Professional Diploma in Marketing

Marketing Management in Practice

SPECIMEN ANSWERS FOR DECEMBER 2006 EXAMINATION PAPER

Note: In an attempt to present an accurate and representative account of a candidates piece of work, the answers have been reproduced in their original form and may therefore contain grammatical, terminological and formatting errors and inconsistencies.

The Chartered Institute of Marketing

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Examination Papers Each subject differs slightly from the other, and you need to make sure that you are familiar with the style of question and the requirements of the different examinations.

Common Mistakes Reports from examiners are published regularly and are available to students. Even a casual look through these reveals the same concerns and problems coming up time and time again across all subject areas. Most of these common mistakes are caused by a lack of exam technique and examination practice.

There are three basic question types: 1. The mini case or scenario or article Part A of all papers (except Strategic Marketing in Practice) has a mini case, scenario or article, with compulsory questions. This represents only part of the paper, but students are required to make marketing decisions based on the information given. Spend time evaluating the material given in the case, but do not rewrite this for the examiners. You will gain credit for the decisions and recommendations you make on the basis of the analysis, but nothing for the analysis itself. This is a compulsory part of the paper designed to evaluate practical marketing skills. Make sure you allocate enough time to it, but do not ignore the other part of the paper. 2. The straightforward exam question You are expected to make a choice from a number of questions. There is some skill necessary in selecting the questions which you are best prepared to answer. Read the questions through carefully before making your choice. Think about how you will tackle the question. Check you are answering the question in the context in which it has been set, then make a rough plan before you start writing. Remember that examiners are interested in quality answers. Not answering the question set The examiners are looking for both relevant content and its application in an appropriate context. You must be able to work flexibly with the material you have studied, answering different questions in different ways, even though the fundamental theory remains the same. Presentation and style Both of these essential business skills are of great importance to a marketing practitioner. The examiners expect work to be presented in a well-written, professional manner. Report style, using sub-headings and indented numbering for points etc is not only acceptable, but looks much more commercially credible than academic essays. This approach allows you to break the work up, highlight the key points, and structure your answer in a logical way. Take care with your grammar and use of language; small errors can change the sense considerably. The scarce resource in an examination is time. You must control the allocation of this resource carefully. Read the instructions to the paper carefully, and identify what has to be done and how the marks are allocated. Spread your time proportionately to the mark allocation, ie if the mini case = 40% of marks, allocate 40% of your time to it. Allow a few minutes at the end to read through your work.

3. Strategic Marketing in Practice (Professional Postgraduate Diploma in Marketing) The Case Study is sent out 5 weeks before the paper is sat. Students should complete their analysis and preparation before the examination takes place. The questions asked will include extra information about the case which will have to be used to obtain best marks.

For example it is no good only completing four questions when you should have done five. It is so much harder for you to pass on just four questions. Have a clock or watch with you and be ruthless in your timekeeping. If you find you are spending too long on an answer, you are probably not answering the question specifically enough.

The examiners expect relevant theory to be illustrated with practical examples and illustrations. These can be drawn from your own marketing experience, or observations, or your reading. A theory paper without evidence of practical application is unlikely to be successful.

Special Notice CIM Holdings Ltd 2004. All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or inadvertently to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs & Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1P 9HE

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Introduction
The specimen answers provide examples of answers that can be reasonably written within the allocated time. The answers demonstrate what is required to achieve a good pass mark, unless otherwise indicated in the Comments. Remember when revising from these examples that there are no right or wrong answers. The examiners are looking for you to apply your own marketing knowledge and skills to the question set. These answers should be indicative of the content and format that the examiners expect to see. To give you the best chance of passing your exams, these specimen answers can be used in conjunction with the examiners reports, in which the senior examiner for each subject outlines best practice. The examiners reports are available from CIM Direct and on the CIM student website, www.cim/learningzone.co.uk. We hope you find these specimen answers useful and informative. Although we cannot enter into correspondence, we would welcome comments or feedback, which should be sent to cimdirect@cim.co.uk or to CIM Publishing at the Moor Hall address.

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CIM Specimen Answers Professional Diploma in Marketing

Part
Case study context The case study focused on an expanding service company Smart-Cuts operating in B2C context. Candidates could locate New Town and Old Town in any country of their own selection. This integrative case study enables candidates to demonstrate their ability from a full range of syllabus elements. Candidates were expected to know, understand and apply the relevant marketing theory (e.g. B2C, RM and service) to the issues presented in the case study an expanding hair care company Smart-Cuts. All the questions both in the compulsory section Part A and the elective section Part B are based on this single case study scenario. The answers to Q1a, Q1b, 2 and 4 were taken from the same candidates submission. This illustrates how integrated answers can be developed.

Part A
Answer - Question 1a Background Outline a marketing communications plan for the opening of the Old Town salon. The communications plan should cover the period THREE months before the opening and SIX months after the opening. A few candidates provided a marketing plan rather than a marketing communications plan. These answers did not have sufficient development of the communications mix and failed to gain good grades. To: From: Date: Re: Smart-Cuts Owners Marketing Consultant 8 December 2006 Marketing Communications Plan

1. Background The opening of the Old Town Salon will present a significant step for Smart-Cuts, as you move beyond a familiar environment for the first time. Ensuring a firmly-grounded, well-planned and executed MarComms plan will help gain and sustain competitive advantage. 2. Situation Analysis with regards to MC activities 2.1 Strengths: desirable brand, works in New Town 2.2 Weaknesses: basic website, reliance on students 2.3 Opportunities: new venture capital, exploit new segments (non-students: grey market, young families, and college staff) 2.4 Threats: competition/ copycats, rising rents

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Comments This is a sound highly focused review of some of the key issues. Lengthy environmental analysis (unless specifically requested) is not required. Time is needed to develop the communications mix. Answers that were 70% analysis (lengthy STEEPLE analysis etc.) did not develop enough content in the area of implementation (e.g. marketing communications mix recommendations) and failed to gain high grades. 3. Business objectives To ensure strategic fit, MarComms objectives must be aligned with overall strategic objectives, which are understood as growth of outlets to 50 within the next 5 years. 4. MarComms objectives 4.1 To raise awareness of Smart-Cuts to have reached 50% of Old Town students population by Feb 2007 (cognitive) 4.2 To build the brand as young, professional and approachable by October 2007 (affective) 4.3 To fill slots (=minimise staff without customers) to 85% of opening time within first 6 months, by attracting new clients and encourage repeat visits (behavioural) Comments Less able candidates tended to state Set SMART objectives. and then failed to give any. 5. Strategy For a new service venture without any intermediaries, a mixture of pull and profile strategies is appropriate. 5.1 Pull: branding anchor Smart-Cuts as the place for stylists and sensible people to get their hair cut 5.2 Profile: to build and maintain the overall reputation of Smart-Cuts with the wider stakeholder audience. Old Town has a prestigious university, but many deprived areas and a new, growing business committed to high quality at low prices, as well as job opportunities, represents a good public relations opportunity. 6. Integrated Campaign The campaign needs to link its components (promotional tools), but also needs to be integrated with the resources and scheduling plan. A GANTT chart will show the relationships between them and aid smooth operations. 6.1 Advertising: This will provide the anchor for the campaign. A combination of college and local newspaper adverts/advertorials (from one month before opening), outdoor (on university campus) posters and leaflets are possible. Local (campus) radio should be considered. Some campuses broadcast SubTV, a digital channel for student programmes, which might be used. Sales promotions: To create buzz and fill the salon, sales promotions such as 2 for 1 offers, or free haircare products when visiting should be introduced early on. These must not dilute the message that Smart-Cuts provides excellent value for money at all times anyway. Public relations: A great deal has been achieved already with the fashion magazine interview. This can be further extended by TV coverage (a popular student soap opera is filmed nearby) within the first six months. Relations with local press must be sought. Sponsorship can also be considered, such as an
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6.2

6.3

Award of Excellence at a local FE [further education] colleges hair and beauty department. This would improve Smart-Cuts standing in the local community. 6.4 Direct Marketing: To reach other desirable segments, such as the grey market and families (lower income groups live in this area), a leaflet drop or direct mail campaign is possible. A low-cost DM [direct marketing] agency can assist. On-line: the website needs to become more sophisticated and interactive. Beyond basic opening times, I recommend conveying the style of the salon with music, layout and include stylists profiles, information about hairstyles (cultural background etc.). This can be linked with SP (sales promotion), such as having printable vouchers, and relationship marketing: customers can have their own account with details of previous stylist, e-mail reminders when their next cut or colour etc. is due.

6.5

Other opportunities included SMS (Short Message Service) to customers, which can be very immediate, such as advising the salon is free at the moment, come within 30 minutes to receive a discount. A viral marketing approach could be an online hairstyle game, which could be passed on by clients. Comments This section provides a sound focused overview of the mix and has some innovative ideas such as the use of SMS. A number of submissions still propose that mass TV, press and radio advertising are the solution to all communications situations. Answers adopting this approach failed to gain a pass grade. 7. Monitor and Review It is necessary to measure success against set objectives at regular intervals. For the above campaign, measuring criteria included awareness ratings (market research), customer surveys, press cuttings, voucher redemption, online traffic and online account members. This plan firstly recognised the need to embed Smart-Cuts in Old Towns student culture within a given time frame. The other segments mentioned, can partially be targeted in the same way, but further thought will be given post-opening. Comments This is a sound, well focused answer. It has good context development and has some innovative proposals. Answer - Question 1 (b) Background Smart-Cuts is moving from a small local organisation to a national chain of hair salons. Identify the change management issues confronting Smart-Cuts and propose ways to manage the issues. To: From: Date: Re: Smart-Cuts Management Marketing Consultant Dec 8th 2006 Managing Change

Smart-Cuts is moving from a small, owner-managed operation with a distinct culture (values diversity, highly passionate, but little business control systems) to a national
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chain, which will undoubtedly result in change affecting many areas. McKinseys 7S framework highlights the all-embracing nature of change:-

Staff: Skills: Strategy: Structure:

From few to many More diverse and specialist skills required (marketing, finance, accounts, operations) for the first time, Smart-Cuts has a five-year vision which will be developed further in response to environmental changes So far, there is only geographic division (by salon division), but the future will necessitate a head office with different functions as well as regional divisions. To exploit both functional strengths and regional tactics (e.g. sales promotions for all London salons only) a matrix structure can be envisaged, which has its own challenges such as ambiguous reporting lines. Physical premises and staff appearance are thus tightly controlled, but more direction may be needed to ensure coherence in future salons. Style may need to change. Undoubtedly, a larger structure with more staff requires more systems, such as HR recruitment and appraisal systems, pay structure; Marketing central CRM system All the above will impact on company culture, e.g. from cosy to competitive.

Style:

Systems:

Shared goals:

Comments This answer recognises that much of the change will affect management. Less good submissions only focused on the issues that might affect front line staff. To manage these changes, I propose these steps: 1. Prepare for change In each area, decide how big a change is needed. Is a holistic CRM system needed straight away? A culture willing to change must be created in advance such as by creating innovative, participative teams. It may be advisable to pilot a change to give staff a positive experience. Once a change (such as a new performance-related pay structure) has been decided, it is necessary to: 2. Establish a sense of urgency By making staff feel the new system is in their interest and should be in place a.s.a.p. 3. Establish a guiding coalition Both formal change agents (leaders who direct the vision consistently) and influencers on the ground such as selected staff, will disseminate a positive view of the new pay system. 4. Communicate the changes To all stakeholders (staff, owners, temporary staff, perhaps even customers). With regards to staff, internal marketing must be considered:Product: Price: the new pay system both actual potential loss in basic pay, and insecurity caused by change
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Promotion:

staff meetings, newsletters and posters are appropriate, with pay issues a further programme of 1:1 consultations should be implemented. Resources may be needed for internal adverts. how will information be available? Who are the nominated counsellors?

Place:

5. Implementation Any communicated time frames must be adhered to, as periods of delay and uncertainty are unsettling. Out with the old, in with the new applies and ensure all staffs pay systems are changed simultaneously. Wins (short-term) should be celebrated publicly e.g. if the new system has improved turnover in the first month. 6. Review Feedback should be sought from stakeholders and a cost-benefit analysis completed: Has the change contributed to overall business goals? Do staff work better? These results will provide useful lessons for future changes, or might even persuade management to revert to old ways. If change has been successful, it should become part of the companys culture. 7. Conclusion A wide variety of changes is likely to affect Smart-Cuts. To manage these, consistent but flexible leadership is required, to ensure each individual is developed, groups/ teams are built cohesively and the task achieved. Bear in mind that most changes will be externally influenced (economy, social etc.) an ability to anticipate the need to change will gain competitive advantage. Comments This is a sound answer with good focus on the case study context with application of relevant theory.

Answer - Question 2 Background This question has two aspects a b Explain what information is needed to identify and select suitable new market locations for Smart-Cuts salons. Recommend appropriate ways in which this information could be obtained by Smart-Cuts management.

Some candidates opted to treat as two sections. Other candidates opted to take an integrated approach, often taking a table approach with the headings Information & How to gain the information. Both approaches were acceptable.

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To: From: Date: Re:

Smart-Cuts Management Marketing Consultant 8 December 2006 Information needed for new salon location selection

With the new venture capital, doors are open for significant expansion. As set-up costs are relatively low, there is a wide choice of locations. This report attempts to raise appropriate questions which need to be asked: a) b) to find locations suggest ways in which answers to these questions may be obtained.

1. Macro-environment Our expansion plans are not necessarily limited to the UK. With international expansion we can ask: A) Which EU countries show similar economic environments to successful Smart-Cuts locations? o Economic factors: unemployment, GDP, level of disparity, size of service sector, average rents (commercial) o Social: how big is the student market? How big is the grey market? o Political: what are the tax rates like? o Legal: are there any legal barriers/regulations such as working hours which may conflict with our business model? B) Sources will be mainly secondary, such as Eurostat, Mintel reports and the CIA website. Once a suitable wider market has been identified, further regional research is necessary. National MR bodies will assist. 2. Business environment 2.1 Competitors a. We need to consider: How many other salons are in a chosen area? How are they positioned? What prices do they charge? How big are they (staff/turnover)? How long-established are they? b. This information can partly come from secondary sources such as Yellow Pages and government statistics (e.g. published turnover). Primary research will be recommended at later stages, such as: mystery shopping. I would recommend purchasing access to industry sector reports such as Mintel. 2.2 Customers a. We must consider: What is the social make-up of the area? Do customers feel the need for a low-cost, fashionable salon? What is the age dispersion? Which local universities exist? b. Some information can be available to purchase, such as ACORN geodemographic data, profiling neighbourhoods (in the UK). At later stages, local surveys or focus groups carried out by an agency are recommended.

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3. HR Issues These must be considered, as any local salon will need employees. a. Consider: Are local stylists available? What local education is available? What are the average salaries and HR costs (e.g. national insurance)? If salons are abroad, are any UK head office staff needed? Who is willing to relocate? b. The internet can provide some answers, as well as internal research and government websites. 4. Marketing communication issues a. What is the local media infrastructure like? Will it be easy and affordable to promote each salon? b. It will be most efficient to use the services of local media consultants. Some form of process benchmarking may be useful: by identifying other sectors aimed at similar market segments (e.g. internet cafes, budget travel agencies) with a history of expansion, and approaching the company for advice for related marketing research. 5. Conclusion Having identified our target segments as student, young at heart seniors and young mothers (limited resources, fashion sense, time); we must seek locations with related populations. Staff must be available and affordable, the wider environment favourable and local promotion possible. A mix of primary research, assisted by MR (market research) agencies and secondary (desk) research will be needed. Comments This was a sound answer. It provides a range of points and is well focused on the context, locations for Smart-Cuts salons. Weaker answers provided generic marketing research approaches: Primary and secondary research. Use questionnaires and run focus groups. Such answers did not consider the issues of location and so failed to gain good grades.

Answer - Question 3a Background Review the branding issues that are facing Smart-Cuts.

To: From: Date: Subject:

Marketing Manager of Smart-Cuts Marketing Consultant for Smart-Cuts 8.12.2006 Building a Valuable Brand

Introduction The salon chain Smart-Cuts is now geographically expanding and there is a need to build a consistent brand image across all geographic areas; a need to create brand awareness and also brand recognition and recall are of paramount importance.
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A brand is a name, term, sign, symbol or a collection of these that is used to identify the products/services of one seller and to differentiate them from those of competitors. Findings The brand Smart-Cuts is well-known and accepted in the Kuala Lumpur student target market and has a distinctive positioning as a chic and stylish salon chain with relatively low prices. The salon chain has been able to adopt a simple and consistent outer approach in all their salons which at the same time looks smart and stylish. The brand message is mainly conveyed through people, physical processes and product offered at the salons. The contribution to brand building by physical evidence criteria has been significant as the same stylish and smart image is conveyed to the target market (a consistent image that is not confusing as to what the brand stands for). Nothing about the logo or corporate literature is mentioned but the same message of being smart and stylish must be conveyed by the use of appropriate corporate colours and logo. The logo and colours must be in line with the type of customers that we serve and a mutual belongingness must be created through the brand. Brand survey can be carried out to find if the current brand image is what Smart-Cuts really want to be seen as. The low cost can be associated with lower service by some part of the target segment and this must be eliminated by appropriate communication tools. A brand conveys messages by signals, behaviours of staff, face to face encounters, intended communications, word of mouth etc. However, in this case, it is said that their approach is more to do with instinct than integrated, professional and expert approach. Integration of the elements of the marketing mix to deliver one single brand message is vital. At present, their strength lies not in the brand, but in their format or approach; but a brand is an important asset which gives meaning to an otherwise naked commodity. It can also help a firm integrated communication and add value to a service/product. e.g. White Linen fragrance in a small bottle with no label will not be accepted as White Linen. It is the shape of the bottle, packaging and labelling that make the product stand out. Therefore Smart-Cuts needs to build the brand by investing behind it. The website can be used to build the brand where a message of what the brand means can deliver a positive response. Being socially responsible with national community relations can also enhance how the brand is perceived. A website that is hard to navigate, takes time to download, is slow and complex will ruin the good image built by superior product (hair cuts) and will tarnish the brand. Adoption of a booking policy will give the service a more systematic and organised outlook and will help to build the brand. Having to wait for too long will lower the initial enthusiasm for a different look.

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Something for all approach should be eliminated and should be focused more on the needs of the target market. Brand can be built on the competitive advantage and strength e.g. favourable opening hours and unique hair styles. Comments This was a sound answer with fair focus on the context and the application of some relevant theory.

Answer - Question 3b Background Suggest communications activities that could be used to build the value of the SmartCuts brand. The value of the brand can be increased by constant exposure of the logo and slogan throughout its advertisements and other communications. Constant exposure will result in people being aware and conscious of the product by its name (and not by the 4th shop to the left on Flower Street etc.) Public Relations is a good tool to build the brand. Without any direct cost involved, the brand can get the press to talk about its unique service dimension and about its new geographical location. The brand building initiation will be done through PR, but PR can also deliver negative results because it is beyond the control of the company. The uniforms, interior dcor, bills, all equipment used at salons can also deliver a consistent picture to the consumer in all interactions with the salon e.g. with the golden arches, people know that it is McDonalds; there is no need to see the name. The communications must reflect upon the competitive advantage the brand has over competitors. A brand gains more attention once its value is depicted e.g. a slogan has to highlight the edge over competitors. The target market can be engaged in a competition to create the brand value they see in the brand. The presence at a major event e.g. a fund-raising fashion show at the university will give the brand the right amount of exposure to relevant parties. Sponsoring a relevant event will help build links with the sort of values it is craving to be associated with. Corporate hospitality to suppliers will make the brand be seen as a worthy partner to work with. It will help build relationships that will be a side effect of a good brand. Service quality and the use of appropriate methods to serve customers will enhance the overall image of the brand and the company has to highlight this point in their direct mails to its target market e.g. when announcing new styles etc. a newsletter to the target market and with a promise to deliver what the brand stands for. These activities must be integrated to deliver the best results.

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Comments This was a sound answer linking the communications activities to the building of the brand. Less good answers provided a review of marketing communications activities without appropriate linkage to brand building.

Answer - Question 4 Background Some writers have said that successful organisations should recruit for attitude and train for skill. Illustrate how management and marketing theory can help organisations such as Smart-Cuts to: 4a recruit suitable new staff

To: From: Date:

Smart-Cuts Management Marketing Consultant 8 December 2006 Recruitment

Background The suggestion to recruit for attitude and train for skill stems from a realisation that the marketing environment is constantly changing. This necessitates flexible, adaptable and enthusiastic staff, which are nevertheless likely to remain with the firm, reducing labour turnover costs. This report applies relevant theory to suggest ways to improve recruitment, induction and training of new staff. a) Recruitment Recruitment is concerned with attracting potential staff. Gap analysis can help to identify a skills shortage such as comparing future objectives (e.g. build the strongest online presence of any UK salon chain) with current capabilities (skills analysis). Once appropriate skills are identified, a suitable job description (role, duties, reporting lines) and person specification can be drawn up. Rodgers 7 point plan assists in formulating a rounded person specification e.g. for new Smart-Cuts e-marketing manager, this could be: Background: on-line Attainments: degree-educated, relevant industry diploma Disposition: this could be emphasised e.g. flexibility, helpfulness, creativity Physical appearance: care needs to be taken with recent (UK) antidiscrimination legislation but ability to see is vital in this case Interests: a sense of fashion, interest in hair styling, popular culture to convey brand credibly General intelligence: to be specified Special aptitudes: such a spatial awareness If respondents are recruited externally, the following applies: Segmentation dividing audience into meaningful subsets, which must be available, attractive and distinguishable (e.g. degree holders in their first jobs looking for new challenges, completed CIM e-commerce diploma in Liverpool area)
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Positioning how will Smart-Cuts and the job be perceived against other job adverts? Lucrative, autonomy, desirable cultural challenges? Media selection just as with other advertising, media must be evaluated in terms of cost, timescale, reach and suitability to the message. If the post is to be filled quickly, on-line (e.g. e-commerce websites) are favoured over monthly magazines.

Part-time marketers a reminder that although a job advert may be placed by a HR department, all staff must seek to convey a positive image of the firm. Any communications, although targeted, are not just seen by respondents, but also by customers, owners, current staff and other stakeholders. It is assumed that a new member of staff will work as part of a team. When selecting a new member, thought must be given to the current team make-up and any roles which need to be filled. According to Belbin, teams with balanced roles work better. If the current marketing team consists of dynamic, dominant shapers, outgoing resource investigators and creative plants, it should be useful to aim to add a more deadlinefocused completer-finisher and an administrative implementer. Interview Current management theory recognises common pitfalls for interviewers, such as the halo effect or stereotyping, which may result in: Failure to recruit the best person Recruiting unsuitable people A panel interview can ensure greater balance and objectivity. Unsuccessful applicants should still have a positive view of the company. Comments This is a sound answer. It demonstrates understanding of the issues and provides context specific illustrations. The answer could have been improved with more consideration of the selection process. Answer - Question 4 b Background Induct and train their new staff

To: From: Date:

Smart-Cuts Management Marketing Consultant 8 December 2006 Induction and training

1.

Induction Depending on the team stage (Tuckman). A team which is freshly brought in at the same time (and thus FORMS from scratch) will benefit from team building exercises to achieve cohesion. For a new colleague entering an existing team the following are crucial: Clear communication of expected role (e.g. Belbin). Technical induction (planned site visits explain web system used). Time must be given, but real tasks must also be given to avoid boredom.
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1.1 1.2

1.3

Actual induction it is useful to seek timely feedback from new recruits to inform management of the companys culture (insights which are only available from outsiders).

To ensure motivation of new colleagues from day 1, the following may be used: 1.4 1.5 Participation foster a culture which takes part in decisions. Staff who supervise themselves require less work from management. Empowerment a new e-commerce Manager should have the authority and confidence to make certain decisions (e.g. outsourcing some design work) in order to increase job satisfaction. Incentives Herzberg suggests that pay, adequate working conditions and good social structure do not satisfy in themselves. Once a new recruit has checked that these are in place, he or she will seek recognition, achievement and challenges. Productivity is higher if these can be met. Most financial incentives such as time off, free hair care products or visible praise (employee of the month) help.

1.6

2. Training We have identified that a changing environment dictates changing objectives and changing skills needed. In Smart-Cuts this may mean keeping up with certain cutting or dyeing techniques. Management must: Identify a skills gap compare staff against objectives Identify training methods ongoing, one off, formal/external, informal (e.g. mentoring). Cost benefit: how much does training cost and what advantages will it bring this should consider the staffs learning styles, which may be behavioural (learn while doing) or cognitive (learn theory) to maximise training effectiveness. Implement training ensure enough time is given, communicate training objectives to all staff to ensure their support for their colleague in training Seek feedback Did staff enjoy it? Were training methods useful? Evaluate Were objectives achieved? Lessons learnt? Conclusion The notion of internal marketing (=marketing is the concern of all). Relationship marketing (to staff: retention) are crucial to HR matters. Team management requires an analysis of team roles and filling gaps. The induction period is crucial to firmly anchor new staff in their roles and training should be justified, targeted, flexible and on-going not just using up training budgets. Comments Use is made of theory and sound context, some specific illustrations are given e.g. In Smart-Cuts this may mean keeping up with certain cutting or dyeing techniques.

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Answer - Question 5a Background Identify and review a range of product management approaches that could assist Smart-Cuts to manage the opening of the Old Town salon. Some words in this answer were not legible such occurrences are marked ####. To: From: Date: Smart-Cuts Management Marketing Consultant 8 December 2006

a) A project is an activity with a distinctive start and finish. The Old Town Project ideally starts June 2006 and should be finished in three months time. This will entail a lot of work and hence it is advisable to have a project team under the leadership of a chosen project manager. I believe I could be the ideal candidate for this. My approach is outlined below. All projects comprise of five stages which are as follows; 1. Defining stage 2. Planning stage 3. Implementing stage 4. Control stage 5. Completion stage Defining stage The five partners and I would formally meet and produce a project charter of project initiation document. This mainly gives an outline of: The objectives of the project: To open Old Town Salon in three months time To design, remodel and decorate the building It may also include details of the budget and the timescale available. The information in the PID would then assist me in understanding the needs of the project and in identifying a project team with the right mix of skills to fulfil the project within the set time and budget. Once my project team is assembled, we can then design the way forward in making the project a success. The basic process is as follows: Objective setting Task planning, feasibility and position audit (Planning stage) Developing and designing, implementation (Implementation stage) Control and completion stage The processes mentioned above make the project manageable and each stage will be dealt with before moving on to the next. The identified tasks become manageable and what is left would be for me, the Project Manager to coordinate activities, allocate resources, and communicate with all stakeholders until completion. Some current staff members of Smart-Cuts are potential candidates for the project team.
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Comments This answer gained a pass grade but could have been significantly improved with more depth and application of relevant theories to the Old Town opening context.

Answer - Question 5b Background Recommend a range of actions that could be taken by Smart-Cuts to project manage the marketing of the new Old Town Salon around the time of its opening. From: Date: Marketing Consultant 8 December 2006

There are several options to enable better management in the set up of Old Town Salon For the sake of simplicity, I shall simply list and give a brief explanation. 1. Work Break Down Structure #############Unreadable Down into smaller manageable tasks which are easier to master and implement. The project tasks are coordinated according to the availability and demand for resources. 2. Gantt Chart It enables time management by listing and scheduling the project tasks and a display of the time available to complete them. It is a control mechanism and will help my team keep track of progress within the three months. 3. Resource histogram ########Unreadable word the resources available to a project in a given timeframe. It may be labour hours or financial resources. From this, I can allocate and distribute resources strategically. 4. Risk assessment matrix This instrument enables me to assess risk and probability of occurrence. The various variables will determine the delicacy of each risk. Risks can be handled in the following mechanisms: Avoidance Reduction Transference Absorption 5. Software Over and above all these management tools, project software would need to be acquired. I recommend Microsoft Project which will facilitate the planning, evaluation, monitoring and control of the project. Smart-Cuts will have to purchase the software. 6. Critical Path Analysis/ Network diagram This tool will help us to prioritise the sequencing of tasks. The task that is timebound will be identified and it will be a benchmark for all the other tasks to measure project efficiency and timeliness. Comments This answer gained a pass grade but could have been considerably improved by more reference to the specific case study context.
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