Assessment Task 1: Identify marketing opportunities
Procedure
There are two parts to this assessment task. Part A requires you to identify and evaluate two opportunities for your chosen organisation. In Part B, you will explain these opportunities to your peers in a 15-20-minute presentation.
Part A
Part A requires you to identify and evaluate two opportunities for your chosen organisation.
1. Choose an organisation to analyse. Identify two marketing opportunities for the organisation you have chosen.
To identify opportunities, analyse information on your chosen organisation's market and business needs, for example:
a. comparative market information
b. competitors' performance
c. customer requirements
d. legal and ethical requirements
e. market share
f. market trends and developments
g. new and emerging markets
h. profitability
i. sales figures.
Note: Some data in the BBQfun simulated business needs to be updated by you. For your chosen organisation or BBQfun, it is recommended that you use ABS data, for example, to determine demographic and consumer trends.
2. Research potential new markets for the organisation, for example:
a. export markets
b. segments of the market not currently penetrated.
3. Consider strategic marketing approaches, such as:
a. increasing market share
b. developing new markets
c. developing new products
d. diversification.
4. Using a suitable methodology (such as gap analysis, market or marketing analysis, or competitor analysis), identify and decide on two marketing opportunities to focus on and investigate further.
In your analysis, consider types of markets and aspects of the marketing mix, such as distribution, products and types of promotional activities, for example:
a. e-commerce
b. business-to-business marketing
c. direct marketing
d. ideas marketing
e. marketing of goods
f. public sector marketing
g. services marketing
h. telemarketing.
5. Estimate the effect of the two marketing opportunities on the business, for example:
a. effect on sales volume
b. growth
c. market share
d. profitability.
6. Use numerical analysis or statistical methods to forecast effects. For example, use the least squares method to estimate demand. Use estimated demand to calculate effect on sales and profitability.
7. Explore and develop entrepreneurial, innovative or creative options (one for each opportunity) to apply the marketing opportunities in the context of the organisation.
For example, if you identify an e-commerce opportunity, determine how to apply the e-commerce opportunity to the organisation including aspects such as media, web- design to appeal to target markets, integration with existing operations, marketing strategy and overall strategic directions.
Part B
Prepare a 15-20-minute presentation for marketing peers explaining and supporting the two marketing opportunities you have identified. Ensure you complete the following:
1. Describe two marketing opportunities and how you identified them. Describe the process you undertook to analyse your organisation to identify the marketing opportunities. Refer to the current organisational marketing plan and products/services, as well as organisational procedures and protocols.
2. Support your choice of marketing opportunities with reference to market information such as market trends and sales figures. Include relevant statistics.
3. Describe the effect of opportunities on the business, for example:
a. sales volume
b. growth
c. market share
d. profitability.
Note: You must use evidence to support your assertions, such as:
a. refer to quantitative or qualitative data
b. show/use results of statistical methods of forecasting demand
c. show results of break-even or profit analysis.
2. Describe innovative or creative options (one for each opportunity) to apply the marketing opportunities in the context of the organisation. Refer to aspects of the marketing mix, i.e. product, price, promotion, place (distribution). Refer to, and explain, principles of marketing that apply to your approaches to realising the proposed opportunities.
3. Use appropriate language and level of formality to satisfy needs of your audience. For example:
a. professional but semi-formal language
b. technical vocabulary; potential need to define more obscure marketing terms or statistical methodologies
c. assume no knowledge of specific organisational policies or marketing strategies
d. elicit views and opinions of others by listening and questioning
e. provide for response and feedback.
4. Prepare and keep presentation notes and other materials used in the presentation such as PowerPoint slides and handouts.
5. Deliver your presentation as per specifications (below).
6. Submit presentation notes, PowerPoint slides, etc. to your assessor. Keep a copy of all documentation for your records.
Specifications
You must:
? deliver a 15-20-minute presentation
? submit presentation notes and other materials used in the presentation, such as PowerPoint slides and handouts.
Your assessor will be looking for:
? culturally appropriate communication skills employed to relate to people from diverse backgrounds and people with diverse abilities
? literacy skills to identify and interpret market information
? numeracy skills to calculate and evaluate financial information on new marketing options
? research and evaluation skills to gather information on and interpret market trends to identify marketing opportunities
? knowledge of the organisational marketing plan, and products and services
? knowledge of principles of marketing and the marketing mix
? knowledge of statistical methods and techniques to evaluate marketing opportunities, including forecasting techniques.
Adjustment for distance-based learners
? No variation of the task is required.
? A follow-up interview may be required (at the discretion of the assessor).
? Documentation can be submitted electronically or posted in the mail.
? Presentations may be conducted and observed live or via an appropriate teleconferencing tool.
Assessment Task 2: Evaluate marketing opportunities
Procedure
There are two parts to this assessment task. Both parts relate to three new opportunities that need to be evaluated. Part A requires you to read all materials and to evaluate and complete the information in the BBQfun sales data worksheet. In part B you will prepare a report for a Board of Directors to outline, evaluate and rank the opportunities.
Part A
1. Read all materials required for this activity: this procedure, BBQfun simulated business, information supplied in the scenario, and information supplied in the BBQfun sales data worksheet of this assessment task.
Scenario
You are the Marketing Manager at BBQfun. You and your team have identified three marketing opportunities to evaluate. They are:
? manufacture and sell own brand
? sell products through e-commerce
? sell products at bargain prices.
The first opportunity is to manufacture and retail own-branded barbecues and products. Manufacture would take place at a leased plant in India as BBQfun has no manufacturing capability. Also, manufacture in Australia would be too expensive.
The second opportunity is to offer all products in an online store. Stock could be stored at no extra cost at existing stores. Customers would cover delivery costs.
The third option is to aim to increase market share by cutting the cost of products and aiming at mass appeal.
Further information is provided in the BBQfun sales data worksheet.
Each opportunity will be promoted through a $500,000 television, internet and email advertising campaign (cost accounted for in approved budget).
You will need to review the BBQfun simulated business information to determine organisational fit, profitability and operational implications for each of the three opportunities.
On the basis of the profitability index (opportunity cost estimated to be 8%) and a full appreciation of other, non-financial factors, you will need to rank these opportunities and choose one top-rated opportunity for further evaluation.
After ranking the three opportunities, you will complete your evaluation in terms of impact on operations. Information is provided in the BBQfun sales data worksheet.
You will then need to provide a report to the Board of Directors documenting your evaluation of identified marketing opportunities and required changes to operations.
2. Using all the information that you have been provided, fill in the blank spaces (the shaded boxes) in the BBQfun sales data worksheet in the following order:
a. Forecast the total market potential for the coming financial year.
b. Use the market share for each opportunity and the total market potential to forecast the number of buyers in each category for the e-commerce market opportunity.
c. Use the number of buyers from market potential tables to calculate the unit sales volumes for the e-commerce and bargain market opportunities.
d. From this information, calculate estimated total revenue and gross profit.
e. Use the additional fixed costs and the BBQfun simulated budget to determine the net profit for each opportunity.
f. Use gross profit and total fixed costs from each opportunity to calculate the profitability index for each opportunity.
g. Use information from this assessment task and the BBQfun simulated business to calculate total cost of operational changes.
3. Complete your own research to supplement the information you have been provided with. Ensure that you have all the information that will enable you to address all the requirements of the report.
Part B
1. Complete a report according to the following requirements.
2. Referring to the BBQfun simulated business documentation, analyse the three opportunities outlined in the scenario in terms of likely fit with organisational goals and capabilities. Consider:
a. organisational marketing plan, structure, products and services
b. principles of marketing and the marketing mix
c. additional marketing information such as survey results in the BBQfun sales data worksheet.
3. Using information in the BBQfun sales data worksheet, evaluate each opportunity in terms of impact to current business and customer base. Evaluation should include investigation of:
a. sales volume for each opportunity in upcoming financial year
b. gross and net profit for each opportunity
c. use numerical analysis or statistical methods to forecast, for example, the size of potential markets.
4. consider also:
a. impact on growth plans
b. market share
c. knockout factors to rule out opportunities.
5. Assess external factors that may be relevant to each opportunity. Identify (in outline) all of:
a. codes of practice and models
b. regulations
c. relevant legislation.
6. Refer to relevant BBQfun policies and procedures.
7. Referring to BBQfun simulated business documentation, summarise major costs, benefits and risks associated with each opportunity, including risks associated with potential competitors. Identify at least two strategies or approaches to mitigate risk.
8. Using information in the BBQfun sales data worksheet, assess the return on investment for each opportunity. Calculate the profitability index for each opportunity.
9. Based on your analysis so far, rank the three marketing opportunities. Justify your ranking in terms of both financial and non-financial factors (such as organisational fit).
10. Using information from the BBQfun sales data worksheet, for the top-ranked marketing opportunity, identify changes to current operations in order to take advantage of the opportunity. Ensure changes identified are adequate to:
a. service an increased or different customer base
b. ensure continued quality of service.
11. Ensure you can justify changes on the basis of maintaining quality.
12. Using information from the BBQfun sales data worksheet, estimate and justify resource requirements and costs for changed operations. Consider:
a. additional staff
b. distribution costs
c. equipment
d. promotional costs
e. staff training.
13. Prepare the report for the Board of Directors to document your evaluation of the three marketing opportunities and operational changes for the top-ranked opportunity. Ensure you include the following in your report:
a. An executive summary.
b. The results of your investigation of marketing opportunities in steps 3-8. Document the results of your investigation at each step. Consider documenting each step separately, under its own section heading.
c. For the top-ranked opportunity, the results of your evaluation of required changes to operations in steps 9-10. Document the results of your evaluation at each step. Consider documenting each step separately, under its own section heading.
14. Ensure your report is written with appropriate language and level of formality to satisfy needs of your readers:
a. formal language
b. technical vocabulary, for example, no need to define terms such as ‘marketing mix'
c. assume knowledge of organisational policies, marketing strategies.
15. Submit your report as per specifications below. Keep a copy of your report for your records.
Specifications
You must submit:
? evaluation report for the Board of Directors that covers all of the listed requirements.
Your assessor will be looking for:
? literacy skills to identify and interpret market information, to write in a formal style appropriate to a professional audience and to document outcomes and requirements
? numeracy skills to calculate and evaluate financial information on new marketing options
? knowledge of key provisions of relevant legislation from all forms of government, codes of practice and standards that may affect aspects of business operations, such as:
- anti-discrimination legislation and the principles of equal opportunity, equity and diversity
- ethical principles
- marketing codes of practice and conduct such as the Australian Direct Marketing Association (ADMA) Code of Practice, the Free TV Australia Commercial Television Industry Code of Practice, and the Australian Guidelines for Electronic Commerce
- Competition and Consumer Act 2010
- privacy laws.
? knowledge of the organisational marketing plan, structure, products and services
? knowledge of principles of marketing and the marketing mix
? knowledge of statistical methods and techniques to evaluate marketing opportunities, including forecasting techniques.
Adjustment for distance-based learners
? No variation of the task is required.
? A follow-up interview may be required (at the discretion of the assessor).
? Documentation can be submitted electronically or posted in the mail.
Attachment:- BBQfun sales data worksheet.rar