Controlled Assessment

1. Controlled Assessment

2. Starter – Think/Pair/Share • What is a controlled assessment? • How much is the controlled assessment worth? • How many hours will I get to complete it?

3. Scenario • You are a consultant working for a marketing company. You have been asked to assessthe effectivenessof the current promotional methods used by a small local business. You are required to investigate an existing small local business and to prepare a report which looks at the business’s current promotional methods in order to assess the mosteffectivemethod that the business could use.

4. Paired Activity • Discuss the suitability of 5 local businesses that you use who may be suitable for this type of investigation.

5. Homework • Choose a suitable small local business that you use on a regular basis. This could be a business where your parents work. • Write a brief description of the business. • When did the business set up? • How many employees? • What type of business ownership? • Location of the business. • What does the business do? • Who is their target market?

6. Starter – Think/Pair/Share • Come up with 10 different methods of promotion that small businesses are likely to use?

7. Research and Planning • select an existing small local business • research the existing method(s) that the business uses to promote its products or services • assess the effectiveness of the existing method(s) of promotion • investigate other suitable methods of promotion that the business could use • recommend what would be the most effective way for the business to promote its products or services.

8. Report • a brief description of your chosen business • a description of the existing method(s) currently used by the business to promote its products or services • an analysis of the effectiveness of the existing method(s) used by the business to promote its products or services • a description and an analysis of other suitable methods which the business could use to promote its products or services • a recommendation, with supporting evidence, as to which method(s) you think would be the most effective for the business to use to promote its products or services.

9. Promotional Methods Promotional methods are the different ways an organisation promotes its products. There are a range of different methods,materials and media available for organisations to use in promotion. Some of the most common methods are: • Advertising • Direct Marketing • Public Relations • Personal Selling • Packaging • Branding • Displays • Exhibitions and Trade Fares • Sponsorship • Product Placement • Demonstrations • Sales Promotion • Merchandising • Loyalty Cards

10. Advertising Advertising is one of the most common forms of promotion. “Advertising is the display or broadcastof favourable information about a product or business, in order to inform consumers, persuade them to purchase, or to improve the image of a business.” Advertising is informative as well as persuasive. Informative advertising is about giving the consumer key information about the products it has available. It hopes to impress a consumer with the features of the products.

11. Advertising Persuasive advertising tries to create a good image by emphasising some positive features of a business, such as its environmental standards, or its fair trading principles. Persuasive advertising may also play on the fears, weaknesses and aspirations of the consumer. It attempts to create desires in the minds of the consumer. Example: • “Are you embarrassed about your mobile phone?” • “Our anti-wrinkle cream can make your skin look 10 years younger!” • “Are you overburdened with debt? – now’s the time to take out a loan to pay off all your other loans. You might even have enough left over to buy a new car or go on holiday!”

12. Advertising Media Businesses must choose the correct advertising medium for the product and the target market. Each medium has its advantages and disadvantages. Businesses make their decisions based on the nature ofthe product, their assessment of market conditions, andthe activities and needs of their market segment. There are many different advertising media: • Radio, Television & Teletext • Cinema • Brochures, Catalogues, Leaflets, & Flyers

13. Advertising Media Businesses must choose the correct advertising medium for the product and the target market. Each medium has its advantages and disadvantages. Businesses make their decisions based on the nature ofthe product, their assessment of market conditions, andthe activities and needs of their market segment. There are many different advertising media: • Posters and Billboards • Newspapers and Magazines • The Internet

14. Paired Activity • What methods of advertising do you think your chosen business is likely to use? • Which methods do you think are likely to be most effective? • How much do these different methods of advertising are likely to cost? • Do you think they represent value for money? • What other methods of advertising would you recommend?

15. Guidance • It is hoped that students will explore some of the following areas: the nature of the products sold and the different ways in which they are promoted; displays, packaging and the layout of products; the use of special offers; and the use of different forms of media. The main focus of the research is on how a small existing local business raises consumer awareness of its products or services through the promotional methods that it uses and thereby persuades customers to buy its products or services.

16. Focus • What different products and services do they offer? • How are these products/services displayed? • How are these products/services packaged? • How are these products/services advertised? • Do they offer special deals/offers on any of these products services? • How do they promote the image and reputation of the business? • Do they sponsor any local events? • Do they directly contact customers (direct marketing)? • Do they use the internet to promote their products/services? • Do they have a loyalty card in operation? • Do they use demonstrations to promote their different products/services? • Do they use personal selling?

17. Sales Promotions Sales promotions are short term activities which aim to increase sales in a particular product or product range. Sales promotions include: • Free samples • Competitions, entry to prize draws • Enhanced points with particular purchases for Loyalty schemes • Demonstration displays (see it, try it, buy it!) • Free gifts with a purchase • BOGOF (Buy One, Get One Free) • Special offers • Price reductions,discount vouchers • Loss leaders Sales promotions are often used with other promotional techniques, such as a discount voucher given out at a display stand.

18. Sales Promotion • Recognise an advantage and a disadvantage of sales promotion. • Write down a product/products that you have purchased as a result of sales promotion. • Are you still buying these products/services? Explain your answer.

19. Sponsorship Sponsorship involves one organisation paying for its name to be associated with a product, event, person, or another organisation. Sponsorship is really a form of indirect advertising.

20. Public Relations The aim of good public relations is to improve the image of the organisation and increase sales. More consumers become aware of the organisation and its products. Examples: • A holiday destination may get good PR if the area is featured in a holiday programme which shows the area to be interesting and worth visiting. • A golf course which invites a celebrity to play a round of golf, will see an increase in interest if a report and photographs of the visit appear in local papers. • Richard Branson uses the media to promote the Virgin Group. He has taken part in round the world balloon trips and other high profile events.

21. Direct Marketing Direct marketing involves sending or giving promotional materials directly to individual consumers by post (direct mail), email, phone (tele-marketing) or delivered personally door-to-door. Direct marketing by phone or door-to-door involves personal selling. The difference between direct marketing and advertising, is that with direct marketing you know precisely who is receiving your promotional materials, whereas you do not know who is seeing your adverts. Advertising is always non-personal.

22. Paired Activity • What methods of promotion do you think your chosen business is likely to use? • Are there any examples of promotion that you do not understand? • How could you find out more information?

23. Research and Planning- Select a small established local business • Consider the type of business you wish to choose: • Ensure that it is both small and established • Try to choose a business that you are interested in and that you know information will be easy to obtain on / from

24. Research and Planning- Things to consider about your business • Products/Services sold and price (also consider after sales care) – consider quality etc... • Promotion currently used • Place: Where the business is situated including demographics (population etc...), also, consider the shop layout (design, quality of environment etc...) • How many people are employed by the business • Opening hours • Where products are made or sourced from • Target market • How long the business has been established • Competition (consider Google maps) • Any other information

25. Introduction – ExampleTask 1 • The small business I have chosen to investigate is ‘The Sandwich Shop LTD’ which is based in Hornchurch Town Centre (see map on appendix A). It was established in 1993 and has five employees. I decided to investigate this business as I have been a loyal customer in the past. All five of the employee’s primary roles are to serve the customers by preparing and cooking the food for the customer. • Hornchurch Town centre has lots of restaurants in addition to quite a few shops – large competition for the business (see map on appendix A). The majority of the people living in Havering are classed as ABC1 (see demographic table on appendix A). This means that most people in the area have professional jobs and earn a salary that is above the national average. As a result, incomes will be relatively high so local people can afford to eat out and buy sandwiches. This means a potential large customer base. Hornchurch has good transport facilities as it is served by 7 bus routes. Hornchurch Station is just a short walk from the Town Centre which connects to Central London. It is also served by Emerson Park rail station which connects to Upminster and Romford. (please refer to transport links on Appendix A). • The range of products that ‘The Sandwich Shop LTD’ sell include (but not limited to) sandwiches with a selection of fillings that include (but not limited to) ham, cheese, tomatoes, tuna and cucumber. They also sell baguettes with the same/similar fillings. Sandwiches or baguettes can be served with crisps or chips as well as salad. They also sell jacket potatoes with fillings which include: cheese, ham, baked beans and coleslaw. These are all served with butter and salad. • I have chosen this business because it is a small local business which I use on a regular basis. The business uses a variety of promotional tools in order to entice customers into its shops. Therefore, this makes it a suitable business to investigate.

26. Homework • Conduct your interview in order to obtain results. • Complete Appendix A and Appendix B.

27. Suitable local businesses • Angeli’s; • Charcoal Grill; • The Wendy House; • Trophy land; • Evergreen; • Haircuts

28. Research • http://www.tripadvisor.co.uk/Restaurants-g503784-Hornchurch_Essex_England.html • This site rates the best restaurants in Hornchurch. • http://www.hornchurch.org.uk/index.htm • This site provides lots of information on the different businesses in Hornchurch.

29. Demo • http://www.haveringdata.net/profiles/profile?profileId=1136&geoTypeId=5&geoIds=00AR • The above link provides useful information on the population of havering.

30. Secondary Research • http://www.zoopla.co.uk/market/rm11/ • Information on house prices in Hornchurch • http://www.findanewhome.com/south-east-england/essex/hornchurch/crime-rates.fap • Crime figures • http://www.nsdatabase.co.uk/locationdetail.cfm?locationid=791 • Demographic figures • http://www.hornchurch.org.uk/food.htm • Information on businesses in Hornchurch

31. Elm Park Research • http://en.wikipedia.org/wiki/Elm_Park • The population of Elm Park, United Kingdom is 12048 according to the GeoNames geographical database. http://www.ilivehere.co.uk/2012/01/az-elm-park-havering-12449/

32. Checkpoint 1 • Have you completed your introduction?

33. Which of the following methods of advertising do you use? • Leaflets • Flyers • Business cards • Local newspaper • Local radio • Word of mouth • Internet sites • Yellow pages • Posters • Bus stops; • Banners • Other:

34. Which method of advertising is the most effective?

35. Which method of advertising is the least effective?

36. How do you know?

37. Which of the following methods of promotion do you use? • Sponsorship • Sales promotion (discounts, BOGOF, deals); • Public Relations – Methods to improve image and reputation; • Branding – Logo/Name; • Direct Marketing – leaflets through doors; • Loyalty Cards; • Personal Selling; • Demonstrations; • Displays.

38. Final DeadlineAppendix A/B/C • 11C - Friday 27th September. • 11B – Thursday 26th • All your planning must be completed. • Questionnaires data must have been collected.

39. Starter –Think/Pair/Share • http://cs3240team13.wordpress.com/2012/09/21/questionnaires-good-and-bad-examples/ • http://www.smartsurvey.co.uk/sample-surveys/marketing-surveys/ • What makes a good questionnaire/survey?

40. Timeline • Friday 27th September – Appendix ABC; • Friday 11th October – Appendix D Tally Results; • Saturday 12th October (9 to 12) Analysis of data and results • Friday 25th October – Research and Planning fully completed

41. Think? Competitor • Methods of promotion that are effective.

42. Who are their main competitors and what methods of promotion do they use? • How will you find out this information? • Are these methods successful? • How do you know these methods of promotion are successful?

43. Competitor Analysis on Promotion and Advertising