Professional Certificate
in Marketing
Assessing the Marketing Environment
Senior Examiner Assessment Review Report June 2009
© The Chartered Institute of Marketing 2009
Assessing the Marketing Environment June 2009
Senior Examiner Assessment Review Report
MODULE NAME:
Assessing the Marketing Environment
AWARD NAME:
Professional Certificate in Marketing
DATE:
June 2009
•
Background to the paper:
This assessment featured a case study on car manufacturer Toyota. Toyota is the world’s
biggest car producer with sales of over 8.5 million vehicles in 2007. Some of the information
in the case was based on Toyota’s 2007 annual report but this was updated with current
statistics and news reports that represented the very significant impact of the current global
economic downturn.
The case was issued four weeks in advance of the exam. Candidates were asked to prepare
and submit a four page PESTEL & SWOT analysis that they could refer to during the exam. A
clean copy of the case study was supplied at the exam.
The format of tasks was five short questions in Part A and three long questions in Part B and
candidates had to complete all questions with no element of selection.
The case was designed to be appropriate to candidates in and beyond the UK. The depth of
information given in the case was comprehensive and the process of developing a PESTEL
and SWOT analysis ahead of the exam gave candidates the opportunity to get to know the
case material very well. This should have enabled them to consider or discuss aspects of the
case in relation to the elements within this syllabus. The tasks set were all clearly related to
syllabus elements.
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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/task and an indication of what
aspects of the question/task required most care and attention
o What differentiated the A, B, C, or D grades
Generic Approach
Overall the breakdown of the marking scheme was as follows.
Concept
40%
Application
30%
Evaluation
20%
Format
10%
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Assessing the Marketing Environment June 2009
The Part A questions generally had a greater emphasis on theory. For example in Task One
candidates could achieve equal marks for defining the term ‘trade barriers’ and for explaining
the significance of trade barriers to Toyota.
Part B questions gave candidates a further opportunity to develop application to the case eg
in Task Seven by describing the types of market information that Toyota could use to forecast
market potential and monitor competitor activity.
At this level, and for this valued professional qualification, the candidates were therefore
expected to be able to build on theory, apply it well to the case and evaluate the impact of the
marketing environment on the case organisation.
Marks for format and presentation were only awarded in the Part B, report format questions.
These were relatively easy to achieve by introducing the key focus of each task and making
good use of headings, charts and/or tables to give answers a clear structure and writing
clearly and concisely. The majority of candidates achieved reasonable format marks.
However, there was a significant minority that failed to use any formatting at all and only a
very small number of candidates achieved full format marks. This paper allocated a total of
10 format marks and clearly this can make a substantial difference to the candidate’s ability
to achieve a pass, or the grade that they hope to achieve. This recognises the value of strong
presentation skills in the workplace.
Command Words
Candidates need to carefully consider the command words used within each task. Eg:
- explain how these affect Toyota…
- describe opportunities and threats…
- evaluate how activities contribute…
- discuss advantages and disadvantages
Syllabus Elements
The syllabus weighting for this unit is:
The nature of the organisation
The micro environment
The macro environment
Undertaking a marketing audit
15%
30%
40%
15%
All areas of the above syllabus areas were in the exam. The most important point that
candidates should note is that the macro and micro environment together account for 70% of
the syllabus.
It is also important to point out that the nature of this exam and the case study approach
means that candidates should not expect a fixed format to the questions eg Task Three will
not always focus on product quality and Task seven will not always focus on market
information. The nature of this type of assessment and the variety of cases that will appear
means that the syllabus breakdown, as above, is for guidance and may not be exactly
replicated within each exam paper.
Exam format
The exam consisted of five short answer questions, each worth 8 marks and three reportformat questions, each worth 20 marks. All questions were compulsory and covered the
range of the AME syllabus with a balance of concept, application and evaluation relating to
the case material supplied. The exam paper did not break down the marks within any
individual task. Future papers may split the marks within each 20 mark task – this will be
clearly noted in the exam paper.
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It is important that candidates allocate their time appropriately throughout the paper.
Candidates generally exhibited good time planning, enabling them to complete all questions.
There were relatively few examples of poor time management where candidates had placed
too much emphasis on Part A tasks and then compromised the time required to tackle the
more complex Part B tasks. Some candidates appear to have run out of time towards the end
and this negatively affected the average mark for Task Eight.
The information available to candidates before and during the exam meant it was important to
focus clearly on the questions and to make good use of the case information and supporting
analyses. There was no expectation of candidates undertaking wider research and all
questions related only to information within the case study.
Grade Differentiation:
The mark scheme for this paper gives examiners clear guidance, question by question, on
answers that justify the relevant allocation of grades. A general interpretation of the
differentiation or grade across the papers is as follows:
A grade candidates will generally have:
• Completed all tasks
• Completed all elements within each task (eg listing TWO environmental issues) and
focused clearly on the task
• Demonstrated an excellent knowledge of the theory within the syllabus for this unit
• Demonstrated a strong understanding of the case material and an ability to develop this
with clarity and depth, as required by the tasks
• Used appropriate format and presentation in Part B
• Submitted a PESTEL and SWOT analysis that demonstrates thorough knowledge and
understanding of the marketing environment relating to the case. Any references to the
analysis were clearly signposted and well related to answer points.
B grade candidates will generally have:
• Completed all tasks
• Completed all or most elements within tasks (eg listing TWO environmental issues) and
focused clearly on the task
• Demonstrated a good knowledge of the theory within the syllabus for this unit
• Demonstrated a good understanding of the case material and an ability to develop this
with clarity and some depth, as required by the questions
• Used appropriate format and presentation in Part B
• Submitted a PESTEL and SWOT analysis that demonstrates a good knowledge and
understanding of the marketing environment relating to the case.
C grade candidates will generally have:
• Completed all or most tasks
• Completed all or most elements within tasks (eg listing TWO environmental issues) 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 material although may have a
limited ability to develop this with clarity and depth
• Format of Part B answers is adequate.
• Submitted a PESTEL and SWOT analysis that demonstrates an adequate knowledge and
understanding of the marketing environment relating to the case.
D grade candidates will generally have:
• Completed most tasks
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Assessing the Marketing Environment June 2009
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Completed most or some elements within tasks (eg may have only listed one
environmental issues) or answers lack 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
Format of Part B answers may be inadequate.
Submitted a PESTEL and SWOT analysis or used that analysis in a way that
demonstrates some gaps in knowledge and understanding of the marketing environment
relating to the case.
In summary:
The marking scheme is specific in terms of guiding examiners to award marks appropriately
in proportion to the elements of each task and examiners are given guidance on key points
that candidates may include in their answers. However, in most of the tasks, there is no
prescriptive list of elements of factors that candidates must include. Eg Part A Task Two asks
for two implications of oil price fluctuations and examiners did not have a prerequisite list of
issues that must be mentioned. What is more important here is that the issues raised are
realistic and the implications well explained and justified.
•
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 54.24%.
The grade profile was as follows:
The standardisation process carried out by the marking team did not reveal any issues about
potential misinterpretation of tasks. In general, candidates exhibited a well-structured
approach and maintained a clear focus on the case. The candidates that performed well
demonstrated a good knowledge of the syllabus for this level and an ability to respond
confidently to the issues presented by the tasks, demonstrating a thorough knowledge of the
case material provided.
The examining team felt that any poor performance in this exam was generally for the
following reasons:
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Candidates having approached this unit with rote learning; limiting their ability to
assimilate the information from the case in responding to the tasks in the exam. For
example in Task Four describing generic advantages and disadvantages of multinationals
vs. private companies without adding any context relating descriptions to the case
There was some evidence of gaps in syllabus knowledge. Eg poor understanding of the
specific nature of trade barriers in Task One.
Some candidates demonstrated a limited ability to pause and reflect on the information
they had, the syllabus related question being asked and the key points they could include
in their answers. For example, in Task Five candidates needed to clearly identify natural
environmental issues rather than launch straight into threats and opportunities that these
may present.
Some cases of poor time allocation that did not reflect the marks available (ie long overdetailed answers to Part A tasks).
All of the above reinforce the fact that the case study approach is both critical to this form
of assessment and a practical skill that is valuable in the marketing work place.
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 improvement in the pass rate suggests that tutors and candidates are responding well to
guidance and making good use of the growing resource of past papers. The majority of
candidates showed an appropriate level of knowledge of the syllabus with only a small
minority demonstrating gaps in elements of the syllabus.
A more significant issue is the candidates’ ability to respond to the tasks in an appropriate
level of depth for the task. For example, in Task Eight it was not enough to describe CSR
activities; candidates needed to evaluate those activities in terms of their contribution to
achieving economic sustainability. In Task Two in describing the implication of rising fuel
costs, it is not enough to say “car sales for Toyota will be lower”. Candidates need to be able
to explain issues and impacts in some detail.
Although the resources available to candidates may vary across the cohort, all will have
some access to information about organisations in their local area. All of these organisations
are to some degree affected by the issues referred to within this syllabus. It is the candidate’s
ability to clearly relate this subject to live examples that makes the difference between
success and failure.
•
Commentary as to whether recommendations made in previous years have been
properly followed up
Candidates will have had the benefit of being able to review the first past paper (Dec 08) and
the Senior Examiners feedback. There is evidence that candidates are becoming more
familiar and comfortable with this form of assessment and the strong focus on the case.
Numbers of candidates repeating case material and regurgitating theory has certainly fallen.
There is also good evidence that candidates are making much better use of the PESTEL and
SWOT analyses to prompt comprehensive answers. This is reflected in an improvement in
the pass rate.
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Comments and examples of:
o strengths and good practice
o common mistakes when tackling this type of question/task
Strengths and good practice:
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The vast majority of candidates planned their time well, completing all questions. They
allocated time appropriately based on the marks awarded for each task.
Reference to the appended PESTEL & SWOT analysis worked well with evidence of
candidates making good use of this material to prompt answers and assist with checklists.
Theory only represents 40% of marks at this level. The style of questioning is such that
Part A tasks have a higher element of theory than the Part B tasks. Good answers to Part
B tasks tended to refer to theory at an appropriate depth then relate that theory
confidently to the case.
The majority of candidates formatted their answers well and so ensured that all elements
within each task were clearly presented. The ability to present written information in a
clear and impactful way is a skill that is valuable in the workplace.
Weaknesses:
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The appended analyses, whilst not accruing marks independently, tended to be a clear
indication of the candidates preparation for the case. If candidates arrive with an analyses
that has been independently and thoroughly produced, it will serve as a valuable tool
during the exam. If the analysis seems to be an independent re-write of shared work, it
may be poorly understood and therefore add little to the candidate’s ability to achieve a
pass.
Candidates continue to waste valuable time repeating points from the case without
developing the analysis or evaluation requested by the task.
Marks are awarded for format and presentation in the Part B questions. Despite this, a
small minority of candidates responded to the tasks in essay style with no formatting
whatsoever. Given the high proportion of candidates that pass with a C grade, strong
formatting marks can clearly be critical.
There is still significant evidence of candidates allocating time poorly. A 20 mark task
should clearly have more than twice as much content as an 8 mark task. In task one each
term can only be worth 2 marks to the candidate so there is nothing to be gained by
writing a detailed essay on eg sustainable growth.
Strengths and weaknesses by tasks:
Part A
Task One – definitions
- Candidates can, of course, approach the tasks within this exam in any order. Many seem
more comfortable starting with the Part B 20 mark tasks. However, Task One is intended
as a warm up question and it does seem to serve well in getting candidates into the flow
of the tasks. The marks reflect this as it is the highest scoring question in Part A.
- This was generally a well-answered task and the majority of candidates were able to
define each term reasonably well. All terms appear in the case and can be clearly related
to Toyota. On the whole, the definitions were weaker than the interpretation of
significance to Toyota.
- Some candidates failed to give examples of specific trade barriers eg import levies or
restrictions. Some suggested that the term could mean any potential barrier to trade such
as competition or consumer tastes and this did achieve strong marks.
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Globalisation may be a term that we all know but definitions here tended to be vague eg
selling across the globe, rather than focusing on the specifics of globalisation such as
converging needs, demands, lifestyles and standardisation of products, brands and
production.
Sustainable growth prompted some candidates to go off on a tangent covering all sorts of
green issues rather than the broader issues of longer term economic/social/environmental
sustainability. Some candidates approached this as being able to achieve a consistent
level of growth; this approach tended to prompt competent answers.
Having said all of that, each definition and explanation is only worth 2 marks, so
candidates need to avoid over-long essay answers that can eat into the time allocation for
the remainder of the paper.
A grade candidates will have given a clear definition for each term and a concise
explanation of the significance of each one to Toyota.
D/E grades tended to give weak definitions and limited contextualisation to Toyota.
Task Two – implications of oil price fluctuations
- Most candidates concentrated their responses in terms of high/rising oil prices rather than
falling prices or unpredictable fluctuations. This is, of course, understandable given trends
in recent years and likely trends in the future. However, the price does not always rise
and the volatile nature of these prices is a key issue that good candidates tended to raise.
- Limited answers tended to find two ways of saying that demand for smaller/fuel-efficient
cars will rise. Broader answers also demonstrated an awareness of impact on planning
processes and the impact on production materials and processes.
- Some candidates linked oil prices as a key factor in shaping economic growth. However,
the question was not about economic growth per se and this did result in some
candidates going down the wrong path.
- A grade candidates will have covered two implications in detail and will also have related
these well to impacts on Toyota. Explanations will be detailed and well justified.
- D/E grade may have given two implications but in many cases these were not two distinct
implications. Answers were lacking in detail or repetitive.
Task Three – product quality
- Explanations of the term were generally very limited and for this reason task three had the
lowest average mark of the Part A tasks. Candidates could have drawn a number of
issues into their answers including elements of quality, customer perceptions of quality,
measurement of quality, quality and competitiveness and quality as a driver of loyalty.
- The significance of quality to Toyota was much more thoroughly addressed and the case
is rich in references to product quality eg ‘Kaisen’ and ‘Customer First’
- A grade candidates will have given a detailed explanation of the term and described a
range of factors illustrating its significance to Toyota referring to some of the terminology
used in the case. Their answers will have included references to the customer
perceptions of quality and probably the significance of lifetime quality of cars.
- D/E grade will have given a very limited explanation of the term and the illustrations would
be poorly related to car manufacturing and make few references to product quality
elements raised within the case.
Task Four – multinational plc vs. national private company
- This task lends itself to being tackled in tabular format.
- It was important for candidates to demonstrate, either explicitly or implicitly, that they
understood the differences between the two types of organisation in legal terms.
- They then needed to describe advantages and disadvantages and these could reflect
issues such as economies of scale, access to funds, reputation and brand, flexibility in
meeting challenges of multiple markets, managing risk, bureaucracy, efficiency, culture,
stakeholders and resource capabilities.
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If using a tabular format it is important for candidates to remember that the command
word was ‘discuss’. Good marks were awarded to candidates who were able to elaborate
on points made eg “demanding management processes – different markets have different
demand features and complex research needs to be undertaken to effectively forecast…”
A significant number of candidates failed to tackle the full task by comparing the
advantages and disadvantages of the multinational AND the private company. Some
advantage of a multinational could, of course, appear as a disadvantage for the private
company but examiners cannot award marks for something that is not there!
Some candidates focused on theory, suggesting a lack of confidence in relating the task
to the case material.
A grade candidates referred to advantages and disadvantages of both types of
organisations. They will probably have listed 2-3 points under each and their points would
all be well explained and compared.
D/E candidates would probably have failed to compare thoroughly or given a list of bullet
points with little discussion or explanation.
Task Five – natural environment
- The responses to this task included some excellent issues and descriptions and some
that were very wide of the mark, drifting into discussing, for example, economic issues.
- Some candidates failed to notice that the task focused on the natural environment and
launched into a full-scale PEST analysis.
- Some candidates also struggled to identify two distinct issues. The issues included
dwindling oil supplies, global warming/ CO2 levels, VOS and waste disposal crisis.
- To achieve good marks candidates were then required to discuss one opportunity and
one threat for each. So in a simple 8 mark task they needed to identify two issues and
discuss an opportunity and a threat for each. Too many candidates missed out on
valuable marks by identifying only one issue (or two virtually identical issues) or by
lumping together the descriptions of opportunities and threats.
- That said, the answers were generally well-tackled giving a clear picture of the candidates
ability to ‘assess the marketing environment’ in this scenario. Eg rising CO2 emissions
may lead to legislation that could impact on sales but it may also lead to competitive
advantage for Toyota because of their lead in developing hybrids.
- A grade candidates will have covered all of the question points with two distinct issues
and well-explained opportunities and threats that are clearly related to the case material.
- D/E may not have identified two distinct issues or may not have given an opportunity and
threat for each one. They may have failed to give enough detail or relate the opportunities
and threats to the case.
Task Six – spread of manufacturing in economic uncertainty
- This task achieved the highest average mark in Part B. Although some took this as an
opportunity to repeat copious paragraphs of case material, most did well and covered a
range of advantages and disadvantages, showing a good understanding of the concept of
the global-link production system
- Good answers were able to relate this well to the case and to the specific scenario of a
period of economic uncertainty. Issues raised included: vulnerability to exchange rate
fluctuations, unpredictable demand levels, adaptability to fast changing circumstances
within markets, delivery lead times, transport costs, tariffs, comparative stability of local
markets, adapting quickly to new legislation, market requirements and resource
availability.
- More important than a specific range of advantages and disadvantages was the
candidate’s ability to explain the issues well in the context of the case and clearly relate
them to the current economic climate.
- A grade candidates will have explained 3-4 advantages and 3-4 disadvantages, each of
which would be well explained and clearly related to Toyota. Explanations would include
good references to the current economic climate.
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D/E grade candidates will have listed fewer advantages or disadvantages, case
references will be weaker, but it is more likely that they will have limited or no references
to how the advantages/disadvantages may relate to the economic climate
Task Seven – market information
- This task achieved the lowest average mark in Part B with candidates not getting to grips
with the subject and failing to structure their answers in a logical manner (thus also
sacrificing format marks).
- Some candidates tackled the paper’s tasks in a random order leaving this one to last,
suggesting that it was not popular with candidates.
- Those that covered the points well tended to deal with it in two halves; market potential
and competitor activity and under each topic describe types of information and for each
type describe a benefit and a limitation.
- There were no pre-requisite types of information required but those mentioned included
primary research, trade journals, trade bodies, market research firms, government
economic statistics, qualitative forecasting, competitor analysis and company reports.
More important than the type of information was the candidate’s ability to relate it to
Toyota and evaluate benefits and limitations. Eg “external resources eg industry journals
and SMMT – easy to access information, not too expensive to use but can take time to
extract relevant information…”
- Too many candidates did not grasp the multiple elements of this question and failing
points were: forgetting to evaluate either market potential or competitor activity, mixing the
two together and therefore failing to achieve clarity, writing generically about benefits and
limitations of market information without referring to different types of market information
or describing types of information in text book fashion but failing to evaluating the benefits
and limitations in the context of Toyota.
- As a complex question it was perfectly possible to achieve high marks simply by covering
all of the points – great tomes of theory on research or marketing information systems
were not required. Some candidates used Porters 5 forces to structure their answer – this
is not in the certificate syllabus and tended to confuse the candidate’s response.
- A grade candidates structured their answers well, gave equal coverage to market
potential and competitor activity, identified at least two types of information for each and
evaluated the benefits and limitations for each type.
- D/E grade most often failed to cover either market potential or competitor activity
adequately. The second most common failing point was addressing the task by describing
generic limitations and benefits of market information without identifying specific types of
information related to the case.
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Task Eight – CSR and economic sustainability
- Where candidates had not run out of time this was generally well answered.
- Toyota’s CSR policies were well evidenced in the case with a good range of social and
environmental issues that could form the basis of the candidates’ responses eg hybrid
cars, fuel efficiency, renewable energy, reforestation, VOCs, production efficiencies,
waste management, vehicle safety, employment conditions and employee and community
engagement.
- Where there was scope for more content, was in developing the context relating to Toyota
and specifically how the issues can contribute to achieving economic sustainability
(something that many candidates failed to address).
- Again, therefore a few minutes of planning and a double check to ensure that question
points are being covered would not have gone amiss. Sadly, as the last question in the
paper it is evident that some candidates tackled this one in haste.
- A few candidates did not seem to grasp what economic sustainability means for Toyota
and therefore missed some marks for this part of the evaluation. Explanations of how
CSR policies might increase sales, brand loyalty or market share, enhance stakeholder
relations or meet regulatory requirements, were all mentioned in relation to Toyota
achieving economic sustainability.
- Good answers will have demonstrated a good understanding of the term CSR, how CSR
influences Toyota’s operations, related this to a range of stakeholder interests and
clarified the benefits that ultimately lead to economic sustainability.
- A grade candidates would describe a range of CSR issues including social and
environmental issues, clearly relate each one to the Toyota case and evaluate each one
in relation to economic sustainability.
- D/E grade may have identified fewer issues or the issues raised were poorly explained.
More often it is the case that answers lacked any relation to the long term goal of
economic sustainability. To say that "this would help to achieve economic sustainability”
is simply not enough.
PESTEL & SWOT Analyses
- The vast majority of candidates included PESTEL and SWOT analyses with their exam
papers.
- Although these did not accrue marks independently, there are examples of them being
well used in prompting appropriate responses to questions. Some candidates had noted
ticks and/or question numbers against points within the analyses, suggesting that they
had actively used the content to plan and support their answers.
- There were lots of opportunities to refer to the analyses, particularly in tasks two, five and
eight.
- Many of the analyses were of a high quality suggesting that the candidates had invested
time wisely in their preparation.
- Some excellent analyses accompanied very poor papers. These poor papers suggest that
little learning accompanied the preparation process. Taking an excellent analysis into the
exam will not in itself enable a candidate to pass. Taking a fair analysis in to the exam
most certainly will help, as long as the candidate understands the significance of the
factors listed for the case organisation.
- There were virtually no instances of inappropriate use of the analysis with all candidates
sticking to the brief (four sides of A4)
- An example of an A grade paper’s PESTEL and SWOT analyses is appended with this
report.
A word about format and presentation
Marks are awarded in Part B of this paper for format and presentation. This can clearly, in
some instances, make the difference between pass or fail, or between grades. Full format
marks would be achieve by:
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- Legible writing, good spelling and clarity of meaning
- Starting each task on a fresh page
- Good use of headings, bullets or numbering to structure answers
- Use of tables or diagrams, where appropriate
All of the above will enable candidates to demonstrate their knowledge and skills clearly and
ensure thorough task coverage. The candidate’s ability to prepare and present relevant
information concisely will be rewarded in this paper and also in the workplace.
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Guidance about how candidates can avoid making similar errors and strategies for
improving performance
Candidates should be encouraged to analyse and discuss the case material in detail. This
learning process should be supported by discussing the specimen case, past cases and
other known organisations. All such learning activity should be directed around the elements
of the syllabus with particular emphasis on the internal marketing environment, the micro
environment and the macro environment. Only at this point, should candidates then prepare
their analyses.
At this level, candidates should have some ability to understand and discuss the implications
of changes in the marketing environment and how these affect organisations. Cases and
papers are, of course, prepared well in advance, but candidates will benefit from a good
awareness of significant current issues and trends that may affect markets and the featured
organisation. It is exactly this level of perception and knowledge of the changing nature of the
marketing environment that is important to employers and is therefore reflected in this
assessment.
The majority of candidates appear to tackle the tasks in order. Candidates can, of course,
tackle the tasks in any order they wish, however, there is some evidence that this may lead
them to either allocate time poorly or miss one task completely. Whatever the order, it can be
frustrating for examiners if the tasks are not clearly identified. The instruction on the cover of
the answer book is to commence each answer on a fresh page. Not all candidates do this
and it can compromise format and presentation marks.
More practical pointers:
- Re-read questions to be absolutely sure what is being asked for and to ensure that efforts
are being directed appropriately.
- The questions are short - take time to highlight or underline key words, particularly the
command words such as identify, describe, explain, evaluate and analyse.
- Take a moment to plan – too many candidates have compromised grades by rushing and
missing key points.
- Refer to your PESTEL & SWOT, if appropriate – it may remind you to cover points that
you would otherwise forget.
- Bear in mind the weighting of the syllabus coverage, as detailed above and in particular
the strong emphasis on the micro and macro environment.
- Do not waste valuable time repeating case material or describing theory, unless the task
asks for this.
- Expect 2 format marks for each of the Part B tasks. Use headings, bullets and diagrams
or tables, if appropriate.
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Suggestions of possible alternative approaches to tackling a question/task or parts
of a question/task while making it clear that it is not the only way
Part A Task Four
This question lends itself to a table. Even if the table is in note form you can then expand on
points below. If you are asked for advantages and disadvantages, it is a wise to have a
balance of both to achieve good marks. This also applies the Part B Task six.
Part B, Task Seven
Split this task in to two – introduce the subject by all means but remember that you are being
asked to evaluate types of information that will assist in two key aspects – forecasting market
potential and monitoring competitor activity.
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Recommendations for how performance can be improved in future assessments
Before the exam:
• Thoroughly revise the syllabus theory.
• Practise relating it to past paper cases or other known organisations. Prepare PESTEL
and SWOT analyses on at least three organisations before the exam case is published.
Become adept at considering questions such as: What is the nature of the organisation
and how does this influence its marketing management? Who are their key stakeholders
and what is their relative power/influence? What are the most significant issues they face
in the micro and macro environment? What actions has the organisation taken to take
advantage of market opportunities? What significant changes in the marketing
environment are marketers dealing with?
• Once the case is published, invest time in getting to know the detail. Read it through
once, read it through again noting marketing environment issues in the margins. Develop
a table with the syllabus elements, noting relevant points from the case material against
each syllabus point.
• Carefully prepare your PESTEL and SWOT analyses and consider how you might refer to
these in the exam.
• Be aware of significant macro environmental trends in the current market.
On exam day:
• Allocate time appropriately based on the marks per question.
• Tackle your tasks in your own preferred order. This may make you feel more comfortable
and will not negatively affect your marks. However, do not procrastinate too much and
remember that you do have to answer all tasks.
• Take a few moments to plan. Re-read the questions – this will help you to eliminate
anything irrelevant and ensure that you have double-checked the focus of the task before
going ahead. It is not unrealistic for you to invest 1-2 minutes in planning Part A answers
and 3-4 minutes for Part B answers.
• Refer to your analyses if appropriate, even if just to trigger answer points that may help
you to develop you answer.
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Clarification about any syllabus or assessment changes
There have been no change nor are any changes planned to the syllabus.
Marks for Part B tasks will be split in future papers, for example 10 marks for 6(a) and 10
marks for 6 (b).
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Possible future assessment themes
This assessment will always include five short and three long tasks, but there is no fixed
format beyond that. The syllabus for Assessing the Marketing Environment is wide ranging
and it is impossible to predict which elements may arise in exam questions. The tasks will
always be wholly influenced by the case material.
Cases are identified well in advance so some information within the case may seem out of
date. However, as the marketing environment is ever-changing, CIM may change the case,
amend the case material and the shift emphasis of the assessment at quite a late stage in the
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Assessing the Marketing Environment June 2009
assessment preparation process. For this reason, CIM cannot guide tutors and candidates on
future assessment themes.
Candidates are NOT expected to study up-to-date information around the case, but a good
awareness of contemporary macro environmental issues will be beneficial.
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Assessing the Marketing Environment June 2009
Toyota
SWOT Analysis
Strengths:
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World’s biggest car producer and one of the best known (5) 2006/7: 7TH highest
turnover (16)
Global operation
‘global-link’ production system enables flexible responses to demand shifts (5)
establishing global collaborations – self-reliant overseas operations to maintain timely,
lower cost, stable production. (6) Toyota thinks localised production reduces threat
from interest rates and exchange rate fluctuations (8)
Ensuring locally-employed staff acquire required skills ASAP and simplifying &
standardising systems and equipment (6) Uniformity is important (11)
Global programme helping employees embrace Toyota’s culture + values; on the job
training to share skills (13)
‘Customer First’ initiative aims to establish superiority in product and service etc (7)
Operators can stop the production line so defective products are removed (8) 2007:
have method of measuring quality on production lines (12)
Corporate Social Responsibility: focus on reducing injuries, incl pedestrians (8)
CSR: promotes reduced CO2 in development, design, production, logistics (8). Have
set waste reduction targets (9)
CSR: promote traffic flow improvement & reforestation (8)
CSR: specified reduction of exhaust and volatile organic compound emissions as
action items (8)
developing low emission technology (8) Launched first mass-produced Hybrid (13)
CSR: ego image helped by these measures → important in competitive market
Did well in 2007 against material price hikes & tougher sales competition (11)
In 2007 aimed to improve quality in order to achieve profitability and set foundation
(12)
Cost reduction measures to absorb material price increases began in 2005 (12)
Strategy of developing eco cars that suit customer needs + infrastructure of the
region. Eg Brazil & bioethanol (13) adjust strategies for different regions (14)
Revenues, income, production, sales of all growing 2002-2006. (15)
£2000 trade-in on old cars could help stimulate demand. (22)
Electric car subsidies → they’ll be necessary otherwise no-one will buy them (21)
Weaknesses:
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Automotive industry hit hard by economic downturn. All markets Toyota operates in hit
by considerable instability in demand (5)
Big sales slump predicted in UK & Europe (5) → will increase competition and impact
on Toyota’s staff (7 & 18)
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Assessing the Marketing Environment June 2009
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Environmental technologies & cost-competitiveness are increasingly competitive (11)
and government funding may increase this again (6) – Toyota want to use these to
counter slump in demand (10)
had to reduce pay across UK factories by 10% (18) →could have a negative impact
on employee support & internal marketing.
Currently available hybrids like Toyota Prius not eligible in government £5000 electric
car subsidies scheme (20)
Opportunities:
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Demand for small fuel-efficient models (eg Carolla & Yaris) has increased rapidly
around the world, encouraged by oil prices (5)
UK government has promised £2.3bn to help carmakers located in the UK, including
Toyota. Automotive assistance programme will support low carbon initiatives to help
UK companies to be lead players. (6)
Toyota hopes to increase market share from 5.3% to 6% in 2009 due to eco friendly
vehicles (6)
Planning to offer hybrid versions of every model by 2020 & forecasts hybrids will be
the mainstream car in ten years (9) hybrids as a core technology (13)
Petrol prohibitively expensive & cars run on alternative energy by 2030 (9)
Hope that innovative, price-competitive eco-friendly products that satisfy demand will
enable Toyota to meet revised targets (10) (BUT nb. T 11)
£5000 govt. incentive for electric cars (20-1) (But nb. T. 20-1 – excludes Prius)
£2000 incentive to trade in old cars. Sales rose 40% in Germany. But limitations too
(22)
Threats:
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Changes in macro environment factors, like crude oils prices and exchange rates
affect demand for cars (5) Exchange rates affect pricing and materials purchase (8)
(BUT nb. S6)
Instability in demand in all the markets that Toyota operates in – global markets are
important to revenues (5)
Factors affecting demand include: car operating costs: price of raw materials, parts &
components; fuel costs; government regulations (eg tariffs, import and other tax) (5)
Global automotive industry affected by economic downturn → forecast for 30% sales
fall in Europe in 2009; the biggest slump for 35 years. A recovery may take 3 to 4
years. (5)
A predicted decline of 37.5% in UK car sales for 2009 →worse than earlier
predictions. UK car sales in March 2009 down 30.5% → usually a peak time &
confidence barometer (9)
As a global business, Toyota is subject to risks: political & economic instability, natural
calamities, fuel shortages, interruption in transport systems, war, terrorism, labour
strikes, work stoppages → Can delay + damage operations (6) incurs significant costs
in complying with regulations (8)
Automotives is “highly competitive” (8)
Toyota’s future depends on successfully forecasting market trends (9)
Interview: cost-competitiveness & eco technologies will get fiercely competitive (11)
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Assessing the Marketing Environment June 2009
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Jaguar Land Rover has been granted £27m by government to develop a fuel efficient
vehicle (19)
Govt plans to offer £5000 to buy an electric car. Hybrids like Toyota Prius ineligible.
The next generation of electric cars will be very expensive to produce. (20-1)
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Assessing the Marketing Environment June 2009
Toyota
PESTEL Analysis
Political:
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UK govt has promised a £2.3bn help package that will support low-carbon initiatives
(6)
Subject to local tariffs, import regulation and other taxes as a global business (6)
Threat of war + terrorism in markets it produces or sells in (6)
The UK government puts promoting electric cars and other green innovations as a
major part of economic recovery plans (17)
The government will negotiate with power companies to allow electric cars to be
charged by the side of the road (17) & enable more wind farms to help meet targets
(17)
Government will offer £5000 subsidies for buying electric cars. This won’t include
Toyota hybrids like Prius. Such cars won’t be available until 2011. Government will
also invest in infrastructure to support electric car use. (20) Without subsidies electric
cars will be too expensive to buy (21) But is amount pledged enough to make a
difference? (21)
Government offering £2,000 trade-in on old cars for new ones to boost demand.
Similar schemes were successful in Germany and France (22) Critics say people will
just bring forward purchases they were already planning to make (22)
Economic:
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As Toyota sells in over 170 countries and manufactures in 26, it is vulnerable to oil
price and exchange rate fluctuations (5) Think increased localized production will
protect from this (8)
Cost of buying and operating cars affected by: sales + financing incentives, raw
materials price, cost of fuel, government regulations. Eg tariffs, import + other taxes.
(5)
Economic downturn means forecasts of European car sales down 30% in 2009.
Recovery will take 3 to 4 years.UK sales predicted to be down 37.5% in 2009 (5)
Toyota’s output of cars likely to be ¼ of pre-downturn production (7) → affects staff
Petrol will be prohibitively expensive by 2030
UK car sales in March 2009 down 30.5%. Sales of new cars fell in all segments
except the ‘mini segment’. March car sales is an economic barometer (9)
Demand for small, fuel-efficient models such as Yaris and Corolla has increased
rapidly around the world due to crude oil price increases (5) But low-cost and
environmental technologies are increasingly competitive.
Toyota’s future success depends on accurately forecasting market trends (9)
Measures to reduce costs already begun and will be important (12)
UK car production fell 59% in February 2009 (18)
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Assessing the Marketing Environment June 2009
Social & Cultural:
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The company’s production is firmly located in local communities: 26 countries (5)
Local tariffs, import regulation and other taxes are socially conditioned (6) (8)
BR Career + Life Design Department – support women in the workplace (7) →
reaction to different cultural shift
Global Production Centre improves efficiency of skills acquisition + training (7)
→workers increasingly expect this
Toyota values quality and customer satisfaction (7) →increased consumer awareness
As well as making vehicles safer, Toyota is also working on pedestrian safety (8) →
consumers are increasingly informed
Introducing low-emission vehicles subject to local conditions (8) → catering to
individual needs of different environments is important to a global organisation, eg
utilising bioethanol in Brazil (13)
Introducing global measures to enable all employees to embrace Toyota’s culture and
values (13) → internal marketing increasingly valued as key to success
UK government backing green technology because it is what the public want (17)
Technological:
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Simplifying + standardising production to help self-reliant overseas operations (6)
Operators can stop the production line to remove defective products (8)
Utilising new passive safety technologies to protect pedestrians (8)
Prius was first mass-produced hybrid (13)
Forecasted that hybrids will be mainstream car in 10 years (9)
Competition is increasingly fierce in environmental technologies (11) Jaguar Land
Rover granted £27m by UK government to develop a fuel efficient vehicle
Believe technology is the most important factor in future success – pollution & safety
(13)
Identified hybrids as a core technology (13) → Aim to continuously launch products
that will stimulate demand (13)
£5000 electric car subsidies: current cars have limits in range, charging time and size
(20)
Next generation of electric cars will cost twice as much to make as petrol cars.
Without subsidies nobody will buy them. (21) By 2020 about ¼ of cars sold could be
electric
But the government fund of £250m may be insufficient to make a difference (21)
Environmental:
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Hope to increase market share from 5.3% to 6% through eco friendly vehicles (6)
CSR – in response to global warming, Toyota is promoting CO2 reduction measures
in development + design stages (8)
CSR – Taking action to improve traffic flows and promote reforestation as offsetting
(8)
Toyota has specified reduction of exhaust emissions as an action item (8)
Toyota is developing low emission technologies and introducing vehicles according to
local conditions (8)
Promoting introduction of waterborne paints (8)
launching 3rd generation Prius Hybrid (9) Prius was first mass-produced hybrid (13)
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Assessing the Marketing Environment June 2009
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Planning to offer hybrid version of every model by 2020 (9)
Petrol prohibitively expensive by 2030 but alternative energy will be available (9)
Waste reduction targets have been set (9)
thorough measures to totally eliminate substances of concern from all vehicles (9)
Threat of natural calamities in markets it produces or sells in (6)
Legal:
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Automotive industry is subject to various laws, including vehicle safety &
environmental issues such as emission levels, fuel economy, noise + pollution (8)
Many governments impose tariffs, levies and enact price controls. This is a significant
expense on Toyota (8)
But other governments, eg UK are trying to help struggling industries, especially
automotive. £2.3bn rescue package, with focus on eco cars. (6) £5000 subsidies on
electric cars (20) £2000 trade-in scheme to stimulate demand (22)
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