CAM Level 4 Diploma in Marketing Communications Direct Marketing and Sales Promotion (122) Time: 09:30 11:30 Date: 19 July 2016 Examination The Direct Marketing and Sales Promotion assessment comprises THREE compulsory parts PART A Has ONE task worth 50% of the total marks PART B Answer ONE task out of TWO tasks. Each answer will be worth 25% of the total marks PART C Answer ONE task out of TWO tasks. Each answer will be worth 25% of the total marks The examination will be 2 hours in duration Total marks available 100 You are required to give your answers in the answer book provided. Do not repeat the task in your answer, but show clearly the number of the task attempted on the appropriate pages of the answer book. Please start each task on a new page. Rough work and notes must be written in the answer book or on supplementary sheets and must be clearly identified. The Chartered Institute of Marketing 2016
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PART A Compulsory It is recommended that you spend approximately ONE hour on PART A. TASK 1 Mobile Phone Applications (Apps) for Schools Schools are in a competitive market and increasingly are seeing the parents and guardians of children as customers, or even advocates for their brand. However, communication with parents and guardians is difficult, relying on children to pass on messages about fundraising events, open days and exam timetables etc. This important school information can sometimes never get to the intended recipients. Most schools have websites but these are often very basic not often used by parents/guardians. If the school has to close because of bad weather or an emergency, then local radio is the only hope of letting parents know. A far better way to communicate would be by mobile phone, especially via smartphones. Appsmart 4 Schools 1 is an app development company which has seen this as an opportunity to develop a white labelled app for Smartphones (both iphone and Android devices) which can easily be branded in any school s colours and identity. The app has built-in sections to provide all the necessary information about the school term dates, holidays, special events, school history, teachers profiles, etc. Facebook and Twitter are also incorporated and there is a facility for the school to send push alerts. Advertising from local businesses could also be incorporated as a means of generating revenue for the school. An app can be customised to a school s requirements and available in app stores at a cost to the school of just 950, with a renewal fee of 250 per year. The app will be free for parents and guardians to download. The owner of Appsmart 4 Schools believes that conventional off-line marketing activity, particularly direct marketing and sales promotion, is needed to make this project a success, and your agency has been appointed to support the launch. Clearly there is a need to market to schools in the first instance. However, if parents and guardians do not download their school s app in sufficient numbers, it will be ineffective, and income from school renewal fees in subsequent years will decline rapidly. It is therefore in Appsmart 4 Schools interest that schools receive effective advice on how to promote their customised app. Continued 1 Appsmart 4 Schools is a fictitious company for examination purposes. The above data is based on various articles and has been adapted for exam purposes. Page 3 of 8
Task 1 continued TASK 1 The owner of Appsmart 4 Schools has asked for a report in which you: a. produce a direct marketing and sales promotion plan to support three months of launch activity aimed at schools; this should include objectives, activities proposed and a clear indication of when the campaign needs to run b. recommend how an exhibition stand for head teachers could be used to engage with potential customers c. develop outline content for a handbook for schools, demonstrating how schools can employ direct marketing and sales promotion techniques, to encourage app downloads and engagement. (24 marks) (10 marks) (16 marks) (Total 50 marks) Page 4 of 8
PART B Compulsory It is recommended that you spend approximately HALF AN HOUR on PART B. Answer ONE task from this Part (either Task 2 OR Task 3) TASK 2 A petroleum brand in a country or territory of your choice has recently launched its more expensive Premium sub-brand of petrol and diesel fuels for cars and trucks. These fuels offer improved economy and reduced engine wear. As Sales Promotion Manager: a. recommend THREE sales promotion techniques aimed at encouraging drivers to try the new premium fuel, giving reasons for your choice b. identify the information required about the target customers of the new fuel in order to target promotions effectively c. outline a loyalty programme to encourage drivers to continue using the more expensive fuel. (12 marks) (7 marks) (6 marks) (Total 25 marks) TASK 3 A medium-sized manufacturer of snack foods is appointing a Sales Promotion Agency for the first time. As a consultant, you have been asked to prepare briefing notes which: a. discuss FIVE key criteria that could be used to decide whether an agency should be included onto a shortlist for final selection b. illustrate TWO reasons why effective merchandising and point of sale are important in this sector. (15 marks) (10 marks) (Total 25 marks) Page 5 of 8
PART C Compulsory It is recommended that you spend approximately HALF AN HOUR on PART C. Answer ONE task from this Part (either Task 4 OR Task 5) TASK 4 Not-for-profit organisations such as charities, pressure groups, political parties and trade membership bodies need to market themselves, often with limited budgets and resources. Prepare a short report for use by a not-for-profit organisation that: a. compares the use of telephone marketing techniques against the presence in shopping malls, in order to meet the organisation s objectives (10 marks) b. recommends a 12 month schedule of direct marketing activities. (15 marks) (Total 25 marks) TASK 5 Pizza Right Now! is a chain of 75 medium priced pizza restaurants established for ten years, during which time it has collected a vast amount of data on its customers, which it uses for direct marketing purposes. As Direct Marketing Executive, create a briefing paper that: a. identifies the customer information which is most useful for ongoing communications (6 marks) b. recommends a plan for cleansing data (9 marks) c. compares and contrasts the effectiveness of leafleting against buying a list of prospective diners, in order to build its customer base. (10 marks) (Total 25 marks) END OF EXAMINATION Page 6 of 8
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Moor Hall Cookham Maidenhead Berkshire, SL6 9QH, UK Telephone: 01628 427120 Facsimile: 01628 427399 Website: www.cim.co.uk Page 8 of 8