Advanced Diploma in
Purchasing and Supply
Marketing for Purchasers
L5-10
L5-10/SA report/July 2012
1
SECTION A
Q1
Evaluate the impact of the external environment on Joe (25 marks)
Black Transport’s marketing strategy and activities.
Evaluate the impact of the external environment on Joe Black Transport’s marketing
strategy and activities.
Analysis of the Question
This question tested candidate knowledge and understanding of analytical tools available
to identify the external environmental factors. It also tested candidate ability to apply this
knowledge and understanding in the context of the case.
Planning the answer: The question required candidates to identify and evaluate the key
external environmental factors applicable to Joe Black Transport in the context of the
company’s marketing strategy and activities.
Answering the question: Strong answers used a range of analytical tools to analyse the
external company environment. The question required more than just identifying the
factors, i.e. an evaluation of the impact of the external environment on the organisation’s
marketing strategy and activities was required. Better answers related strongly to Joe Black
Transport.
Analysis of the Answer
There were a number of analytical tools which candidates could have used to consider the
organisation’s external environment for example PESTLE, the ‘OT’ (opportunities and
threats) elements of SWOT and Porter’s Five Forces model.
Exam Question Summary
There were some very good answers to this question, especially by candidates who adopted
the above approach.
However, some answers focused just on Porter’s Five Forces model and, as a consequence
addressed a relatively narrow range of factors. Some candidates discussed in detail, SWOT
analysis in the context of Joe Black Transport. Only the opportunities and threats elements
consider the external environment and so some of these answers contained irrelevant
content.
The most common failings on this question were that answers either lacked sufficient detail,
often presented as a list of unsubstantiated bullet points, or that the answer was not applied
in the context of the impact on the organisation’s marketing strategy/activities. Those
answers which were presented as a list of points failed to address the ‘evaluate’
requirement in the question.
Very few answers recognised that the external environment comprises both macro and
micro elements. Frequently the organisation’s micro environment was not considered.
L5-10 Senior Assessor Report July 2012 FV
Q2
Analyse the likely influences on the buying behaviour of Joe Black (25 marks)
Transport’s major customers.
Analyse the likely influences on the buying behaviour of Joe Black Transport’s major
customers.
Analysis of the Question
This question tested candidate knowledge and understanding of organisational buying
behaviour. It also tested candidate ability to apply this knowledge and understanding in the
context of the case.
Planning the answer: The question required candidates to identify and analyse the likely
influences on the buying behaviour of Joe Black Transport’s major customers i.e. the
question focused on organisational buying behaviour.
Answering the question: Strong answers focused on organisational buying behaviour and
identified a range of potential influences. Better answers related strongly to Joe Black
Transport.
Analysis of the Answer
There are many potential influences on organisational buying behaviour: Organisational objectives
 Pricing
 Nature of the DMU (decision-making unit)
 Structure, i.e. centralised or decentralised
 Reputation
 Knowledge and experience of the buyers
 Economic factors
 Organisational culture.
There are many other factors, so the above is an indication only and is not exhaustive.
Each point should have been examined in detail and in the context of Joe Black Transport.
Exam Question Summary
There were some very good answers to this question. These were detailed and related
strongly to Joe Black Transport.
However, some answers focused on the consumer market, which was not applicable in this
instance. Some answers simply described the DMU concept and the typical roles found
within a DMU. Whilst this approach scored some marks it was too narrow in range to
achieve a pass for the candidate.
The most common failing was the lack of detail provided within answers. The question
required ‘analysis’ and so answers which simply described (listed in some cases) the
influences fell short of the required level of detail to achieve a pass.
L5-10 Senior Assessor Report July 2012 FV
SECTION B
Q3
Assess the factors that should be considered when determining (25 marks)
the price of a new consumer product which is being launched..
Analysis of the Question
This question tested candidate knowledge and understanding of pricing a new product in
consumer markets.
Planning the answer: Candidates should have identified and assessed a range of factors
which an organisation should consider when deciding on how to price a new product.
Answers should have focused on factors of relevance to the consumer market, as directed in
the question.
Answering the question: Answers which scored the highest marks related strongly to a new
product launch within the consumer market and addressed a range of factors. Better
answers were presented in detail, where points made were fully supported.
Analysis of the Answer
There are many factors that should be considered when pricing new products in consumer
markets, including: Elasticity of demand
 Affordability
 Costs
 Profit aspirations
 Objectives
 Chosen pricing approach/strategy
 Positioning
 Targeting strategy
 Competitor pricing levels
 PESTLE factors.
There are many other factors so the above is an indication only and is not exhaustive. Points
made should have been fully supported in order to meet the ‘assess’ requirement in the
question.
Exam Question Summary
There were some very good answers to this question which adopted the approach outlined
above.
However, some answers simply described the various pricing approaches/strategies that
organisations can adopt. Such answers often made no reference to the factors that have led
to the decision as to which pricing approach/strategy should be adopted.
A number of answers were focused around the various stages of the product life cycle and
therefore contained large amounts of irrelevant content because the question specifically
L5-10 Senior Assessor Report July 2012 FV
focused on the introduction/launch stage only. Candidates should ensure they answer the
precise question set.
Question 4
Marketing services has different challenges compared with (25 Marks)
marketing goods. Examine these challenges and explain
how marketers attempt to overcome them using the
extended market mix.
Analysis of the Question
This question tested candidate knowledge and understanding of the differences between
services and goods and the challenges faced by services marketers. It also tested candidate
ability to demonstrate how marketers use the extended marketing mix to deal with these
challenges.
Planning the answer: The question required candidates to identify the specific
characteristics of services (versus goods), examine them and explain how marketers can
overcome the challenges created through use of the marketing mix.
Answering the question: Candidates should have identified the main characteristics of
services. Having examined these, candidates should then have applied elements of the
marketing mix (7Ps) to demonstrate how marketers attempt to deal with the challenges of
the characteristics of services.
Analysis of the Answer
The main characteristics of services are: Intangibility
 Inseparability
 Heterogeneity
 Perishability
 Lack of ownership.
The extended marketing mix comprises all seven elements, ie product, price, place,
promotion, people, process and physical evidence and not just the last three elements.
Exam Question Summary
There were some very good answers to this question, which adopted the above approach
and included good use of appropriate examples.
For some reason, a number of answers focused on goods rather than services and so were
rather confused and strayed off the point of the question. A number of answers clearly did
not know the characteristics of services or were aware of just one characteristic, most
commonly intangibility. A number of candidates were not aware of the seven elements of
the marketing mix, very often omitting physical evidence and process.
Some answers simply lacked detail. These generally comprised a list of very brief points for
example stating each characteristic in just one sentence. Better answers explained the
characteristics in detail and often used examples to good effect.
L5-10 Senior Assessor Report July 2012 FV
Question 5
Analyse the importance and potential limitations of (25 Marks)
market research as a decision making aid in marketing
Analysis of the Question
This question tested candidate knowledge and understanding of market research as a
decision-making aid in marketing.
Planning the answer: Candidates were required to identify, and analyse, reasons why
market research is important and to also consider any potential limitations of market
research as an aid to decision-making in marketing.
Answering the question: Better answers were detailed (ie addressing the ‘analyse’
instruction in the question) and identified a range of relevant points, addressing both
aspects of the question fully.
Analysis of the Answer
There are many reasons why market research might be important, including for example: It provides a systematic process
 Information can be gathered from a range of sources
 Informed decision-making is crucial to success
 Data can be specifically targeted
 Specific questions can be asked
 Secondary research can be quick and cheap to undertake
 It can help provide effective benchmarking.
There are of course counter views which focus on the potential limitations of market
research, including for example: Primary research can be very expensive and time-consuming to undertake
 Identifying the correct sample can be challenging
 Where the sample is not representative incorrect conclusions may be drawn
 Response rates are sometimes very low
 Customers can become annoyed if they receive questionnaires too frequently
 Respondents do not always tell the truth
 Questions/interviewers may be biased, leading to inaccurate data collection.
Exam Question Summary
There were some good answers this question, which addressed both elements of the
question fully.
Some candidates, however, described the market research process; most of the content of
these answers was not relevant to the question. Candidates also described the differences
between primary and secondary research, quantitative and qualitative data and the various
data collection techniques. Whilst the content of these answers was correct, ie they
correctly described the terms and techniques, they did not address the precise question set.
L5-10 Senior Assessor Report July 2012 FV
Q6
You are head of procurement for Industrial Waste (25 marks)
Recycling Group (IWRG), an international publicly quoted
company responsible for the management and disposal of
hazardous manufacturing waste. Assess the organisations
key stakeholders and their likely needs, in the context of
IWRG.
Analysis of the Question
This question tested candidate knowledge and understanding of stakeholders and their
needs. It also tested candidate ability to apply their knowledge in the context of an
international/publicly quoted organisation.
Planning the answer: The question required candidates to identify the organisation’s
stakeholders and to consider their likely needs (specifically in the context of IWRG – an
international publicly owned company involved in managing and disposing of hazardous
manufacturing waste).
Answering the question:
Candidates should have identified a range of stakeholder groups and for each assessed their
likely needs. Answers should have been focused specifically on IWRG, as directed in the
question.
Analysis of the Answer
There are many potential stakeholder groups for an organisation like IWRG, including for
example: Shareholders
 Customers
 Prospects
 Competitors
 Financial institutions
 Suppliers
 The general public
 Staff
 The media
 Pressure groups and lobbyists
 The Government.
An assessment of each of the groups was required and consideration of their likely needs.
Typically, answers which scored the highest marks assessed between six and eight
stakeholder groups.
Exam Question Summary
There were some very good answers to this question.
However, some answers focused almost exclusively on internal stakeholders, eg staff,
management, procurement, marketing. These answers lacked demonstration of the breadth
of knowledge of the subject matter to achieve a pass. Further, some answers were far too
general, i.e. did not relate specifically to IWRG.
L5-10 Senior Assessor Report July 2012 FV
A number of answers placed far too much emphasis on Mendelow. Whilst this was relevant
to the question, and some marks were awarded the answer was not specifically focused on
an assessment of the stakehodlers’ levels of interest/power and how this might influence
IWRG’s approach to managing stakeholder relationships.
In common with other questions far too many answers were brief and presented effectively
as lists of points which carried no supporting commentary. The question required an
‘assessment’ and not a brief description. The amount of relevant supporting detail within
answers is a key requirement at this level of qualification and very often is the difference, for
the candidate, in achieving a pass or fail grade.
L5-10 Senior Assessor Report July 2012 FV
APPENDIX:
Syllabus matrix indicating the learning objectives of the syllabus unit content that each
question is testing
L5-10 Senior Assessor Report July 2012 FV