122 Direct Marketing & Sales Promotion Senior Examiner Assessment Review Report December 2010

Transcription

1 CAM Diploma 122 Direct Marketing & Sales Promotion Senior Examiner Assessment Review Report December 2010 CAM Foundation 2010

2 Senior Examiner Assessment Review Report UNIT NAME: AWARD NAME: Direct Marketing & Sales Promotion CAM Diploma DATE: December 2010 Background to the paper: The paper consisted of a mandatory short case study based on Rude Chalets a company providing accommodation for skiers and snowboarders in French ski resorts. The candidates were required to plan and implement a direct marketing campaign to ensure maximum occupancy. They were required to outline proposals for a direct marketing plan and explain how digital media could be utilised to encourage the Rude community. The final question was to recommend three sales promotions that would recruit new customers and explain how these will be evaluated. The sales promotion electives related to field marketing and the CAP code for sales promotion and loyalty schemes. The direct marketing electives related to direct marketing agency roles, growth of databases and the difference between B2B and B2C information in relation to populating a database. Comments on how the marking scheme was applied in terms of: o Concept, Application and Evaluation o Syllabus coverage o Use of command words and the extent to which answers reflected what was required o The relative weighting of each part of a question and an indication of what aspects of the question required most care and attention o What differentiated the A, B, C, or D grades Regarding the compulsory case study, marks were awarded for content in terms of knowledge and application of direct marketing planning and techniques for customer recruitment. For Part B, marks were awarded for application of digital media to build the Rude community. For Part C, marks were awarded for both application and evaluation, as candidates were required to recommend sales promotion methods and suggest how these would be evaluated. Question Two related knowledge of ASA regulation and sales promotion codes. Candidates were also required to compare the effectiveness of loyalty schemes and prize draws. Question Three required knowledge and application of field marketing advantages and disadvantages and the development of a field-marketing plan for Unilever. For Question Four, marks were awarded for knowledge and application of direct marketing agency roles. Question Five related to the reasons for growth of direct marketing and knowledge and evaluation of B2B and B2C information in relation to populating databases. On the whole, command words were observed, though for the compulsory case study, some candidates produced a marketing communications plan rather than a specific direct marketing plan, which was a requirement of the question. There still needs to be more care and attention given as regards format, since while accounting for just 10% of the marks, these can be crucial in marginal situations. The

3 weaker candidates seem to take insufficient care over recognising the need for a report, rather than a memo or presentation notes. Differentiation between allocated grades is of crucial importance to the examiner and candidate alike. Considerable effort and double marking goes into the process of ensuring that critical grade boundaries are identified. The factors that differentiate different examination scripts include: - the degree to which the candidate has understood the question - the overall feel of the paper based on past experience and relative to other scripts marked in the Examiner Mark-in and during the session - the degree of grasp of the facts or conceptual knowledge - the look of the paper in terms of format, specified context and layout - whether the points made are applied where required and set in the necessary context - the quality of the examples given and their relevance/appropriateness - whether the candidate has focused on the command words in the question - has evaluation been provided and justification of necessary points been made - have three questions been fully answered. A grades which were in the minority demonstrated excellent theoretical knowledge and the ability to apply this to contexts, ranging from not-for-profit organisations to service sector organisations, thus illustrating good transferable skills and the ability to recommend innovative, relevant sales promotions or direct marketing techniques. B grades demonstrated good theoretical knowledge and the ability to apply this, though less effectively than the A grade answers. C grade answers demonstrated good theoretical knowledge but limited ability to apply this knowledge to the context. Candidates should avoid this and make sure they answer the actual question set. D, E, and F grades lacked theoretical underpinning to their answers and relevant application and context. Moreover in some instances answers were very brief and insufficient for 25 marks. A general overview of how the assessment was tackled, including a statistical analysis on the assessment as a whole The overall pass rate for this paper was: 77.14%.

4 The grade profile was as follows: Direct Marketing & Sales Promotion A B C D E F U 4% 4% 9% 13% 6% 30% 34% For the most part, candidates demonstrated a sound theoretical knowledge of direct marketing and sales promotion but problems arose with application and contextualisation. Question One Most candidates observed the format and wrote a report in which their answers addressed the context and suggested direct marketing techniques that would address the specific problem of ensuring maximum occupancy for Rude Chalets. Candidates demonstrated good knowledge of campaign planning, for example by including a situational analysis and provided well thought out objectives, eg The main objective is to ensure that Rude Chalets are 70% full during low season, 80% in high season ad 100% during peak holiday periods such as Easter, half term and Christmas. The direct marketing plan will take a multifaceted approach using inserts, s and telemarketing inserts. Objective: To increase web traffic after each event by 30% and web registrations by 5%. Skiers and snowboarders are thrill seekers and enjoy adrenaline. When they are not on the slopes a majority will enjoy outdoor sports and events such as those run by Jim Mee, eg Rat Race, Green Belter, urban gyms and Men s Health 10k. At each event a goody bag is given to participants and this would be a great opportunity to insert direct response fliers encouraging them to visit the Rude Chalets website. Weaker answers tended to a generic promotional plan with little or no mention of direct marketing techniques. Some candidates concentrated on sales promotion thus not answering the question. One of the main problems with this question was very weak contextualisation, which was worrying as there has been a gradual improvement in this area.

5 Evaluation: Campaign will be evaluated by Google Analytics which will show any increase in web traffic. This part of the direct marketing campaign is well thought through with objectives and evaluation. Moreover, it demonstrates excellent originality in context. For Part b, there were some excellent explanations of how digital media could be used to encourage the Rude Chalet community. A number of candidates gained maximum marks for this question as their answers demonstrated good knowledge, application and context. Candidates suggestions ranged from You Tube, Facebook, blogs and smart phone applications, eg a smart phone app will help enhance brand recognition, if it is continuously on someone s phone then it is a constant reminder of your organisation. Make the app functional, have a snowboarding/skiing game and ensure it is interactive. Leveraging the power of Facebook could be crucial. Firstly, this channel takes advantage of peer influence. People who see that their friends like Rude Chalets are more likely to be receptive or aware of the company s message. Secondly, the usergenerated content could help build the personal, human and community feel of Rude Chalets. Members could be encouraged to upload photos of their stays at Rude Chalet properties. Weaker answers tended to be generic explanations of social media. For Part c, there were excellent suggestions for sales promotions to recruit new customers. Suggestions were creative and more importantly, candidates demonstrated their ability to apply their sales promotion knowledge to a specific context, for example, early bird discount, and free lift pass during off-peak. Most candidates produced robust explanations of how the sales promotions would be evaluated and related the measurement methods to the sales promotion they had suggested. Question Two This question required candidates to explain the role of the CAP Code in regulating sales promotion. Part b required candidates to explain the effectiveness of loyalty schemes and prize draws as sales promotion techniques. This was a challenging question and the least popular on this paper. Candidates were able to explain the role of the CAP Code and thus demonstrated knowledge. Some candidates tended to discuss the general principles of the code for example, honest, fair, decent, truthful rather than the specific code in relation to sales promotion. Good answers considered both the benefits and disadvantages of each technique. Prize draws can be particularly effective at creating buzz around a product or brand. A well thought out prize draw can reinforce brand image, eg a chain of high end hotels could offer a shopping spree at Harrods. One pitfall of a prize draw however is the type of customer it attracts those that flit from brand to brand. Therefore the long term profitability benefits are limited. One candidate classified their evaluation of prize draws and loyalty schemes in relation to their effectiveness in terms of customer acquisition, retention and database building which was an excellent way of explaining these techniques.

6 Question Three This was not a popular question and on the whole, answers indicated gaps in candidates knowledge particularly with reference to field marketing briefs. Candidates who answered this question were able to explain some of the advantages of field marketing. Better candidates defined field marketing and explained a number of advantages such as face-to-face brand presence, experienced staff, comprehensive data collection and detailed reports and disadvantages errors in data collection, cost and poorly trained staff. Better answers addressed the relevant areas of the brief and formulated relevant objectives. For example, To increase store presence by encouraging point of sale uptake in 10% of stores worldwide. Merchandising Offering free music downloads with purchase of key brands and this will be visually apparent on the packaging to encourage customer acquisition. Field Sales Employing field sales reps to encourage POS, branded displays and posters to encourage purchasing. Sampling In store select stores in each market and offer sampling on a Saturday and Sunday pre-campaign to encourage uptake of product. Sampling in busy shopping centres such as The Pavilion, Dusseldorf, and Lakeside, UK. Free samples will be distributed at these events. Events Run an event similar to the Smirnoff Be There for the Unilever brands which will be tailored to the target audience for each brand. Here the candidate has addressed the key areas of a field marketing brief. Question Four This question required candidates to explain the role of account management, creative, production and planning within a direct marketing agency. This was a relatively straightforward question and thus unsurprisingly quite a popular question. Good answers explained each role in detail and used examples to add clarity to their answers. Weaker answers, which were in the majority, attempted to explain the role, but their answers lacked depth and in some cases, there was lack of understanding of the function, particularly production. Some explanations were very brief and thus highlighted only one or two points. Question Five This question required candidates to distinguish between the types of information that a B2C and B2B organisation may store on their customer database and to explain some of the factors that had contributed to the growth in database marketing,

7 eg technology, availability of data, fragmentation. This was a relatively straightforward question and thus quite a popular question. Good answers were clearly able to distinguish between B2C, eg classification data, psychographic information, response to media campaigns and B2B, eg DMU, credit history information. Good answers indicated a sound knowledge and understanding of the factors that have facilitated to the growth in database marketing. Weaker answers were not able to distinguish between B2C and B2B information and some candidates repeated the types of information and whilst there are some similarities, candidates must be able to recognise fundamental differences such as DMU complexity or SIC classification. Weaker answers displayed poor knowledge of the factors that have contributed to growth in database marketing. Generally, examples of how the information can be used in each sector were weak. Moreover, some candidates omitted to answer this part of the question The overall pass rate for this examination diet was 77.14%. Generally, the results are pleasing with some strong performances by some centres. There is however a large percentage of C grades and this indicates candidates are passing on knowledge with limited application. Feedback on the academic quality of the cohort(s) that has just been examined and the quality of the teaching, as judged by the results The majority of candidates had clearly studied and understood the underlying theory behind sales promotion and direct marketing and candidates were able to answer questions in both sections. Better marks were awarded to those who went beyond the theory and showed their understanding of how the subjects work in practice by quoting examples to support their answers. Candidates performed reasonably well when asked to produce an outline plan and demonstrated a good knowledge of sales promotion and direct marketing techniques and were able to demonstrate some application to a given context. Most candidates demonstrated a sound theoretical knowledge of sales promotion and direct marketing but there continues to be varying degrees of application. Better candidates supported their answers with examples, which added clarity to their explanations. The weaker areas were ASA regulation and CAP Code for Sales Promotion and field merchandising where it was clear that candidates had a very limited subject knowledge of these areas of the syllabus. On the whole, candidates demonstrated varying knowledge of agency roles there were some excellent answers but also some very poor answers with one or two bullet points to explain each role. On the whole, this paper indicates that the parts of the syllabus being examined have been taught to a good standard and it is encouraging to see more use of examples to support answers. Commentary as to whether recommendations made in previous years have been properly followed up It seems that the majority of candidates managed their time well and this is improving their chances of passing this paper.

8 Candidates used examples to support their answers, which is encouraging, and this also demonstrates that candidates are reading trade journals to keep abreast with industry trends. There was limited evidence of question planning on this particular examination diet as in previous diets and this area needs to be re-addressed by centres and candidates. There was some evidence of improved contextualisation, especially in the compulsory case study questions and this was pleasing. Comments and examples of: o strengths and good practice o common mistakes when tackling this type of question Candidates seemed to show a good understanding of the mini case study and questions with contextualisation to Rude Chalets and relevant sales promotion and direct marketing suggestions to recruit and retain customers. There was generally a very good understanding of some parts of the syllabus such as planning, effectiveness of loyalty schemes and prize draws, databases and information. There was evidence of good use of examples or application to the case study context. Some candidates were able to quote non-standard examples, which made them stand out. Candidates used appropriate models or frameworks. Higher grade answers showed an excellent understanding of the theory by incorporating key models, underpinning frameworks into their answers. There was also evidence of good time management. This was clearly demonstrated by good candidates, as they were able to balance the demands and requirements imposed by parts A, B and C of the examination paper. The general weaknesses were associated with exam technique and preparation, which resulted in brief answers and/or generic type answers with little or no application. Quoting material from the mini case study with no effort to apply this information or missing parts of questions, resulted in valuable marks being lost. Weaknesses were also associated with examination preparation indicating limitations in understanding the full range of topics across the syllabus, eg field marketing continues to be a problem. Guidance about how candidates can avoid making similar errors and strategies for improving performance Candidates should practise the following: - Identify the broad topic or subject areas that underlie the question. - Identify the required emphasis of the question, eg recruiting new customers and tailoring the sales promotions to these specific activities.

9 - Developing a field marketing brief to include merchandising, sales, sampling, auditing and events. - Ensure that they address each specific area of the brief and relate to the organisation, which in this case was Unilever. - Observe the command words. - Ensure that the correct format is used, eg report, as marks are awarded for format. (On the whole, most candidates responded very well to this issue.) - Identify the context that is required such as not-for-profit, FMCG manufacturer and frame their answer accordingly. - Practise questions from past papers to ensure that they are familiar with the format and types of questions and improve their exam technique. Suggestions of possible alternative approaches to tackling a question or parts of a question while making it clear that it is not the only way Where candidates are asked to make recommendations or suggestions as in the case study and Question Three, Part b there is never a definitive answer. Candidates will be rewarded for recommendations, which are suitable, reflecting the context of the question and indicating industry relevance and creativity. For example, in Question One, Part c, candidates suggested a range of relevant sales promotions such as Red Bull (Rude Chalet partner) prize draws, 10% early bird discount, Burton ski jacket for booking of six or more. For Question Three, Part b, candidates suggested a range of merchandising, sampling, event activities which were all relevant to the Unilever brands. As long as the candidate s responses were contextualised to the question and relevant, they would have been awarded the appropriate marks. Recommendations for how performance can be improved in future assessments Tutors and candidates are encouraged to revisit examination techniques and focus on examination preparation, including a wider and fuller range of topics covering the syllabus. Asking candidates to prepare answers to questions either for homework or during class discussions will improve their familiarity with the type of questions on this paper. It is recommended that candidates should consult the CAM reading list and read from core texts and trade publications. It is recommended that tutors should encourage candidates to engage in deeper learning rather than surface learning, apply theory to context and develop abilities to evaluate a given topic in depth. It is essential that candidates are able to demonstrate not only their knowledge but also their ability and skills to apply and evaluate in a given context.

10 Clarification about any syllabus or assessment changes None Possible future assessment themes The structure used to frame this paper will continue. The nature of the questions, and the way in which they are presented and contextualised will remain the same. Papers will be set so that a substantial proportion of the syllabus will be covered. This means that candidates need to widen their range of knowledge and not just concentrate on a few prime areas such as planning. There are areas of the syllabus that were not well answered in this paper, such as field marketing, agency roles and regulation and in some instances poor direct marketing plans. While it cannot be assumed that these topics will be included in future exams, it is important that tutors and candidates recognise the need to study the syllabus in its entirety. Subjects that candidates may see in future examinations are regulation, database management and creating buzz through viral campaigns and other more creative techniques. Case study contexts will be varied and may include not-for-profit and FMCG sectors.