Unit 5: Marketing for business (LEVEL 3)
Learning outcomes
By completing this unit candidates will develop knowledge, understanding and skills to create a
marketing mix for a business product or service. This might involve the development of a new
product or service, or the re-launch of an existing one.
Candidates will produce evidence to meet the unit assessment objectives in order to show that
they understand:
•
the four elements of the marketing mix – product, price, place, promotion
•
how marketing analysis is used in business
•
how market research is used in business
•
how to use marketing models
•
how the marketing mix is applied to a product or service.
Assessment objectives
Knowledge, understanding and skills
1 Demonstrate how the
four elements of the
marketing mix
influence decisions
about how a product is
marketed
The 4 Ps:
• product
• pricing
• place
• promotion
• how the 4 Ps are interdependent, eg size of a salesforce
(promotion) depends on the distribution channel (place)
Assessment Objectives 2 to 6 are based on a new product or service proposed by the
candidate or the re-launch of an existing one.
2 Undertake a market
analysis and complete
market research for the
selected product or
service
OCR Level 3 Nationals in Business
Define the product or service
Market research:
• why market research is needed
• sources of market research information (secondary) – internal
company data or external published data
• market research groups. For example MORI, NOP and GALLUP
• sources of market research information (primary) – choice of
research method, personal interviews, telephone interviews,
postal survey, panels/focus
• questionnaire design
• sample sizes
• findings of market research – graphical and written presentation
Market Analysis:
• SWOT and PEST analysis
• market segmentation – importance, consumer characteristics,
segmentation techniques, validity and viability of market
segmentation
• consumer targeting
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Unit 5: Marketing for business
Assessment objectives
Knowledge, understanding and skills
3 Use marketing models
to define the selected
product or service
Marketing models:
• the product life cycle – stages
• product position (Boston matrix, Ansoff)
Product planning and development:
• unique selling propositions
• brand strategy
• product name
• packaging
Product planning and development:
• unique selling propositions
• brand strategy
• product name
• packaging
4 Recommend and
justify a pricing
strategy for the
selected product or
service
Types of pricing strategy – (eg cost-plus, penetration, skimming,
psychological, discriminatory, premium)
Pricing determinants:
• level of market demand
• nature of market competition
• customer types and market segments
• consumer behaviour and expectations
• impact of channels of distribution
• research and development costs
5 Suggest and justify a
method of distributing
the selected product or
service from
manufacturer to
consumer
Distribution methods:
• direct supply (manufacturer to customer) – factory shops, direct
marketing techniques
• intermediaries – wholesalers, retailers, agents
6 Recommend and
justify the use of
promotional techniques
for the selected
product or service
Above the line methods:
• newspapers
• magazines
• television
• cinema
• radio
• outdoor (eg posters, taxis, buses, balloons)
Below the line methods:
• sales promotions – competitions, gifts, coupons/refunds, special
credit terms
• public relations – press releases, press conferences, sponsorship,
product endorsement, product placement, lobbying, community
relations activities
• point of sale – lighting, smells, layout
• branding and brand support (catchlines/jingles, design features,
logos
(continued overleaf)
• exhibitions and trade fairs
2
OCR Level 3 Nationals in Business
Unit 5: Marketing for business
Assessment objectives
Knowledge, understanding and skills
6 Cont.
•
Recommend and justify the use of
promotional techniques for the selected
product or service
direct marketing – direct mail, telesales,
catalogues, off page selling, off screen
selling
Viability of marketing communication methods
(eg personal factors, noise, barriers, filtering,
distortion)
Constraints upon promotional/marketing
activities (eg ASA, ITC, legislation, pressure
groups
Assessment
This unit is centre-assessed and externally moderated.
In order to achieve this unit candidates must produce a portfolio of evidence showing that they
have met all of the assessment objectives.
Assessment Objectives 2 to 6 are based on a new product or service proposed by the
candidate or a complete re-launch of an existing product or service.
Candidates should be encouraged to present their work in formats that would be acceptable in
business.
Portfolios of work must be produced independently. They will need to be made available, together
with witness statements and any other supporting documentation, to the OCR Visiting Moderator
when required.
Centres must confirm to OCR that the evidence produced by candidates is authentic. An OCR
Centre Authentication Form is provided in the Centre Handbook and includes a declaration for
assessors to sign. It is a requirement of the QCA Common Criteria for all Qualifications that proof
of authentication is received.
Guidance on assessment and evidence requirements
Assignments should set all tasks within a scenario of work-based activities.
Assessment Objective 1 will be evidenced generically. However, the candidates need to have a
detailed understanding of how the 4 Ps are interdependent and influence decisions concerning
how a product is marketed. The candidates then apply this theory to Assessment Objectives 4, 5
and 6. Assessment Objectives 2 to 6 are based on a new product or service proposed by the
candidate or a complete re-launch of an existing product or service. The product will come from a
business’s portfolio ie Cadbury’s dairy milk is one of a range of products. The candidate could relaunch the dairy milk bar but they must not just reiterate Cadbury’s marketing mix. However, they
do not have to change all four elements of the marketing mix ie the distribution could remain
unchanged, but there are revisions to the product, price and promotional techniques.
For Assessment Objective 1 candidates will explain the four elements of the marketing mix. Using
examples, they will clearly illustrate their interdependence. They will then describe, using
examples, how the marketing mix influences decisions about how a product is marketed. For
example, Cadbury’s would not sell chocolate bars over the internet.
OCR Level 3 Nationals in Business
3
Unit 5: Marketing for business
For Assessment Objective 2 candidates must undertake primary and secondary research for the
selected product or service. They must then complete a market analysis as outlined in the
knowledge, understanding and skills. This assessment object is the lynch pin for Assessment
Objectives 4, 5 and 6 as they will need to use the results of the market research to make
recommendations with justification.
For Assessment Objective 3 candidates must produce diagrams of three marketing models –
product life cycle, Boston matrix, Ansoff matrix. They will show and explain the positioning of their
product on these three models. They must also describe the product element of the marketing mix
as outlined in the knowledge, understanding and skills.
For Assessment Objective 4 candidates must describe the pricing strategies and pricing
determinants as outlined in knowledge, understanding and skills. These must be applied alongside
their research to recommend and justify a pricing strategy for their chosen product or service.
Candidates must state the price they intend to charge for their product or service with reasons why,
linked to the theory and research findings.
For Assessment Objective 5 candidates must describe the possible distribution methods available
for their product or service. They must then clearly state how they will get their product or service
to the customer with reasons why, linked to the theory and research findings. They need to
consider the bullet points in the knowledge, understanding and skills section.
For Assessment Objective 6 candidates must consider all the promotional methods and constraints
as outlined in the knowledge, understanding and skills. These must be applied alongside their
research to recommend and justify promotional techniques for their chosen product or service.
Candidates must recommend the promotional techniques they intend to use for their product or
service with reasons why, linked to the theory and research findings.
Signposting to Key Skills
The unit contains opportunities for developing the Key Skill, and possibly for generating
portfolio evidence, if teaching and learning is focused on that aim.
Key Skill
reference
Key Skill
reference
Key Skill
reference
C3.1a
ICT3.1
N3.1
C3.1b
ICT3.2
N3.2
C3.2
ICT3.3
N3.3
C3.3
Mapping to National Occupational Standards
Occupational Standards
SFEDI – Business Start-up
Standards Level 3
SFEDI – Business Development
Standards Level 4
ICS – Customer Service
Standards Level 3
4
Unit number
5
B1
B2
7
Title
Decide how your will sell and market your
products and services
Plan how to improve your sales and marketing
Improve your sales and marketing
Organise and promote products or services to
customers
OCR Level 3 Nationals in Business
Unit 5: Marketing for business
Resources
This section provides suggestions of suitable resources. The list is neither prescriptive or
exhaustive, and candidates should be encouraged to gather information from a variety of sources.
Some suggested resources are intended for Tutor use. The resources in this section were current
at the time of production.
Books
Davies, E & B (2002)
Successful Marketing in a Week
Hodder & Stoughton
Dransfield, R & Needham, D (2000)
AVCE Business
Heinemann
Fardon, M & Birth, I & Adcock F, et al, (2000)
Advanced Business
Osborne Books
Hill, E & O’Sullivan, T (1999)
Marketing 2nd edition
Longman
Hough, Karen et al (2006)
OCR National Level 3 Business
Heinemann
Stefanou, R (1993)
Success in Marketing
John Murray
Stokes, D (1994)
Discovering Marketing
D P Publications
Stone, P (2001)
Make marketing work for you
How to Books
Websites
Bized – http://www.bized.ac.uk/
Service for students and educators on business and economics related subjects.
Economist – http://www.economist.co.uk/encyclopedia/
Includes a dictionary of business terms, abbreviations and acronyms and business profiles.
Natwest – http://www.natwest.com/smallbusiness/guides/
Information on finance and e-business.
Small Business – http://www.smallbusiness.co.uk/
Information on setting up a business.
The Times 100 – http://www.thetimes100.co.uk/
Resource for students and teachers. Case studies on real companies.
OCR Level 3 Nationals in Business
5
Unit 5: Marketing for business
Grading
Assessment
Pass
Merit
Distinction
Objective
Assessment Objective 1 will be evidenced generically. However, the candidates need to have a detailed understanding of how the 4 Ps are
interdependent and influence decisions concerning how a product is marketed. The candidates then apply this theory to Assessment
Objectives 4, 5 and 6. Assessment Objectives 2 to 6 are based on a new product or service proposed by the candidate or a complete re-launch
of an existing product or service. The product will come from a business’s portfolio ie Cadbury’s dairy milk is one of a range of products. The
candidates could re-launch the dairy milk bar but they must not just reiterate Cadbury’s marketing mix. However, they do not have to change
all four elements of the marketing mix ie the distribution could remain unchanged, but there are revisions to the product, price and promotional
techniques.
Candidates will fully describe the
Candidates will fully describe the
Candidates will describe the four
AO1
four elements of the marketing mix
four elements of the marketing mix
elements of the marketing mix in
Demonstrate how the four elements
by using examples to illustrate the
by using examples to illustrate the
general terms and show limited
of the marketing mix influence
interdependence of the four
interdependence of the four
understanding of their
decisions about how a product is
elements. They will produce a
interdependence. They will produce elements. They will produce a
marketed
detailed description of how the
detailed description of how the
a basic description of how the
marketing mix influences decisions
marketing mix influences decisions
marketing mix influences decisions
about how a product is marketed.
about how a product is marketed
about how a product is marketed
Candidates will be able to
demonstrate how the effect of
changes in one element impacts
upon the other three elements, or
may identify how wider influences
impact on the 4 P’s, eg Government
healthy eating initiatives
Candidates will demonstrate the
Candidates’
market
research
will
Candidates’
market
research
will
AO2
ability to devise and use
include
both
primary
and
focus
on
the
primary
research
with
Undertake a market analysis and
appropriate research methods to
secondary.
Questionnaires
will
be
little
supporting
secondary
complete market research for the
analyse the marketing environment.
well devised. Candidates’ market
research. Questionnaires may
selected product or service
Questionnaires will be well devised
analysis for a selected good or
contain information of limited use.
and highly focused on the
service will have breadth and
Candidates’ market analysis for a
information required to develop the
selected good or service will have
scope
marketing mix. Their market
limited breadth and scope
analysis for a selected good or
service will have excellent breadth
and scope, based on extensive
relevant research
6
OCR Level 3 Nationals in Business
Unit 5: Marketing for business
Assessment
Objective
AO3
Use marketing models to define the
selected product or service
Pass
Merit
Distinction
Candidates will identify and illustrate
the different marketing models, but
explanations given will have
limited application to the product or
service chosen. Basic
descriptions will be given for the
product element of the marketing
mix
Candidates will use all of the
different marketing models and will
plot where the chosen product fits
into the model. Candidates will
explain the current positioning of
their product within the marketing
models illustrated. Descriptions
given for the product element of the
marketing mix will include some
limited reference to the research
conducted
AO4
Recommend and justify a pricing
strategy for the selected product or
service
The description of the chosen
pricing strategy will be basic. There
will be limited justifications for the
strategy chosen. They will make
few references to the research
conducted
The recommendations for the
chosen pricing strategy will be
thorough with some reasoned
justifications for the strategy
chosen. Justifications made will be
supported by their research into
the market analysed and will show
an appreciation of a range of
different pricing determinants
AO5
Suggest and justify a method of
distributing the selected product or
service from manufacturer to
consumer
Recommendations for distribution
methods will have limited
justification and limited practical
applicability
The recommendations for the
chosen distribution method will be
sound and supported by their
research. The justifications for
choice of distribution method will
clearly include advantages and
disadvantages of the chosen
method
Candidates will use all of the
different marketing models and will
plot where the chosen product fits
into the model. The definitions given
will explain both the current and
proposed positioning of their
product within the marketing models
illustrated. The product element of
the marketing mix will show a
detailed understanding of the
product or service clearly linked
and researched
The recommendations for the
chosen pricing strategy will show a
detailed level of understanding
that supports a reasoned
argument for the choice made.
Candidates will give supported
justifications, by their research,
with reasons for not choosing other
pricing strategies for the market
analysed. Full reference to
relevant research will be made
The suggestion and justifications
for choice of distribution will show a
thorough appreciation of both
advantages and disadvantages of
the chosen method. Candidates will
give a reasoned conclusion
drawing on relevant research
OCR Level 3 Nationals in Business
7
Unit 5: Marketing for business
Assessment
Objective
Pass
Merit
Distinction
AO6
Recommend and justify the use of
promotional techniques for the
selected product or service
Promotional techniques
recommended will show limited
research of the range of methods.
The justifications will reflect this
limited understanding and
recommendations may not be the
most appropriate for the product or
service to implement (eg national
newspaper advert for small local
producer). The recommendations
will primarily be based on above
the line methods
The recommendations and
justifications relating to promotional
techniques will be based on the
research conducted. They will
show an appreciation of a range of
above and below the line methods.
Clear reasoning will be given for
the chosen promotional techniques
with limited reference to the
constraints upon
promotion/marketing activities
The recommendations and
justifications relating to promotional
techniques will be based on the
detailed research conducted.
They will show a thorough
appreciation of a range of above
and below the line methods.
Detailed reasoning will be given for
the chosen promotional techniques
with clear linkage to the constraints
upon promotion/marketing activities
8
OCR Level 3 Nationals in Business