers did not address the customer relationship management aspect and instead discussed a range of marketing activities that organisations typically deliver. A number of answers were more focused on the role of the relationship manager, rather than the broader relationship management concept. Very few answers fully addressed both aspects of the question, ie the importance of relationship management and how customer relationships can be managed effectively. Most focussed on just one aspect and so restricted the number of marks that could be awarded for the answer. L5-10/SA report/may 2009 5
Question 6 Using a service of your choice as an example, examine its three dimensions and explain the importance of the additional three elements of the extended marketing mix in its delivery to customers. This question tested candidates knowledge and understanding of the dimensions of a product/service and how the additional three elements of the marketing mix are used by marketers, in the context of an example service chosen by candidates. A large number of candidates made no reference to the recognised service dimensions, ie basic, physical and augmented. Some candidates appeared to be unaware of the additional elements of the services marketing mix, ie people, physical evidence and process, and instead focused on the conventional 4Ps (product, price, promotion and place). A number of answers addressed the issue of the characteristics of services and how marketers use the marketing mix to manage these issues. Such answers did not fully deal with the issues raised in the question. Some candidates did not select an example and instead provided generic descriptions of how the marketing mix could be used to influence consumers. A few candidates appeared to confuse services with goods in the choice of their example. L5-10/SA report/may 2009 6
APPENDIX: Matrix indicating the learning objectives of the unit content that each question is testing SECTION A SECTION B Question No. 1 2 3 4 5 6 Learning Objective 1 Marketing and the environment 1.1 1.2 1.3 x 1.4 1.5 2 Understanding the market 2.1 2.2 2.3 x 2.4 3 Marketing mix strategy 3.1 x 3.2 3.3 x 3.4 3.5 3.6 x 3.7 3.8 3.9 4 International marketing 4.1 x 4.2 x 4.3 4.4 x 5 Marketing panning & control 5.1 5.2 5.3 x L5-10/SA report/may 2009 7