December 2011 - CIM Learning Zone

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Professional Certificate
in Marketing
Marketing Essentials
Senior Examiner Assessment Review Report
December 2011
© The Chartered Institute of Marketing 2011
Senior Examiner Assessment Review Report
UNIT NAME:
Marketing Essentials
AWARD NAME:
Professional Certificate in Marketing
DATE:
December 2011

Background to the paper:
The paper was constructed in two sections. Part A comprised ten short-answer tasks and
was worth 40% of the marks. Part B was based on a short, unseen case study profiling
Butlins - the iconic British holiday firm founded in 1936, providers of the first “all-inclusive
holiday”. The case study carried the bulk of the marks (60%), comprising three main tasks,
worth twenty marks each, the first two of which were split into two further elements, worth
ten marks each. All tasks were compulsory and covered the range of the syllabus with a
balance of knowledge and application. All areas of the syllabus were covered in the
examination paper.
The first section of the paper was mainly intended to test knowledge of marketing theory,
although relevant examples could be used so that candidates could apply their underpinning
knowledge. The emphasis in the second section was on the application of theory to a reallife situation. Marks were also awarded for demonstrating evidence of knowledge, as well as
presentation and format.

Comments on how the marking scheme was applied in terms of:
o
o
o
o
o
Concept, Application and Evaluation
Syllabus coverage
Use of command words and the extent to which answers reflected what was
required
The relative weighting of each part of a question/task and an indication of what
aspects of the task required most care and attention
What differentiated the A, B, C, or D grades
Overall the breakdown of the marking scheme was as follows:
Concept
Application
Evaluation
Format
40%
30%
20%
10%
The syllabus weighting for this unit is:
The nature and scope of marketing
Planning within the marketing context
The marketing mix
25%
25%
50%
A grade candidates will generally have:
 Completed all tasks
 Completed all elements within each task, providing a good description of the marketing
mix and applying this to a leisure based service organisation
 Demonstrated an excellent knowledge of the theory within the syllabus for this unit
 Demonstrated a strong understanding of the organisational environment identified within
the case study material and the ability to apply theoretical knowledge to a real-life
situation
 Used appropriate format and presentation in Part B, producing one well-presented
report, or three separate well-formatted reports
 Provided suitable examples from real-life companies, making good use of the case study
materials or organisational context when asked to do so.
B grade candidates will generally have:
 Completed all tasks
 Completed all elements within tasks, listing the marketing mix with detailed explanation
of each element and linked these elements to service organisation, remaining focussed
clearly on the task
 Demonstrated a good knowledge of the theory within the syllabus for this unit
 Demonstrated a good understanding of the organisational environment identified within
the case study and the ability to evaluate the case applying suitable theory
 Used appropriate format and presentation in Part B
 Provided suitable examples from the case study, organisational context and/or real life.
C grade candidates will generally have:
 Completed all or most tasks
 Completed all or most elements within tasks, identifying the marketing mix in a list with
some limited reference to case study and/or leisure service industry and giving an
adequate level of depth and detail
 Demonstrated an adequate knowledge of the theory within the syllabus for this unit
 Demonstrated an adequate understanding of the case study and/or organisational
environment identified, although with limited ability to apply theory or evaluate in depth
 Used appropriate format in Part B
 Provided at least some examples from real life.
D grade candidates will generally have:
 Completed all or most tasks
 Completed most or some elements within tasks, identifying the marketing mix in a list but
answers lacked detail, depth or clarity
 Demonstrated a weak knowledge of the theory within the syllabus for this unit
 Demonstrated a weak or limited understanding of the case material
 Used inappropriate format in Part B with inadequate, little or no report format offered
 Provided few, or no, examples from real life.
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 December 2011 exam paper was 53.47%.
The grade profile was as follows:
General strengths of high achieving students which the examining team identified included:

Answering the question asked of them

Being specific about the information given

Having excellent time management skills and answering all 13 tasks well

Having good understanding and awareness of basic concepts, such as PLC, NPD and
SWOT, as well as how new technologies can assist in the development of marketing
communications.
However, a number of weaknesses were also identified, which resulted in disappointing
performance for some candidates:

Failing to back up answers with relevant and topical examples

Failing to answer the question. For example, when asked to describe using relevant
examples how packaging can contribute to the branding process there was a lack of
appreciation of branding and its wider aspects, beyond a logo and naming global brands

Some candidates showed an understanding of the Product Life Cycle, the audit process,
SWOT and New Product Development but were unable to link them to an appropriate
pricing method, or to the role of the theory in the process, or they misunderstood the
concept of Fast Moving Consumer Goods, citing iPhones as an example

Although time management was much improved, some candidates spent too long simply
describing the various models asked for (unnecessary in a report intended for a
Marketing Manager) rather than applying this theory to a leisure service based
organisation

When asked to explain the importance of relationship marketing in a B2B context many
answered, they tended to respond in a B2C context

Vague explanations: although there are many advantages to web advertising, stating
that no one ever reads newspapers or magazines is not a good reason for using web
advertising.
Review by Task
Task One
Task One asked candidates to identify two marketing benefits to an organisation, of
operating in a socially responsible and ethical manner. Many candidates were able to give
reasonable answers to this question, identifying that going beyond basic legal requirements,
to focus on improving relationships would be beneficial. However, many tended to be
repetitive and superficial, not developing key marketing benefits such as improved staff
retention, reduced complaints and increased loyalty. A good example is set out below:
Positive PR Operating in a socially and ethical manner can allow an organisation to communicate this fact via positive PR. e.g. Communicating with the ‘public’; for example Ford Cares are able to communicate how they are achieving reducing their carbon footprint as part of its day to day business practice and CSR program. Pressure Groups Pressure groups can negatively impact on an organisation’s activities if they feel strongly about the way a company conducts itself. Operating ethically can negate such groups’ activities; for example, The Body Shop looks to sell products that are not tested on animals and therefore avoid the attentions of animal rights groups. Task Two
Task Two required candidates to identify two factors that make a marketing orientation
difficult to achieve within an organisation. This task was answered well, as many candidates
could identify aspects such as leadership style and/or commitment, conflict between
departments and a lack of understanding of marketing orientation. However, some answers
were very superficial, consisting of long lists, rather than detailed explanations of the two
factors requested. A good example is set out below:
Top Management Resistance Top management within a company may not have a real idea about what marketing orientation is. They may see it as something not necessary to have. Board of Directors may be obstructive, because, they have an obligation to fulfil shareholders interests first. But they may not see the relationship between marketing orientation and shareholder value. Lack of Infrastructure and skills Some companies may not have enough technology or skills to implement marketing orientation with the company. They may not have enough skills to carry out marketing planning. This does not mean they cannot be marketing orientated, but it is really difficult to become marketing orientated without these. e.g. normally small businesses face this situation. Task Three
Task Three required candidates to identify two advantages to a fruit and vegetable retailer,
of purchasing goods from a wholesaler rather than a producer. Many candidates were able
to identify ‘breaking bulk’ and ‘variety of products’ as advantages and achieved well.
However, too many candidates either forgot the fruit and vegetable link altogether, or
focused on reduced costs to the retailer, and were unable to condense their ideas into a
satisfactory six-minute written answer. A good example follows:
A retailer may choose to purchase goods from a wholesaler rather than a producer as they may receive better prices, due to them being able to buy in bulk. An example from Costco who always have special offers on with various types of fruit and vegetables. The retailer could also form better relationship with the wholesaler as they would have less customers than the producer, therefore offering better service and awareness of the retailers needs. The retailer could also get the products more quickly from the wholesaler, packed appropriately at a location that suits them. The retailer may also buy more than one type of product from the wholesaler – loyalty. In the case of fruit and vegetables it is essential that the items are fresh so being able to collect from a local wholesaler would be preferable. Task Four
Task Four required candidates to identify the importance of new product development (NPD)
to organisations operating in the fast moving consumer goods (FMCG) market. Most
candidates were able to reproduce the seven steps of the NPD process, but many failed to
address the issue of why the process was important in the context of FMCG. Too many
candidates incorrectly cited iPhones and iPods as FMCGs, rather than washing powders
and everyday supermarket goods. A good example is set out below:
Competitive Advantage By employing a robust NPD program in a very competitive FMCG market environment such as toiletries a company such as Proctor and Gamble can gain competitive advantage over its direct competitors. Changing Needs of Customers By communicating with its customers Proctor & Gamble would able to introduce new products to the market that satisfy the changing needs of its customers Extend Product Life The NPD process can allow for changes to be made to existing products such as Gillette razor blades that can actively extend the life of a mature product, maintaining profitable sales for the organisation. Replace Older Products New products such as the Dove’s new deodorant spray have been launched to replace its predecessor which again maintains higher sales and revenue for the organisation and shows Dove (Lever Brothers) as being an innovative organisation. Task Five
Task Five required candidates to describe, using relevant examples, how packaging can
contribute to the branding process. Unfortunately, this task highlighted two major defects
within the answers: firstly, a lack of knowledge around brand and the branding process;
secondly, unsuitable choice of examples, with many candidates again choosing iPhones
and other technology, rather than looking at easier options, such as perfume or washing
powder. Many answers were repetitive, with inadequate explanation, often looking at the
logo and nothing more. Once again, iPhone and Apple seem to have been given iconic
status, although this gave little opportunity to discuss perceptions, point of sale opportunity,
links between price/quality and packaging as well as simple elements like protection of the
product. A good example is set out below:
Branding is the marketing process of creating a name, symbol or design which identifies and differentiates a product from other similar products. It gives a naked commodity a personality and adds value. A company’s brand should be like a stick of rock – it should be consistent and included in everything the company does, which includes the packaging. As with many aspects of the marketing mix and communication mix, it is the medium that conveys quality. The packaging needs to match the quality of the brand, so for example for an expensive bottle perfume a customer would have to expectations that the packaging would be of high quality. Research has shown that supermarket own‐label brands no longer have the stigma associated to them that they used to and this is down to improved packaging which is of a better quality. Packaging is important as it provides many functions one of which is communicating the brand, its quality, value and price. Task Six
Task Six required candidates to explain, using a relevant example, an appropriate pricing
method for a product in the ‘maturity’ stage of the product life cycle (PLC). Most candidates
could produce a good PLC diagram and identified the maturity stage. However, many then
forgot the task in hand and explained the PLC in great detail, which was not required. Those
that did move from the PLC to the pricing method then made a number of fundamental
errors by not selecting the correct pricing method or a relevant example. These two errors
prevented many candidates from achieving a pass for this question. Skimming is not an
appropriate pricing method at this stage and iPods or iPhones are not suitable product
choices for this task. A good example is set out below:
When a product has reached the maturity phase of the PLC then it is well established product that has already increased in sales over time, see above diagram. At maturity phase the highest profits are being made and competition is high and one way to increase or maintain sales would be to look at promotional pricing in the existing markets and penetration pricing in new markets. An example of this could be with electronic goods such as DVD players. Once they are in maturity the price is dropped to encourage the last groups into having to switch from VHS. Using promotional pricing the price of the DVD player are lowered to encourage purchase from these markets which have not yet adapted to this new technology. Customers can be encouraged to replace and up date their technology to new higher specification DVD players by offering promotional deals on the price, such as trade in values reduce price of new DVD players, therefore keeping the product in the maturity stage for longer. Task Seven
Task Seven required candidates to identify one internal and one external factor which
influence the setting of business objectives for an organisation. Once again, this task was
answered well by most candidates, although many just gave lists without supporting
explanation and included PESTLE. Most were able to identify elements such as staff,
business capacity, laws and competition as influencing factors, but many answers lacked the
depth and expansion of the elements required to achieve full marks. Candidates often
produced SMART business objectives and defined the SMART acronym, neither of which
was required. A good example is set out below:
When setting business objectives it is important to do an assessment of the company’s internal strengths and weaknesses and external threats and opportunities. One internal factor that will influence the setting of business objectives for an organisation would be resources, specifically human resources. For example, there would be no point in TomTom setting themselves the objective of the sales team increasing the number of stores they visit in the next year by 50% if they do not have the human resource capacity to achieve it. One external factor that will influence the setting of business objectives for an organisation will be the state of the market; whether it is static, growing or in decline. Again it wouldn’t make sense for TomTom to set themselves the objective of increasing their market share by 20% nest year when the market is actually in decline or relatively flat. Objectives should always be SMART, that is to say specific, measurable, achievable, realistic and time‐bound. Task Eight
Task eight required candidates to briefly explain the role of a SWOT analysis within the
marketing audit process, which unfortunately, many did not - a problem of not answering the
question asked. Candidates gave detailed explanations of the SWOT acronym and drew
diagrams which moved weaknesses to strengths: this, however, was not answering the
question with regards to the role of SWOT in the audit process. It was important that
candidates discussed the need for a snapshot or up to date view of the organisation, without
which it would be impossible to move forward and set objectives for the future of the
organisation. A good example is set out below:
Marketing audit is an examination of the company’s marketing environment, its objectives, strategies, activities and identifies problem areas and recommended course of action to overcome these problems (Phillip Kotler) SWOT analysis includes two internal factors such as strengths and weaknesses and two external factors such as opportunities and threats. When analysing company’s marketing audit process (where are we now? According to synergistic planning process. These factors are important. Company may have financial strengths, skills, technology as their strengths where they can stay ahead of the competition. They may have the knowledge weaknesses on the other hand. So when analysising where the company is now it is important to know these factors clearly. Also the company may have a lot of opportunities to enter a new market or launch a new product (e.g. the shortage of oil firm opportunities for hybrid, gas or water) Identifying threat of new entrants and so on. By analysising these factors the company can get a valuable idea about the company’s way forward in the current market and set objectives within its strategies that will achieve the outcomes required for the future success of the company. Task Nine
Task Nine required candidates to identify two advantages that web advertising has over
traditional press advertising. Some candidates misinterpreted this question as asking why
the younger generation does not read or use traditional media such as magazines and
newspapers. The few good answers looked at the Web’s positives: that it enables the
targeting of specific markets, tracking of customer activity and can be more cost effective
than some press advertising. However, many missed the opportunity for the “call to action”
and the more immediate two way communication that can happen. A good example is set
out below:
Targeted An organisation such as Natwest Bank can utilise web advertising directly at a particular customer they are looking to attract depending on which websites it advertises on. For example they may advertise on a sports website if they are looking to attract SME’s such as plumbers regarding business banking. It is more difficult to have this link without access to something like a plumber’s magazine. Measurable As the direct marketing of web advertising is budgeted Natwest would be able to track or measure the success of the campaign by researching over a period of time how many new business banking accounts were opened by linking through from the sports web site. This would allow more understanding of ROI. Task Ten
Task Ten required candidates to briefly explain the importance of relationship marketing in a
B2B context. Once again, this task resulted in very poor answers from many candidates
across the whole diet. Generally, the problem was that candidates ignored the B2B context
in their answers: this may have been a mistake or, more likely, due to a lack of knowledge of
the differences between relationships in a B2B environment and a B2C market. Very few
candidates considered the slower pace of change in B2B, which is more of a partnership in
many markets and therefore requires a higher level of trust. Candidates should also have
highlighted the importance of the proactive and cooperative nature of the relationship within
B2B. Finally, suitable choice of B2B would have been an improvement. A good example is
set out below:
Relationship marketing is a body of marketing theory that recognises the importance of establishing long term relationship with all stakeholders including other business that you deal with – suppliers for example. The sales transaction is only the start of an organisations ongoing relationship with its customers and suppliers. In a B2B context relationship marketing is very important as there are fewer businesses out there than there are individuals and it is important to more businesses up the ladder of loyalty so that they become advocates and partners of ours in the achieving both sets of objectives. In B2B personal selling is a lot more common and so relationship building is important to gain trust of the decision making unit so that they make repeat purchases and create profit for both organisations in the longer term future. Part B
The case study for Part B focused on Butlins, the first all inclusive holiday company in
Britain, founded over 80 years ago and now a British icon. The case study was chosen
because it gives unique opportunities to look at service based marketing within an iconic
brand from the leisure industry: although based on a British business, it allows candidates to
examine the development of brands in general and to develop an explanation of the
marketing mix within a service sector company. The major aspects of the case were:
-
Promotional strategies and targets for these activities
The marketing Mix, both 7 and 4 Ps
Branding and how it can support a business in a competitive market
Promotional pricing strategies to increase sales at particular times when service is
available
Marketing mix synergy, especially around the service marketing mix of People, Process
and Physical evidence
Task Eleven
Task Eleven (a) required candidates to explain how the marketing mix has been used in
branding the Butlins concept. Up to seven marks were available to candidates who could list
the Ps of the marketing mix, with additional marks available for developing an explanation
about how these linked to Butlins and/or service based leisure industry.
Many candidates achieved well in the first element by giving the 4 or 7 Ps of the marketing
mix, although there still appears to be confusion about Place as part of the mix: Place is
about availability, how customers obtain the product, (where it is accessed from) and
therefore has little or no link to the geographic location of the service, in this case Bognor or
Minehead. It is, however, about web based booking systems and linking to agents or shops
where customers purchase holidays. This was not specifically given within the case study
information and therefore required an underpinning knowledge of service based products,
which are often hard to separate from their geographic location which can therefore become
part of product and physical evidence. Finally, many candidates achieved well in identifying
the Ps, but lacked the knowledge required to look at the synergy and produce a coherent
marketing mix for a leisure service organisation.
Task Eleven (b) required candidates to evaluate how the brand may need to be updated in
the context of a competitive market environment. Once again, the task gave candidates the
opportunity to look at the case study information and to either use the examples given, or to
look more generically at service industries brand development. This called for two major
elements of underpinning knowledge: branding within service sector marketing, and how
brands are developed. Many candidates had superb ideas for re-branding and many had
some concept of the practice of how to rebrand: unfortunately, few had both aspects in one
answer.
Two marks were awarded for the format and presentation across the whole of Task Eleven.
A good example is set out below:
To: Marketing Manager for Butlins From: Marketing Assistant for Butlins Date: 06/12/11 Subject: Butlins Market Mix and Brand 1.0 The marketing mix has been adapted well to ensure that it meets the changing needs and expectations of the customer. I will now go though each elements of the marketing mix to explain how it has been used in branding the Butlins concept. 1.1 Product The core product of an all inclusive family holiday has remained the same, but additional features have been added, such as special theme weekends, and the product has become more flexible, therefore also offering different solutions to differing target audiences. 1.2 Price Again the price strategy of bundling elements together and including everything in the price still remains a major part of the Butlins offer, allowing it to compete with different opportunities with the leisure market. 1.3 Place The distribution of the service has become more flexible to attract differing target markets, using differing distribution channels to access different elements of the market, such as the web for younger audiences. 1.4 Promotion This is done by the Red coats who work at Butlins once customers are in the service and via the advertising through various media across the country. 1.5 People As mentioned above the Red Coats are given a uniform which helps to make them part of the Butlins brand as they are representing the service and there to help customers enjoy their holiday. 1.6 Physical Evidence To reinforce and reassure customers of the quality of the service the apartments are now all modern with modern luxuries, this helps to ensure that the Butlins brand is associated with high quality. 1.7 Process Process needs to all be streamlined and run effectively so in Butlins case this works well as there are many different activities happening at the same time and customers are able to access the service easily. 2.0 As Butlins operates in a competitive environment it needs to ensure that it does everything it can to establish a competitive advantage. One way of doing this can be to build or update its brand so the brand values represent those of consumers and the target market. The brand must also communicate the expectations of those customers and achieve the perceptions of the brand in the minds of the customers. The Butlins brand may now need to emphasis its modern values as people no longer stay in wooden chalets and are not woken up by a bugle call, but they have modern apartments with all mod‐cons and are able to have a service which is suited to their needs. Rather than referring to its holiday makers as campers it should change this to something else more like guests to prevent people from thinking of accommodation that is like the standard of a tent. Butlins brand needs to change as customers needs change and the market environment changes and Butlins most communicate these changes through proactive marketing communications to potential customers within the market. Butlins now has to compete with foreign holidays and better weather so its brand needs to adopt and differentiate itself from those other types of holidays by look at its offer and promoting the special nature of the holiday experience at Butlins. However the brand still needs to remain true to its core values and remain an icon of the British seaside holiday market, so similar to Tesco who started as ‘stack it high sell it cheap’ – ‘every little counts’. Task Twelve
Task Twelve (a) required candidates to identify two examples of promotional pricing
methods that Butlins could use to increase visitor numbers at weekends. This task could
therefore consider elements that had been suggested in the case study, such as specialist
weekends and develop them. Alternatively, candidates could use any ideas around price
promotion which would improve weekend visitor numbers for a leisure based service in their
own country or location.
Once again, candidates required an element of underpinning knowledge to explain how
price is part of the exchange process, linked to income generation, then profits, costs of
production and wages. It was unfortunate that many candidates ignored this element of price
listing number of (not just two) differing promotional pricing activities. Many candidates
identified BOGOF or “children go free” as good ideas for the hard-pressed families who
worked Monday to Friday. However, it was disappointing to see the number of candidates
who ignored the weekend element set out in the question and failed to give adequate
explanations of why they were discounting the price or offering free placing.
Task Twelve (b) required candidates to identify the likely target market for these promotions
and recommend which promotional tools should be used. Again, this required a level of
knowledge, to link target markets with promotional tools and of the relationship between the
two. It was not necessary to link this task directly back to Butlins or a British seaside holiday
icon, as it was more about demonstrating the underpinning knowledge around
communicating to the right target market in the right way.
Many candidates produced reasonable answers linking the media to the target markets, but
were often obsessed with bringing together large numbers of young people who like to party,
and families who would also enjoy this experience, ignoring the incompatibility of these two
distinct target audiences. Many candidates also failed to consider when their activity would
happen: specifically, ignoring the ‘weekend’ element from the question.
Those candidates who did not achieve well failed to relate the promotional activities to the
target market adequately: again, many did not think about the target markets, making
generalised statements about using web pages, TV and press campaigns, with little or no
contextualisation to Butlins, the leisure industry or service based organisations.
Two marks were available if candidates continued the use of a report format and suitable
presentation. A good example is set out below:
2.0) Promotional Pricing Methods Promotional pricing methods are ways of pricing a product to attach new or repeat customers to purchase your product they usually involve dropping of price or offering better value for money. Two Promotional Methods 2.1) Buy one get one free For weekend business this would be ideal for Butlins, guests could purchase one Friday night and be offered the Saturday for free or verse versa. This deal could come without any other elements and therefore be ‘room only’, which could allow Butlins to ‘up sell’ other elements of the business such as breakfasts or diner, increasing their income in other areas. By offering this type of deal Butlins should see an increase in weekend visitors, but also an increase in sales of food and drink. By selling their guests this opportunity it would be particularly useful to Butlins in the low peak times of the year such as autumn and spring when the numbers of visitors are low and the ‘camp’ could then contribute to the fixed costs of operation. 2.2) Children go Free Children’s going free at the weekend is also an excellent way of encouraging the family market to use the service at the weekends. As children will be accompanied by an adult as well, there will still be revenue to be made from the adults paying for accommodation and other parts of the service. Children could have free use of certain number of facilities like the swimming pool, but as they still need to be accompanied by an adult revenue is still made. Children go free is an excellent way to encourage visitors at weekend as most of the families are working and it will be the only available time they could come to Butlins. 3.0) Target Market Different promotions appeal to different markets and in turn can use differing promotional tools in order to reach these markets. 3.1) Buy one get one free This deal is aimed at the market at the lower end of the price market who are very price sensitive maybe low income families or single parents who can’t afford a whole weeks holiday but just a cheap short break. 3.2) Promotional Tools For lower income families promotional methods such as newspapers and magazines aimed at this market would be useful. Adverts in lower costs publications lower socio‐economic groups’ readership should be useful like the Sun and Daily Star or Metro or even Tesco magazine. These publications are more likely to be read by these target market lower income and therefore the deal could be more accessible to them. For single parent families, perhaps posters or adverts in the day care centres or community facilities could be a good way of reaching this segment of the market. 3.3) Children go Free The target market here is obvious families with children as they are the only one who are going to be able to take advantage of the deal. 3.4) Promotional Tools Used There is a choose here in whether to target the parents of the children who will actually book and pay for the holiday or the children themselves in order to build up a level of desire to go to Butlins and to ask the parents to book the holiday. 3.4.1) Parents In order to target parents, adverts could be placed in mother care magazines, like the mother & home or Parents magazines. A more general approach might be considered some type of web based advertising on those that search for ‘family holidays’ or ‘short breaks’ online, this as the advantage of widening the target across a larger target market. Posters and adverts at crèches or baby groups, along with older children activities such as local football clubs and so on might also be ways of attaching the parents to book a holiday via web site, telephone call or visit to local travel agent. 3.4.2 Children If children are to be the target segment then TV adverts during children’s TV programmes or on children’s TV channels might be effective, but cost will need to be taken account of if this was to be the approach. Advertising to children can raise ethical questions and so the adverts must not exploit the children and explain to parents how they go free, but simply push the benefits of Butlins to the whole family. Task Thirteen
Task Thirteen (a) required candidates to describe the possible benefits to Butlins, of
developing a coordinated approach to the service market mix (people, physical evidence and
process). The examiners felt that candidates had improved their time management and had
time to develop a good answer to this question. Firstly, candidates were required to identify
the 3Ps in relation to a leisure service and/or Butlins. Secondly, they needed to develop
these 3Ps in a coordinated way, to generate income, allowing the business to survive; to
grow and maintain its place in the market, and to continue to have synergy amongst the 3Ps,
which would impact on the brand perception for the future long term success of the business
in the long term.
High achieving candidates were able to describe the extended marketing mix and give brief
examples of the 3Ps, either from the Butlins case study materials or from general service
based organisations. Very few discussed the benefits of a coordinated approach, specifically
how each element must support and link with the others to produce synergy, which was the
real purpose of the question.
Many candidates were able to identify what the 3Ps were in terms of Butlins, but then failed
to develop these factors and link them with increased sales, support/survival of the
business and profit or shareholder value, which were all part of ‘developing a coordinated
approach’ as required by the question.
Those candidates who did use the case study information were able to see the changes in
the marketing mix and show how the Butlins brand and company has survived and thrived
since 1939. They also showed the changes Butlins have made in the offers to the customer
around physical evidence and process, and how they have moved away from the traditional
role of the Redcoat whilst retaining their core values of excellent staff training and customer
service.
Time management appeared improved over recent sessions: many more candidates had
time to attempt an answer to this question.
A good example is set out below:
Section 3 Benefits to Butlins of a coordinated approach to the service marketing mix People By ensuring that all employees and affiliates of Butlins understand why the organisation exists; e.g. To provide the best possible holiday for its customers they will convey this in their day to day activities. A customer interacts with numerous people during a transaction with an organisation and non more so than on a holiday. The customer will interact with cleaners, entertainers, management, welcome staff, waiters, cooks and so on and it is all of these people that can influence whether a customer moves up the loyalty ladder from a customer, a client, an advocate and a partner, therefore increasing the income generated from that one individual customer. The service industry is very different to that of a product as products being inanimate objects are consistent in what they do for their customers. People are individuals and so very different from each other. Emotions come into play and can have an effect on how they interact with customers. Maintaining a high level of consistency is difficult but if the negative can be minimised then customers may decide to holiday at the same resort over and over again increase our profits. If customers do return time and again then price becomes less of an influencing factor in the decision making process as benefits out weigh the price and the brand begins to grow. Returning customers are less expensive on the organisation resources. Trying to attract new customers takes more money and resources to achieve. Physical Evidence The above is reinforcement of the Butlins brand and must reflect what the brand promises. It is important that the very high image that Butlins is now trying to promote is supported by the PE of the sites. This needs to be consistent throughout the entire holiday of the Butlins guest and would include aspects such as: - Clear signposting and directions to the resort - Taxi available if travelling by train - New DVD comfortable beds and sofas - Plenty of parking - Litter free in all areas - Staff well dressed and attentive - Clean rooms with working appliances - Food in restaurants of a high standard - Clean changing rooms in swimming pool areas - Issues resolved quickly and effectively If Butlins achieve the above and are able to reinforce the promise of its brand then in addition to customers returning again they may well spread via word of mouth how good a time they have had with people they interact with resulting in potential new customer for Butlins. Other benefits could be returning guests bring new guests with them, guests write and share their appreciation with Butlins who may be able to use this as part of promotional communication in the future and increase sales, revenue and profit. Process By ensuring the process of exchange and use of the service is as easy as possible for the customer Butlins can benefit, process will include: Payment; if booking a holiday is made easy as possible for the customer they are more likely to proceed with the booking and return in the future, this is also linked to the availability of booking opportunities (place) and could include –Online, credit terms, instalments, clarity of what is paid for in the all inclusive price and what payments are required when. This could link into tailor made holidays; some customers may wish to plan their entire holiday itinerary from the booking, restaurants to daily excursions. If Butlins can offer this then they will attract more customers. Accommodate extra requirements – some holiday makers may require extra requirements for example families with disabled members may require – larger parking spaces, access to ramps, differing seating for watching entertainment and ground floor accommodation. Customers may have specialist dietary requirements so Butlins must ensure they can deal with allergies, regions and vegetarians for example. If there are large parties or families Butlins must be able to accommodate them in rooms or chalets that are close together. By offering this type of flexible approach across the whole marketing mix but maintaining the Butlins brand they can gain competitive advantage over the competition and maintain a profit long term business. 
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
In general, the results show a reasonable conformity with a normal distribution curve from A
to E grades. There were some excellent answers, as demonstrated by the illustrative
examples used in this paper. However, there is a disappointingly high grouping of results
around the F and U grades, with over 72% of those who did not gain a pass achieving these
grades. This appears to demonstrate that a large number of candidates continue to be illprepared, or in some cases, wholly unprepared for this level of the qualification.
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Commentary as to whether recommendations made in previous years have been
properly followed up
Previous reports have recommended that candidates need to apply what they have learnt
and in the main, candidates have been able to demonstrate this in their performance.
However, performance is still not as good in Part B as in Part A. Often, research shows that
if a candidate underperforms in part A they will be unable to make up the difference in part
B. This may be due to time management, although in this session many more candidates
attempted all 13 tasks. More likely it appears due to candidates’ inability to show the level of
application which Part B requires. In this session, the average mark across part B questions
fell short of the 30 out of 60 marks needed for an overall pass.
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Comments and examples of:
o strengths and good practice
o common mistakes when tackling this type of task
Strengths:
High-performing candidates demonstrated the ability to think clearly about marketing issues.
They applied their knowledge of underpinning theory fully to Part A tasks and used it
creatively in the case study questions. Those who achieved high marks were either able to
make good use of the information supplied or had sufficient underpinning knowledge of a
service based organisation to answer the tasks well.
Good candidates were able to complete all the tasks and were able to provide relevant
examples and contextualise their work. Arguments were well-structured and coherent, and
addressed the task as set. High performing candidates were also able to cover the tasks in
Part A succinctly: this allowed them enough time to fully address Part B tasks, which
required more detailed answers, even if those answers were not always specific to Butlins,
but were sometimes more generic answers around service based organisations.
Syllabus strengths appear to be around the areas of orientation, CSR, distribution channels,
NPD, PLC and objective setting.
In addition, candidates who performed well did so because they were able to express their
ideas persuasively, using marketing terminology in context and illustrative examples from the
case study.
Weaknesses:
Areas where candidates’ performance could be improved are as follows:
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studying and revising all aspects of the syllabus, not just popular elements such as PLC
or NPD
the understanding of the key and command words in the task were weak this session
understanding linkages across the syllabus when answering tasks
using inappropriate examples: for example, the iPhone is not a FMCG
reading the case study and using it to help answer in context
not repeating the task in the answer
providing examples to illustrate points made, ensuring that theory is used to back up
arguments, not simply quoted in its entirety especially in Part B
Part A questions give the opportunity to show theory and knowledge only, but it was
disappointing that this was lacking
writing one report to cover all questions in Part B
referencing models in a formal report rather than explaining the models, with no
application to the case study
not using the information given by the command and key words in the questions set
not answering the task set and not completing all tasks in the time available, although
this has improved.
Those candidates who did not attempt some tasks dramatically reduced their overall scores.
In the statistical analysis, candidates need to achieve 20+ marks in Part A to stand a
reasonable chance of an overall pass grade.
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Guidance about how candidates can avoid making similar errors and strategies for
improving performance
Detailed coverage of the syllabus, supported by course text and wider reading will help
candidates to improve their performance. Candidates should also tackle past papers to
ensure familiarity with the format and presentation, and enable them to manage their time
more effectively. Short answer questions at the start of teaching sessions can help
candidates to see and develop simple answers for part A questions. The development of
webinar sessions would also improve candidates’ understanding of how to answer questions
using key and command words provided.
Candidates must develop their ability to apply knowledge to the context. Working through
case studies would clearly be beneficial. However, there is an important learning process
around general understanding of the theory within particular business or organisational
contexts: candidates should be able to discuss how to achieve profit within a private
shareholder based organisation in both the service and manufacturing sectors. There are
many sample case studies in the textbook and the study guide.
Time management, which is crucial, was much improved in this session. Candidates should
aim to apportion 40% of their time to Part A and 60% to Part B, since this is how the marks
are split. The examination paper clearly recommends spending approximately one hour on
answer Part A and two hours on Part B, which offers candidates a rough guideline.
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Suggestions of possible alternative approaches to tackling a task or parts of a
task while making it clear that it is not the only way
Candidates should make solid and appropriate recommendations when answering case
study tasks. Some candidates simply repeat the case material, which is clearly inadequate
and without analysis and clear recommendations, the candidate is unlikely to pass.
Candidates should demonstrate a clear understanding of the underpinning theory by
describing how it is used in an organisational, business or market context: they can do this
without the case study information in many cases, although it may well help to give some
context in terms of the size and type of organisation being considered. In this session, for
example, we were looking at a large iconic, country-based brand within the leisure or service
based industry.
Candidates should read the tasks much more carefully. If asked to produce a report for a
Marketing Manager, two factors should be immediately apparent: firstly, that a report format
is being asked for, and secondly, that there is no need to write out all the appropriate
marketing models in full.
Candidates would also do well to spend some time considering their answers rather than
rushing into writing things down – a deeper reading of the case study, followed by a few
minutes’ thought, would make a very big difference in many cases. If candidates are unable
to relate answers to the case study then offering their generic understanding of the theory
will achieve benefit.
Discussion between tutors and candidates concerning the generic mark scheme, including
the format and presentation marks, might also help clarify what each element of the paper
demands. Tutors should work hard on developing their candidates’ skills in spotting key and
command words which link to basic exam techniques and success.
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Recommendations for how performance can be improved in future assessments
Candidates should check that they have included examples where asked for, or made their
answer suit the examples given, and that they have actually answered the task as it is set,
paying particular attention to key and command words.
Specific points to note include: what constitutes a brand and how packaging contributes to
its success; the basic phases of the PLC and how each has appropriate pricing strategies;
FMCGs, which are clearly identified in most texts and do not include technology based
products such as iphones. More development and detailed understanding is required around
the marketing mix (all 7Ps), especially when used in differing business sectors. Place, in
particular, seems very poorly explained.
Candidates should ensure that they have used the correct format. Most importantly, they
should think before they start writing, especially in Part B, where taking time to read the case
and think through the problems would make a very big difference to the answers, as the text
often provides valuable clues to the type of answers required.
Finally, candidates should make recommendations that are solidly grounded in marketing
knowledge.
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Clarification about any syllabus or assessment changes
No changes are planned in the near future, although the length and format of the case study
is in the process of being reviewed and is likely to become shorter and more generic.
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Possible future assessment themes
Future assessments will follow much the same format, using case studies from varied size
and types of real life businesses. Candidates can expect that exams will cover the entire
syllabus at this level and the exams are designed to include every aspect of the published
syllabus, so selective revision is likely to be counterproductive.
Future exam papers may continue the emphasis and split between the knowledge elements
in Part A and the application element in Part B, but both knowledge and application will still
be expected in both parts.
Marketing Essentials is a Level Four qualification and it is important that candidates have the
underpinning knowledge from the Introductory Certificate before they attempt to move onto
the Level Four units.
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