CAM Diploma in Marketing Communications

Transcription

1 CAM Diploma in Marketing Communications Direct Marketing and Sales Promotion Academic Session June 2008 Exam Marking Scheme This marking scheme has been prepared by the Senior Examiner for the purpose of giving guidance to the CAM marking teams. It should be noted, however, that the marking scheme is just one element of guidance that is given to markers and therefore must not be treated as the definitive guide to how marks are allocated. This marking scheme is issued to TUTORS ONLY as additional support to assist with the delivery of CAM programmes and to enable tutors to enhance feedback and guidance they give to students. THIS MARKING SCHEME MUST NOT BE DISTRIBUTED AND THE CONTENTS MUST NOT BE DISCLOSED TO ANY PERSON OTHER THAN TUTORS FROM CIM ACCREDITED CENTRES. Please also note that the marking schemes for individual modules will differ in style and format because as stated these are guidance documents used by the module examination team. CAM Foundation 2008

2 CAM DIPLOMA IN MARKETING COMMUNICATIONS DIRECT MARKETING AND SALES PROMOTION PART A Compulsory TAMPOPO Tampopo is a small UK chain of restaurants located in London, Leeds and Manchester. The first Tampopo opened in Manchester in 1997 and was inspired by the founders travels in Thailand, Indonesia, and Malaysia. Their aim was to bring the best street food from across East Asia, for example Chicken Satay (Malaysia) and Wok Fried Pad Thai (Thailand), to the UK. The key element of the food is its freshness; ingredients are delivered from the source country to the restaurant within 48 hours. East Asian food is versatile, nutritious and quick to prepare. Moreover it is healthy: high in complex carbohydrates, low in fat and essentially free from additives, whilst most, if not all, recipes make use of fresh vegetables. The emphasis on fish and only a small quantity of meat is in keeping with current dietary advice. Tampopo has a trendy, hip image and a typical customer would be a 25 to 45 year old urban dweller with a professional job. They will have travelled extensively, possibly during a gap year between school and university, and in many cases they have travelled to India, Thailand and Cambodia. Hence they have a real sense of adventure and are interested in trying new things and may have tried extreme sports. They are classified as early adopters and will own a plasma screen television, laptop, latest ipod and personal video recorder, such as Sky Plus. Tampopo is something of an institution in the North, praised as a fashionable noodle bar with divine fast food, which is the best yet as western noodle bars go. With a fast growing band of appreciative southern followers, Tampopo looks set to win over a whole new audience in their quest for the perfect bowl of noodles. However, in the last year competition in East Asian cuisine has intensified. Restaurant chains Wagamama and Yo! Sushi have established themselves in most major UK cities and are providing some major competition for Tampopo. Tampopo has conducted very little marketing activity, preferring to rely on word of mouth and restaurant reviews in local papers. The above data has been based on a real-life organisation, but details have been changed for assessment purposes and do not reflect current management practices.

3 PART A Compulsory Question One You have been asked by the owners of Tampopo to write a report that: a. advises how to develop and maintain a suitable database for Tampopo b. outlines your proposals for a direct marketing plan (20 marks) c. recommends TWO suitable sales promotions for Tampopo, and explains how they will be evaluated. (Total 50 marks)

4 a. Develop and maintain a suitable database for Tampopo. Create small, simple in-house database rather than outsourcing. Populate database in-house. Sources: customer satisfaction surveys, sales promotions, mailings for cookery evenings. Unlikely at this stage that Tampopo will buy records in, because of cost and specific information required, though may be a more long-term option. Development profiling to target promotions/events. Validation. Checked periodically for accuracy incorrect names, titles, duplicate entries, gone aways. b. Components of a direct marketing plan This requires a good understanding of each of the components of a direct marketing plan and candidates should also consider the steps involved in developing such a plan. Each stage should be explained, but the answer does not require an actual marketing plan however there should be some contextualisation to Tampopo. Direct marketing objectives should be SMART. Implementation techniques to be used. Indicative budget. Monitor and control mechanisms general description. c. Recommend two suitable sales promotions for Tampopo and explain how they will be evaluated. Sales promotions should centre on data collection and increasing loyalty and retention. - competition to win dinner for two fill in post card or enter details on website. Evaluation number of responses - simple reward scheme e.g. Café Nero collect 10 stamps on a card for free bottle of wine or 2 bottles of beer. Evaluation count cards. - both to be promoted in the restaurant and on website Appropriate use of report format Total (5 marks development, 5 marks maintenance, 5 marks application) Context = 5 marks Knowledge = 10 marks Application = 5 marks 20 marks 2 x 4 marks for SP 4 marks for evaluation 3 marks 50 marks

5 PART B SALES PROMOTION Answer EITHER Question Two OR Question Three Question Two Using relevant examples produce a table which: a. compares the effectiveness of the use of loyalty schemes with free gifts for sales promotion in food retailing b. compares the benefits and drawbacks of using each method. (10 marks) (Total 25 marks)

6 a. Evaluate free gifts and loyalty schemes for food promotion in supermarkets. Candidates are to explain the differences between loyalty schemes and free gifts in relation to the retail supermarket sector. Free gifts may be used to trial new products, they allow the consumer to try the product, thus reducing risk, and place the consumer under a small obligation to buy. Effective but expensive. 5 marks Free gifts with each purchase, e.g. children s cereals. Can encourage brand switching and lead to adoption of the brand. Classified as premium promotions, e.g. Fosters gave away a coolbag with each six-pack of lager. Rate of redemption can be difficult to gauge, but in UK must comply with the CAP Sales Promotion Code. Loyalty schemes involve users being awarded points each time a purchase is made. Points cashed in for gifts or merchandise. May discourage brand switching. Examples: Tesco Clubcard, Boots Advantage Card, BA Executive Club. Allows the collection of upto-date customer data which, if electronic, can be used to target offers, etc. b. Comparison should include benefits and drawbacks: allow product differentiation for manufacturers favourable brand associations provide support for other aspects of the marketing mix nature of the local market channel member strategy and objectives retailers versus manufacturers consumer perception of value little evidence to support effectiveness of loyalty schemes. Hallberg (2004) suggests achieved only at the highest level of loyalty bonding Successful sales promotions are those where consumers perceive significant value with the loyalty scheme or gift. Total 5 marks 10 marks 10 marks evaluation 5 marks examples 25 marks

7 Question Three Depending on how exploitable the film is, effective film merchandising can add US $ million to the profits. For a film of your choice: a. suggest, with justification, THREE types of merchandising that are suitable for the target audience b. discuss some of the potential problems associated with film merchandising. a. Suggest three types of merchandising. (10 marks) (Total 25 marks) Candidates are to suggest a suitable film children s films and blockbusters such as Spiderman accrue the most profits from film merchandising. Identify the target audience demographic and psychographic variables to be used. Suggest and justify three suitable types of merchandising for the selected film. - more adult/teenage film DVDs, books, clothing - children toy characters, costume replicas, DVDs, stationery. Joint promotions with fast food outlets will not be appropriate. b. Discuss some of the problems associated with film merchandising. - unsuccessful film - over hyped film and oversupply of merchandising, resulting in unsold items - wrongly assuming the fans of an established franchise such as Star Wars will buy anything associated with the film - regulation character association and children s food advertising Total 1 marks 5 marks 3 x 3 marks 10 marks 25 marks

8 PART C DIRECT MARKETING Answer EITHER Question Four OR Question Five Question Four Switching to another service provider is a major problem for mobile phone companies, who can lose half of their customers after the initial 12-month contract. As mobile phone companies subsidise their handsets, this is a serious problem. Your agency has been commissioned by the mobile phone company Orange, to recommend a loyalty programme and suggest how it can be implemented using direct marketing methods. Write a report that: a. recommends a suitable loyalty programme that will deliver increased customer retention for Orange b. suggests how your loyalty programme can be implemented using suitable direct marketing techniques. (10 marks) (Total 25 Marks)

9 a. Recommend a suitable loyalty programme that will deliver increased customer retention for Orange. Marks should be given for: Suitability Creativity Meeting the objectives of loyalty and retention Tangible reward Cost-effective to administer b. Suggest how your loyalty programme can be implemented using suitable direct marketing techniques. Analysis of products used, call usage, most suitable message, communication channel and creative proposition in order to determine most effective direct marketing method. Direct marketing technique recommended (or combination) whether SMS, MMS, mail, or telephone, must: -be tailored to recipient -refer to timing of communications -refer to frequency of communications -include call to action. Appropriate use of report format. Total 10 marks 5 marks 7 marks 3 marks 25 marks

10 Question Five marketing is regulated in the UK by the Privacy and Electronic Communications Regulations a. Explain the key elements of this piece of legislation. b. Outline the stages involved in effective management. a. Explain the key elements of the Privacy and Electronic Communications Regulations Recipients must consent to receive marketing. Provide a valid address to which the recipient can send an opt out request. Marketer can send marketing material without prior consent where: (10 marks) (Total 25 marks) contact details were obtained in the course of a sale or negotiation for the sender s product or service. marketing material is sent to the recipient for the purpose of advertising a product that is similar to that which has already been sold to the recipient. recipient has been given a simple means of opting out of receiving further marketing information. b. Outline the stages involved in effective marketing. Once consent has been given, add recipient s details to list so that they can be included in the next marketing exercise. Suppress the details of those who have opted out of receiving your marketing information. If not done it exposes marketers to potential legal problems. Ensure that the content of is appropriate and well targeted. Attract individuals to sign on to your list by offering an incentive. Maintain accuracy of list to allow easier projection of the effectiveness of an campaign. Use appropriate disclaimers. Total 10 marks 25 marks