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Direct Marketing and Sales Promotion Examination June 2013 CAM Diploma 122 – Direct Marketing and Sales Promotion Time: 09:30-11:30 Date: 4 June 2013 Two Hours Duration This examination is in THREE compulsory parts. PART A – Has ONE question worth 50% of the total marks. PART B – Has TWO questions; answer ONE. The answer will be worth 25% of the total marks. PART C – Has TWO questions; answer ONE. The answer will be worth 25% of the total marks. You are required to give your answers in the answer book provided. DO NOT repeat the question in your answer, but show clearly the number of the questions attempted on the appropriate pages of the answer book. Please start each question on a new page. Rough work and notes must be written in the answer book or on supplementary sheets and must be clearly identified. © CAM Foundation 2013 Direct Marketing and Sales Promotion Examination June 2013 DIRECT MARKETING AND SALES PROMOTION PART A – Compulsory The Gatehouse Theatre Background The Gatehouse Theatre is a small 400 seat regional theatre, which presents a range of touring productions. A different production is offered each week and, in a typical season, the theatre offers 12 different productions. There is a small bar, which serves a variety of drinks and hot and cold snacks. For two years, the theatre has been capturing all bookings on its database system, has accurate records of which performances have been attended, and the numbers of tickets booked on each purchasing occasion for 40,000 customers. Currently it uses the data simply to mail out a brochure twice a year listing the upcoming season’s productions to the entire database. Customer analysis The Gatehouse theatre has carried out a simple analysis of its customer database records looking at the number of performances that visitors have attended over a period of time. The results of the analysis of people attending were as follows: one performance over 12 months ago – 6,000 one performance within the last 12 months – 10,000 two performances over six months ago – 8,000 two performances within the last six months – 6,000 between three and five performances over three months ago – 2,000 between three and five performances within the last three months – 4,000 six or more performances within the last three months – 4,000. The theatre has also been able to establish that many theatre-goers appear to favour certain types of performance – drama, dance, comedy and music. The theatre holds basic demographic data and email addresses for all customers on the database. The current Marketing Manager is uncertain of the marketing implications and potential applications of this information. The above data has been based on a real-life organisation, but details have been changed for assessment purposes and do not reflect current management practices. CAM Diploma PART A – Compulsory It is recommended that you spend approximately ONE hour on PART A. Question One You have recently been appointed as a Marketing Assistant for the Gatehouse Theatre and one of your key tasks is the management of the database and associated marketing support. Write a report that: a. explains how the data held on the database may be used to analyse the customers and improve direct marketing opportunities for the Gatehouse Theatre (10 marks) b. advises the Gatehouse Theatre on how it should use its database information to develop an effective direct marketing plan aimed at encouraging past customers to book tickets for the new season’s performances (25 marks) c. recommends a loyalty scheme that could be used to increase customer retention for the Gatehouse Theatre. (15 marks) (Total 50 marks) Direct Marketing and Sales Promotion Examination June 2013 PART B – Compulsory – Sales Promotion It is recommended that you spend approximately HALF AN HOUR on PART B. Answer EITHER Question Two OR Question Three Question Two Chester Zoo is the largest zoo in the UK and home to 7,000 animals of 400 different species. This zoo was named as ‘Large Tourist Attraction of the Year’ in 2011, at the Marketing Cheshire Awards. In 2011, the zoo had 1.4 million visitors – the first time in its history that visits were over 1 million. The peak period is April to September, when Chester Zoo receives 75% of its visitors. In your role as Marketing Assistant, you have been asked to address the nature of seasonal visits by producing a report for your Marketing Manager that: a. outlines THREE sales promotion activities that will encourage visitors to visit Chester Zoo during the off-peak period (15 marks) b. explains how each of the suggested sales promotions will be evaluated. (10 marks) (Total 25 marks) Question Three a. Using examples of your choice, evaluate the differences between price promotion and premium promotion. (15 marks) b. Explain how sales promotion activities can be used to extend a brand into new distribution outlets. (10 marks) (Total 25 marks) CAM Diploma PART C – Compulsory – Direct Marketing It is recommended that you spend approximately HALF AN HOUR on PART C. Answer EITHER Question Four OR Question Five Question Four In your role as Marketing Assistant, working for a charity of your choice, you have been asked to address the following tasks: a. using THREE creative execution techniques of your choice, explain how to increase response rates to direct mail (15 marks) b. draft a direct marketing letter that aims to increase individual donations for your chosen charity. (10 marks) (Total 25 marks) Question Five As part of its ongoing marketing communications, your client, a large national provider of fixed and mobile telephone, TV and broadband internet services, has retained your agency to plan and implement a direct marketing campaign to support its above-the-line promotional activity. In your role as the Direct Marketing Executive, produce a briefing paper for your Marketing Manager that: a. recommends how this client might set the budget for the direct marketing activity (15 marks) b. suggests and justifies TWO direct marketing techniques to support the client’s above-theline promotional activity. (10 marks) (Total 25 marks) END OF EXAMINATION Direct Marketing and Sales Promotion Examination June 2013 CAM Diploma Direct Marketing and Sales Promotion Examination June 2013 Moor Hall Cookham Maidenhead Berkshire, SL6 9QH, UK Telephone: 01628 427120 Facsimile: 01628 427399 Website: www.cim.co.uk