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Certificate in Marketing
Level 3
Model Answers
Series 3 2009 (3025)
Model Answers have been developed by EDI to offer additional information and guidance to Centres,
teachers and candidates as they prepare for LCCI International Qualifications. The contents of this
booklet are divided into 3 elements:
(2) Model Answers – summary of the main points that the Chief Examiner expected to
see in the answers to each question in the examination paper,
plus a fully worked example or sample answer (where applicable)
Teachers and candidates should find this booklet an invaluable teaching tool and an aid to success.
EDI provides Model Answers to help candidates gain a general understanding of the standard
required. The general standard of model answers is one that would achieve a Distinction grade. EDI
accepts that candidates may offer other answers that could be equally valid.
All rights reserved; no part of this publication may be reproduced, stored in a retrieval system or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise
without prior written permission of the Publisher. The book may not be lent, resold, hired out or
otherwise disposed of by way of trade in any form of binding or cover, other than that in which it is
published, without the prior consent of the Publisher
Page 1 of 23
QUESTION 1 COMPULSORY
Your company manufactures garden tools for home use and is facing intense competition from
international manufacturers. As a result, the company is losing stockists and therefore sales, as they
switch to cheaper products. As a Marketing Manager, using any five elements of the marketing mix,
prepare a marketing plan for this product range for the next two years.
(i) Outline your proposed strategy for the next two years (10 marks)
(ii) Give your tactics for carrying out these strategies. (10 marks)
Present your answers in bullet point format using the 5 x 2 ten cell matrix. Your tactics must be
relevant to the strategies you propose.
(Total 20 marks)
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MODEL ANSWER TO QUESTION 1
3025/3/09/MA Page 3 of 23
QUESTION 2
You are the Marketing Manager for a fast food company that sells cheap meals in 240 outlets in your
own country. Your board of directors has made the strategic decision to expand into foreign markets
as quickly as possible.
(i) the method you intend to use to carry out this expansion (2 marks)
(ii) the reasons you have chosen this method (4 marks)
(iii) the advantages and disadvantages of the method you have chosen. (12 marks)
(Candidates are awarded 2 marks for the correct report format and layout) (2 marks)
(Total 20 marks)
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MODEL ANSWER TO QUESTION 2
1. Method of entry
1.1 The recognised entry method under the conditions imposed, is by the use of a franchise
3025/3/09/MA Page 5 of 23
QUESTION 3
Toys-2-Go is a company that makes children’s toys and games. The company would like to carry out
research before launching a new type of game. Write a report to your Managing Director briefly
explaining:
(i) the five procedures (or stages) of a research project (10 marks)
(ii) the importance of CATS in a research project. (8 marks)
(Candidates are awarded 2 marks for the correct report format and layout) (2 marks)
(Total 20 marks)
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MODEL ANSWER TO QUESTION 3
To Managing Director
From: A. Candidate
Date: 5th June 2009
Subject: Market research
2.1 C = Cost:
2.1.1 the cost of employing a research agency or staff costs
2.1.2 the costs of preparing the actual research survey
2.1.3 travelling expenses, possibly accommodation and meal costs
2.1.4 the opportunity costs of management time
2.1.5 the costs of having the data analysed and correctly presented
2.1.6 organisations have to be certain that the benefits and the value of
the information that is likely to be obtained will exceed the financial
costs of carrying out the research. If it does not then carrying out
the research would be a pointless and wasteful exercise.
2.2 A = Accuracy
2.2.1 correctly identifying the problem or area to be investigated, failure
to do so would result in data being collected that could be
irrelevant to the problem at hand
2.2.2 devising a suitable research method, selecting a relevant sample
and devising an appropriate survey questionnaire
2.2.3 the training of the interviewing staff carrying out the survey
2.2.4 the correct analysis of the data
2.2.5 accuracy in research is vital owing to the fact that managers will
base their strategies and decisions will be made on the research
results. Inaccurate research could lead to the wrong decisions
being made.
2.3 T = Time
2.3.1 time to physically carry out secondary research
2.3.2 time to interview people
2.3.3 time to analyse the data collected
2.3.4 time to prepare the analysed data in a suitable report format
2.3.5 the longer the time taken for the research the greater likelihood of
2.3.6 competitors getting to know about it
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MODEL ANSWER TO QUESTION 3 CONTINUED
3025/3/09/MA Page 8 of 23
QUESTION 4
Acme is a company that manufactures and sells digital music players (MP3). Write a report to your
managing director briefly explaining:
(i) your identified target market, using any available segmentation bases (8 marks)
(ii) five methods available to evaluate one of the segments you have chosen. (10 marks)
(Candidates are awarded 2 marks for the correct report format and layout) (2 marks)
(Total 20 marks)
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MODEL ANSWER TO QUESTION 4
3025/3/09/MA Page 10 of 23
QUESTION 5
(a) Draw, and correctly label, a diagram to illustrate Maslow’s Hierarchy of Needs model.
(5 marks)
(b) Identify two different types of product that marketers offer to satisfy each level of need.
(5 marks)
(c) Draw and correctly label a diagram to illustrate the communication process.
(6 marks)
(d) Give four different examples of “noise” that can interfere with the communication process.
(4 marks)
(Total 20 marks)
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MODEL ANSWER TO QUESTION 5
(a)
5 Self
actualisation
1. Physiological needs
(5 marks)
safety and security needs - shelter (homes, accommodation), health care products
insurance policies, pensions
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MODEL ANSWER TO QUESTION 5 CONTINUED
Encodes the
message to
be sent
Decodes
the
message
sent
MEDIA or RECEIVER
SENDER CHANNEL
FEEDBACK
physical barriers
physical difference
language used, dialects, jargon, acronyms
media used
media clutter
body language
mental or physical distractions.
3025/3/09/MA Page 13 of 23
QUESTION 6
(a) Identify and explain the four major characteristics of services, giving a suitable example of each,
to illustrate your understanding of them.
(12 marks)
(Total 20 marks)
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MODEL ANSWER TO QUESTION 6
Intangibility:
Services are intangible. Unlike physical products, they cannot be seen, tasted, felt, heard or smelt
before they are bought. You can not see the result of a dental filling until it has been carried out.
Inseparability:
Services are typically produced and consumed simultaneously. Where as products are
manufactured, put into stock, shipped to retailers, and bought still later for consumption. When a
person renders a service, then the service provider becomes part of the service. Since a client is
invariably present as well, the provider-client relationship becomes an essential part of the service.
You can not order a new hairstyle over the telephone and ask that the hairdresser deliver it – you
have to be present to have it created on your head.
Variability:
As a service relies on who provides them, where they are provided, when they are provided and
how they are provided, they can become very variable in the end result. An employee with full
training and all the correct equipment in the correct environment is likely to perform a much better
hair style than an apprentice using household scissors in her kitchen.
Perishability:
Services can not be stored. An empty seat on an aeroplane at 3-30pm today can not be sold to a
customer tomorrow. That seat has perished, been lost. The empty table in a restaurant at 7pm can
not be offered to a customer at 10pm when the restaurant is full – again it has perished.
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QUESTION 7
(i) the role and function of each member of an industrial decision making unit (DMU)
(8 marks)
(ii) why knowledge of each role is so important
(2 marks)
(iii) the communication messages or information required in dealing with such roles.
(8 marks)
(Candidates are awarded 2 marks for the correct report format and layout) (2 marks)
(Total 20 marks)
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MODEL ANSWER TO QUESTION 7
1.1 Starter (or initiator) this is the person (or department) who first realises the need to
purchase some product or service
1.2 Advisor this is the person (or department) whose advice will be sought in selecting
the most relevant product or service that is to be bought. This may be as a result of
some technical knowledge or possible previous experience
1.3 Decision maker this is the person (or department) who has the overall responsibility
to make a yes or no decision as to whether the purchase will be made
1.4 Purchaser this is the person (or department) who will actually place the order
1.5 End user this is the person (or department) who will make use of, or receive the
benefits, from the product or service that is bought
1.6 Gatekeeper this is the person(s) who may control access to other members of the
DMU or possibly the flow of information being sent to members of a DMU
1.7 Financier the one who is responsible for the payment of the products or
services received (probably accounts management or department
3 Communication messages:
3.1 Starter/End user new model, product benefits, ease of use, aesthetics, innovation
3.2 Advisor ease of use, added benefits, durability, technical specifications
3.3 Decision Maker warranties, guarantees, service maintenance, ease of
use,additional benefits
3.4 Purchaser ease of delivery, delivery terms, value for money, stock availability
3.5 Financier methods of payment, credit terms, payment dates, residual values
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QUESTION 8
(Total 20 marks)
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MODEL ANSWER TO QUESTION 8
A website
A website is a back-construction from the proper noun World Wide Web is a collection of
Web pages, images, videos or other digital assets that is hosted on one or more web servers,
usually accessible via the Internet. Frequently a website is referred to as a “home in cyber-space”
A URL
Uniform Resource Locator is an address which also specifies where the identified
resource is available and the protocol for retrieving it. It is the internet term for any individual web
page in the World Wide Web – every page in the world wide web has its own URL.
(c) A hyperlink
A hyperlink is a line of text within a web page that if clicked will take the viewer to another page
within the website, or indeed to another completely different website.
A banner link
This is a Java applet link, often in graphic format (usually an advertising link) which if clicked may
open up an provide animated information or take the user to another different website.
An interactive website
This type of website has all the facilities of a transactional site, however it is proactive in that it can
make suggestions to customers and respond to their enquiries and requests. Two way dialogue is
a feature of such a site, where mutual communication is encouraged and promoted.
3025/3/09/MA Page 19 of 23
QUESTION 9
(Total 20 marks)
3025/3/09/MA Page 20 of 23
MODEL ANSWER TO QUESTION 9
“ A range of short term tactical marketing techniques designed to add value to a product or service in
order to achieve sales and marketing objectives.”
3025/3/09/MA Page 21 of 23
QUESTION 10
(Total 20 marks)
3025/3/09/MA Page 22 of 23
MODEL ANSWER TO QUESTION 10
(a) Sales plan
This is a summary of the proposed, planned or forecasted sales in monetary values for an
organisation for a specified period, usually one year. A total “master” figure is obtained for the
organisation. This total figure is used in the organisation’s master budget. It can be compiled in
numerous ways to reflect territory, product or personal sales targets.
(c) Positioning
Positioning is defined as creating a concept within the minds of an identified target audience. It is
how the target audience perceive an organisation’s products or services in comparison to similar
offerings from competitors.
(d) SMART
This is the acronym that is applied to the formation of objectives. It stands for Specific,
Measurable, Achievable, Realistic and Timed.
3025/3/09/MA Page 23 of 23
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