Level 3 Advanced Diploma in Retail Business


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Level 3 Advanced Diploma in Retail Business

  1. 1. Level 3 Advanced Diploma in Retail Business Unit 5 Marketing in Retail Business Guided Learning Hours: 60 (GLH all for teaching and learning activities) What will you learn from this unit? Wherever a retail business is located, in a shopping centre, a rural location or operated from a home, the most enterprising businesses will find innovative ways of using marketing to expand their market share. This unit enables you to develop your knowledge of the importance of marketing in retail business and the best ways of marketing retail businesses that are from different sectors and use different retail channels. Through this, you will learn about the relationship between marketing strategy and the overall business process. You will also be able to develop your understanding of the various factors that influence approaches to marketing. If the development of marketing strategies is not challenging enough already, then add change to the mix! You will also need to explore how ethical considerations can affect marketing strategy development. You will apply your knowledge by using marketing information to make marketing decisions. You will also review a marketing strategy in the light of changes to the retail environment. You will need to develop your personal, learning and thinking skills as a creative thinker and independent enquirer. You will also need to develop your functional skills in ICT and English. How will you be assessed? This unit is externally assessed which means that you will undertake an assessment devised and marked by the awarding body EDI. The external assessment involves a written examination lasting 1.5 hours. You will be presented with a scenario for which you will need to develop a marketing strategy that you will then need to adapt in the light of changing circumstances. 1
  2. 2. Learning Outcomes Learners will: 1. Understand the importance of marketing in retail business Assessment Criteria Taught Content Learners can: Learners must develop understanding of the impact of marketing strategy on retail business and how this can be used to deliver competitive 1.1 Explain the impact of advantage for a retail business. In order to build a marketing strategy, learners need to understand the meaning of marketing in retail business and marketing strategy the different stages that are involved: carrying out market research to find on retail business out what customers want, and what they are prepared to pay for it; analysing 1.2 Analyse links the findings; developing a product range; selecting the right retail channels between marketing to get the products to market; providing good customer service to ensure strategy and the customers’ needs are fully met. overall business process Learners must develop understanding of the consequences of different marketing strategies to different types of retail business. Different types of retail business include different sub-sectors and businesses of different sizes. The different sub-sectors are DIY; food and grocery; personal care; automotive; music and video; electrical goods; home wares; clothing and footwear. The different sizes are local, national and global. Learners need to understand how the marketing strategy (marketing mix) underpins the strategy and how its components are applied in different types of retail business. The marketing mix components are product, price, place, promotion, physical evidence, people and process, also known as the 7 Ps. Learners need to know about branding of products and what contribution branding can make to marketing strategies. They also need to consider the risks that would impact on the strategy and how likely these are to occur and what impact they would have. Learners need to understand pricing strategies and their rationales in terms of their possible impacts, including penetration pricing, price skimming, prestige pricing, competitive pricing, demand led pricing. Learners can demonstrate their understanding of pricing strategies through numerical skills by calculating effects of price increases, price promotions, price elasticity. (FS-Maths) Learners must develop understanding of the links between marketing strategy and the overall business process, including how a business’s marketing strategy forms a platform for the success of a business and a framework for all the stages and functional areas. Stages: sourcing products, buying and merchandising, storage, selling to the customer, disposal and recycling. Functional areas: marketing, sales, finance, operations, customer service, purchasing, warehousing. Learners need to consider the links both in terms of day to day business operation and short and medium term business planning. 2
  3. 3. Learning Outcomes Learners will: 2. Understand the factors that influence approaches to marketing Assessment Criteria Taught Content Learners can: Learners must develop understanding of the external influences on marketing, including how these influences are essential to the 2.1 Evaluate external success or failure of a retail marketing strategy. Learners need to influences on consider the differing relative importance of different factors to marketing (IE4) different types of retail business and that change can be both 2.2 Analyse the ethical expected and unexpected. External influences covering the following considerations in areas need to be represented in terms of both opportunities and product development threats presented: and promotion Political: local, national and international; political instability 2.3 Explain the impact of Economic: stage of the business cycle; dependency on international internal and external economies; exchange rate fluctuation; interest rates and fiscal policy; influences on competition marketing strategy Social: changing tastes and fashions; corporate social responsibility, 2.4 Explain the influence cultural considerations of business Technological: change to internal operations; change to retail performance on channels; security factors marketing strategy Legal: legislation relating to consumer protection; data protection; competition Environmental: local, national and global responsibility. Learners must develop understanding of the ethical considerations in product development and promotion. This requirement builds on the evaluation above and considers the concept of global corporate social responsibility in the context of global economy. Considerations include fair trade; sustainability; social enterprise; well being of employees; supporting local, national and global communities; the reasons for businesses having sound policies in terms of corporate social responsibility. Learners must develop understanding of the impact of internal and external factors on marketing strategy and the influence of business performance. This requirement introduces the internal factors of profitability, staff resource, space utilisation, stock management systems, financial resources, business location and medium and long term aims and objectives, alongside external factors. In addition, learners need to understand the development of marketing strategy as a dynamic process that is reliant on the level of business performance in terms of aims, objectives and key performance indicators relating to profitability, productivity and competitiveness. Adaptation of marketing strategy to enable aims and objectives to be met and competitive advantage must be covered. 3
  4. 4. Learning Outcomes Learners will: 3. Be able to use marketing information to shape marketing decisions Assessment Criteria Taught Content Learners can: Learners need to develop skills in using retail market intelligence, building on their knowledge of fundamental market research 3.1 Use retail market principles, and how technology can be applied. They must intelligence understand that retail market intelligence needs to be fit for purpose. 3.2 Review retail Learners need to think carefully about the ethics of research when marketing strategy in questioning potential customers and understand how market research changing can be corrupted by using inappropriate questions or questioning circumstances (CT6) techniques. Learners need to learn how to use qualitative results including those based on people’s opinions, views or thoughts and quantitative information, including original numerical results, statistics, tables and graphs. This information is collected from primary and secondary sources. Primary sources include original, uninterpreted information, usually directly from people. Secondary sources include desk-based sources, usually a publication of some form. Learners need to understand the role and importance of each. Learners need to develop their numerical skills for analysing market research results, which may be in the form of raw statistics, tables, graphs or charts. They need to learn how to apply this information to decisions relating to all stages of the marketing strategy, as defined in learning outcome 1. (FS-Maths and ICT) Learners need to develop skills to review marketing strategy in changing circumstances. Changing circumstances include the alteration of internal and external factors, including business performance as defined in learning outcome 2. To enable this review, learners need to develop the skills to apply key marketing models to situations presented: Situational analysis: including what sector the business is in, what the product(s) and their target market(s) are, what retail channels are being used, who the business’s competitors are, what resources are available and what external trends may impact on the situation. SWOT analysis: the strengths, weaknesses, opportunities and threats at one point in time Product life cycle in terms of different possible future change Boston and Ansoff Matrix in terms of risk and expected returns. (FS-Eng) 4
  5. 5. Development Opportunities Personal, Learning and Thinking Skills (PLTS) EDI has embedded Personal, Learning and Thinking Skills in specific assessment criteria within this unit. This is to ensure learners have plenty of opportunities for these skills to be assessed. Learners must be encouraged to plan and review their own personal achievement and development. The PLTS that are included within the assessment criteria are naturally occurring, and therefore development will be natural in the assessment of the unit. Naturally occurring PLTS in this unit The following PLTS are assessed as part of the requirements of individual learning outcomes and assessment criteria. Creative Thinkers (6) CT6 requires learners to “adapt ideas as circumstances change” and in this unit they are required to review marketing strategy in changing circumstances. Often in the retail industry, circumstances change in ways that are unexpected or outside one’s control. For example, reviewing strategy in the wake of the credit crisis requires a large degree of creative thinking. Teachers must impress on learners the need for new and different ideas, while thinking through the consequences carefully. Independent Enquirers (4) IE4 requires learners to “analyse and evaluate information, judging its relevance and value”. In this unit learners will have to carefully consider the relative impacts of different factors on a retail environment. It is important that prior to this assessment teachers develop learners’ skills in weighing up relative values in different situations. Developing additional PLTS In addition, in this unit there are significant opportunities to develop learners’ creative thinking skills. EDI suggests that the following PLTS are developed as part of the applied delivery of this unit. Creative Thinkers (1) (2) (3) (4) (5) CT1 requires learners to ‘generate ideas and explore possibilities’. In developing marketing strategy learners will be required to generate different ideas as the challenges that they face will be significant. Exploring possibilities will be central to their determination of the most suitable course of action to fulfil the largest number of requirements possible. CT2 requires learners to ‘ask questions to extend their thinking’. Development of this skill will be vital when learners are encouraged to look critically at evidence and information that is presented to them for use. CT3 requires learners to ‘connect their own and others’ ideas and experiences in inventive ways’. During the course of this unit learners will develop understanding of the marketing approaches used by real retail businesses. This will lead to learners having a wide range of real approaches to apply alongside their own ideas. CT4 requires learners to ‘question their own and others’ assumptions’. People often have pre- conceived ideas about what effective marketing entails due to their own perspective and taste. As part of this unit, learners must be encouraged to think more widely and question the assumptions that they have. 5
  6. 6. CT5 requires learners to ‘try out alternatives or new solutions and follow ideas through’. This will be an extension of CT1, where once learners have explored the possibilities they will need to select possibly suitable courses of action to determine the consequences of each. Functional Skills Learners at this level must achieve ‘mastery’ in the functional skills of English, ICT and Maths at Level 2. ‘Mastery’ means that the learners are able to apply their skills in English, ICT and Maths at that level, in any situation related to living and working. It is suggested that in the delivery of this unit teachers concentrate on English and ICT functional skills. Each functional skill has a separate, externally set and marked summative assessment. However, if learners are to acquire ‘mastery’ of the functional skills, it is preferable for them to be provided with integrated learning opportunities in which to demonstrate application of all 3 functional skills. In providing such opportunities, teachers will find it relatively easy to integrate English and some sections of ICT into projects, but integrating the functional skill of Maths will require more thought. However, prior to embarking on full projects, learners will need to practise demonstrating competence in applying functional skills during simple classroom exercises. The Functional Skills Standards can be downloaded from the QCA website via the following link: http://www.qca.org.uk/qca_15565.aspx. Teachers should focus on the right hand column of the standards for the functional skills of Maths and English to ensure that learners achieve full coverage of the standards, ie ‘mastery’, and to ensure that they are prepared for the external summative assessment. With regard to ICT, however, the middle and right hand columns need to be covered. Please also refer to the EDI Guidance for Centres, which gives tables showing the full list of learning outcomes for functional skills. The functional skills identified as being addressed in the following activity are dependent upon the scope of the project as presented by the learner. Suggested activity The activity below is a sample activity which shows how functional skills can be developed through the delivery of this unit. There is no requirement for learners to complete the activity highlighted below and teachers may prefer to deliver the learning outcomes within this unit through other delivery strategies. However, teachers should refer to the following example as a specification for how functional skills can be addressed through delivery activities. Further information about how the unit may be delivered can be found in the delivery strategies section of this unit specification. You are working on plans to develop and run a retail business, which will be implemented in other principal learning units. A business mentor has been appointed to support your work. You plan to work with your business mentor by carrying out market research into your proposed business idea. You will use this work and the data it generates to prepare a suitable marketing report, Teacher’s note: Business mentors are an important element to support learning. You need to develop good relationships with the employers who have shown their willingness to contribute to delivery by supporting the Diploma Gateway process. This unit and its suggested Functional Skills activity present ideal opportunities for working with retail industry specialists to support learners with their learning. 6
  7. 7. Activity Meet with your mentor and discuss your initial ideas for market research to support the development of your business idea. Agree a schedule of meetings to review your market research as it develops. Before you conclude the meeting, agree with your mentor what key points you need to include for the market research section of the business plan. Make suitable notes of the meeting outcomes and email a copy to your mentor. Use the internet to research similar types of business in your area. Analyse the information you find and use this to prepare a short summary to include in your marketing report. Prepare suitable market research documentation (eg a questionnaire, a structured interview) and use this with 50 potential customers for your business idea. Analyse your data and present it in a suitable format. Email copies of your work to your mentor as attachments for comment. Meet with your mentor and discuss your draft of the marketing report. Make suitable notes of the meeting outcomes and email a copy to your mentor. Prepare a final draft of your marketing report based on feedback from your mentor. Email your mentor a copy. Arrange a final meeting to discuss your work. Make suitable notes of the meeting outcomes and email a copy to your mentor. 7
  8. 8. Functional Skills Level 2 coverage and range from this activity English: Speaking and listening 1 2 3 4 English: Writing 1 2 3 4 5 6 English: Reading 1 2 3 4 5 Mathematics 1 2 3 4 5 6 7 8 9 10 11 12 13 ICT: Use ICT systems 1.1 1.2 1.3 1.4 1.5 2.1 3.1 3.2 4.1 4.2 4.3 4.4 5.1 ICT: Find and select information 1.1 1.2 2.1 2.2 2.3 ICT: Develop, present and communicate information 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 2.1 2.2 3.1 3.2 4.1 4.2 5.1 5.2 8
  9. 9. Control This unit is externally assessed. The level of control is high and the assessment task is written and marked by EDI. The task must be completed by learners under examination conditions. Guided Learning Hours This is an externally assessed unit and as a result centres should use the whole GLH for teaching and learning activities. Learners must have the opportunity to carry out facilitated individual and group research to prepare for this paper. Assessment Guidance This unit is externally assessed. The assessment will be based on one or more of the sub sectors stated in the taught content section. The external assessment involves a written examination. The written examination is one and a half hours and includes two structured and one extended question. Learners will be expected to apply the knowledge, understanding and skills that they have gained in the unit to a case scenario contained in the paper. The task will be based around forming strategic business decisions in the retail industry. EDI has produced a sample external assessment for this unit. For further information about the requirements, teachers should refer to the test specification associated with this unit. The test specification contains information about total marks for assessment, mark weightings and exemplifies EDI’s approach to sampling. Delivery Guidance Marketing will be a new concept for learners. Teachers should introduce a range of basic, but relevant marketing concepts, as a foundation to the unit (all of which are transferable to other industries). Teachers will need to ensure learners understand the two main market research methods: primary research (for example using customer feedback, surveys, questionnaires, interviews and focus groups) and secondary research (market analysis, information available from internal records and statistics, the internet, libraries, research companies, trade and national press and publications, or professional associations such as Skillsmart Retail Ltd, the Sector Skills Council for Retail). They should also introduce learners to PESTLE analysis as an evaluative tool. Examples of research and case study materials will be useful when explaining this aspect of marketing. The unit provides many opportunities for learners to use their previously acquired knowledge and understanding to produce relevant marketing materials. Despite the solid platform of understanding that this unit is based on, it is a particularly practical unit, enabling learners to enjoy developing some important new skills that will make them valued employees in the future. The unit can also be used as work for the extended project, particularly if the project concerns setting up a new retail business, where developing a suitable marketing strategy and using marketing activities to assess customer needs are vital. As with other related units, learners should be given many opportunities to listen to, ask questions of and see in action, sales and marketing specialists from different retail businesses across different sub-sectors. 9
  10. 10. Examples of how the unit could be delivered include: Group discussions, for example on the appropriateness of different approaches to marketing or the effects of external factors Examining examples of real or realistic marketing strategies for scrutiny by learners Case studies – copious opportunities to illustrate specific marketing points, particularly where strategies may be unsuccessful or damaging Examples of marketing materials (which learners may gather for themselves), including specific examples of different techniques and methods, such as point-of-sale materials. These should reflect different approaches from different types of business in the industry Video/DVD materials, illustrating the application of particular marketing techniques and their effect on customers Examples of job adverts or descriptions for retail marketing specialists Visits to retail businesses in different sub-sectors to illustrate different approaches to marketing Presentations from retailers or marketing specialists on ethical considerations of product development Presentations by visiting speakers who are marketing specialists (these should include small independent retail operators whose approach and budget may be very different from large and/or multiple organisations) Active learning techniques that will promote understanding for various learning styles include: Reviewing a marketing strategy against marketing intelligence and proposing a solution to deal with change. Developing projects set by retailer(s) to develop and/or review marketing strategies Carrying out primary and secondary market research using instruments they have designed themselves Discussions with retail business customers about how effective a marketing strategy has been (care must be taken to agree any interventions with the organisation hosting the opportunity) Analysing market research data and evaluating the outcomes Discussing different marketing strategies in peer groups to promote imaginative thinking and challenge ideas Working with a business mentor to develop a marketing strategy and/or a promotional and sales campaign Role plays with marketing specialists to explore the marketing strategy and/or the promotional and sales campaign The level of support required by a learner or the independence they can demonstrate will vary, differentiating learners from the least and most able. Experiencing the world of work is critically important for learners. It provides learners with opportunities to demonstrate their knowledge of retail marketing and how this work to promote and develop outlets within the retail industry. Learners also need opportunities to practise and develop a range of marketing skills in different retail environments and use the marketing information they have gathered to shape marketing decisions. These may be: 10
  11. 11. Real – a real, commercially operating retail business. It is likely that these are accessed for work experience to practise and develop skills relating to retail marketing activities and to observe examples of retail marketing concepts in action. They are also suitable environments to undertake enterprise and problem solving activities. It may be feasible for these to be used for formative and, with controls, summative assessment Mock shop – an environment that simulates a real retail environment. This could be, for example, a room adapted with facilities simulating a retail environment, using resources provided by retailers and endorsed by an employer. The mock shop will provide opportunities to explore marketing ideas. It is not commercially operational, but enables learners to gather data and use this both to shape marketing decisions and to inform decisions about business operations. Mock shops are ideal environments for formative and summative assessment as well as for learning. Virtual – there is now software available that presents virtual retail environments, such as View Retail. Unlikely to be used for assessment, but they will however provide stimulating learning opportunities and the chance to explore retail marketing ideas. Centres and individual teachers need to develop good relationships with the retail employers who have shown their willingness to contribute to delivery by supporting the Diploma Gateway process. Retail industry mentors can also add valuable input and support individual learners. These relationships are extremely important for this unit and employers from different retail sub- sectors could be used to introduce the concept of marketing and a range of marketing ideas within different retail outlets. Other opportunities for work related learning can be maximised by arranging visits to a range of local retail outlets of different sizes and formats and in different sectors to reflect a range of marketing applications. These visits will add significantly to realism and vocational relevance. They could involve a tour of the outlet with a manager or supervisor who is able to illustrate different aspects of marketing for different product lines and ranges in different retail sub- sectors. Such visits could also provide useful insights into the importance of marketing in retail businesses and the factors that influence approaches to marketing. Learners can also be provided with targeted websites that can be used to explore different marketing ideas using different retail channels. Learners also need exposure to different marketing strategies for outlets of different sizes and locations. Although the primary focus of this unit is on marketing within retail outlets, there are plenty of excellent opportunities for learners to explore their potential career development. Employers can also support teachers and the development of materials by providing information about the approaches to marketing they use, including examples of marketing materials and processes and methods used to gather marketing information. Employers can also support teachers with the development of case study materials, which are particularly useful to illustrate examples of successful marketing activities, as well as those that were unsuccessful, which learners may otherwise not experience. Employers can also contribute to classroom input where this is appropriate, such as an explanation of how a particular marketing strategy was developed and implemented. Employers are also crucial to the assessment process, helping to build formative assessment materials, commenting on their realism and relevance, or supporting development of the mock shop as a practical opportunity to develop marketing ideas. Employers can also be invited to presentations by learners about marketing concepts, asking pertinent questions. Retail is an exciting and relevant industry to work in and learn about. It is important that learners are stimulated and enthusiastic about the opportunities for employment and progression in a range of retail sectors. 11
  12. 12. Resources Recommended resources are aimed at teachers and may cover more than the content of this unit. They may also be appropriate at other levels. Textbooks Brittain P and Cox R, 2004. Retailing: An Introduction. Financial Times Prentice Hall. ISBN 0273678191. Falk, E, 2003. 1001 Ideas to Create Retail Excitement. Prentice Hall Press. ISBN 0735203431. Granger M and Sterling T, 2003. Fashion Entrepreneurship. Fairchild Books. ISBN 1563672332. McGoldrick P, 2002. Retail Marketing. McGraw-Hill Education. ISBN 0077092503. Sullivan M, 2002. Retail Marketing. Thomson Learning. ISBN 1861526024. Journals Retail Week is the leading publication for the UK retail sector covering food, fashion, property, stores and technology, with exclusive industry news, hard-hitting features and interviews, market data and offers practical advice on issues affecting UK retail. The Grocer – food and drink title In Store Magazine – retail design and marketing including new store design, in-store promotions, packaging breakthroughs, POP initiatives, e-commerce and digital technology. Websites Most major retail organisations maintain their own websites which will provide information to support this unit. Others include: http://www.skillsmartretail.com/ Sector Skills Council for retail http://www.skillsforlogistics.org/ Sector Skills Council which works alongside companies involved in moving, handling or storing goods http://www.motor.org.uk/ Sector Skills Council for the automotive retail industry http://www.skillfast-uk.org/ Sector Skills Council for fashion and textiles http://www.retail-week.com/ the UK's leading provider of retail industry news, top retail jobs and key retail market data, from across the entire retail sector http://www.theretailbulletin.com/ online retail news resource for retailers with news on retail, e-tail and multichannel retail 12
  13. 13. www.retailchoice.com/ jobs in retail marketing www.retailmarketing.co.uk/ example of commercial retail marketing specialist www.teneric.co.uk/retail-marketing-plan.html sample retail marketing plan to market businesses effectively and improve retail business profits. Multimedia Web-based materials available to support this unit change regularly and teachers are encouraged to explore what is available. Examples include: http://www.teachers.tv/ programmes about retailing on TV and on- line http://www.viewretail.com/ VIEW is an ICT based application that provides a young person with access to the workplace. It is designed as an accessibility tool and therefore needs the support of good planning and teacher involvement in the same way as any real visit to a workplace. VIEW provides a means to: Move around the workplace through a network of 360 degree panoramic images, Examine evidence such as images, image series, documents, audio interviews and short videos, Act as a portal to relevant material online. http://www.thetimes100.co.uk/case-study-- This case study shows how a carefully the-use-marketing-mix-product-launch--87- balanced marketing mix provides the 303-1.php platform for launching and re-launching a brand onto the market http://www.thetimes100.co.uk/theory/theory- The theory of sales and marketing -marketing-sales--275.php Mary Queen of Shops BBC2 series featuring Mary Portas, one of the UK’s foremost authorities on retail and brand communication. The Apprentice BBC1 series lasting 12 weeks each year during which candidates compete for the prize of becoming an apprentice for Sir Alan Sugar, one of Britain’s most successful retailers. The candidates are divided into two teams and are set tasks to stretch their creative and business skills with a view to making a profit. 13