Skills Your Unit 2 set task - Pearson Schools and FE ˚˛˝˚˝˙ˆˆˇ ˘ ˚ ˙ ˝ ˘˚ ˙ ˛˝ 34 Unit 2 Skills Your Unit 2 set task Unit 2 will be assessed through a task, which

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Unit 2

Skills

Your Unit 2 set taskUnit 2 will be assessed through a task, which will be set by Pearson. In this assessed task you will need to research the market for a specific product or service, and then produce a plan for a marketing campaign based on the information you have gathered.In this section of your Revision Guide you will become familiar with the skills you will need for your assessed task, and have an opportunity to practise them. You will also review some sample learner responses which will help you to understand how to approach the work for your assessed task.Below are the key skills you will need for assessment in this unit.

Review your own strengths and weaknesses against each of the skills required in the external assessment.

For each weakness think about what you could do to improve your skills.

Skills required for external assessment

Research skillsYou will need to collect facts and data, both qualitative and quantitative, about a particular market. You are most likely to carry out external secondary research and should use a variety of sources to gather your information. You may also need to gather information about existing marketing campaigns within the market.

There’s more on research

skills on page 36.

Links

There’s more on analysing

market data on page 38.

Links

Analytical and evaluation skillsYou should assess the validity and reliability of your data, and ensure your research has been appropriate for the task you have been given. It may be that you need to present the data in a different way for it to be useful for you.

Drawing conclusions and making recommendationsBased on your analysis and evaluation of the data, you need to make some decisions about the content of the documents you have been asked to create. You may be asked to provide recommendations for specific marketing activity, a suggested budget, a clear timescale or anything else relating to a marketing campaign. Whatever it is, you always need to be able to provide a reason for what you are proposing, based on your analysis and evaluation of your data.

Time management skillsThe time to complete your set task will be limited. Check with your tutor or check the latest Specification and Sample Assessment Materials to ensure you know in advance how much time you will have for your work. Organise yourself so you know what bits of work you will do and when, so that you don't run out of time.

Presentation and communication skillsYou should ensure that you structure and present any document you are asked to create in the accepted format, including headings, numbered sections, tables and graphs where appropriate. Ensure you are familiar with any software you are likely to need. Remember to use formal language and the correct marketing and business terminology. Correct spelling, punctuation and good grammar will also be important aspects of completing your assessment.

Check assessment detailThis section is designed to demonstrate the skills that will be needed in your assessed task. The details of your actual assessed task may change from year to year so always make sure you are up to date. Check the Pearson website for the most up-to-date Sample Assessment Material to get an idea of the structure of your assessed task, how much time you will have and what is required.


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Unit 2Skills

Carrying out researchBelow are some examples of the areas you might wish to include in any research you carry out, but you will always need to bear in mind what you have been asked to do in your set task brief.

Try to think of another aspect of research which may be useful when preparing for your external assessment.

Another way to approach your research

is by looking at the four Ps which make

up the marketing mix.

Revise the marketing mix on pages 21–27.

Links

The marketIn this area you could look at market size by sales turnover and volume; main producers and their market shares; product share; market trends.

ConsumersIn this area you could look at market segmentation by age, gender, lifestyle, income and try to identify the characteristics of the main consumers of the product.

Revise marketing aims and objectives on pages 2 and 3.Links

Revise market segmentation on page 5.

Links

ProductYou may find it useful to look at how a similar product or service already on the market has been marketed; its key features; the routes to market; how successful it has been.

SWOT analysis of main producersComplete a SWOT analysis on the market leaders in the industry. These businesses will be the ones that provide the greatest threat to the success of your marketing campaign. How could you make sure you have the upper hand?

CostingsTry to get an idea of the costs of the different aspects of a marketing campaign including printing costs, trade fairs, promotional gifts and web design.

PESTLE analysisTry to look for any factors or any changes in consumer tastes and preferences which may impact upon the market for the product or service.

Revise market segmentation on page 5 and branding on page 6. Links

Revise external influences on marketing on page 8.

Links

Revise SWOT and PESTLE analyses on page 19.Links

Revise internal influences of marketing on page 7

and media and budgets on page 29.

Links


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Unit 2

Skills

Your notesRemember to check with your tutor or check the latest Specification and Sample Assessment Materials to see if you are allowed to take notes into your supervised assessment period. There may be restrictions on the number of pages, content and format of any notes you are allowed.

The research processYou will need to research the market of the product or service given in the set task brief. Effective research skills will help to ensure you’re well prepared for the assessment.

The flow chart below will help you to approach your research in a methodical way.

Planning your researchEffective research requires a plan. The first step is to draw up a list of questions which will form the basis of your research activities. You could use the questions in the flow chart above, but you may also want to think of your own questions in response to the particular product or service.Here is an example of one learner's initial plan for researching the soft drinks market. Alternatively, you could produce a mind map to jot down your ideas. Number the research activities in your mind map in order of priority. Remember that you can always amend your research plan as you access more information.

Record your sourcesAs you answer your research questions, remember to write down the source of each piece of information or data that you find. This might be a URL if you found information on a website, or the title and author of a printed book, with page numbers. This will help you to check back over your research in future, if required.

Complete the research plan above based upon the soft drinks market. What other questions could you ask about the market and where would you find this information?

Research plan

Research questions

Information required

Where to find it

Size of market? Sales volumeSales value

Marketing associations

Composition of market?

Main companiesMarket share

Annual reports

Sample notes extract

You could add a fourth column to the table in which you record the results of your research findings.

Using a table for a research plan means that it is easier to record the results of your research and check the progress of your research activities.

Don’t worry if you have too much information early on. You will go on to analyse the information, which will help you to identify the key points later on.

There's more on research skills on pages 10–12.

Links

List the main areas of your market research, e.g. size of the market, market segmentation, market leaders and competitor analysis.

Identify any emerging trends in the market. What are the growth areas in the market? What factors are influencing market growth in key segments?

Find out the ways in which different types of the product or service are marketed.

Use the marketing mix to identify the key features in marketing.

Identify the main elements that would be appropriate for any marketing campaign you create.

Justify the main features of your marketing campaign using relevant parts of your reseach and analysis.


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Unit 2Skills

Using your researchFrom your research results, you’ll need to select the most important and relevant information for the task you have been set. Below is some information a learner has found on the website of the British Soft Drinks Association. They have made some notes on the the key information they wish to use.

Using research resultsUse your research results to identify:

market trends

different consumer groups and their characteristics

how general economic factors influence the behaviour of producers and consumers

general trends in society which may impact on a marketing campaign.

Give one example of an external market trend which will impact on the soft drinks market.

Two aspects stand out from the data:1 The soft drinks industry is a growth industry.2 Consumers are becoming more health conscious

when making their purchasing decision. Action: Follow these points up in my own research.


Think about emerging social trends that will impact on the demand for certain types of drinks.

This learner has identified good points to follow up for a potential marketing campaign. They could also research the composition of the market and find out the strength of Coca-Cola, the market leader.

Trends Examples Key questions I could considerSocial trends

Changing lifestyle choicesImpact of technologySpecific industry issues

What is the influence of these social factors on specific segments of the market? Are there any emerging trends in society which will influence the market, e.g. health concerns (level of sugar in soft drinks)?

Market trends

Demographic profile Growth segments Target demographic (age, gender, income)

What parts of the market are growing/declining? What are the potential opportunities for a new business to enter the market?

Economic trends

Unemployment rate Inflation Rates of interest Consumer confidence

What is the impact of the economic trends on the level of disposable income and discretionary spending and how does this impact upon market demand?


Once you have completed a preliminary analysis of the market data you could then begin to look at the social, market and economic trends which may influence the market. You might find it useful to compile a table like this in order to identify the specific questions you will consider when conducting your research.

The soft drinks marketThe soft drinks marketRetail value: £15.6bnSales volume: 14.5bn litresAnnual growth 2010–2015: 2.1%Number of businesses: 103Market leader: Coca-ColaGrowth trends 2013: bottled water (+10.4%); still juice drinks (+6.2%); energy drinks (+5.1%)49% of carbonated drinks in the UK are low or no calorie

Source: British Soft Drinks Association (BSDA).


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Unit 2

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Analysing market research dataYou will need to analyse your market research findings to provide the basis of any rationale and justification you are asked to provide for a marketing campaign.

How to analyse dataOnce you’ve classified your pieces of data, you will need to analyse them.

Apart from the number of producers, identify another factor which makes the soft drinks industry difficult to enter.

Think of the impact of different elements of the marketing mix.

Revise interpreting and analysing data on

page 16.

Links

This learner’s approach to analysing and communicating their market research findings is strong because it:

classifies different aspects of the data (the market; the consumer; social and economic trends)

compares the sales growth of different products

recognises patterns such as health conscious consumers buying more bottled water and low-calorie drinks

predicts consequences since it may be difficult for a small producer to enter the soft drinks market

evaluates the data to draw conclusions such as the industry continued to grow despite the negative economic climate.

• Weigh up evidence.• Draw conclusions.

• Compare, e.g. • income of different consumer groups by age• consumer demand in different regions.

• Recognise patterns, e.g. • does demand increase if income increases?• what is the relationship between price and demand?

• Predict consequences, e.g. • a 10 per cent increase in advertising revenue will increase

sales turnover by 2 per cent.

Analyse data

Evaluate data

The soft drinks market in the UK is highly competitive with over 100 producers although the market is dominated by Coca-Cola which could impact on the opportunities available to new producers to enter the market. Also, where there is a dominant supplier in the market it can gain a competitive cost advantage in terms of supplies and distribution costs.The increase in the sales growth of bottled water (+10.4%) and low-calorie drinks confirms that diet and health remain high on the consumer agenda. The growth in still juice sales (+6.2%) and energy drinks (+5.1%) may reflect the changing lifestyle of younger people.The soft drinks industry grew by 2.1% over the five-year period up to 2015 despite the uncertain economic times with prices under pressure and tight consumer budgets.

Sample response extract


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Unit 2Skills

Applying marketing principlesYou will need to base any marketing campaign and marketing materials on sound marketing principles. Remember to use appropriate marketing terminology.

Marketing principlesOne of the main marketing principles is the marketing mix. All marketing campaigns are based around this and you will find it useful to base your marketing campaign around the four different elements in the mix.

Marketing terminologyTo remind yourself of marketing terms, make a glossary. Group the terms into different themes and then describe each term in your own words.

Write two sentences to analyse the soft drinks market which include the marketing terms market segmentation and demographic profile.

Make a list of other marketing terms which would be relevant when analysing the soft drinks market.

Revise the marketing mix and the extended

marketing mix on pages 21 and 27.

Links

This learner has used marketing terminology when summarising the

results of their research.

Promotion

Price

Product

Physical environmentProcess

People

Place

The UK soft drinks market is highly competitive, offering the consumer a significant number of differentiated products. In addition, the market share taken up by large businesses makes it difficult for a new soft drink to enter the market at the introduction phase of its product life cycle.The marketing mix model can be used as the basis for developing a marketing campaign. For example, in terms of the product the new producer could establish a USP focused upon its target demographic (people).Establishing an internet presence via a website and using social media to promote viral advertising can be an effective marketing strategy (promotion). Web analytics can also be used to determine the number of hits and conversion rates which can be monitored against targets in the marketing plan (place).


When writing a summary of your research, try to identify how different features of the marketing mix can be applied to your research findings.

The learner has used appropriate marketing terminology throughout.

The extended marketing

mix

The traditional model of the 4Ps has been extended

to 7Ps to take account of the service sector.


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Unit 2

Skills

Synthesising the informationOnce you have read the additional information and activities, the next stage is to synthesise the information, i.e. bring it all together.

Key questions1 THE PRODUCT – what are its key features?

Identify the USP. Is there a target market?2 THE MARKET – what is the potential size of the

target market? Are there any trends identified in the target market? What is the level of competition in the market? Who are the main rivals?


Using additional informationIn the external supervised assessment you may be given additional information that you will need to take into account when preparing your marketing campaign. Look at the sample information below to understand what approach you could take in analysing it.

Find some further information about the soft drinks market. Practise reading and making notes on the relevant key information or questions that need answering.

Try compiling a list of key questions

(similar to those here) based upon the

product and your own research data,

as this learner has done.

You will need to synthesise any new information like this alongside any other research you have done.

You can underline important words within the information to help you focus your analysis.

Task informationBrother and sister, Sami and Jenni Usman, have formed a partnership to market a new energy drink called ‘Samji’, an organic low-calorie yoghurt-based fruit drink sourced from a women’s collective in South-East Asia. The new drink contains special herbs and spices which have been medically proven to safely increase energy levels with no harmful side effects. They wish to target women who are actively engaged in sport or who participate in keep fit activities. They believe their drink can have the same success as sports and energy drinks currently on the market.

Your notesRemember to check with your tutor or check the latest Specification and Sample Assessment Materials to see if you are allowed to take notes into your supervised assessment period. There may be restrictions on the number of pages, content and format of any notes you are allowed.

The product’s USPThe additional information provides a profile of the characteristics of ‘Samji’ energy drink:

Organic

Healthy

Ethically sourced from women’s collective

Contains special herbs and spices

No harmful side effects

Increases energy levels

Medically proven

SafeYou can combine some of these factors together to identify the USP.

Revise USPs on page 6.

Links


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Unit 2Skills

Synthesising your ideas You will have a lot of data and information drawn from a variety sources which need to be brought together to formulate your response to the task you have been set.

The target consumerOne way you can try to identify the target market is to visualise the target consumer based upon the profile of the characteristics of the ‘Samji’ energy drink and think of some key words to describe them:

Extracting data from market researchYou are now in a position to review the market research data you compiled and turn it into part of your response to the task. This learner has done this for their response based on the 'Samji' energy drink.

Analyse the market research you have collected to identify any other data which would support the rationale of the proposed marketing campaign.

Research notes2014UK soft drinks industry worth £15.7bn14.8 billion litres of soft drinks consumedLow-calorie drinks account for 57% of the marketEnergy drinks account for 4.1% of the market (up from 2.7% in 2008)Consumption of energy drinks grew by 5.3% to 600 million litres in 2014Source: British Soft Drinks Association Annual Report, 2015 http://www.britishsoftdrinks.com/write/MediaUploads/Publications/BSDA_Annual_Report_2015.pdf


The rationaleThe soft drinks industry is a growth industry with a trend towards health-conscious, life-style drinks. The industry has an estimated worth of £15.7 billion per year with over half (57%) of the total soft drinks market accounted for by low-calorie drinks. Although the size of the energy drinks market is relatively low (4.1%), there is the potential for market growth (5.3% growth in 2014). An opportunity exists for the introduction of a new energy drink with a marketing campaign focused upon 18–25-year-old females coupled with a marketing message of an action-sport brand and where the desire for a healthy living lifestyle may take a priority over product price.


Identify market size, growth and demographics.

The learner has selected the most important information about market segmentation here. To improve, they could have noted down more information about the target market.

This learner has started to put together a rationale for their marketing campaign by summarising what it will try to achieve.

Samji target consumer

Young women – trend setters 18-25 years old

Fit and healthy lifestyle

Active

Image and health consciousCity-living professional


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Unit 2

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Developing a campaignThe diagram below shows the stages involved in developing a marketing campaign.

State one financial target and one non-revenue target for your marketing campaign.

Marketing mixThe ‘Samji’ energy drink’s USP is that it is medically proven to be able to safely increase energy levels (product); consumers are likely to pay higher prices for the drink and, although there may be the opportunity for price skimming, the first phase of the campaign will involve penetration pricing (price); social media will play a key part in the campaign linked to positive reviews and endorsements in lifestyle magazines (promotion); the product will be sold primarily through high street stores, health stores and sports clubs (place).


Targets should be set according to SMART principles.

Revise SMART objectives on page 18.Links

Use the elements of the marketing mix to identify how product, price, promotion and place will be incorporated into your marketing campaign.

The marketing messageThe marketing message for the ‘Samji’ energy drink will focus on ‘increasing your energy levels’ in order ‘to keep fit and stay healthy’ by enjoying a ‘socially responsible yoghurt-based energy drink’, a ‘low-calorie drink which increases energy levels’ and is ‘medically proven to be safe’.We suggest consumers ‘Try it next time you go to the gym’.


The marketing message will form the basis of all marketing activities and consists of six steps.

Capture the attention of the market

Identify the needs of your target market

Provide a brief description of the product

Describe the benefits of the product

Give message credibility

State the action you want the consumer to take

The marketing campaign

Produce the marketing message

Revise marketing messages and

the marketing mix on page 28.

Links

Revise evaluation on page 30.

Links

Revise media and

budgets on page 29.

Links

Revise timelines on page 30.

Links

Decide the marketing mix Select media

Allocate the campaign budget

Prepare a timeline of key dates when marketing activities are to take place

Evaluate the campaign


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Unit 2Skills

Costing a campaignIn your assessment, you may need to show how you would allocate a marketing campaign budget.

Budget calculationsUse your research notes to calculate the costs of the different elements within your marketing campaign.One way of making the budget decisions more manageable is to allocate a percentage of the budget to specific marketing objectives. For example, in the soft drinks revision task you may want to allocate 20 per cent of a £60 000 budget (£12 000) to promotional activities and gifts. You will then be able to calculate how many leaflets and gifts you could purchase with this budget allocation and check if that is enough to make an impact on your target market.

Be creativeTry to think of ways to get your marketing message across which are cost effective (incurring very low costs compared to returns). Examples include:

social media including blogs

press releases and press articles

sponsorship

use family and friends

celebrity endorsements.

What activities would you put in place if 15 per cent of the budget in the soft drinks revision task was allocated to using the internet to promote the product?

You need to know the monetary value of the 15 per cent before you decide the activities you will put in place.

Objective: to increase brand awarenessBudget allocation: £15 000 (25%)Activity Costs TargetTo attend ‘Women in Sport’ trade show

Hire of stand: £7000Promotional gifts: £2000Free product samples: £1500

60% brand recognition by attendees departing the venue85% ‘excellent’ customer satisfaction rating after tasting samples of ‘Samji’


Itemise the specific cost related to each activity so that you can monitor and adjust your budget.

Identify each activity separately

so you can calculate how much

of the budget allocation is left

over to achieve the objective –

here £4500 remains out of the

allocation of £15 000.

Setting and monitoring targets is a good way of assessing the impact of your budget expenditure. You could also measure total number of sales, repeat sales and market share.


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Unit 2

Skills

Presenting a campaignWhen considering how to present a campaign, think carefully about both structure and presentation. Make sure you communicate any rationale or plan clearly in an appropriate format.

State three aims and objectives of the marketing campaign for the new ‘Samji’ energy drink.

Start each aim and objective with ‘To ...’.

The product

• Identify the key characteristics of the product.

• Establish the marketing message.• Determine target demographic and

main characteristics.

Try to identify the USP of the product in this section.

Map the key characteristics of the product against the target demographic.

Monitoring and evaluation

• Show how the campaign will be monitored against the targets and the budget allocation.

• Revise budget on the basis of outcomes.

In this section consider possible contingency plans if things don’t go according to plan.

You may wish to retain a contingency fund to allow for any unexpected opportunities.

Research

• Analysis of the data• Evaluation of the data• Include both data on products and

consumers.

This section forms the foundation of the marketing campaign.

The quality of your preparatory work will be reflected in this section.

Budget allocation• Allocate budget against each action.

Check that the budget in the marketing campaign adds up to the budget allocation.

Allocate the budget to specific objectives.

Establish the rationale of the marketing

campaign

• Identify no more than four aims and objectives.

• Relate your objectives to elements such as sales, brand recognition and brand awareness. Give the marketing

campaign a title.

The marketing mix

• Product, Price, Promotion, Place• Identify relevant actions in relation

to each of the marketing aims and objectives.

• Identify the timeline for each action.• Identify how the impact of the

action will be measured.

In this section of the report be specific regarding

the media you will use.

Identify the routes to market, e.g. high street stores, supermarkets, sports clubs, website.

Number each separate section in your work and give it a heading.

Documents

Skills Your Unit 2 set task - Pearson Schools and FE ˚˛˝˚˝˙ˆˆˇ ˘ ˚ ˙ ˝ ˘˚ ˙ ˛˝ 34 Unit 2 Skills Your Unit 2 set task Unit 2 will be assessed through a task, which