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QCF

Unit Title: Marketing Policy, Planning and Communication


Learning Outcome:
1. Understand the creative nature of marketing and know how to evaluate the role
and value of marketing in a variety of business contexts.
Please note that the content of this Lecture Guide is listed in its recommended
teaching order, rather than in numerical order.

Assessment Criteria/Indicative Content:


1.1 Identify and apply traditional and contemporary concepts and tools of marketing
and marketing management to various business contexts at domestic, international
and global levels:
Demonstrate an understanding of the nature and role of contemporary marketing
practice to a wide range of organisations.
Explain that marketing is a value creating function and philosophy and as such is
entrepreneurial in nature. Marketing management needs to be imaginative and
creative in devising innovative, entrepreneurial solutions to marketing problems.
Although organisations should be customer led it is important that marketers seek
to satisfy all the stakeholders (customers, shareholders, staff, suppliers, the
community and the environment etc.). At times this is a difficult balance.
Explain and apply the major concepts and tools of marketing. Demonstrate an
understanding that marketing includes management, analysis, planning,
implementation and control. Marketing is an eclectic subject and includes
elements of economics, buyer behaviour, psychology, sociology, anthropology,
statistics, demographics, research methodology and other areas.
Understand that the modern marketing concept states that the role of the
organisation is to identify and satisfy the needs and wants of specific target
markets more effectively and efficiently than the competition. Marketing is a value
creating function and philosophy.
Understand the managerial function of marketing and the management of the
marketing mix.
1.2 Explain how technology, particularly the Internet, is changing traditional
marketing and improving marketing systems and processes:
Understand how organisations can gain competitive advantage through the
effective use of technology. Explain how the Internet, e-marketing, JIT, electronic
research methods, mobile telegraphy, interactive TV (iTV), social marketing
(blogs and social networks such as Facebook and Twitter etc.) are rapidly
changing many of the traditional ways that marketing is undertaken and is a key
to marketing success.
1.3 Identify and explain the various business orientations:
Candidates should be able to explain the marketing concept and the nature of the
marketing orientated organisation. They should be able to compare the marketing
concept and marketing orientation with earlier concepts such as product,
production and sales orientations. Examples should be used/drawn from different
sectors, including profit and not for profit organisations and international
marketing scenarios.
Understand that modern marketing is not so much a functional area of
management as an overall business philosophy that should encompass the

whole organisation. Understand that a truly marketing orientated organisation is


one that is customer led and one in which every member of the organisation
understands the importance of the customer whether they are actually involved
directly within the marketing function or not. Appreciate the nature of internal
marketing in relation to the orientation of staff and other internal customers.
Examiners tips:
Marketing candidates at Level 5 are often good at discussing the technical aspects of
the subject but often tend to be less good at understanding marketing as a business
philosophy. In this context marketing goes much deeper than when it is discussed at
merely a functional level. Within a truly marketing orientated organisation everyone
has a role to play and a contribution to make to the organisations marketing success.

QCF
Unit Title: Marketing Policy, Planning and Communication
Learning Outcome:
2. Understand the marketing mix concept (7Ps) and its role in the formulation of an
integrated marketing plan in domestic and international markets.
Assessment Criteria/Indicative Content:
This is a large topic and is therefore split into three Lecture Guides.
2.1 Explain the 4Ps of the marketing mix and be able to apply them in order to
achieve the marketing plan objectives:
Candidates must understand the basic concept of the marketing mix. These are
the controllable marketing variables and it is up to the marketing manager to mix
these variables in such a way and in such a proportion in order to achieve a
specific marketing objective.
Mix elements will vary in importance according to the marketing situation.
Candidates should be able to provide examples. For example in the introduction
stage of the PLC, price is often of less importance and skimming strategy may
be used. In B2B marketing situations personal selling may well be the most
important variable in the firms marketing mix.
It is important that candidates understand the most appropriate marketing mix for
consumer marketing, service marketing, B2B and other marketing situations, e.g.
not for profit.
Candidates should understand all aspects of product and service decision
making but in particular should be aware of the product life cycle concept and its
use as a strategic marketing planning tool, the new product/service development
process, the diffusion and innovation process and the organisation of product and
service development within the organisation.
Pricing decisions should be studied in detail. Not only different pricing methods
and strategies, such as penetration and skimming, but also the factors
management must take into account when making pricing decisions. Candidates
should be aware of the approaches to price setting, the price/quality relationship,
price as a segmentation variable, price discrimination, promotional pricing and
the communication role of price. Different approaches to pricing, e.g.
accountants approach, economists approach and the marketing approach
should also be understood. Candidates should be capable of using specific
examples.
Candidates should understand channel and physical distribution (logistics)
policies and key concepts and models at both domestic and international levels.
This includes channel choice, level of market exposure, selection of
intermediaries, channel conflict and co-operation, wheel of retailing, service
elasticity and the components of a business logistics system and channel
motivation and management. Technology is changing some traditional
distribution methods and candidates need to be aware of the impact that the
internet, JIT, electronic tracking etc. is having on distribution.
It is expected that candidates will fully understand the communication mix and
tools (advertising, personal selling, direct mail, sales promotion, Internet
marketing and new media, PR, exhibitions etc.) and be able to use flow charts
and diagrams to illustrate the communications process. They should be able to
formulate communication plans and programmes for products, services and
organisations in domestic, international and global markets.

Models and philosophies related to advertising should be covered, for example


DAGMAR (Defined Advertising Goals for Measured Advertising Results). It is not
expected that candidates will have an exhaustive knowledge of the subject but
they should be able to list and discuss the main models, e.g. AIDA, Lavidge and
Steiner, EK Strong model, 2 Step Flow model etc.
Candidates should be able to measure and evaluate the performance of
communication campaigns and other communication activities.

QCF
Unit Title: Marketing Policy, Planning and Communication
Learning Outcome:
2. Understand the marketing mix concept (7Ps) and its role in the formulation of an
integrated marketing plan in both domestic and international markets.
Assessment Criteria/Indicative Content:
2.2 Explain and apply the 3Ps of service marketing and show how they differ from
product marketing:
It is not enough for candidates to just have knowledge of the 4P marketing mix
elements; they must also understand the concept of the extended 7P mix and its
particular importance. The importance of these additional 3Ps (people,
processes and physical evidence) should be covered in depth.
In many developed economies, services and the marketing of services are more
important than manufacturing. Services include many areas, but particular
attention should be paid to retailing in this part of the syllabus.
Candidates should demonstrate awareness that service marketing has a number
of characteristics that makes them more difficult to appreciate than physical
goods. These characteristics are summarised in the points below:
o Intangibility in that they often cannot be seen, felt, tasted, smelt or heard
prior to purchase.
o Inseparability relates to the fact that they are normally produced and
consumed at the same time and cannot be separated from their providers
(e.g. a concert performance).
o Variability in that quality might vary depending upon who performed the
service (e.g. the provision of a restaurant meal).
o Perishability in that services generally cannot be stored, so if they are
not sold at a specific point in time then the opportunity for sale is missed
for ever (e.g. a stay for a night in a room in a hotel).
Candidates should be aware that when considering services, all 7Ps should be
considered and they should be able to illustrate their discussion with appropriate
contemporary examples.
Some of the factors associated with the additional 3Ps are outlined below:
o People: Services in particular are dependent on people who deliver and
perform them. Personal interaction is often a key element in providing
customer satisfaction and repeat business. Training is important to ensure
that the standards are maintained.
o Processes: Services usually demands a well-integrated means of
delivery. The management of the process ensures availability and uniform
quality often accompanied by immediate consumption (e.g. a visit to the
hairdresser).
o Physical evidence: This involves the appearance of the premises and
factors like attention to ambience and image. The objective here is to
make the service more tangible to customers.
Examples should be used to illustrate the points made in answers.
Candidates should demonstrate the interrelationships and interactions of the 7P
mix elements within an integrated marketing mix and should be able to
demonstrate how they might use such a mix to achieve specific marketing
objectives at the tactical and strategic levels. Candidates should show how one
mix element might build upon another and how some can be used simultaneously
and others sequentially.

QCF
Unit Title: Marketing Policy, Planning and Communication
Learning Outcome:
2. Understand the marketing mix concept (7Ps) and its role in the formulation of an
integrated marketing plan in both domestic and international markets.
Assessment Criteria/Indicative Content:
2.3 Examine and apply service/quality models to service marketing issues:
Candidates should be aware that all marketing activities need to be evaluated.
However, because of the nature of services, such as the fact that they are
generally intangible, evaluation may cause more challenges and problems than
might be the case with products.
Candidates should be aware of the need for customer service evaluation and
how this might be achieved.
Familiarity with some of the main marketing research methods, discussed in
Lecture Guide No 7 will be of use here. In depth interviews, group discussions
and other qualitative marketing research techniques might be useful in the
evaluation of services. Likewise questionnaires could also be useful in this
respect.
If candidates are familiar with the available literature in the area of service
marketing, including the recommended texts, they will probably be at least aware
of the work of Parasuraman, Zeithami and Berry in formulating a service quality
framework commonly known as the GAPS model. Good candidates will be aware
of this model and will be able to comment on its use in service evaluation.
Good candidates will also be aware of the SERVQUAL instrument used to apply
the GAPS framework. Candidates are not expected to be experts in this field but
should be aware that such an evaluative instrument exists in the public domain.
Both GAPS and SERVQUAL are covered in the basic texts.
The important thing here is that candidates have a good grasp of the nature of
services and some of the problems inherent in marketing management being
able to manage and particularly evaluate the success of their service offering and
service policies.
In terms of evaluation any sensible framework will suffice although as mentioned
above a well prepared candidate will be able to comment specifically on the
GAPS and SERVQUAL frameworks recommended in the sphere of service
evaluation.
Examiners tips:
Answers to Learning Outcome 2 questions will often require charts or diagrams.
Make sure any diagrams or charts are of a reasonable size and are clear and fully
labelled. A good diagram alone, however, will not secure a pass if the rest of the
answer is inadequate so make sure you read the question very carefully and ensure
that you answer every part. Good answers will generally start with a short
introduction and conclude with a conclusion or recommendation.
It is very important that candidates keep up to date with the changes that affect
marketing. Just reading text books is no longer sufficient; candidates should keep up
to date by reading quality newspapers, marketing magazines and journals and
particularly by surfing the net. Candidates will be well rewarded in the examination if
they use contemporary marketing theory and support their discussions with
appropriate illustrations and practical marketing examples.

QCF
Unit Title: Marketing Policy, Planning and Communication
Learning Outcome:
3. Know how to formulate and evaluate marketing plans at domestic and
international levels.
Assessment Criteria/Indicative Content:
This is a large topic and is therefore split into two Lecture Guides.
3.1 Explain the need for marketing planning:
Candidates should appreciate the need for marketing planning and its integrated
nature.
They need to understand the difference between the corporate plan and the
marketing plan and how they inter-relate.
Candidates should be able to explain how to develop creative and imaginative
competitive strategies. To do this candidates need to understand the role and
importance of marketing planning, be aware of the staged planning process and
be able to describe the sequential stages within the marketing planning process.
Whilst there are many models that candidates can choose the process is likely to
include the following activities:
o Mission / vision
o Corporate objectives
o Marketing audit
o SWOT analysis
o Assumptions
o Marketing objectives and strategies
o Estimate of expected results
o Identify alternative plans and mixes
o Programmes
o Measurement and review
Candidates are expected to have a working knowledge of the overall strategic
plan and to be able to explain and discuss any of the component activities. It is
important that candidates have a clear understanding of the difference between,
for instance, corporate objectives and marketing objectives and can differentiate
between strategy and tactics.
Candidates should have an understanding of the importance of having a clear
mission and vision and the need to set clear SMART objectives. Objectives may
be achieved in many different ways. An organisation, for instance, might wish to
increase its turnover and this could be achieved through existing markets, new
markets, new products or indeed through diversification.
3.2 Identify and apply the key analytical tools and frameworks related to the
marketing planning process:
There are a range of analytical tools and frameworks designed to aid decision
making and candidates need to be aware of these. The most common tools,
models and frameworks are:
o SWOT analysis
o PESTLE
o The Ansoff Matrix
o The BCG Matrix
o Porters five forces and generic strategies

o
o
o

The PLC analysis


The General Electric Matrix
Segmentation and other relevant models and analytical frameworks.

QCF
Unit Title: Marketing Policy, Planning and Communication
Learning Outcome:
3. Know how to formulate and evaluate marketing plans at domestic and
international levels.
Assessment Criteria/Indicative Content:
3.2 Some grasp of the development of creative and imaginative competitive
strategies is required by candidates. An understanding of the nature of strategy
and how strategic decisions compare with more tactical and operational decisions
and the relationship between them is needed. Candidates should be able to
describe competitive positioning and have an understanding of the following:
o Leader
o Follower
o Challenger
o Nicer
o Defensive strategic positions.
3.3 Create marketing plans and describe and apply all the elements of the marketing
planning process:
Candidates should have some understanding of the importance of marketing
planning at the international and global level and in particular be aware of the
importance that culture and other PESTLE issues will play within the planning
process.
Candidates should clearly understand that an organisations objectives are
usually achieved through a number of strategies and they should be able to
explain how to formulate and optimise the marketing mix. Methods of evaluating
the effectiveness of the marketing mix, such as marginal analysis, should be
covered.
3.4 Explain how marketing plans are monitored, measured and controlled:
Candidates should demonstrate an understanding of the process of review,
control, and measuring performance in relation to the mix elements and the mix
as a whole.
Candidates should appreciate the need for and be able to implement monitoring
and control procedures. Plans are usually measured against set objectives and
any deviation from the objectives need to be investigated, and where necessary,
corrective action taken.
Candidates should be able to describe methods of control and explain the role of
marketing information system within the control process. Candidates should also
be able to illustrate how organisations measure performance by using
appropriate models and frameworks (e.g. the Balanced Scorecard, management
by exception).
Candidates are not expected to be experts in strategic planning or strategic
marketing as this is covered in more advanced papers. However at this level of
examination they are expected to demonstrate an understanding of the nature of
the overall strategic plan and the strategic marketing plan as a subsidiary plan.
Basically they need an understanding of the concept of a hierarchy or cascade of
plans.

Examiners tips:
The role of marketing plans and the content of marketing plans are frequently asked
questions. An understanding of the marketing mix concept and the interactive nature
of the mix elements is another important area. Candidates must have some
understanding of how to manage the marketing process effectively at the domestic
and global/international level.

QCF
Unit Title: Marketing Policy, Planning and Communication
Learning Outcome:
4. Understand the role of information and research in marketing decision-making
and the influence technology has had on these activities in recent years.
Assessment Criteria/Indicative Content:
This is another large topic and is therefore split into two Lecture Guides.
4.1 Explain and discuss the market research process, the techniques used and how
market research is conducted:
Candidates need to be aware of the importance of information to marketing
planning and decision making. They need to know why information is so
important and how information is used by management in a range of marketing
decisions.
Candidates should be able to use specific examples of the use and application of
marketing information in a range of settings, e.g. information needed in the
setting of the price of a product or service.
Two key areas that are likely to feature frequently in examinations are:
o Market research
o Marketing information systems
Candidates do not need to be market research experts but they should know the
marketing research planning process (shown below) and the activities that go on
within each stage of the process:
o Locating and defining problems or research issues
o Designing the research
o Collecting the data
o Analysing and interpreting research findings
o Reporting research findings
Candidates should have an understanding and be able to explain the sources of
secondary data and the methods of collecting primary data (interviews, surveys,
observation, experimentation and the Internet).
4.2 Explain the role of information in the marketing planning process and describe
the nature, role and function of marketing information systems:
Candidates should be able to explain the role of information within the strategic
marketing planning process. It is important that candidates are fully aware of the
critical role that information plays in the crafting of marketing plans. It is vital, for
instance, that organisations fully research both the internal and external
environments in order to gain sustainable competitive advantage.
Candidates should be able to briefly describe the nature, role and function of
marketing information systems (MkIS). They should be aware that a MkIS is a
framework for the day to day management and structure of information gathering
from sources both inside and outside an organisation. It is important to recognise
that the challenge facing the marketer is not just to collect information but to
analyse that information and then for management to use that information to aid
decision making.
Examiners tips:
The marketing research process can usually be shown in an examination as a flow

diagram. Such a diagram is available in the standard texts and other learning
materials. A good approach is to use the flow diagram to show the marketing
research planning process and then elaborate on each stage in the process.
Likewise the concept of a marketing information system can be shown effectively
using a systems diagram. This can then be elaborated on in the discussion part of
the answer. There are many other areas of the syllabus where candidates are
expected to appreciate the use of the correct kind of information, e.g. analysis of the
business environment, setting price, customer relationships marketing and logistics
especially in evaluating service level achievement.

QCF
Unit Title: Marketing Policy, Planning and Communication
Learning Outcome:
4. Understand the role of information and research in marketing decision-making
and the influence technology has had on these activities in recent years.
Assessment Criteria/Indicative Content:
4.3 Explain and demonstrate how new technologies have changed traditional
market research practices:
New technologies have had a significant impact not just within marketing
information and research activities but throughout the whole of marketing. Good
candidates will incorporate the latest marketing technologies in all examination
answers.
New technologies have significantly changed many traditional marketing
systems, practices and procedures and candidates must take these into account
in their answers. Marketing is changing rapidly.
In many organisations today technology is a key driving force and many
businesses are conducting their research and trading through cyberspace.
Candidates should be aware how technology is changing marketing practice and
some of these are itemised below:
o Improved knowledge through advanced databases
o Internet as a new research method
o Ability to disseminate information across departments/countries in real
time
o Electronic ordering, payment and delivery systems
o Just in Time practices which drive down costs and improving cash flow
o Improved distribution systems with electronic tracking
o New distribution channels and the challenge of whether to intermediate or
re-intermediate
o The opening up of international/global markets to many SMEs
o The development of the Internet as a powerful new advertising media in
its own right
o The development of new media (e-mail, mobile and interactive TV etc.)
o The development of blogging and social marketing (Face book, Twitter
etc.)
o The growth of the internet as a relationship marketing tool the growth of
1-2-1 marketing.
The above list, although not exhaustive, shows how technology impacts on
almost all aspects of marketing. Technology, therefore, is likely to feature, in
some way, in most examination answers.
Although technology is undoubtedly very important to marketers, it is also
important that the risks and barriers from technology are understood. Some of
these are:
o The cost
o Availability of technology (e.g. Broadband is not available everywhere)
o Trust in technology
o Reliability of equipment
o Local knowledge and skills
o Local culture
o Consumer acceptances.
Technology is evolving fast and candidates should keep up to date by reading
marketing magazine and journals and by surfing the Internet.

Examiners tips:
Clearly technology is driving substantial change to marketing and this is particularly
the case within distribution. Just think how many organisations have improved their
profitability by using Just in Time systems and how many products are now delivered
electronically. What else has changed? try and produce a list.

QCF
Unit Title: Marketing Policy, Planning and Communication
Learning Outcome:
5. Understand the macro and micro environmental factors affecting marketing
decisions and how to conduct environmental scanning and external audits.
Assessment Criteria/Indicative Content:
This is a large topic and is therefore split into two Lecture Guides.
5.1 Identify and assess the importance of macro and micro environmental factors:
Candidates should appreciate that companies operate within a complex and
dynamic external environment. It is the task of marketing orientated companies to
link the resources of the organisation to the requirements of customers.
Candidates should have an understanding of the macro environment. The
PESTLE framework is probably the best way to proceed here and these can be
summarised as:
o Political and regulatory national government, local government,
regulatory bodies, trade associations etc.
o Economic and competitive market structure, taxation, trading blocks,
government policy, interest rates etc.
o Socio-cultural demographics, culture, attitudes, current issues
o Technological products, materials, processes, distribution, marketing
administration.
Today we need to add an additional E to the PESTLE framework for the
environment and green issues. Indeed the environment is so important that many
academics now refer to it as the 8Pof the marketing mix.
The more company specific forces reflecting the nature of the business are
referred to as the micro environment. This consists of:
o Suppliers
o Customers
o Competitors
o Distributors
o Marketing intermediaries like advertising agencies and marketing
research companies.
5.2 Explain how the environment impacts on strategic marketing decisions:
Candidates should appreciate that factors in the competitive environment can
affect the commercial prosperity of a company. Management must be alert to the
potential threat of other companies marketing product substitutes.
Candidates should understand that businesses do not operate in a vacuum but in
a highly competitive and dynamic environment which is subject to rapid change.
Changes in the marketing environment often create strategic windows that, if they
are not quickly identified, can enable rivals to gain the edge. There are six key
causes of strategic windows which are: new technology, new markets, new
distribution channels, market redefinition, new legislation and regulation, plus
financial and political shocks. In order to ensure that organisations identify the
strategic windows it is critical that the environment is scanned regularly.

QCF
Unit Title: Marketing Policy, Planning and Communication
Learning Outcome:
5. Understand the macro and micro environmental factors affecting marketing
decisions and how to conduct environmental scanning and external audits.
Assessment Criteria/Indicative Content:
5.3 Describe environmental scanning and external audits and explain how they are
undertaken:
The success of the firm in meeting the challenge posed by change will depend on
the ability of management and individual management skills in carrying out the
scanning and monitoring of the external environment and anticipating significant
changes in the form of an environmental audit.
Candidates should be able to explain environmental scanning and environmental
audit.
Environmental scanning is the process of collecting information about the
forces in the marketing environment. Scanning involves observation, keeping an
ear to the ground, perusal of secondary sources, such as the web, business
trade, government and general interest publications and marketing research etc.
Environmental analysis is the process of assessing and interpreting the
information gathered through environmental scanning. This is about assessing
and interpreting the information gathered. Evaluating the information for
accuracy, resolving inconsistencies and allocates significance to the findings.
Candidates should be able to describe and explain some of the tools that may be
used to structure the analysis. These include:
o Making a simple list under general headings (competition, customers, and
resources available)
o McKinseys Seven Ss
o Porters Five Forces
o SWOT profile
o Spider diagrams (mind maps).
From this analysis the marketing manager should be able to determine possible
threats and opportunities and understand the current state of the marketing
environment.
Candidates should have some knowledge of not only their domestic
environmental factors but also the international and global business environment.
Candidates should be aware that scanning can be very expensive and time
consuming as there is a need to cast the net very wide to catch all the possible
influences that might affect the organisation. The key is knowing what is
important and what should be acted upon and what can wait.
In summary, environmental scanning and analysis is an important task, but tends
to be expensive and interpretation is often difficult.
Examiners tips:
Understanding the international marketing environment and specific sector
environments, especially the retailing environment, is important. The concept and
process of environmental scanning and the environmental audit is also important in
this area of the syllabus.

QCF
Unit Title: Marketing Policy, Planning and Communication
Learning Outcome:
6. Understand consumer and organisational buyer behaviour and the main
influences at individual, household and organisational level.
Assessment Criteria/Indicative Content:
6.1 Explain the different types of consumer buying behaviour, the various factors that
affect consumer behaviour and how knowledge of consumer behaviour can be used
in marketing practice:
Candidates should be able to describe various types of consumer buying
behaviour situations, e.g. investment goods, consumer durables, fast moving
consumer goods etc., and be able to compare these with similar organisational
buying behaviour situations, e.g. investment goods, product constituents
services; new buy, modified and routine re-buy situations. They should
appreciate the importance to marketers understanding consumer behaviour and
the use and application of this knowledge in marketing practice.
Candidates should appreciate that the needs of consumers should be
ascertained and marketing response communicated through a variety of sources.
In organisational markets, buyers and sellers do communicate through media, but
they rely heavily on personal communication. These professional buyers
endeavour to obtain satisfaction for the companys physical needs, whereas
much of consumer behaviour has psychological implications.
Candidates should be encouraged to explore and explain the personal factors
that affect consumer behaviour, e.g. age, gender etc. They should be able to;
explain the social factors that may affect consumer behaviour, e.g. socio
economic group culture, family, etc.; explore the psychological factors affecting
consumer behaviour, e.g. perception motives, learning etc. Relevant theories of
motivation relating to consumer behaviour should be covered, particularly the
work of Abraham Maslow.
6.2 Explain the different types of organisations and the main characteristics of
organisational buying and organisational demand:
Describe the different types of organisations.
Explain the main characteristics of organisational buying and organisational
demand, often derived demand.
Appreciate the characteristics and differences between B2B and consumer
behaviour.
6.3 Explain the concepts of buying centre and decision making unit (DMU) and the
sequential nature of organisational decisions:
Appreciate the stages of the business buying decision process.
Explain relationship marketing and the nature of the exchange process between
industrial/organisational buying and selling. Appreciate the factors affecting the
buying decision process.
Appreciate the importance of segmentation, selecting and targeting in business to
business markets. Looking at the buyer decision process from the marketers
viewpoint, segmentation strategy is considered to be most influential during the
information search stage. As well as segmenting the market, the marketers task
is to ensure that because of certain attributes, products receive high rankings in
the consumers mind during the evaluation stage.

Examiners tips:
The difference and similarities between consumer and organisational buyer behaviour
is a question which has been asked frequently in the past. Models such as the DMU,
and theories such as Maslows hierarchy of needs, are also important examination
topics.

QCF
Unit Title: Marketing Policy, Planning and Communication
Learning Outcome:
7. Understand segmentation, targeting and positioning tools and techniques and be
able to develop and implement STP strategies in an appropriate and creative
manner.
Assessment Criteria/Indicative Content:
7.1 Explain the nature and roles of segmentation, targeting and positioning in
consumer, business to business and international markets:
Candidates should understand the very important concepts of marketing
segmentation, targeting and positioning and how marketing management can use
these concepts in formulating strategies and plans. They should demonstrate
how segmentation relates to the marketing concept and the creation of value.
The different bases of segmentation in both consumer and organisational
markets should be covered, e.g. socio-demographic, psychological, industrial
sector, size of firm. The criteria for the evaluation of effective segmentation
variables should also be covered, e.g. measurable, identifiable, meaningful,
substantial.
7.2 Examine the issues involved in managing the marketing mix in relation to STP for
both products and services:
Candidates should understand the relationship between the marketing mix and
market segmentation, targeting and positioning strategies. In particular how the
marketing mix elements can be used to create effective segmentation, targeting
and positioning programmes. Candidates are expected to be able to use specific
examples here to illustrate the key points made.
Different targeting strategies should be covered and related to segmentation and
marketing strategy, e.g. differentiated, concentrated.
Candidates should understand the concept and application of product positioning
and should be able to produce some form of perceptual map, multi dimensional
scale or positioning diagram by way of illustration.
7.3 Develop segmentation, targeting and positioning plans in a creative manner.
Appreciate that STP is a crucial stage within the marketing planning process and
that creative STP plans can help achieve sustainable competitive advantage.
Examiners tips:
Both the basis of segmentation and the criteria used to evaluate the suitability of a
segmentation variable, e.g. meaningful, substantial, are question areas that are often
used in examinations. The request for candidates to draw some form of positioning
diagram is another frequently examined area of the syllabus. The standard
positioning map is the most popular diagram used but there are also more
sophisticated illustrations such as a vector or spider diagram. The whole area of
marketing segmentation, targeting and positioning is so central to any module on
marketing that it is very difficult to set a paper without these important areas coming
up in some form or other. Even if a direct question on these areas is not asked,
segmentation, targeting and positioning can often be used as part of other answers,
e.g. in marketing planning or pricing.